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Fiat Chrysler UAW corruption had roots in federal bailout of Chrysler

The Detroit News continues its dogged coverage of the federal investigation into corruption at the United Auto Workers union and Fiat Chrysler in a lengthy in-depth report that ties the investigation together with Chrysler’s emergence from bankruptcy protection in 2009, a hefty federal bailout and former CEO Sergio MarchionneÂ’s push to force a merger with crosstown rival General Motors. ItÂ’s a staggering look at the brazen illegal payoffs, kickbacks and embezzlement in the top ranks of both Fiat Chrysler and the UAW, an investigation which has so far resulted in 11 criminal convictions — three of them former FCA employees, the rest former UAW leaders — with at least seven others implicated in wrongdoing to date, including former UAW President Gary Jones, who recently resigned. Prosecutors allege all of it was fueled by $12.5 billion in taxpayer-funded bailout funds within days of Chrysler LLCÂ’s emergence from Chapter 11 bankruptcy protection in June 2009. The News reports that former FCA Vice President Alphons Iacobelli, then its top labor negotiator, admitted to opening the spigot that same month. HeÂ’s now serving 66 months in prison, according to the U.S. Attorney Office in Detroit. All told, Iacobelli and FCA made more than $9 million in illegal payments over eight years to the UAW to cover salaries and benefits, many of them for "no-show" jobs at the joint UAW-FCA training center in Detroit, which is being dissolved. WhatÂ’s more, prosecutors say that Iacobelli answered on UAW matters solely to Marchionne, who died in a Swiss hospital in 2018. Marchionne was never charged with any wrongdoing, even though investigators reportedly caught him lying about providing gifts to UAW leaders during a meeting at the U.S. AttorneyÂ’s Office in Detroit in 2016. The story also details how prosecutors believe he tried to buy the support of UAW leaders for his repeated bids to get GM to agree to a merger, despite widespread belief that such a move would have led to massive job cuts and plant closures, given the two automakersÂ’ many overlapping products. The whole Detroit News story is highly worth a read. Find it here. Read This UAW/Unions Chrysler Fiat GM Sergio Marchionne FCA

Ford F-150 bumps Camry from top of Cars.com American Made Index

With July 4th just around the corner, what better time could there be for Cars.com to announce that the Ford F-150 is the Most American car of 2013? This may be especially true since it was the Toyota Camry, a car produced by a company based in Japan, that had held the top spot from 2009 to 2012.
Cars.com compiles its Most American list by considering the amount of parts each vehicle uses that come from America, where it's final assembly takes place and how many units per year are sold. "While the assembly point and domestic parts content of the F-150 didn't change from 2012-2013, vehicle sales are responsible for bumping the F-150 to the top spot," according to Patrick Olsen, Editor-in-Chief of Cars.com.
As far as automakers go (as opposed to individual models), Toyota retains the top spot it held in 2012, with General Motors, Chrysler, Ford and Honda (in that order) rounding out the list. The motivation behind this list each year, according to Olsen, is "to help car shoppers understand that 'American-Made' extends beyond just the Detroit three" and because "a study we conducted in 2012 indicated that 25 percent of shoppers surveyed preferred to buy American."

EU starts legal action against Italy over Fiat Chrysler emissions

BRUSSELS/ROME - The European Commission launched legal action against Italy on Wednesday for failing to respond to allegations of emission-test cheating by Fiat Chrysler, in a procedure that could lead to the country being taken to court. The Commission said Italy had failed to convince it that devices used to modulate emissions on Fiat Chrysler vehicles outside of narrow testing conditions were justified. "The Commission is now formally asking Italy to respond to its concerns that the manufacturer has not sufficiently justified the technical necessity – and thus the legality – of the defeat device used," the Commission said in a statement. Italy has two months to respond to the Commission's request and may be eventually taken to the European Court of Justice if the answer is found to be unconvincing. Italy had asked the European Union to postpone its plan to launch legal action against Rome over emissions at Fiat Chrysler, Transport Minister Graziano Delrio said. "Considering that after the end of the mediation process, we did not receive any request for further information ... we ask that you delay starting the infringement procedure while we await a letter asking for clarification on issues raised by your relevant offices," Delrio told EU Industry Commissioner Elzbieta Bienkowska, according to the ministry's statement. The European Commission has been mediating a dispute between Rome and Berlin after Germany accused Fiat Chrysler of using an illegal device in its Fiat 500X, Fiat Doblo and Jeep Renegade models. That mediation ended without fanfare in March. EU officials have become increasingly frustrated with what they see as governments colluding with the powerful car industry and the legal move is the biggest stick the European Commission has available to force nations to clamp down on diesel cars that spew out polluting nitrogen oxide (NOx). Delrio, however, said the material Italy had sent to the Commission during the mediation process showed that the vehicles' approval process was correctly performed. Under the current system, which the Commission is trying to overhaul, national regulators approve new cars and alone have the power to police manufacturers. But once a vehicle is approved in one country, it can be sold throughout the bloc. Last December, the Commission launched cases against five nations, including Germany, Britain and Spain, for failing to police the car industry adequately.