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U.S. asks Mexico to probe whether Stellantis parts plant abused labor rights

MEXICO CITY and WASHINGTON — The United States has asked Mexico to probe alleged worker rights violations at an auto-parts plant owned by Italian-French carmaker Stellantis, the fourth such complaint under a revised trade deal, U.S. officials said on Monday. The U.S. request for Mexico to examine possible abuses at Teksid Hierro de Mexico in the northern border state of Coahuila comes under the 2020 United States-Mexico-Canada Agreement (USMCA). Teksid, which employs nearly 1,500 people and makes iron castings for heavy vehicles, has been embroiled in a union dispute since 2014. Workers say the company has blocked them from being represented by the group of their choice, the Miners Union, and that it dismissed workers who backed the group. The U.S. Trade Representative's (USTR) office said in the request it was concerned workers had been denied collective bargaining rights in connection with an "invalid" contract with the Confederation of Mexican Workers (CTM), one of Mexico's most powerful unions, that had been registered with state authorities. The office asked Mexico to investigate if efforts had been made, including threats and incentives, to encourage backing for CTM or to dissuade support for the Miners Union. Labor disputes in Mexico have long featured intimidation tactics by powerful unions cozier with employers and governments than workers. Under the USMCA, the trade pact that replaced NAFTA, factories that violate worker rights could lose their tariff-free status. Companies have been watching how the tougher labor rules will play out. Stellantis, the world's fourth-largest auto group which formed from the merger of Peugeot maker PSA and Fiat Chrysler, said it "respects and supports the collective bargaining rights of its employees around the world and will comply with all local laws in that regard." The United Auto Workers union, which represents U.S. Stellantis workers, along with the AFL-CIO labor federation and the Miners Union, flagged the potential violations, the USTR's office said. Teksid, CTM and the local Conciliation and Arbitration Board should be included in the review, it added. CTM did not immediately respond to a request for comment. The union's leader in Coahuila, Tereso Medina, recently told Mexican newspaper El Economista the union would abide by the USMCA and that the conflict should be resolved with a workers' vote. Mexico's federal labor center in May said the Miners Union held the only valid contract.

2018 Jeep Wrangler production ending to make way for Jeep pickup

After more than a decade in production, the outgoing JK generation Jeep Wrangler is set to end production on April 7. According to Automotive News, parts supplier Hyundai Mobis North America notified the State of Ohio that production was ending. The Toledo, Ohio, plant where the Jeep is built is already deep into production of the replacement JL generation Wrangler. The big news isn't that JK production is ending but that the plant is retooling in order to get Wrangler pickup production underway. Details on the Wrangler pickup are scarce. Jeep hasn't said anything, so most of what we know comes from various spy shots. Basically, expect a JL Wrangler Unlimited with a bed. That's a good thing. We were quite smitten with the Wrangler when we drove it late last year. It's better equipped and more refined than ever. The Toledo plant has a capacity of about 300,000 units a year. FCA CEO Sergio Marchionne expects about 100,000 Wrangler pickups to be sold each year. When the Wrangler pickup arrives, look for a naturally aspirated V6 under the hood. The turbo inline-four is likely, though smaller volumes could limit the truck's engine choices. The upcoming turbo diesel is a possibility, too. Other details include suspension that takes a cue from Ram. Look for a full reveal in the next few months. Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.

$40M award for boy's death in Jeep fire upheld by Georgia high court

The Georgia Supreme Court on Thursday unanimously upheld a $40 million award to the family of a 4-year-old boy killed in 2012 when the 1999 Jeep Grand Cherokee in which he was riding was rear-ended and burst into flames. A lower court in 2015 reduced a jury verdict from nearly $150 million to $40 million. Fiat Chrysler spokesman Michael Palese said the company was "disappointed in this decision. We are considering our legal options." The Jeep's fuel tank was placed near the back of the vehicle, which plaintiffs said made it vulnerable to rear-end collisions. The Supreme Court ruling said "evidence showed that Chrysler had long known that mounting a gas tank behind the rear axle was dangerous. Evidence also showed that Chrysler's placement of the gas tank behind the rear axle was contrary to industry trends, which favored placing tanks in front of the rear axle." Fiat Chrysler lawyers said during the trial that the fire did not cause Walden's death and blamed the driver of the pickup truck that hit the vehicle. The company said Thursday it "continues to extend sympathies to the family of Remi Walden for their loss." On appeal, the company contended it was prejudicial to raise Fiat Chrysler Chief Executive Sergio Marchionne's compensation, which totaled more than $68 million, according to a company executive who testified at trial. The automaker had denied there was a safety issue and has said the vehicles were no more dangerous than comparable SUVs built at the time. The National Highway Traffic Safety Administration (NHTSA) linked more than 50 deaths to the Jeep fuel-tank issue. Under government pressure, Fiat Chrysler recalled 1.56 million 2002-07 Jeep Liberty and 1993-2004 Jeep Grand Cherokee SUVs in June 2013 to address fire risks and agreed to install trailer hitches to protect the gas tanks. The recall and a "customer satisfaction campaign" that covered the Jeep in the fatal Georgia crash occurred after Marchionne held private talks with senior U.S. Transportation Department officials in 2013. The Georgia Supreme Court opinion said the award was proper in part because Marchionne was "alleged to have specifically interjected himself in a federal safety investigation to the detriment" of the Walden family. In 2015, NHTSA announced Fiat Chrysler would pay a then-record $105 million civil penalty over lapses in safety recalls involving millions of vehicles, including older Jeep SUVs for fire risks. Reporting by David ShepardsonRelated Video: