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Fiat Chrysler's UAW members ratify new four-year contract

DETROIT — The United Auto Workers union said on Wednesday that rank-and-file members at Fiat Chrysler Automobiles NV have voted in favor of a new four-year labor contract with the automaker, helping the Italian-American firm avoid a strike as it works to merge with France's Groupe PSA. FCA and PSA, the maker of Peugeot and Citroen, in October announced a planned $50 billion merger to create the world's fourth-largest automaker. FCA's 47,200 rank-and-file UAW members voted 71% in favor of the new contract. The deal follows contracts the UAW already concluded with larger rivals General Motors and Ford. “Every full-time production employee currently at FCA will be at top rate by the end of this four-year agreement,” Cindy Estrada, UAW vice president and director of the union's FCA department, said in a statement. She added that all temporary workers also have a path to full employment. “We are pleased to have reached a new agreement that allows us to continue our record of adding good-paying UAW-represented jobs,” FCA North America Chief Operating Officer Mark Stewart said in a statement. Ratification of the contract had not been viewed as a sure thing, as union members at FCA in 2015 rejected the first version of a contract. In addition, a federal corruption probe related to embezzlement at the union drew attention. The federal corruption probe led GM to file a racketeering lawsuit against FCA, alleging its rival bribed union officials over many years to corrupt the bargaining process and gain advantages, costing GM billions of dollars. FCA has brushed off the lawsuit as groundless. The contract with GM that was ratified by workers in October followed a 40-day strike in the United States that virtually shuttered GM's North American operations and cost the automaker $3 billion. The UAW has said the contract with FCA included a commitment by the automaker to invest $9 billion, creating 7,900 new jobs over the course of the contract. Of the $9 billion, $4.5 billion was announced earlier this year, to be invested in five plants and creating 6,500 jobs. The investments include $2.8 billion at Warren Truck Assembly plant in Michigan to build a new a plug-in hybrid SUV in 2021 and a potential increase of 1,500 jobs.

The Fiat 500 hatchback and cabrio have been discontinued

The Fiat that brought the brand back to America is going away after this year. All forms of the 2019 Fiat 500 — hatchback and convertible — are being discontinued with the current 2019 inventory being sold off through 2020. This includes the electric, standard turbo and the Abarth iterations. Once the little 500 is gone, Fiat's lineup will consist of the 500X crossover, 124 Spider sports car and the 500L micro-minivan thing. The decision to cut the little 500, easily Fiat's most identifiable model, strikes us as a bit strange. Certainly it has drawbacks, and it's still basically the same car that was introduced in Europe over a decade ago. Its small size and two-door form factor also aren't particularly popular in today's crossover-consumed market, but the 500 wasn't Fiat's worst seller. In fact, as of June, the most recent month for sales data available, it was leading the Italian brand's sales. And the year before, it was the Fiat's best seller over the same time frame. The 500L has actually been the worst seller so far this year, with only 399 being sold through June, which is a drop of 56% versus last year. The 500X, a crossover, is trailing the 500 and the 124 with 1,484 sales, a drop of 54% compared to last year. Even if other models were selling better, it would seem like a decent car to still have around to show how the bigger models got their designs. And at the very least, the 500 Abarth presented a cheaper halo option to the 124 Spider. No announcements of a 500 replacement have been made. There are rumors of a next-generation model, and it might be previewed at Geneva as a full EV. It could use the modular battery system that was featured in the Fiat Centoventi concept from the last Geneva Motor Show. Having seen the Honda E and Mini Cooper SE retro chic EVs, this could be a smart decision for Fiat and give the little hatchback some fresh relevance.

FCA reportedly joins the crowd skipping this year's Paris Motor Show

It's likely FCA vehicles will not be seen at the Paris Motor Show this year. Automotive News is reporting that Fiats, Alfa Romeos, Jeeps and Abarths will not be a part at the show, based on information circulating in the French media. There's a possibility that Maseratis will be displayed at a special section dedicated to upscale cars, but Maserati too will not have a show stand of its own. Ferrari will have a stand, but as it happens, the supercar maker has been a standalone brand since 2015. Skipping the Paris show follows FCA's decision not to take part in the Frankfurt show last year, and the two shows alternate as the biggest autumnal automotive show in Europe. Volkswagen will also not attend the event, and neither will Ford, Nissan or Infiniti. This has become a problem for car shows worldwide, including Detroit's North American International Auto Show. FCA has not released a formal statement about the matter, but a FCA spokesman, quoted by the French magazine L'Argus, reportedly said that the sales and publicity brought in by the show stand would not justify the costs of attending. The news mirrors Volvo's newly announced plan to not take part at the next Geneva Motor Show, but to arrange "bespoke activities" to introduce its cars instead. Related Video: