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FCA's U.S. sales chief sues company for wrongful retaliation

Some fresh controversy is brewing at Fiat Chrysler Automobiles as The Detroit News reports that the head of U.S. sales has filed a federal whistleblower lawsuit against the company.. Reid Bigland, who's also in charge of the Ram truck brand, alleges that FCA made him a scapegoat for wrongful sales inflation practices and fixing vehicle sales statistics, which are currently under investigation by federal agents. Bigland claims that FCA executives punished him for cooperating with the federal investigators in the case by cutting his pay by more than 90 percent, according to the lawsuit he filed. The plan apparently was to use the money saved to pay for fines following any settlements made with the Securities and Exchange Commission. So far, the lawsuit alleges that FCA cost Bigland over $1.8 million in income. "They had the largest growth in retail sales in 17 years last year and refuses to pay him," Deborah Gordon, Bigland's lawyer in the case, said to The Detroit News. "Why is that? Because he participated in the SEC investigation and they don't like what he said." Bigland claims he just cooperated with the SEC investigation by testifying about FCA's sales reporting, from the time he took the position to the period prior to being appointed the company's U.S. sales chief. "In late 2018, presumably as a way to wrap up their investigation with some result, the SEC suggested to plaintiff that he admit to some wrongdoing as to defendants' monthly sales reporting," Gordon further said in a statement as part of the lawsuit. "The SEC also suggested a resolution involving some penalty to FCA. Because (Bigland) had not engaged in any wrongdoing, and there was no wrongdoing, he declined to do so." However, exacerbating the issue is the fact that Bigland reportedly sold his shares in the company last year, prompting FCA to act against him even more. FCA came under fire recently by federal agents in at least two separate investigations, potentially exposing conspiracy and corruption between company executives and private entities. The investigations are being led independently by the U.S. Attorney's Office and the FBI. So far, eight convictions were reportedly secured, with one including former Fiat Chrysler Automobiles Vice President Alphons Iacobelli, as one of the defendants. Iacobelli was one of the former top labor-relations executives for the automaker.

Chrysler nets $1.6B income in Q4, Fiat profit up 5%

Chrysler announced its 2013 financial results today and unveiled its new name and decidedly bank-like logo. Amid the announcement, Chrysler posted big gains in income, while Fiat didn't perform to analysts' expectations.
For 2013, Chrysler had revenue of $72.1 billion, up 10 percent from 2012. Net income reached $2.8 billion, a 65-percent increase. It was the company's third straight year of annual profits.
In terms of unit sales, Chrysler sold 2.4 million cars worldwide in 2013, up 9 percent. According to Automotive News, 1.8 million of those vehicles were sold in the US, a 14-percent increase. The sales growth boosted Chrysler's US market share to 11.4 percent, up 0.2 percent.

Sergio: Two-tier wage structure eliminated in FCA deal with UAW [w/video]

The two-tiered wage structure that governs the way domestic car companies pay their unionized employees – and rankles many of them in the process – could soon be a thing of the past. In a tentative deal seen as a bellwether for other ongoing negotiations, the United Auto Works and Fiat Chrysler Automobiles reached a tentative agreement on a four-year contract that would disband the two-tier structure, in which some workers earn higher hourly wages for performing the same job, over time. Officials who announced the tentative agreement late Tuesday in Detroit were short on details of its contents and union members still must ratify it. But FCA CEO Sergio Marchionne said the two-tiered structure will disband by the end of the contract. "The team has crafted together a very thoughtful process, where the issue will go away, go away over time," he said. Further details weren't divulged. Union negotiations with Ford and General Motors are ongoing, so hammering together a deal that sheds the two-tier structure with Chrysler first could set a precedent followed by the other members of Detroit's Big Three automakers. Other key issues that emerged in negotiations with FCA included escalating health-care costs and rewarding workers for the health of the auto industry. But dealing with the two-tier structure, born as GM and Chrysler circled bankruptcy during the Great Recession, was something the UAW wanted to confront. "The UAW has a philosophy about the economic balance of this country and the inequality, and our mission is to bridge the gap in this country," UAW president Dennis Williams said. "It's gotten out of whack. ... We don't want to share anything, and I truly believe that corporations that have that set of mind have lost their way." The UAW's executive board was expected to review the tentative agreement this morning before a union membership vote is scheduled. For Marchionne, who skipped the Frankfurt Motor Show to shepherd the negotiations during their final hours, the tentative agreement means he can shift his concern back toward pushing an FCA merger with General Motors or another company and touting the idea of industry consolidation in general. "The other side of this is capital usage in this business, which is something that remains unsolved," he said. "It makes the labor side sort of pale in comparison, given the magnitude of the potential synergies and benefits we'd be deriving from an intelligent approach.