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Fiat Chrysler and the UAW reach tentative labor deal

DETROIT — Fiat Chrysler Automobiles and the United Auto Workers (UAW) union on Saturday announced a tentative agreement for a four-year labor contract, a boost for the automaker as it works to merge with France's Groupe PSA. Italian-American Fiat Chrysler and PSA, the maker of Peugeot and Citroen, last month announced a planned $50 billion merger to create the world's fourth-largest automaker. The tentative agreement with Fiat Chrysler, which is subject to ratification by the union members, follows contracts that the UAW already concluded with Ford Motor Co and General Motors Co. The deal with GM followed a 40-day strike in the United States that virtually shuttered GM's North American operations and cost the automaker $3 billion. The UAW on Saturday said the contract with Fiat Chrysler included a commitment from FCA to invest $9 billion, creating 7,900 new jobs over the course of the four-year contract. Of the $9 billion, $4.5 billion was announced earlier this year, to be invested in five plants and creating 6,500 jobs. Detailed terms of the tentative agreement were not released, but they are expected to echo those under the new contracts with GM and Ford, as the UAW typically uses the first deal as a pattern for the others. "FCA has been a great American success story thanks to the hard work of our members," UAW acting President Rory Gamble said in a statement. "We have achieved substantial gains and job security provisions for the fastest growing auto company in the United States." Ratification is not a sure thing. Rank-and-file UAW members at FCA in 2015 rejected the first version of a contract. In addition, a lawsuit related to a federal corruption probe could also raise doubts among union members about the terms agreed. The federal corruption led GM to file a racketeering lawsuit against FCA, alleging that its rival bribed union officials over many years to corrupt the bargaining process and gain advantages, costing GM billions of dollars. FCA has brushed off the lawsuit as groundless. Under the UAW's deal with GM, the automaker agreed to invest $9 billion in the United States, including $7.7 billion directly in its plants, and to create or retain 9,000 UAW jobs. Ford's contract included commitments to invest more than $6 billion in its U.S. plants and to create or retain more than 8,500 UAW jobs. The deals with GM and Ford also created a pathway to full-time employment for temporary workers and left healthcare insurance coverage unchanged.

More details on the Hellcat-powered Ram Rebel TRX

We got our last big scoop on the coming Ram Rebel TRX last summer, when Jordan Denhoed caught a pack of prototypes testing in Michigan's Silver Lake Sand Dunes. We'd heard then that as opposed to the TRX concept, the production truck would unlock the full 707 horsepower from its 6.2-liter Hellcat V8, and use a traditional shift lever to work the gears of a 10-speed automatic. Now Mopar Insiders and Allpar have another batch of details that both sides said were gleaned from insiders with knowledge of the product. The looks, which will hew closely to the concept, have apparently already been teased. The Dodge and Ram corners of FCA like to foreshadow future offerings in their press photos and flyers, Ram doing so again on a graphic that advertised the FCA 2020 Drive for Design contest, pictured. We're told to expect the same twin-vented hood and flared arches front and back, as well as a new take on the current Ram Rebel grille that frames headlights from the Laramie Black trim. The side-exit exhaust would be cool, but we doubt it makes production. That extra width necessitates amber marker lights. The Ford F-150 Raptor, which uses the same lights for the same reason, places its markers along the top edge of the grille just below the grille surround. Mopar Insiders says the Rebel TRX's amber markers will lurk inside the large hood scoop. The Hellcat will get plenty of air from additional vents astride the headlights, and vent its heat through extractor vents just ahead of the windshield and ahead of the front doors. In lieu of any Hellcat badging save for on the supercharger, script on the hood in the same font as the Rebel TRX concept will read, "6.2L Supercharged." In back, yet more vents mimic those in the front fascia, this time placed next to the taillights. There will be an LED CHMSL, and larger diameter exhaust tips poking out of the bumper. Inside, Allpar says Ram plans to follow the Dodge SRT template by loading up the interior; the question is whether there will be a base model, or if it's only SRT plus options. The luxury angle means the 12-inch Uconnect infotainment system will be standard, with off-road-specific screens among the Performance Pages. Allpar confirms the conventional shifter, and Mopar Insiders says the lever will be joined by aluminum shift paddles borrowed from the Alfa Romeo Stelvio Quadrifoglio. The paddles will be longer than those in the Italian crossover, and mounted on the steering wheel.

Fiat Chrysler to pay $800M in Jeep, Ram emissions cheating case

WASHINGTON — Fiat Chrysler Automobiles NV has agreed to a settlement worth about $800 million to resolve claims from the U.S. Justice Department and state of California that it used illegal software that produced false results on diesel-emissions tests, but still faces an ongoing criminal probe. The hefty penalty is the latest fallout from the U.S. government's stepped-up enforcement of vehicle emissions rules after Volkswagen AG admitted in September 2015 to intentionally evading emissions rules. The Fiat Chrysler settlement includes $311 million in total civil penalties to U.S. and California regulators, up to $280 million to resolve claims from diesel owners, and extended warranties worth $105 million. It covers 104,000 Fiat Chrysler 2014-16 Ram 1500 and Jeep Grand Cherokee diesels, the Justice Department said. Regulators said Fiat Chrysler used "defeat devices" to cheat emissions tests in real-world driving. Fiat Chrysler said in a statement that "the settlements do not change the Company's position that it did not engage in any deliberate scheme to install defeat devices to cheat emissions tests." The company did not admit liability. "You wouldn't pay $311 million total dollars to the federal government in civil penalties if there were not a serious problem," U.S. assistant attorney general Jeff Clark told a news conference. The settlement also includes $72.5 million for state civil penalties, and $33.5 million in payments to California to offset excess emissions and consumer claims. German auto supplier Robert Bosch GmbH, which provided the emissions control software for the vehicles, also agreed to pay $27.5 million to resolve claims from diesel owners. Owners will receive an average of $2,800 to obtain software updates as part of the emissions recall, Fiat Chrysler said. Elizabeth Cabraser, a lawyer for the owners, said the "substantial cash compensation" will ensure that consumers get the recall fix. Bosch, which also provided diesel emissions software to Volkswagen, also agreed to pay $103.5 million to settle claims with 47 U.S. states that said the supplier "enabled" the cheating and should have known its customers would use the software improperly, the New York Attorney General's Office said.