1998 Chrysler Sebring Lxi Coupe 2-door 2.5l on 2040-cars

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Here's what the UAW will be angling for in next year's contract negotiations

The United Auto Workers union is about to enter a new round of negotiations with the Detroit Three automakers, and this time, the focus is on the end of the two-tier wage system. Introduced in 2007, the two-tier wage system was enacted to allow General Motors, Ford and Chrysler to categorize its hourly employees under two categories: Tier 1 for veteran employees with full rights and benefits, and Tier 2 for short-term or entry-level employees compensated under a different schedule. The idea was that the system would permit the automakers to invest more in their plants and hire new employees as part of their respective recovery plans without being saddled with all the costs associated with hiring full-time employees. Now that the automakers are (more or less) back on their proverbial feet, however, the UAW wants to see an end to the two-tier system, and will likely make that a center-point of its negotiations next year to replace the current arrangement that is scheduled to end in September 2015. Not all members of the UAW will necessarily be interested in ending the two-tier system, however. According to The Detroit News, some Tier 1 workers may be more interested in negotiating a raise in their hourly rate – something which they haven't received in almost a decade. Tier 2 workers, meanwhile, may be more motivated to keep the tiered system in place, as their arrangement includes provisions for profit-sharing payments that have seen the automakers pay out billions to so-called short-term employees in lump-sum payments. Reconciling the two competing demands from two categories of union members and presenting a united front in negotiations may prove the biggest challenge for the UAW's new president, Dennis Williams. And with the right to strike – something which was suspended during the last round of negotiations in 2011 – the union has a bigger bargaining chip in its pocket.

EV cost burden pushing automakers to their limits, says Stellantis' CEO Tavares

DETROIT — Stellantis CEO Carlos Tavares said external pressure on automakers to quickly shift to electric vehicles potentially threatens jobs and vehicle quality as producers struggle with EVs' higher costs. Governments and investors want car manufacturers to speed up the transition to electric vehicles, but the costs are "beyond the limits" of what the auto industry can sustain, Tavares said in an interview at the Reuters Next conference released Wednesday. "What has been decided is to impose on the automotive industry electrification that brings 50% additional costs against a conventional vehicle," he said. "There is no way we can transfer 50% of additional costs to the final consumer because most parts of the middle class will not be able to pay." Automakers could charge higher prices and sell fewer cars, or accept lower profit margins, Tavares said. Those paths both lead to cutbacks. Union leaders in Europe and North America have warned tens of thousands of jobs could be lost. Automakers need time for testing and ensuring that new technology will work, Tavares said. Pushing to speed that process up "is just going to be counter productive. It will lead to quality problems. It will lead to all sorts of problems," he said. Tavares said Stellantis is aiming to avoid cuts by boosting productivity at a pace far faster than industry norm. "Over the next five years we have to digest 10% productivity a year ... in an industry which is used to delivering 2 to 3% productivity" improvement, he said. "The future will tell us who is going to be able to digest this, and who will fail," Tavares said. "We are putting the industry on the limits." Electric vehicle costs are expected to fall, and analysts project that battery electric vehicles and combustion vehicles could reach cost parity during the second half of this decade. Like other automakers that earn profits from combustion vehicles, Stellantis is under pressure from both establishment automakers such as GM, Ford, VW and Hyundai, as well as start-ups such as Tesla and Rivian. The latter electric vehicle companies are far smaller in terms of vehicle sales and employment. But investors have given Tesla and Rivian higher market valuations than the owner of the highly profitable Jeep and Ram brands. That investor pressure is compounded by government policies aimed at cutting greenhouse gas emissions. The European Union, California and other jurisdictions have set goals to end sales of combustion vehicles by 2035.

Chrysler develops fix for Pacifica PHEV minivan fires

In February, Stellantis recalled 19,808 examples of the 2017 and 2018 Chrysler Pacifica plug-in hybrid minivan due to reports of fires in 12 vehicles. The minivans were manufactured between August 12, 2016, and August 7, 2018. All were parked and turned off when they caught fire; eight of them were plugged in and charging. While engineers worked to isolate the source of the fires, Chrysler advised what's become standard practice in the case of electrical-related fire risks: For owners to park outside away from other objects that could catch on fire. Since then, there have been two more fires in Pacifica PHEVs and the first report of a minor injury because of a fire. Chrysler says it's developed a solution to return the minivan to normal operation and is notifying owners now. The fix is a trip to the dealer to have upgraded software installed for the High Voltage Battery Pack Control Module (BPCM) that manages the 16-kWh lithium-ion battery. Dealers will also inspect the battery pack and replace it if necessary. Of note, Chrysler says it hasn't definitively pinned down the cause of the fires, but it understands the conditions that can lead to the fires. The software's been updated to address these preconditions, the automaker telling Green Car Reports it "has validated its remedy." Owners should continue to park outside and away from structures and refrain from plug-in charging until their vans are fixed, after which they can "resume vehicle operation as outlined in their owners’ manuals." The repair will take from 1.5 to two days; a rental or courtesy car will be provided free of charge.  Stellantis has already begun sending letters to owners. Those with questions can contact their Chrysler dealerships, or get in touch with Chrysler customer service at 800-853-1403 and refer to recall number Z11. They can also call the National Highway Traffic Safety Association (NHTSA) Vehicle Safety Hotline at 888-327-4236 (TTY 1-800-424-9153) and mention campaign number 22V077.