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The UAW's 'record contract' hinges on pensions, battery plants

DETROIT - After nearly four weeks of disruptive strikes and hard bargaining, the United Auto Workers and the Detroit Three automakers have edged closer to a deal that could offer record-setting wage gains for nearly 150,000 U.S. workers. General Motors, Ford Motor and Chrysler parent Stellantis have all agreed to raise base wages by between 20% and 23% over a four-year deal, according to union and company statements. Ford and Stellantis have agreed to reinstate cost-of-living adjustments, or COLA. The companies have offered to boost pay for temporary workers and give them a faster path to full-time, full-wage status. All three have proposed slashing the time it takes a new hire to get to the top UAW pay rate. The progress in contract talks follows the first-ever simultaneous strike by the UAW against Detroit's Big Three automakers. The union began the strike on Sept. 15 in hopes of forcing a better deal from each major automaker. But coming close to a deal is not the same thing as reaching a deal. Big obstacles remain on at least two major UAW demands: restoring the retirement security provided by pre-2007 defined benefit pension plans, and covering present and future joint- venture electric vehicle battery plants under the union's master contracts with the automakers. On retirement, none of the automakers has agreed to restore pre-2007 defined-benefit pension plans for workers hired after 2007. Doing so could force the automakers to again burden their balance sheets with multibillion-dollar liabilities. GM and the former Chrysler unloaded most of those liabilities in their 2009 bankruptcies. The union and automakers have explored an approach to providing more income security by offering annuities as an investment option in their company-sponsored 401(k) savings plans, people familiar with the discussions said. Stellantis referred to an annuity option as part of a more generous 401(k) proposal on Sept. 22. Annuities or similar instruments could give UAW retirees assurance of fixed, predictable payouts less dependent on stock market ups and downs, experts said. Recent changes in federal law have removed obstacles to including annuities as a feature of corporate 401(k) plans, said Olivia Mitchell, a professor at the University of Pennsylvania Wharton School and an expert on pensions and retirement. "Retirees want a way to be assured they won't run out of money," Mitchell said.

Dodge's divisive splitter guards are now pink and might become black

There is an infinite amount of real problems out there in the world, but for some reason, one of the most dividing issues in the car community relates to a piece of protective plastic on cars. Yes, splitter guards. Since the plastic parts were introduced to SRT variants of the Dodge Challenger and Dodge Charger for 2015, the enthusiast community has been split like a '63 'Vette on the merits and aesthetics of not removing them. Originally, the protectors, which are there to protect the splitter while the car is in transit to dealers, were yellow, which contributed to their popularity. But Dodge has now shifted that color to pink, as Car & Driver reported and Autoblog confirmed.  On one side, upset purists beg they be removed from the cars. They were only put on to protect the vehicles' lower front fascias during shipping and handling, and if left on too long, they will collect dirt and grit and damage the new paint. SRT lead designer Mark Trostle is included in this camp and is quoted saying, "I wish they would take them off." On the other side, there are people who enjoy the contrasting look and see it as a way to stand out or be different.  "Yes, they are designed to be removed before delivery," said Tim Kuniskis, global head of Alfa Romeo and head of passenger cars for Dodge, SRT, Chrysler, FIAT, FCA for North America, in an email to Autoblog. "But today, they have their own Facebook page, and many of our performance enthusiasts have active debates on whether to keep or remove them. Some owners say they are even selling them in the aftermarket!"  The Facebook page he speaks of is called "Hey Pal, You Forgot To Take Your Splitter Guards Off." The private group was started on April 11, 2019, and as of this writing, it is 11,855 members strong. With FCA recently changing the guards to pink, that number will likely continue to grow. "Obviously, they weren't part of the original design," Kuniskis said. "We started with yellow guards and shifted to pink, but they are still so popular that we may shift them yet again to black. Wherever we land, this is another example of how our customers are passionate about every part of their Dodge muscle cars — from the high-horsepower engines that power Charger and Challenger to the splitter guards designed to protect them, so we expect the conversation to continue."  Yellow, pink, black, purple, rainbow, whatever. People will like what they like and hate what they hate. Just do you, and keep the negativity away.

FCA seeks partner to keep building Dodge Dart, Chrysler 200

Mere weeks after FCA announced it was shutting down production of the Dodge Dart and Chrysler 200, new hope emerges to give the sedans a stay of execution. Speaking at the Geneva Motor Show last week, Sergio Marchionne said that the company was looking for a partner "who is better at it than we are and who has got capacity available" in order to continue building the models on its behalf. "There are discussions going on now," said Marchionne, according to Motor Trend. "I think we will find a solution. We continue to talk. It's both a technical solution and an economic one. We need to find a solution that works economically." Contracting vehicles to be manufactured offsite is more common practice among European automakers than it is with American ones. Chrysler's former patron Mercedes, for example, has the G-Class built for it by Magna Steyr in Austria, the A-Class by Valmet in Finland, and the R-Class by AM General in Indiana (even though it's no longer sold in the US). This arrangement would, on the surface at least, appear more similar to the deal that Toyota struck with Mazda to build the Scion iA, drawing on the contractor's expertise and capacity to build the small sedan on the client company's behalf. Only rather than basing a new model on one of the partner's existing ones, this deal would ostensibly continue building FCA models on FCA platforms using FCA components. We'll have to wait to find out with whom FCA strikes up the manufacturing deal, but we wouldn't be surprised to see Marchionne turn to a partner he already knows. The company is, after all, at the center of an intricate web of joint ventures and manufacturing contracts. The Fiat 124 Spider, for example, is built by Mazda. The Fiat Sedici that preceded the 500X was built by Suzuki. Models like the Dodge Stealth and Eagle Talon were built in Illinois at the Diamond-Star Motors joint venture before Mitsubishi took it over altogether. And Dodge continued selling the Mercedes-made Sprinter long after DaimlerChrysler split. The Ram ProMaster, though built by FCA in Mexico for the North American market, stems from a partnership in France with PSA Peugeot Citroen. And the ProMaster City is built in a joint-venture plant in Turkey, from which it's also sold by GM as an Opel in Europe and a Vauxhall in the UK. With all those deals coming and going, after all, what would one more add to the complexity?