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Italy reportedly guarantees $7.1 billion loan to Fiat Chrysler

ROME — Italy has approved a decree offering state guarantees for a 6.3-billion euro ($7.1 billion) loan to Fiat Chrysler's (FCA)  Italian unit, a source said, paving the way for the largest crisis loan to a European carmaker. The source said Italy's audit court had signed off on the decree, in a final step of what had been a lengthy and contested process to get the loan approved. The court's approval follows an earlier endorsement by the economy ministry. "The audit court authorized the decree," said a source close to the matter, asking not to be named because of its sensitivity. FCA's Italian division has tapped Rome's COVID-19 emergency financing schemes to secure a state-backed, three-year facility to help the group's operations in the country, as well as Italy's car sector in which about 10,000 businesses operate, weather the crisis triggered by the coronavirus emergency. The loan will be disbursed by Italy's biggest retail bank Intesa Sanpaolo, which has already authorized it pending the approval of guarantees the government will provide on 80% of the sum through export credit agency SACE. The request for state support has sparked controversy because FCA is working to merge with French rival PSA and the holding for the Italian-American carmaker is registered in the Netherlands. FCA's global brands include Fiat, Jeep, Dodge and Maserati. It was not immediately clear what conditions, if any, Italy has set as part of the guarantees and whether they would affect FCA's planned 5.5 billion euro ($6.2 billion) extraordinary dividend, which is a key element in the merger with PSA. FCA, whose shares were down 0.5% by 0908 GMT, had no immediate comment.   Earnings/Financials Chrysler Fiat Peugeot Italy

UAW workers strike at Stellantis casting plant in Indiana

DETROIT — United Auto Workers union members went on strike Saturday at the Stellantis casting plant in Indiana, citing health and safety issues including the company's alleged refusal to repair and replace the plantÂ’s air conditioning and heating systems. The 35-acre plant in Kokomo makes parts used in the powertrains of Chrysler, Dodge, Jeep and RAM vehicles and a long-term strike could affect vehicle assembly lines across North America. Stellantis says production had not been scheduled for this weekend and it hoped to resume negotiations as soon as possible on a contract with striking UAW Local 1166. In a statement, Stellantis said it was committed “to providing a safe and healthy work environment for all employees. After bargaining in good faith for two days and presenting an offer we believed addressed the unionÂ’s concerns, we are disappointed by the UAWÂ’s decision to walk out.” The 1,200-worker plant, Kokomo Casting, is the world's largest die cast facility, according to Stellantis. It makes aluminum parts for components including transmissions and engine blocks. The UAW local complained in a statement that Stellantis “claims it has no money to meet its membership's basic needs while ”making record profits and investing billions in a new battery plant across the street." UAW local president David Willis did not immediately return a phone call seeking comment. A person who answered the phone at union offices said he was preparing for a resumption in negotiations. The casting plant is to be retooled to produce engine blocks for hybrid-electric vehicles. In May, Stellantis announced a $2.5 billion joint venture with Samsung to build an electric vehicle battery factory in Kokomo that is to employ 1,400 workers. Stellantis, formed last year with the merger of Fiat Chrysler and FranceÂ’s PSA Peugeot, had said it would build two electric vehicle battery factories in North America. The other is slated for Windsor, Ontario. Plants/Manufacturing UAW/Unions Chrysler Dodge Jeep RAM

Would you pay $17 a month to give your older Ford connectivity?

When it was first introduced in 2007, there was nothing like the original Ford Sync system, since it allowed car owners to connect and use a portable device better than anything that came before it. And because it was a brought-in/tethered and software-based system, Sync leveraged a device's connectivity and was easily updated. It took competitors awhile to catch up: Toyota Entune wasn't available until 2011, and Chevy MyLink didn't roll out until 2012. But now Ford is the one playing catchup since it stuck with the brought-in strategy while most other automakers were quicker to add connectivity via an embedded cellular modem. Ford initially installed 2G/3G modems in its small fleet of electric and plug-in electric vehicles starting in 2012 so that owners could keep tabs on charging. Embedded connectivity came to Lincoln in 2014, and Ford began adding onboard 4G LTE via Sync Connect to select cars starting with the Escape in 2015. To get more cars connected more quickly, last week the automaker rolled out its FordPass SmartLink solution that plugs into the OBD port of 2010 to 2017 model year vehicles. This lets owners retroactively get onboard Wi-Fi, set up a "geo-fence" to keep tabs on a car's location, receive vehicle health reports and allows remote engine starting and door locking/unlocking using a smartphone app, among other features. But to connect older Ford vehicles will cost owners $16.99 a month for two years, not including installation. Ford throws in 1 GB of data or a 30-day trial, whichever comes first, after which owners have to add the vehicle to their Verizon shared data plan, which supplies connectivity for SmartLink, or establish a new account. (Disclosure: Autoblog is owned by Verizon.) By comparison, GM's 4G LTE data plans start at $10 a month for 200 MB and goes up to $30 for 3 GB, and owners can also add a car to an AT&T shared-data plan. But OnStar doesn't have a separate monthly subscription for the embedded modem or an installation charge, and standard features via the RemoteLink Mobile App are free for the first five years of ownership. FCA's Uconnect Access service also uses an embedded modem to provide similar telematics features for $20 per month following a free one-year trial, while a la carte in-car Wi-Fi is offered for $10 per day, $20 per week or $35 per month.