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Strike looms for FCA workers as soon as Wednesday night

A strike is on the very near horizon for at least some United Auto Workers members at FCA US. On October 6, the union sent a letter to the automaker that officially announced the termination of its agreements with the company as of 11:59 PM on Wednesday, October 7. Assuming that a deal or extension hasn't happened by that time, workers could hit the picket line. While neither side is talking much publicly, it does appear that negotiations are still underway. In a very brief statement, the automaker simply says: "FCA US confirms that it has received strike notification from the UAW. The Company continues to work with the UAW in a constructive manner to reach a new agreement." The UAW seems equally receptive, and it says in a post on Facebook: "Negotiations with FCA continue. Your bargaining team is hard at work and we will continue to post updates when there is more to report." If a strike happens, it could put a serious financial burden on FCA US. Economist Sean McAlinden from the Center for Automotive Research estimates the cost at as much as $40 million per week, according to Reuters. The union hasn't clarified at this time whether all of its workers with the automaker would stop working or if the picket lines would only be at specific plants. The first tentative agreement posted to UAW members working with FCA US utterly failed in voting. Raises and a healthcare co-op would have been among the new benefits. However, the employees were upset that the proposed deal retained a two-tier wage structure, and they also didn't like the lack of details about rumors of major production changes.

Marchionne ready to get tough with GM over merger

FCA CEO Sergio Marchionne absolutely refuses to let go of his dream of a merger with General Motors. With official discussions not happening, Marchionne now hints that a hostile takeover attempt of The General could be under consideration as a future strategy. In a massive interview with Automotive News, the boss explains why a tie-up with GM might be such a windfall for both automakers. By Marchionne's numbers, a merged GM-FCA would produce $30 billion a year in global earnings and 17 million vehicles annually. He claims these huge figures are based on analyzing plants around the world to find growth opportunities. So far, GM is refusing to sit down and look at the numbers, let alone even begin to negotiate. For now, Marchionne just wants to talk, but he's not against aggressive action, if necessary. He uses a bizarre metaphor in the interview to explain his feelings. "There are varying degrees of hugs. I can hug you nicely, I can hug you tightly, I can hug you like a bear, I can really hug you. Everything starts with physical contact," he said to Automotive News. "An attack on GM, properly structured, properly financed, it cannot be refused," he said in the interview. Marchionne is looking for partners, too. The UAW's significant stake in GM could be a strong ally, and he's reportedly recruiting activist investors for more help. Selling Magneti Marelli and spinning off Ferrari would put even more cash in the war chest. Both sides also have banks at their aid. While Marchionne received positive replies from some of his "Plan B" partners, he apparently lost interest in working with them. "Are they the people I wanted to get the response from? The answer is probably not. There are people who are interested in doing deals," he said in the interview. News Source: Automotive News - sub. req.Image Credit: Paul Sancya / AP Photo Earnings/Financials Chrysler Fiat GM Sergio Marchionne FCA merger

Automakers donating money, vehicles and supplies to Oklahoma tornado relief effort

Judging by the destruction the Oklahoma City area experienced earlier this week, residents are going to need a lot of help in coming months. Fortunately, a number of automakers - including General Motors, Ford, Chrysler, Volkswagen, Honda and Toyota - have stepped up to donate money, supplies and vehicles to aid in the recovery and rebuilding processes.
Here's a quick rundown of which automakers have pitched in and what each contributed so far:
Ford Motor Company has donating $250,000 and a Transit Connect to the American Red Cross, and it will match all other donations made to the Red Cross (up to $250,000) using a special URL tied to the latter's website (link here). Additionally, its local Oklahoma dealers have thrown in an extra $150,000 for the United Way and the automaker will be offering an extra $500 toward the purchase of a new Ford vehicle.