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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.

Fires, deaths continue after Jeep fuel tank recall

As Kayla White slowed her SUV behind two other cars to exit a suburban Detroit freeway on Veterans Day, it was rammed from behind by a Cadillac STS. Her red 2003 Jeep Liberty bounced off a Nissan in front of it, rolled onto its side and exploded in flames. Other drivers ran to help but were forced back by the heat. Firefighters arrived in just three minutes but were too late. White, a 23-year-old restaurant hostess who was eight months pregnant, died of burns and smoke inhalation. White is one of more than 70 people killed in fires involving older Jeeps with plastic fuel tanks mounted behind the rear axle. Fiat Chrysler, which makes Jeeps, recalled 1.56 million of them in June 2013 under pressure from US safety regulators. But only 12 percent of the SUVs have been repaired in the 18 months since the recall, a much slower pace than usual. And White's Jeep was not among those fixed. Last week, prosecutors charged the Cadillac driver with committing a moving violation that caused a death. But safety advocates and the lawyer for White's family say the blame belongs as much, if not more, on Chrysler and an auto-industry safety system that moves too slowly to prevent tragedy. The rear-mounted tanks have little structure to protect them if struck from behind, making them susceptible to punctures and fires. Moving the gas tank in front of the axle would be expensive and difficult. So Chrysler's remedy involved installing trailer hitches on the rear of the Jeeps as an extra layer of protection. Government testing showed the hitches protected the tanks in crashes up to 40 mph when stationary Jeeps were hit from behind. But at higher speeds, they wouldn't help. White tried to get the repair done a few weeks before her death but was told by a Jeep dealer that parts weren't available, according to Gerald Thurswell, her family's lawyer. He wouldn't identify the dealership, and his contention could not be independently verified by The Associated Press. Thurswell contends the gas tank ruptured, spilling fuel that touched off the fire. A Chrysler spokesman expressed sympathy to White's family but said the company had no written proof that she asked a dealer about the recall. Two crash reconstruction experts interviewed by the AP say gas wouldn't have spilled from White's Jeep if the tank had been mounted in front of the rear axle. Both say a hitch might have prevented the tank from being damaged, but because both vehicles were in motion, neither expert could say for sure.

The 2018 Jeep Wrangler will look a lot like the 2017 Jeep Wrangler

JL Wrangler Forums suggests the next-generation Wrangler will be restyled in an evolutionary way that maintains the off-roader's classic looks yet adds new features. The forum used intelligence from spy photos and leaked images to assemble renderings of the new Wrangler. They show that the front end is still classically Jeep, but with modern updates. The LED headlights and turn signals revealed in FCA drawings are noticeable changes. An interesting touch is just behind the rear bumper, where there appears to be an air dam for aerodynamics. There's still a gap between it and the front fenders to keep the old-school look intact. The grille, windshield, and hood are also more raked for the sake of aerodynamics. At the back, the lights follow the FCA drawings as well, though the reverse lights from those illustrations appear to be absent. The square taillights are also shown on the truck variant, along with the plastic fender flares of the SUV version. Spy photos of the Wrangler pickup have shown a streamlined box with integrated taillights akin to the Ram, but it's likely to be a placeholder until the final design is selected. The sides of both models also feature more squared-off details in the top and door handles, generally with beveled corners for a more modern look. The top is where things get fuzzy. The new model might lose its removable top altogether, in favor of removable panels similar to the Jeep Renegade. JL Wrangler Forums illustrated how this could work in the above image. The roof can be removed in sections, and the rear-most windows can also be taken out. The overall effect is similar to that of a current Wrangler Unlimited. There is a potential drawback to this system, though. All of these hard panels will have to be left somewhere. And unlike the current model, this one wouldn't have a soft-top back-up when the weather turns. It's hard to say for sure if this design will make it to production. FCA has consistently and effectively hidden this part of its Wrangler prototypes since they were first spotted. At this point, we can only speculate on how the top will function. Otherwise, these renderings seem plausible, and we should know how accurate they are when the Wrangler makes its expected debut next year. The new Wrangler will likely have some aluminum body panels, an 8-speed automatic and an available diesel powertrain. For more details and spy photos, check out our post that has assembled everything we know so far about the 2018 Wrangler.