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FCA and UAW deal could mean huge production shakeups

The big labor contract between Fiat Chrysler Automobiles and the United Auto Workers is likely to lead to some very serious production shakeups across the company's North American manufacturing operations. That's according to a new report from Automotive News, which details the sweeping changes at no fewer than five production facilities in Michigan, Illinois, Ohio, Mexico, and Poland. So without further ado, here's what's going where, presented in easy to digest bullet form. Ram 1500 production would move from Warren, MI to Sterling Heights, MI Warren, MI would be retooled for unibody production and would handle the Jeep Grand Wagoneer and could potentially build Grand Cherokees to ease the strain on Detroit's Jefferson North factory Chrysler 200 production would move from Sterling Heights, MI to Toluca, Mexico Dodge Dart production would move from Belvidere, IL to Toluca, Mexic Fiat 500 production, which is currently handled by Toluca, would be concentrated in Poland, where the Euro-spec Cinquecento is built Jeep Cherokee production would move from Toledo, OH to Belvidere, IL to make room for Wrangler and Wrangler Pickup production Like we said, those are some big changes. But, as FCA CEO Sergio Marchionne said in an earlier interview with Automotive News, this kind of shakeup would make a lot of sense. In that August interview the exec said that automakers moved truck production to Mexico because they were "threatened" by the UAW. "The only thing [the UAW] want is to move the truck back. Which is right. If you move the truck back here, which is [the UAW's] domain, [and move] all the cars that we get killed on somewhere else, we could actually make sense of this bloody industry and actually increase the number of people employed in this country and really share wealth because we are making money," Marchionne told AN. News Source: Automotive News - sub. req.Image Credit: Bill Pugliano / Getty Images Plants/Manufacturing UAW/Unions Chrysler Dodge Fiat Jeep RAM Sergio Marchionne FCA toluca warren sterling heights

164K Jeep Cherokees recalled to protect liftgate from moisture

FCA is recalling 164,003 examples of the 2014 and 2015 Jeep Cherokee because moisture can damage the power liftgate controls on models that are equipped with that feature. Regionally, this includes 99,436 of them in the US, 13,195 in Canada, 2,406 in Mexico, and 48,966 outside of NAFTA. The problem came to light after the automaker started investigating a fire in one of the SUVs. There were no injuries, though. According to FCA US' research, the power hatch's control module potentially can be exposed to water. This can cause a short circuit and possibly a fire, as in this case. Until the issue is repaired, the company is advising owners to keep the cargo area dry on Cherokees equipped with this feature. To fix things, dealers will install a shield around the controls to protect them from moisture and will replace any modules showing exposure to water. Statement: Water-Shield Installation June 24, 2015 , Auburn Hills, Mich. - FCA US LLC is voluntarily recalling an estimated 99,436 SUVs in the U.S. to install shields that protect their power liftgate control modules, and related components, from moisture. FCA US LLC began an investigation after learning of a reported vehicle fire. The probe revealed power liftgate control modules in certain SUVs may be inadvertently exposed to water. This may cause a short-circuit, creating a fire hazard. However, the Company is unaware of any related injuries or accidents. The campaign affects model year 2014 and 2015 Jeep Cherokee SUVs, but is limited to vehicles equipped with power liftgates. An estimated 13,195 customers are affected in Canada, along with an estimated 2,406 customers in Mexico and 48,966 outside the NAFTA region. The estimated total recall population is 164,003. All affected customers will be advised when they may schedule service. If the modules show signs of water exposure, they will be replaced. All recall-related work will be performed free of charge. In the interim, the cargo areas of 2014-15 Cherokees equipped with power liftgates should be monitored and kept dry. Customers with questions may call the FCA US Customer Information Center at 1-800-853-1403.

Jeep Cherokee faces on-sale delay

A report in The Wall Street Journal looks at some of the obstacles to the 2014 Jeep Cherokee that go beyond its mootable yet "very contemporary" looks, almost all of them based on Fiat's financial position. Starting with that sheetmetal, in defense of it SRT president Ralph Gilles and Jeep design head Mark Allen said they wanted to "make sure the design still looks modern five years from now."
The WSJ piece doesn't cite longevity as a factor, instead saying that its features originated in a design for an Alfa Romeo, the transformation into a Jeep design meant allowing Chrysler get it to market more quickly and save "hundreds of millions of dollars" in engineering.
The need for Fiat to save money while it weathers the European situation has cut budgets for development, engineering and the pace of retooling the Toledo, Ohio plant to build the Cherokee. In a familiar case of snowballing at work, among the effects will be pushing back the Cherokee's volume sales date and delaying updates to some of Chrysler's other products.