2005 Black Gt! on 2040-cars

Auto blog

UAW to vote on strike authorization amid claims Detroit talks are moving slowly

DETROIT — About 146,000 members of the United Auto Workers union will vote next week whether to authorize their leaders to call strikes against the Detroit automakers. Union President Shawn Fain told members in a Facebook Live appearance Tuesday that the talks, which started in mid-July, are moving slowly and have yet to get to wages and other economic issues. The union's contracts with General Motors, Ford and Stellantis expire in about a month, at 11:59 p.m. Sept. 14. “If we want to make progress at the bargaining table, we need to show the companies that it's not just talk,” Fain said of the strike vote. He told local offices to report the results of their votes to the union headquarters by Aug. 24. Strike authorization votes are a routine part of contract talks and are often overwhelmingly approved, but Fain said the vote is a sign of the union's strength. Fain has set high expectations for the contract talks and says the union will seek more than 40% general pay raises over four years, restoration of pensions for newer hires, cost-of-living increases, an end to wage tiers, and other benefits. He has said workers can make big gains but must be ready to strike to get them. The union also wants guarantees that it will represent workers at 10 U.S. electric vehicle battery plants proposed by the companies. Most are joint ventures with Korean battery companies. Much of Fain's rhetoric has been focused on Stellantis, the most profitable of the three companies with the highest profit margins. Fain has complained that Stellantis is seeking concessions in the contract when the union wants gains. But a union spokesman said singling out Stellantis doesnÂ’t mean the UAW has picked a company as a strike target, and it could choose all three. He said the union doesn't plan to extend the contracts beyond Sept. 14. Automakers say they are facing billions of dollars in development costs as the industry shifts from combustion engines to electric vehicles. In a letter to employees last week, Stellantis Chief Operating Officer Mark Stewart accused Fain of “theatrics and personal insults” that Stewart said will not help to reach a deal. He wrote that the company is committed to an agreement based on “economic realism” that supports the viability of Stellantis' operations while rewarding workers. The company, he wrote, wants to find solutions to protect Stellantis from nonunion companies with lower costs and additional costs from moving to electric vehicles. “Mr.

Marchionne emailed Barra about merger between FCA and GM

Sergio Marchionne is adamant that global automakers will have to merge to remain profitable in the near future, and he'll tell that to anyone who's listening. Mary Barra, however, is not interested. According to The New York Times, the Fiat-Chrysler chief proposed a merger with General Motors via email to his counterpart back in March. Marchionne proposed meeting to discuss the matter, but Barra and her team reportedly rejected even entertaining the idea. This of course is not the first time Marchionne has raised the idea of a merger. He masterminded the marriage between Fiat and Chrysler, and reports have since suggested further mergers with Volkswagen, Peugeot, Ford, and others – including GM's own Opel unit. Some have taken his calls for consolidation as a weakness, but Marchionne insists that his empire is in good health – and that it's the industry as a whole which is in an untenable position. According to his view, automakers around the world need to align themselves into larger groups in order to reduce redundancy in investment, development and infrastructure – the duplication of which he terms as wasteful. "It's fundamentally immoral to allow for that waste to continue unchecked," said Marchionne to the Times. "I think it is absolutely clear that the amount of capital waste that's going on in this industry is something that certainly requires remedy," he said in a conference call with industry analysts late last month following the rejected GM approach. "A remedy in our view is through consolidation." News Source: The New York TimesImage Credit: Paul Sancya/AP Chrysler Fiat GM Sergio Marchionne merger fiat chrysler automobiles

FCA scion John Elkann tries to pull off a Marchionne-sized merger

MILAN, Italy — When John Elkann lost his ally last year with the sudden death of Sergio Marchionne, some questioned whether the softly-spoken scion of the Agnelli clan would be able to emerge from his shadow to ensure Fiat Chrysler's future. But New York-born Elkann, who became Fiat chairman in 2010, acted decisively to fill the vacuum left by the larger-than-life Marchionne and get closer to the big merger deal the legendary executive was unable to deliver. At just 28, Elkann was thrust into the role of Fiat vice chairman after the deaths of his grandfather and great-uncle "because there was really nobody else" to take the wheel. For Elkann, who got his first taste of the car industry as an intern at a factory producing headlights in Birmingham, England, the first 18 months with responsibility for the family-owned carmaker and its long heritage were "terrible." But from that low point, Elkann, 43, is now trying to merge Fiat Chrysler (FCA) with French rival Renault to form the world's third largest carmaker and tackle new challenges facing the industry. Elkann will become chairman of the merged FCA-Renault if the deal goes ahead, ensuring the Agnelli dynasty plays a central role in the next chapter of automotive history. At an event in Milan on Monday, the usually-shy Elkann looked happy and confident. His first big break came with an instrumental role in persuading Marchionne, who was running one of the businesses owned by the Agnelli family, to become chief executive in 2004 and give Fiat "a new start," Elkann said in a "Masters of Scale" podcast last year. Fiat was at the time almost on the brink of collapse. This involved a "very long night ... and many grappas" but proved to be a turning point in the fortunes of the Italian company founded by Elkann's great-great-grandfather Giovanni Agnelli, which built its first car in 1899. In 2005, Elkann backed Marchionne in negotiating the breakup of an alliance Fiat had entered into with General Motors in 2000, receiving $2 billion from GM in return for canceling a deal that could have required GM to buy the remainder of Fiat Auto. Marchionne then used GM's money to fund a turnaround at Fiat, which involved taking the Italian carmaker into a transformation alliance and then full-blown merger with U.S. automaker Chrysler as Elkann agreed to the Agnellis loosening their grip.