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Fiat Chrysler agrees to plead guilty, pay $30M in UAW probe

DETROIT  — Fiat Chrysler Automobiles US has agreed to plead guilty and pay a $30 million fine for a corruption scandal at the union that represents its factory workers, authorities said Wednesday. Company representatives gave more than $3.5 million in cash and other things of value to senior officials at the United Auto Workers, federal prosecutors in Detroit said as they charged FCA with conspiracy from 2009 to 2016. Details of the payoffs have been public for a few years and acknowledged during guilty pleas by FCA employees and others. FCA spokeswoman Shawn Morgan confirmed the company's planned guilty plea and fine. Al Iacobelli was the head of labor relations at Fiat Chrysler and co-chairman of the UAW-Chrysler National Training Center in Detroit. The government said he signed off on $262,000 to wipe out a mortgage held by UAW vice president General Holiefield, who was the center's other co-chairman. Iacobelli also approved $25,000 from the training center for a party for union vice president Norwood Jewell and the UAW's international executive board, the criminal charge states. Training center credit cards paid for more than $30,000 in meals for UAW officials at various restaurants in Southern California, the government said. “They did that with the hope that the company itself could possibly get more favorable treatment from the unionÂ’s leaders” during labor negotiations, U.S. Attorney Matthew Schneider said Wednesday. Indeed, an indictment returned in 2017 said Iacobelli and others set up a liberal policy for credit cards to keep union officials “fat, dumb and happy." Iacobelli was sentenced to 5 1/2 years in prison in 2018, but the sentence was recently reduced by 18 months due to his cooperation. Holiefield died in 2015; his wife pleaded guilty to a tax crime three years later. The governmentÂ’s investigation began at the training center but stretched to other corrupt acts at the UAW. Eleven officials have been convicted, including two former union presidents. Investigators found that union dues were used to pay for golf, booze and vacation villas in California. The UAW recently agreed to have an independent monitor watch union finances and operations. Fiat Chrysler US is a subsidiary of Stellantis, a company created by the merger of Fiat Chrysler and PSA Peugeot.

Junkyard Gem: 1977 Fiat 124 Sport Spider

The Fiat 124 Sport Spider was sold in the United States for the 1968 through 1982 model years, after which Malcolm Bricklin imported the car under the Pininfarina brand for another couple of years. During the car's heyday in the middle to late 1970s, 124 Sport Spiders could be seen all over American roads... and a surprising number of these cars have survived long enough to appear in wrecking yards on a regular basis. Here's a '77 in a Denver junkyard. A 1970s 124 Sport Spider in restorable but rough condition isn't worth much; these cars were very affordable when new and beat-up ones have been available for three-figure prices for the last 30 years. This means plenty of them sit around as unfinished projects for year after year, then show up in wrecking yards. I see so many discarded 124 Sport Spiders that I don't even bother photographing most of them. Still, they're interesting cars, and it's a plus for those who do want to restore them that parts can still be found. The 1.8-liter dual-overhead four-cylinder in the '77 Sport Spider made 86 horsepower, which gave this car a performance edge over its arch-rival, the MGB (which had just 62.5 horses and weighed 100 pounds more). The MG was just $5,150 in 1977, though, versus the $6,115 price tag on the Fiat (that's about $22,100 and $26,300, respectively, in 2018 dollars). This one has some rust in the usual places, which might have been worth fixing on something like an Alfa Romeo Spider. With this car, it was a death sentence. Related Video:

Fiat jokes 124 Spider as effective as Viagra

Fiat has released a follow up to its innuendo-laden 500X ad from last year. But rather than a crossover, um, reacting to a certain little blue pill, the company's new 124 Spider is the pill. Now, Road and Track readers might remember seeing something about this video. It originally aired as part of the 124 Spider's debut footage from the 2015 Los Angeles Auto Show. At the time, it wasn't supposed to become a commercial – it was just a riff on a cheeky spot meant to sell CUVs. This new commercial is identical to the original footage shown in LA. Using the same old Italian couple as the previous spot, this new ad features an Italian man run out of his Viagra, and run off to get more. As it turns out, he just didn't need it. That's about all you need to know, really. So check out the ad up top.