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Ram boss says not to expect midsize pickup in America

Remember that mysterious midsize four-door pickup FCA was spotted testing recently? It may be sold as a Fiat in markets overseas, but don't expect it to join the Ram lineup in North America. At least not according to the latest word from the truck brand's new boss. Speaking with Automotive News at the New York Auto Show, Ram CEO Bob Hegbloom outlined four criteria for a successful midsize pickup, particularly in the North American marketplace: they have less capability than a fullsize truck, but return with a more compact form, lower price and considerably higher fuel economy. "I've been able to develop a strategy to come up with three of the four," said Hegbloom, but "I haven't seen anyone who can deliver on all four." Smaller and less capable are easy, but getting both the price and the fuel consumption down at the same time is where it gets tricky. As it is, a Ram 1500 with the diesel engine and rear-wheel drive delivers 29 miles per gallon on the highway, which is already more than the 27-mpg rating on the midsize Chevy Colorado and GMC Canyon. But Hegbloom figures that in order to justify a midsize pickup, American buyers would expect at least 35 mpg on the highway, and in order to do so, FCA would have to employ some trick tech, which would in turn raise the price beyond an attractive level. The last time Chrysler offered a midsize truck in America was with the Dakota that was discontinued in 2011. Ford similarly ceased offering the Ranger in North America in 2012, leaving the new Colorado and Canyon to take on the Toyota Tacoma and Nissan Frontier in the compact/midsize pickup market in the US. With the prospect of a Ram version apparently off the table, then, Fiat's midsize four-door pickup is likely take on the likes of the Volkswagen Amarok, Mitsubishi Triton and Toyota Hilux in markets like Europe and South America. But like those trucks, it will likely never see the inside of an American showroom.

Detroit 3 and UAW could create healthcare pool

Healthcare costs continue to multiply in the US with no clear end in sight, but the United Auto Workers and the Big Three are negotiating a way to rapid growth under control. As part of the latest contract talks, the union has an idea to create a healthcare pool across all of its members at Ford, General Motors, and FCA US. If accepted, the company-wide integration would spread out the expenses and create a massive member base for bargaining with insurance companies. Both Ford and GM are at least considering the proposal, according to The Detroit News, and FCA US might be on board, as well. The idea is the work of current UAW president Dennis Williams and is based on the similar pool for the Voluntary Employee Beneficiary Association for retirees. "I've walked through this several ways; I just don't have any other answer," Williams said to The Detroit News. "I do believe this will work. It's worked with the VEBA." Williams was elected UAW president last year and won by an overwhelming margin. He vowed no more concessions to automakers. In addition to healthcare, the two-tier wage system is another major talking point in the contract negotiation because it gives fewer benefits to entry-level workers. Higher wages are also a request. Healthcare costs are a massive expense for automakers and are expected to reach over $2 billion this year, according to The Detroit News. The payments are up nearly 50 percent or more in just the last four years.

Automakers want to stop the EPA's fuel economy rules change, and why that's a shortsighted move

With a Trump Administration looming, the EPA moved quickly after the election to propose finalizing future fuel economy rules last week. The auto industry doesn't like that (surprise), and has started making moves to stop the EPA. Ford CEO Mark Fields said he wanted to lobby Trump to lower the standards, and now the Auto Alliance, a manufacturer group, is saying it will join the fight against cleaner cars. The Alliance represents 12 automakers: BMW, Fiat Chrysler, Ford, GM, Jaguar Land Rover, Mazda, Mercedes-Benz, Mitsubishi, Porsche, Toyota, VW, and Volvo. Gloria Bergquist, a spokesperson for the Alliance, told Automotive News that the "EPA's sudden and controversial move to propose auto regulations eight months early - even after Congress warned agencies about taking such steps while political appointees were packing their bags - calls out for congressional action to pause this rulemaking until a thoughtful policy review can occur." The EPA was going to consider public comments through April 2017, but then said it would move the deadline to the end of December. That means that it can finalize the rules before President Obama leaves office. The director of public affairs for the Consumer Federation of America, Jack Gillis, said on a conference call with reporters last week when the EPA originally announced its decision that it is unlikely that President Trump will be able to roll back these changes. Gillis also said on the same call that any attempt by the automakers to prevent these changes would be history repeating itself. "These are the same companies that fought airbags, and now promoting the fact that every car has multiple airbags," he said. "These are the same companies that fought the crash-test program, and now are promoting the crash-test ratings published by the government. So, it's clear that they're misperceiving the needs of the American consumer." There are more reasons the Allliance's pushback is flawed. Carol Lee Rawn, the transportation program director for Ceres, said on that call that the automotive industry is a global one, and many automakers are moving to global platforms to help them meet strict fuel economy rules around the world.