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Feds accuse Fiat Chrysler, UAW of conspiring to break labor laws

DETROIT — Top officials of Fiat Chrysler Automobiles and the United Auto Workers union conspired to violate U.S. labor laws, federal prosecutors alleged in a court document, saying a former executive at the automaker knew bribes paid to union leaders were designed to "grease the skids" in labor negotiations. U.S. Justice Department officials for the first time called the company and the union "co-conspirators" in a document related to a guilty plea agreed by former Fiat Chrysler director of employee relations Michael Brown. The document was filed with the U.S. District Court in Detroit on May 25. Its contents were reported by the Detroit News on Wednesday. Brown pleaded guilty to one count of concealing a felony. The plea agreement stated that he knew Fiat Chrysler executives authorized $1.5 million in improper payments and travel, liquor, cigars and other goods for UAW officials who served on the union's negotiating committee. Prosecutors say FCA executives paid UAW representatives to influence union business. including collective bargaining on contracts ratified in 2011 and 2015. The government contends money was run through the UAW-Chrysler National Training Center, via false charitable donations and training center credit cards. Fiat Chrysler Chief Executive Officer Sergio Marchionne has said in the past that the misconduct "had nothing whatsoever to do with the collective bargaining process" and the "egregious acts were neither known to nor sanctioned" by the company. Fiat Chrysler had no further comment Monday. Outgoing UAW President Dennis Williams told union leaders at a conference in Detroit on Monday "our leadership team had no knowledge of the misconduct — which involved former union members and former auto executives — until it was brought to our attention by the government." Brown pleaded guilty on May 25, according to court documents, and will be sentenced on Sept. 20. Five other people have pleaded guilty in the government's ongoing investigation into the UAW and Fiat Chrysler, including the wife of a late UAW official, two other former UAW employees, former Fiat Chrysler vice president Alphons Iacobelli and another former Fiat Chrysler employee. Reporting By David Shepardson and Nick CareyRelated Video: Government/Legal UAW/Unions Chrysler Dodge Fiat Jeep RAM FCA

Ram partners with Lucchese on a range of luxury boots

A few months ago, Ram announced a partnership with Michigan-based Wolverine boots on a range of work boots based on the Ram 1500 Tradesman, Rebel, and Limited trims. The number two full-size truckmaker so far this year in sales isn't finished with footwear, Ram announcing a range of dress boots in collaboration with Texas-based boot company Lucchese. There are five styles in total, three for men, two for women. Since these Western-themed cowboy specials are based on the $58,565 10th Anniversary Limited Longhorn Edition, which lives at the opposite end of the trim range to Tradesman, the Lucchese models can cost more than 10 times the Wolverines. Whereas the entry-level Wolverine Tradesman cost $229, the top-dog Lucchese men's Tooled Western Boot runs $2,495. That money gets luxury features and Lucchese's hand-worked processes that pass each boot through as many as 120 pairs of hands on the way to being finished. That $2,495 boot is made with a hand-tooled quarter, which is the shaft of the boot that runs up the leg above the ankle, and a giant gator vamp, the vamp being the lower portion of the boot that covers the foot. The men’s Caiman Horseman Boot includes a hand-cut inlay quarter and giant belly caiman vamp for $995. The menÂ’s Ostrich Horseman model wears a fancy stitch quarter and hand stained ostrich vamp for $745. The women's Giant Gator Western Boot is made with an inlayed quarter and a giant gator vamp for $1,395. The final model, the women's Horseman Boot, gets a side seam quarter and inlay with a goatskin vamp for $695. Each boot is also emblazoned with some kind of automaker logo which can include the word "Ram" or "Longhorn," or the Ram bighorn sheep logo. And if a Ram owner needs to get even more on-brand where the leather meets the ground, Ram sells a three-pack of branded socks for $25. Ryan Nagode, chief designer for Ram interiors, said this partnership can be traced back to a visit to Texas with his design team more than a decade ago. The group noted the creativity and attention to detail on the wares at boot and saddle shops, aspects that would increasingly make their way into Ram interiors as trucks got more luxurious from top to bottom. Closing the circle, Lucchese boot designer Trey Gilmore strove to re-create certain aspects of the 10th Anniversary Longhorn truck, like the Mountain Brown leather interior. The boots are available for pre-order now at the Lucchese site.

Pickup prices rising at 2x industry average

We've said it before, but bears repeating: Pickup trucks are the financial engines of America's automakers. Good thing, then, that the segment is in rude health - in fact, Automotive News is suggesting that pickup truck sales are arguably healthier than they were pre-recession, even though the segment's volume is still significantly down from where it was before the bottom fell out of the US economy. That's because per-unit profits on full-size trucks are skyrocketing, outpacing the industry's average price increases by more than double since 2005. According to data from Edmunds, the average transaction price of a full-size pickup is now $39,915 - a heady increase over the $31,059 average price in 2005 - a gain of over 8 percent after inflation is factored in.
Just how important are trucks to automakers' bottom lines? Automotive News quotes a Morgan Stanley analyst as saying the Ford F-Series is responsible for 90 percent of the company's 2012 profits, and General Motors isn't far behind, with the Chevrolet Silverado and GMC Sierra twins chipping in about two-thirds of the automaker's earnings.
Automotive News points out that Detroit's automakers now have the money to invest in modernizing their full-size truck offerings, in part because they don't have the same overhead and legacy costs that pushed General Motors and Chrysler into bankruptcy. Certainly, the pickup segment has seen a lot of innovations as of late, including turbocharged V6s, coil-spring rear suspensions and active aero. Those improvements in important areas like fuel economy and ride comfort have given existing pickup buyers new reasons to upgrade. In addition, automakers are piling on the tech and luxury goodies, creating more and more high-content, high-profit models like the Ford F-150 King Ranch, Ram 1500 Laramie Longhorn and Chevrolet Silverado High Country (shown).