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UAW workers in Indiana, Stellantis reach tentative deal to end strike

United Auto Workers union members who went on strike Saturday at the Stellantis casting plant in Indiana have reached a tentative deal with the company. The UAW Local 1166 bargaining committee announced a tentative agreement in a blog post, saying that a ratification vote would be held Monday. Stellantis confirmed the tentative deal Monday. The strike was related to health and safety issues, including the company’s alleged refusal to repair and replace the plantÂ’s air conditioning and heating systems. The 35-acre plant in Kokomo makes parts used in the power trains of Chrysler, Dodge, Jeep and RAM vehicles. The 1,200-worker plant, Kokomo Casting, is the worldÂ’s largest die cast facility, according to Stellantis. In May, Stellantis announced a $2.5 billion joint venture with Samsung to build an electric vehicle battery factory in Kokomo that is to employ 1,400 workers. Stellantis, created last year through the merger of Fiat Chrysler and FranceÂ’s PSA Peugeot, had said it would build two electric vehicle battery factories in North America. The other is slated for Windsor, Ontario. Plants/Manufacturing UAW/Unions Chrysler Dodge Jeep RAM

Fiat Chrysler dumped 40,000 unordered vehicles on dealers

In a move that echoes recent history, Fiat Chrysler has been making more cars and trucks than dealers in the U.S. are willing to accept, with Bloomberg reporting that at one point the automaker had built up a glut of around 40,000 unordered vehicles. That’s led some dealers to accuse FCA of reviving the dreaded “sales bank” accounting practice of obscuring inventory to improve the balance sheet. The company reportedly began building up its inventory of unordered cars this summer despite an industrywide slowdown in sales and an eagerness by some dealers to thin their inventories because rising interest rates are making it more expensive to hold unsold cars. The inventory build-up also coincided with Fiat ChryslerÂ’s efforts to find a merger partner, first with Renault, which fell through, then last monthÂ’s announcement that it will merge with FranceÂ’s PSA Group. FCA denies any such scheme and tells Bloomberg the rising inventory is down to a new predictive analytics system designed to better square supply with demand from dealers that is helping the company save money and narrow the numbers of unsold vehicles. The company recently agreed to pay a $40 million civil penalty to the U.S. Securities and Exchange Commission to settle a complaint that it paid dealers to report fake sales figures over a span of five years. While no one is suggesting that FCA is in dire financial straits — the company saw higher than expected earnings in the third quarter and record profits in North America — the practice has strong historical precedent by Chrysler, which built up bloated inventories in the run-up to its two federal bailouts, in 1980 and 2009. It was also common at GM and Ford during the 2000s, when all three Detroit automakers struggled with excess manufacturing capacity and plummeting sales in the lead-up to the Great Recession. Back in 2012, CFO Magazine wrote about a report that explained automakersÂ’ rationale for the practice and how it works: Say fixed costs for a given factory are $100, and that the factory can make 50 cars. Consumers, however, demand only 10. Under absorption costing, if the company makes all 50 cars, its cost-per-car is $2. If it makes only up to demand, or 10 cars, the cost-per-car is $10. Although each car adds variable costs for steel and other parts, if those costs are low, the company still has an incentive to make more cars to keep the cost-per-car down.

2018 Jeep Wrangler First Drive Review | Improving an Icon

TUCSON, Ariz. — We crawled, with the lightest possible touch of the accelerator pedal, over a boulder-strewn mountain peak just outside of Tucson. We'd been driving for a few hours already, through city streets, along the highway, through twisty stretches just outside of Saguaro National Park. But it wasn't until we were pointed skyward, at such a severe vertical incline that we could only barely make out the hands of the trail guide ahead, that we knew Jeep had nailed the 2018 Wrangler redesign. That light-bulb moment was punctuated by the screeching steel impact of a skid plate along the jagged edge of a boulder. There's just something that feels right about a vehicle designed with purity of purpose. Leave the one-size-fits-all approach to the midsize crossover; stop attempting to be all things to all people like the midsize sedan. The problem with narrow-minded vehicles, though, is that they all require some sort of significant compromise to live with on a daily basis. With the latest version of the iconic Wrangler, Jeep set out to banish as much compromise as possible. Smoothed-out corners and lightweight materials improve efficiency, a range of engine choices opens the envelope to a larger swath of buyers, and big infotainment screens and backup cameras make the 2018 Wrangler easier to live with than ever before. But that essential purity of purpose remains intact. The latest Wrangler is better in every way than its predecessor, a fact that rings true no matter what type of terrain you're driving on. A casual observer may not notice the subtle exterior tweaks made to the 2018 Wrangler, codenamed JL, over the JK model it replaces. The round headlights, LED units on higher-end models, now cut into the outer two vertical grille slats, which are canted back just enough to make a difference in the wind tunnel. The windshield, too, is swept back further than ever before, but not so much that it messes up the Wrangler's timeless design. Hood and door latches are still externally bolted to the body — crucially allowing the doors and windshield to be removed or folded down for the pinnacle of open-air motoring — like little lumps of clay the designer forgot to smooth out. Vents in the front fenders reduce underhood pressure and keep the hood from writhing about at speed as it did on Wrangler models in the past. So picky are Wrangler customers that Jeep's decision to move the turn signals ignited a thousand threads on internet forums worldwide.