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Scandal-rocked UAW extends Ford, FCA contracts, prepares to strike GM

DETROIT — Leaders of the United Auto Workers union have extended contracts with Ford and Fiat Chrysler indefinitely, but the pact with General Motors is still set to expire Saturday night. The move puts added pressure on bargainers for both sides as they approach the contract deadline and the union starts to make preparations for a strike. The contract extension was confirmed Friday by UAW spokesman Brian Rothenberg, who declined further comment on the talks. The union has picked GM as the target company, meaning it is the focus of bargaining and would be the first company to face a walkout. GMÂ’s contract with the union is scheduled to expire at 11:59 p.m. Saturday. ItÂ’s possible that the four-year GM contract also could be extended or a deal could be reached, but itÂ’s more likely that 49,200 UAW members could walk out of GM plants as early as Sunday because union and company demands are so far apart. Picket line schedules already have been posted near the entrance to one local UAW office in Detroit. Art Wheaton, an auto industry expert at the Worker Institute at Cornell University, expects the GM contract to be extended for a time, but he says the gulf between both sides is wide. “GM is looking through the windshield ahead, and it looks like nothing but land mines,” he said of a possible recession, trade disputes and the expense of developing electric and autonomous vehicles. “I think thereÂ’s really going to be a big problem down the road in matching the expectations of the union and the willingness of General Motors to be able to give the membership what it wants.” Plant-level union leaders from all over the country will be in Detroit on Sunday to talk about the next steps, and after that, the union likely will make an announcement. But leaders are likely to face questions about an expanding federal corruption probe that snared a top official on Thursday. Vance Pearson, head of a regional office based near St. Louis, was charged with corruption in an alleged scheme to embezzle union money and spend cash on premium booze, golf clubs, cigars and swanky stays in California. ItÂ’s the same region that UAW President Gary Jones led before taking the unionÂ’s top office last year. Jones and other union executives met privately at a hotel at Detroit Metropolitan Airport on Friday. After the meeting broke up, JonesÂ’ driver and others physically blocked an AP reporter from trying to approach him to ask questions.

Takata adds millions to recall expansion in US [UPDATE]

UPDATE: Ford spokesperson Kelli Felker has advised Autoblog that of the 1,509,535 total vehicles worldwide that the company is recalling, 966,504 of them are new additions for this expanded safety campaign. Last week, the National Highway Traffic Safety Administration announced that the Takata airbag inflator recalls would expand to an estimated 33.8 million vehicles in the US. However at the time, automakers weren't sure specifically which of their models might be affected under this enlarged campaign. Now, the numbers for BMW, FCA, Ford, and Mitsubishi are being released by the agency. Additionally, Honda is outlining the broadening of its own campaign. BMW's recall amounts to 420,661 vehicles in the US, an increase from 140,696 previously. All of the following models need their front, driver's side airbag replaced: 2002-2005 BMW 325i/325xi/330i/330xi Sedan 2002-2005 BMW 325xi/325i Sportswagon 2002-2006 BMW 330Ci/325Ci/M3 Convertible 2002-2006 BMW 325i/330i/M3 Coupe 2002-2003 BMW M5/540i/525i/530i Sedan 2002-2003 BMW 540i/525i Sportswagon 2003-2004 BMW X5 3.0i/4.4i BMW has received no reports of any injures or deaths from this problem in its vehicles. FCA has 5,224,845 vehicles globally in need of inflator replacements, according to its statement. However, the company is only aware of one injury related to the issue, which occurred in a 2006 Dodge Charger in southern Florida. There are 4,747,202 vehicles worldwide from the company that are affected on the front, driver's side. Among these, 4,066,732 are in the US, 374,508 are in Canada, and the rest are in other countries. The models are: 2005-2009 Dodge Ram 2500 Pickup 2004-2008 Dodge Ram 1500 Pickup 2006-2009 Dodge Ram 3500 Pickup 2007-2009 Dodge Ram 3500 Cab Chassis 2008-2010 Dodge Ram 4500/5500 Cab Chassis 2008-2009 Sterling 4500/5500 Cab Chassis 2004-2008 Dodge Durango 2007-2008 Chrysler Aspen 2005-2010 Chrysler 300/300C/SRT8 2005-2010 Dodge Charger/Magnum 2005-2011 Dodge Dakota 2006-2010 Mitsubishi Raider Also, there are 438,156 vehicles in the US, according to the NHTSA documents, that need their front passenger's side inflators replaced in the expansion of an earlier regional recall: 2003 Dodge Ram 1500 2003 Dodge Ram 2500 2003 Dodge Ram 3500 The total number of vehicles from Ford now covered under these campaigns stands at 1,509,535 worldwide. Of this total, there are 1,380,604 in the United States, 93,207 in Canada and 16,953 in Mexico.

Fiat Chrysler and Renault pursue $35-billion merger to combat car industry upheaval

MILAN/PARIS — Fiat Chrysler pitched a finely balanced merger of equals to Renault on Monday to tackle the costs of far-reaching technological and regulatory changes by creating the world's third-biggest automaker. If it goes ahead, the $35 billion-plus tie-up would alter the landscape for rivals including General Motors and Peugeot maker PSA Group, which recently held inconclusive talks with Fiat Chrysler (FCA), and could spur more deals. Renault said it was studying the proposal from Italian-American FCA with interest, and considered it friendly. Shares in both companies jumped more than 10 percent as investors welcomed the prospect of an enlarged business capable of producing more than 8.7 million vehicles a year and aiming for 5 billion euros ($5.6 billion) in annual savings. It would rank third in the global auto industry behind Japan's Toyota and Germany's Volkswagen. But analysts also warned of big complications, including Renault's existing alliance with Nissan, the French state's role as Renault's largest shareholder and potential opposition from politicians and workers to any cutbacks. "The market will be careful with these synergy numbers as much has been promised before and there isn't a single merger of equals that has ever succeeded in autos," Evercore ISI analyst Arndt Ellinghorst said. With these sensitivities in mind, FCA proposed an all-share merger under a listed Dutch holding company. After a 2.5 billion euro dividend for existing FCA shareholders - giving a big upfront boost to the Agnelli family that controls 29% of FCA - investors in each firm would hold half of the new entity. The merged group would be chaired by Agnelli family scion John Elkann, sources familiar with the talks told Reuters, while Renault chairman Jean-Dominique Senard would likely become CEO. Italian Deputy Prime Minister Matteo Salvini said the proposed merger could be good news for Italy if it helped FCA to grow, but it was crucial to preserve jobs. He did not comment on the French government's 15% stake in Renault, but an influential lawmaker from the ruling League party said Rome may seek a stake in the combined group to balance France's holding. A deal could also have profound repercussions for Renault's 20-year-old alliance with Nissan, already weakened by the crisis surrounding the arrest and ouster of former chairman Carlos Ghosn late last year. The Japanese carmaker has yet to comment on FCA's proposal.