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Fiat Chrysler UAW corruption had roots in federal bailout of Chrysler

The Detroit News continues its dogged coverage of the federal investigation into corruption at the United Auto Workers union and Fiat Chrysler in a lengthy in-depth report that ties the investigation together with Chrysler’s emergence from bankruptcy protection in 2009, a hefty federal bailout and former CEO Sergio MarchionneÂ’s push to force a merger with crosstown rival General Motors. ItÂ’s a staggering look at the brazen illegal payoffs, kickbacks and embezzlement in the top ranks of both Fiat Chrysler and the UAW, an investigation which has so far resulted in 11 criminal convictions — three of them former FCA employees, the rest former UAW leaders — with at least seven others implicated in wrongdoing to date, including former UAW President Gary Jones, who recently resigned. Prosecutors allege all of it was fueled by $12.5 billion in taxpayer-funded bailout funds within days of Chrysler LLCÂ’s emergence from Chapter 11 bankruptcy protection in June 2009. The News reports that former FCA Vice President Alphons Iacobelli, then its top labor negotiator, admitted to opening the spigot that same month. HeÂ’s now serving 66 months in prison, according to the U.S. Attorney Office in Detroit. All told, Iacobelli and FCA made more than $9 million in illegal payments over eight years to the UAW to cover salaries and benefits, many of them for "no-show" jobs at the joint UAW-FCA training center in Detroit, which is being dissolved. WhatÂ’s more, prosecutors say that Iacobelli answered on UAW matters solely to Marchionne, who died in a Swiss hospital in 2018. Marchionne was never charged with any wrongdoing, even though investigators reportedly caught him lying about providing gifts to UAW leaders during a meeting at the U.S. AttorneyÂ’s Office in Detroit in 2016. The story also details how prosecutors believe he tried to buy the support of UAW leaders for his repeated bids to get GM to agree to a merger, despite widespread belief that such a move would have led to massive job cuts and plant closures, given the two automakersÂ’ many overlapping products. The whole Detroit News story is highly worth a read. Find it here. Read This UAW/Unions Chrysler Fiat GM Sergio Marchionne FCA

US prepares to sue Fiat Chrysler over diesel emissions testing

NEW YORK - The Justice Department plans to file a civil lawsuit against Fiat Chrysler Automobiles NV over excess diesel emissions as early as this week if no agreement is reached with the Italian-American automaker, two sources briefed on the matter said on Wednesday. The Environmental Protection Agency in January accused FCA of illegally using undisclosed software to allow excess diesel emissions in about 104,000 cars and SUVs, the result of a probe that stemmed from regulators' investigation of rival Volkswagen AG. The EPA and California Air Resources Board have been in talks with FCA about the excess emissions and whether the agencies would approve the sale of 2017 FCA diesel models. A federal judge in California has set a May 24 hearing on a series of lawsuits filed by owners of vehicles against Fiat Chrysler and the Justice Department is expected to file its action by then if no agreement is reached. FCA said on Wednesday it believed that any litigation would be "counterproductive" to ongoing discussions with the EPA and California Air Resources Board. The company added that "in the case of any litigation, FCA US will defend itself vigorously, particularly against any claims that the company deliberately installed defeat devices to cheat U.S. emissions tests." The Justice Department took the same procedural step in early 2016 against Volkswagen, nearly four months after the German company admitted using software to emit excess diesel emissions in nearly 500,000 vehicles. The Justice Department has had an ongoing criminal investigation into FCA's conduct since last year, Reuters reported in January. The probe has turned up internal emails written in Italian and other documents about engine development and emissions issues, sources briefed on the probe said. U.S. regulators said FCA failed to disclose engine management software in 104,000 U.S. 2014-2016 Jeep Grand Cherokees and Dodge Ram 1500 trucks with 3.0-liter diesel engines. The European Commission has launched legal action against Italy for failing to respond to allegations of emission-test cheating by Fiat Chrysler in a procedure that could lead to the country being taken to court. The EPA has said the maximum possible fine against FCA could be $4.6 billion. In February, FCA said it had received requests for information and subpoenas from U.S. federal and state authorities, including the Securities and Exchange Commission, for diesel issues.

Driving the Jeep J6, Shakedown Challenger and other Mopar concepts

Mopar has been a one-stop-shop for factory-backed performance modifications and accessories on FCA products for a long time now. You want a 707-horsepower engine for your old Plymouth Belvedere? Mopar has you covered with the Hellcrate. Maybe you want a lift and off-roading lights on that newly-bought Wrangler? Mopar can accommodate those wants (or needs, we don’t judge) as well. We get to see some of the companyÂ’s weirdest creations every now and then, but rarely do we get the opportunity to drive the FCA Mopar concepts. ThatÂ’s what made this past Woodward Dream Cruise so special: We got to rip some of MoparÂ’s finest and most recent creations up and down Woodward Avenue. Everything from a 1971 Challenger restomod to the brand-new Easter Jeep Safari J6 concept was in attendance, so letÂ’s get right to it. Mopar Woodward View 6 Photos 1967 Plymouth Hellvedere This car is near the pinnacle of what you can do with off-the-shelf Mopar purchases. It was only a humble 1967 Plymouth Belvedere before Mopar dropped the 707-horsepower supercharged V8 from the Hellcat into the engine bay. Sound ridiculous? Yeah, it is. Other parts of it are new as well, including the disc brakes. Good call. However, Mopar didnÂ’t remove the classic car charm from the entire driving experience. The steering, for example, is surely as slow and inaccurate as it was back in 1967. That doesnÂ’t help matters when youÂ’re trying to put 707 horsepower to the pavement with less-than-ideal rear rubber. Floor it in damn near any gear of the Tremec six-speed, and the front end rises straight up as the rear kicks sideways with the force of many mules. There are no electronics such as traction control or stability control to step in and wrangle the car into submission. But hey, who wants them, anyway? The question remains: Should you buy a Hellcrate engine for your classic? If money were no object, the easy answer is yes. Have at it so long as you love smoky burnouts and excessive amounts of horsepower. Just make sure you know how to deal with that much power before you stick your right foot in it.   Dodge Challenger Shakedown View 15 Photos 2016 Dodge Shakedown Challenger Concept WeÂ’re going downhill in horsepower with this restomod, but the drivability and ease of driving goes way up. Dodge showed this “Shakedown” concept at SEMA awhile back, and as with most concept cars, getting a chance behind the wheel is a special opportunity.