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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

Toledo continues fight for Jeep Wrangler production, despite mayor's death

Where will the next-generation Jeep Wrangler be built? That's an open question, but it's one that the city of Toledo, OH desperately wants to be the answer to. The city suffered a major blow, though, with the death of Mayor Michael Collins earlier this month. Collins had been the city's biggest champion during talks with Fiat Chrysler Automobiles, before suffering a fatal heart attack on Feb. 6. But Collins' tragic death isn't dampening the city's desire to carry on as the home of the Wrangler. "The mayor's passing is tragic. But on Monday, when I came to work, I knew exactly what I needed to do and exactly what needed to be done," the city's director of development, Matt Sapara, told the Detroit Free Press. According to the Freep, Sapara said Toledo and the state of Ohio have delivered an outline of a development plan that would give FCA the ability to buy an extra 100 acres to expand the factory. This is to help accommodate FCA's targeted output of 300,000 to 350,000 next-generation Wranglers, up from the 240,000 the factory can make now. "Our target in the proposal is to provide a way to increase the production capacity to a number that allows Fiat Chrysler to meet its business model," Sapara told the Freep, adding that the land could be available later this summer. FCA, meanwhile, has shown a somewhat ambivalent attitude towards Toledo production, with CEO Sergio Marchionne openly discussing the pros and cons of continuing to build the Wrangler south of the Michigan border. "We are going to take a very hard look at this without ignoring what these guys have done," Marchionne told the Free Press at last month's Detroit Auto Show, adding that he'd like to keep production there, provided the cost of retooling is comparable to relocating to another facility. Related Video:

Chrysler 300 soldiers on for 2021 with pared-down range, higher price

Chrysler's last remaining sedan, the 300, will enter the 2021 model year with fewer trim levels and a higher price, according to a recent report. The 2021 model will be the second-generation 300's 10th year on the American market. Well-informed website CarsDirect received a dealer ordering guide, which reportedly confirms the Limited and 300C trims levels will not return for 2021. They're the two most expensive trims offered for 2020, and the publication added that removing them will likely mean upscale features like wood interior trim, Nappa leather upholstery, and quilted seats will no longer be available. It concluded the 2021 300 lineup will consist solely of the Touring and the 300S models, though it oddly made no mention of the Touring L. It doesn't sound like Chrysler will make any major visual or mechanical changes to the 300 — sorry, Hellcat fans. Available with rear- or all-wheel drive, the entry-level Touring model will be powered by the company's venerable 3.6-liter V6 tuned to make 292 horsepower and 260 pound-feet of torque. Marketed as a sportier sedan, the rear-wheel drive-only 300S will come standard with a 300-horse version of the V6, but buyers who want more power will be able to order a 5.7-liter Hemi V8 rated at 363 horsepower and 394 pound-feet of torque at extra cost. Pricing for the 2021 300 Touring will start at $31,940 including a $1,495 destination charge, a $405 increase over the 2020 model. Stepping up to the 300S will require spending $38,980, but the cost of the optional V8 will increase from $3,000 to $4,000, bringing its price to $42,890 once the aforementioned destination charge enters the equation. Keep in mind none of these figures are official, and Chrysler hasn't commented on the report. Most of the carmakers operating under the Fiat-Chrysler Automobiles (FCA) umbrella will announce the changes they're making for 2021 on September 1 — that's next Tuesday, so we won't have to wait long to find out what's in store for the 300. Chrysler has kept its lips sealed about what's next. Rumors claiming the sedan wouldn't live to see 2020 were evidently false, yet it can't remain in production for another decade. Sales fell by 37% to 29,213 units in 2019. Chrysler can either develop a third-generation model that will likely need to represent it in the sedan segment through the 2020s, or it can hike the path blazed by many of its rivals and throw in the towel.