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Former UAW official gets 15 months in labor corruption case

DETROIT (Reuters) - A federal judge in Detroit on Monday sentenced the former United Auto Workers union vice president in charge of relations with Fiat Chrysler to 15 months in federal prison for misusing funds intended for worker training to pay for luxury travel, golf, liquor and parties for himself and other union officials. Norwood Jewell, 61, who led the UAW's national contract negotiations with Fiat Chrysler in 2015, is the highest ranking UAW official to be sentenced in connection with a wide-ranging federal investigation of corruption within the union that represents U.S. factory workers at Fiat Chrysler Automobiles, General Motors and Ford. Jewell pleaded guilty in April to a single charge of violating the Labor Relations Management Act. At the time, prosecutors proposed a prison sentence of 12 to 18 months. U.S. District Judge Paul Borman rejected Jewell's request to avoid prison and serve his sentence under house arrest. "He betrayed his position," Borman said from the bench. Jewell is the eighth former UAW or Fiat Chrysler official sentenced as part of the federal criminal investigation of UAW finances. Federal prosecutors are continuing to investigate the misuse of company and union funds at the Detroit automakers. Fiat Chrysler Chief Executive Mike Manley, during a meeting with reporters last week, declined to discuss whether the company is in talks with federal authorities or whether he has been interviewed by investigators. Federal prosecutors have said Fiat Chrysler officials conspired in the misuse of $4.5 million in training center funds. Fiat Chrysler's former vice president of labor relations, Alphons Iacobelli, pleaded guilty in January 2018 to charges of violating the Labor Management Relations Act and filing false tax returns. Prosecutors charged Iacobelli with making hundreds of thousands of dollars in improper payments to charities controlled by UAW officials, and agreeing to pay off the mortgage of a now-deceased UAW vice president, General Holiefield. Prosecutors said Jewell accepted over $90,000 in illegal payments from Fiat Chrysler for his own benefit and to pay for travel, golf outings, parties and other entertainment for senior UAW leaders. "The parties included thousands of dollars in Fiat Chrysler money spent on 20 boxes of cigars, ultra-premium liquor, personalized bottles of wine, and women paid to light the cigars of senior UAW leaders," federal prosecutors said in a statement on Monday.

2018 Fiat 500 minicar gets more expensive with the extra ponies

Fiat Chrysler is giving a big price increase to the 2018 Fiat 500 minicar, with its newly enhanced powertrain and other upgrades adding up to as much as a $1,500 premium over the outgoing versions. Taken together with a $250 boost to destination fees for most cars, SUVs and trucks in the FCA family, and it's going to cost quite a bit more to drive the Italian subcompact. CarsDirect reports that FCA bumped the starting price for the 2018 Fiat 500 Pop by $1,500 to $17,490 for the 5-speed manual and $18,485 for the six-speed automatic. The Fiat 500 Lounge will start at $20,990, which is also $1,500 more than last year, while the top-of-the-line 500 Abarth starts at $21,740, up $750. Those figures include the $250 higher destination fee, which FCA reportedly announced to dealers in March for most 2018 cars and trucks — for example, the destination fee on a Jeep Wrangler is now an eye-popping $1,445. The destination fee is what automakers charge to ship vehicles from the factory to dealers and isn't normally included in a vehicle's advertised price. The Fiat 500 destination fee is now $1,245, CarsDirect reports ( Autoblog sought confirmation and comment from FCA but hasn't received a response). Fiat, of course, is adding oomph to the 2018 version of the 500 via a turbocharged 1.4-liter four-cylinder engine that pushes horsepower up 33 percent to 135 ponies and 150 pound-feet of torque. It's also adding sportier suspension, brakes and exterior design, a sport-tuned exhaust and rearview camera, plus 16-inch aluminum wheels, fog lamps and a "Turbo" badge on the rear fascia. "It's important to note that we've added even more standard content in order to further enhance the fun-to-drive factor that our customers expect," spokesman Bryan Zvibleman tells Autoblog. The new price makes it more expensive than the 2019 Honda Fit, which starts at $17.085 including the $895 destination charge for a six-speed manual. It also follows a $2,000 cut in the base price of the 500 Pop for 2017. It will be interesting to see whether Fiat can hold steady on the new higher pricing without having to resort to discounts for the slow-selling minicar. FCA says overall U.S. sales of the Fiat brand fell 45 percent in April to 1,404 vehicles. According to CarSalesBase.com, the company has sold only 1,644 Fiat 500 coupes year to date, compared to 5,221 for the first four months of 2017, though the figures reflect the outdated 2017 model and don't include the five-door 500L.

UAW may be key to forced FCA merger with GM

Sergio Marchionne doesn't give up on a business deal easily. While outwardly not much has recently been said about FCA's attempted merger with General Motors, Marchionne might be hoping to garner a powerful, new ally that could help break things wide open. The United Auto Workers retiree health care trust is the single largest shareholder of GM with 8.7 percent of the stock, and having its support would certainly improve FCA's position in getting a deal done. "Whatever happens in terms of consolidation, it would never be done without the consent and support of the UAW," Marchionne said when FCA recently began contract talks with the UAW, The Detroit News reports. The boss is also allegedly on good terms with the union president Dennis Williams. Still, using the organization for a hostile takeover could be very difficult because of the way its votes are structured. Other activist investors might already be on board, though. Marchionne believes that consolidation in the industry is vital because automakers are investing to create the same technologies. A GM/FCA merger still has many roadblocks, though, including the fact that Marchionne's company is smaller than GM. From a regulatory perspective, the size of the merged company could raise serious anti-trust concerns among regulators, according to The Detroit News. There's also the concern for lost jobs from redundant work with the two combined businesses. Even if the UAW angle doesn't work out, there are contingency plans afoot for other merger targets. According to The Detroit News speaking to anonymous insiders, FCA bigwigs have a meeting in London on Thursday to take a close look at other options. In addition to GM, they are investigating possible deals with Volkswagen and the Renault-Nissan Alliance. In the past, PSA Peugeot Citroen and multiple Asian automakers have also been brought up as partners, and UBS has reportedly been providing financial advice on what to do.