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Scandal-rocked UAW extends Ford, FCA contracts, prepares to strike GM

DETROIT — Leaders of the United Auto Workers union have extended contracts with Ford and Fiat Chrysler indefinitely, but the pact with General Motors is still set to expire Saturday night. The move puts added pressure on bargainers for both sides as they approach the contract deadline and the union starts to make preparations for a strike. The contract extension was confirmed Friday by UAW spokesman Brian Rothenberg, who declined further comment on the talks. The union has picked GM as the target company, meaning it is the focus of bargaining and would be the first company to face a walkout. GMÂ’s contract with the union is scheduled to expire at 11:59 p.m. Saturday. ItÂ’s possible that the four-year GM contract also could be extended or a deal could be reached, but itÂ’s more likely that 49,200 UAW members could walk out of GM plants as early as Sunday because union and company demands are so far apart. Picket line schedules already have been posted near the entrance to one local UAW office in Detroit. Art Wheaton, an auto industry expert at the Worker Institute at Cornell University, expects the GM contract to be extended for a time, but he says the gulf between both sides is wide. “GM is looking through the windshield ahead, and it looks like nothing but land mines,” he said of a possible recession, trade disputes and the expense of developing electric and autonomous vehicles. “I think thereÂ’s really going to be a big problem down the road in matching the expectations of the union and the willingness of General Motors to be able to give the membership what it wants.” Plant-level union leaders from all over the country will be in Detroit on Sunday to talk about the next steps, and after that, the union likely will make an announcement. But leaders are likely to face questions about an expanding federal corruption probe that snared a top official on Thursday. Vance Pearson, head of a regional office based near St. Louis, was charged with corruption in an alleged scheme to embezzle union money and spend cash on premium booze, golf clubs, cigars and swanky stays in California. ItÂ’s the same region that UAW President Gary Jones led before taking the unionÂ’s top office last year. Jones and other union executives met privately at a hotel at Detroit Metropolitan Airport on Friday. After the meeting broke up, JonesÂ’ driver and others physically blocked an AP reporter from trying to approach him to ask questions.

Ford taken to task by gov't for Chicken Tax end-around

Ford is in a bit of a pickle for importing and selling Turkey-built Transit Connect cargo vans as passenger vehicles in the US, then converting them to commercial-vehicle specification stateside in an effort to bypass a 25-percent tax imposed on vehicles imported for commercial use. Automakers are required to pay a 2.5-percent tax on imported passenger vehicles.
The Blue Oval got into trouble for this in a January ruling in which U.S. Customs and Border Protection officials asked Ford to stop the practice of importing the Transit Connect vehicles with passenger seats, then removing and shredding them. Now Automotive News reports that Ford is appealing the ruling. The 25-percent "Chicken Tax," as the tariff is often called, is 50 years old and was enacted as a response to a German tariff on chickens. Like Ford, Chrysler bypasses the higher tariff, but it does so in a different manner. It partially disassembles Sprinter cargo vans before shipping them to the US, then rebuilds them at a plant in South Carolina.
But the ruling against Ford's strategy states that it "serves no manufacturing or commercial purpose" and is there to "manipulate the tariff schedule," Automotive News reports. As Ford's appeal goes through, it is importing the Transit Connect and paying the higher tax, hoping for a favorable outcome and planning to build the next-generation Transit Connect, which it plans to launch before the end of the year, in Spain.

Ford Fusion getting substantial refresh for 2017

It's only been a couple of years since Ford rolled out the current Fusion, but if these spy shots are anything to go by, it's already planning what appears to be a substantial update for the mid-size sedan.
According to our paparazzi on the ground, the new Fusion is being prepared for launch late in 2016 or early 2017. Although heavily camouflaged to keep it from prying eyes such as ours, it appears that the updated Fusion will tone down the Aston Martin-style grille, ditch the small corner window with revised front side glass and tweak the vehicle's overall shape. But there's more to the new Fusion than a styling adjustment, and our spy photographers have caught a glimpse inside and taken us along.
Apparently the new Fusion is to get a completely overhauled interior with soft-touch surfaces and matte wood trim to make it seem more upscale. There's an all-new rotary gear selector (like you'd find on a Jaguar, for example) hinting at the implementation of a new nine-speed automatic transmission. The prototype appears to be packing the Microsoft SYNC system, suggesting that the new Blackberry QNX system isn't ready quite yet - though that doesn't necessarily mean it won't be ready by the time the new Fusion is.