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PSA unions vote in favor of merger with Fiat Chrysler

PARIS — The majority of unions representing workers at Peugeot maker PSA are in favor of a planned $50 billion merger with Fiat Chrysler, PSA executives and union representatives said. However, the unions said that once the merger deal was signed, they would be seeking detailed information about the plans for the combined company. At a PSA works council meeting, all trade union representatives on the council voted to give a favorable opinion on the merger. "We will remain vigilant about the social impact and await a clearer and more detailed picture of the plan's implications for plants, volume, and how much work will be given to the foundries," said Franck Don, representative of the CFTC union. "But the project in the form it's been presented makes sense because the two groups complement each other, are in good financial health, and thanks to the new format will attain a critical size which is vital in the auto business today." The merger would help the firms pool resources to meet tough new emissions rules and investments in electric and self-driving vehicles, as well as counter a broader downturn in car markets. Securing support from Europe's powerful trade unions will be critical for the merged company, which will employ more than 400,000 staff and operate hundreds of factories worldwide. The deal has stirred concerns in Germany and Britain where plants making Opel and Vauxhall cars have seen jobs cut in recent year as part of a cost-cutting drive. UAW/Unions Chrysler Fiat Citroen Peugeot PSA

Mopar opening Custom Shop at Cobo

While other automakers have been streamlining their brand portfolio, the Chrysler Group has shown no such signs. It's got the Dodge, Chrysler and Jeep brands, plus Fiat, and it recently broke out its SRT and Ram nameplates into their own brands. And you can bet each will have its own presence at the Detroit Auto Show this year. But don't forget Mopar. The company's performance parts division is getting its own display at Cobo this year, and it'll be the largest in the brand's history.
The Mopar Custom Shop is poised to take up 5,500 square-feet of Cobo floor space, further expanding on last year's Mopar Garage. If the image above offers any indication, the show stand will include a Dodge Challenger, SRT Viper, Fiat 500L, Jeep Wrangler, Jeep Cherokee, Ram 3500 and what looks like (but isn't identified in the press release below as) a Chrysler 200 (which may be replaced by a 2014 model), all augmented with Mopar parts and accessories.
Visitors will also be able to use pre-programmed iPads to configure Chrysler Group vehicles with a wide range of accessories - a portfolio that grows by 1,500 new parts every year and tops over 100 add-ons for every new vehicle Chrysler launches.

Italian government to lean on Fiat's Marchionne to commit to country

With the recent chatter that Fiat is looking to move its global headquarters to the US following a complete merger with Chrysler, the Italian government is voicing its opinion on the matter. Facing the potential job loss from the automaker leaving the country, Italy's industry minister is meeting with Fiat CEO Sergio Marchionne in what will likely be a plea to keep the company based in Turin rather than moving to Auburn Hills, MI - if indeed it is able to acquire the additional 41.5 percent of Chrysler currently owned by the United Auto Workers.
According to Bloomberg, Fiat is Italy's biggest private employer and unemployment is already nearing a 20-year high. The non-car side of Fiat, Fiat Industrial, is already planning a move to the UK, so it goes without saying that Fiat moving would be a pretty big blow for the Italian economy. In the article, Fiat says that the headquarters issue is "not on its agenda now," but that statement is far from a denial.