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Fiat Chrysler and the UAW reach tentative labor deal

DETROIT — Fiat Chrysler Automobiles and the United Auto Workers (UAW) union on Saturday announced a tentative agreement for a four-year labor contract, a boost for the automaker as it works to merge with France's Groupe PSA. Italian-American Fiat Chrysler and PSA, the maker of Peugeot and Citroen, last month announced a planned $50 billion merger to create the world's fourth-largest automaker. The tentative agreement with Fiat Chrysler, which is subject to ratification by the union members, follows contracts that the UAW already concluded with Ford Motor Co and General Motors Co. The deal with GM followed a 40-day strike in the United States that virtually shuttered GM's North American operations and cost the automaker $3 billion. The UAW on Saturday said the contract with Fiat Chrysler included a commitment from FCA to invest $9 billion, creating 7,900 new jobs over the course of the four-year contract. Of the $9 billion, $4.5 billion was announced earlier this year, to be invested in five plants and creating 6,500 jobs. Detailed terms of the tentative agreement were not released, but they are expected to echo those under the new contracts with GM and Ford, as the UAW typically uses the first deal as a pattern for the others. "FCA has been a great American success story thanks to the hard work of our members," UAW acting President Rory Gamble said in a statement. "We have achieved substantial gains and job security provisions for the fastest growing auto company in the United States." Ratification is not a sure thing. Rank-and-file UAW members at FCA in 2015 rejected the first version of a contract. In addition, a lawsuit related to a federal corruption probe could also raise doubts among union members about the terms agreed. The federal corruption led GM to file a racketeering lawsuit against FCA, alleging that its rival bribed union officials over many years to corrupt the bargaining process and gain advantages, costing GM billions of dollars. FCA has brushed off the lawsuit as groundless. Under the UAW's deal with GM, the automaker agreed to invest $9 billion in the United States, including $7.7 billion directly in its plants, and to create or retain 9,000 UAW jobs. Ford's contract included commitments to invest more than $6 billion in its U.S. plants and to create or retain more than 8,500 UAW jobs. The deals with GM and Ford also created a pathway to full-time employment for temporary workers and left healthcare insurance coverage unchanged.

Chrysler recalling over 280k minivans because airbags may deploy on wrong side

Chrysler has issued a recall for some 2013 Town & Country, Dodge Grand Caravan and Ram C/V Tradesman vans built between May 10, 2012 and June 7, 2013. These vehicles may have a software error that would cause the wrong side (opposite side) airbags to deploy in a crash. With this defect, a left-side impact would cause the right-side airbag to deploy, etc.
The recall affects 281,500 vehicles in total: 224k in the US, 49,300 in Canada, 2,900 in Mexico and 5,300 in other locations. Chrysler will notify owners of effected vehicles, and reflash the offending occupant restraint control module to resolve the issue. Scroll down to read the National Highway Traffic Safety Administration press release.

Killing the Dart and 200 might lower FCA's fuel economy burden

Killing the Dodge Dart and Chrysler 200 could allow FCA US to take advantage of an intriguing quirk in the next decade's fuel economy regulations. By increasing its ratio of trucks versus cars, the automaker might not need to worry so much about hitting the more stringent efficiency rules. At first thought, it might seem harder for an automaker with a ton of trucks to meet the government's mandated 54.5 mile per gallon corporate average fuel economy for 2025. However, every company doesn't need to hit that lofty figure, according to The Detroit Free Press. The exact target varies by the product mix between trucks and cars. "While passenger car and light truck categories have separate CAFE targets, it's still true that more trucks versus cars in a company lineup means a lower combined CAFE target," Brandon Schoettle, Project Manager Sustainable Worldwide Transportation at the University of Michigan Transportation Research Institute, told Autoblog. "While passenger car and light truck categories have separate CAFE targets, it's still true that more trucks versus cars in a company lineup means a lower combined CAFE target." FCA US' current product blend has 80 percent pickups and CUVs, which means the company stands to benefit from a lower fuel economy target. It might not seem entirely fair environmentally, but this is a great move from a business perspective. The new CAFE rules aren't set in stone, according to The Detroit Free Press, but potentially taking advantage of the regulation is just one more reason to cut the Dart and 200. Modern crossovers also aren't gas guzzlers like older SUVs, which could make it easier to hit the fuel economy target. "Utilities offer practicality and versatility that cars do not, and now, built on car architectures, they do not penalize consumers on fuel economy as they once did," AutoTrader Senior Analyst Michelle Krebs told Autoblog. Schoettle warns that FCA is still making a gamble by killing the small sedans. "Depending on the previous sales volumes and how much these vehicles might have exceeded their specific CAFE targets, it's possible that these cars helped earn CAFE credits for FCA that they could bank for future use," he said. "Future sales breakdowns [car vs.