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Stellantis expects strike to cost it $795 million in third-quarter profits

MILAN — Automaker Stellantis said Tuesday that the autoworkers strike in North America is expected to cost the company around 750 million euros ($795 million) in profits — less than its North American competitors. The Europe-based maker of Jeep, Fiat and Peugeot reported a 7% boost in net revenues to 45.1 billion euros, with production halts caused by the strikes costing the company 3 billion euros in sales through October. The net revenue boost was due to higher volumes in all markets except Asia. Chief Financial Officer Natalie Knight told journalists that StellantisÂ’ strike impact was lower than the other Big Three automakers due to its global profile as well as some high-profile cost-cutting measures, calculating the hit at around 750 million euros ($795 million.) GM, the last carmaker to reach a deal to end the strike, reported an $800 million strike hit. Ford has put its impact at $1.3 billion. “We continue to be in a very strong position globally and in the U.S. This is an important market for us, and weÂ’re highly profitable and we are very committed to our future," Knight said. “But mitigation is core to how we act, and how we proceed.” Stellantis has canceled appearances at the CES technology show in Las Vegas next year as well as the LA Auto Show, due to the strike impact. Stellantis on Saturday reached a tentative agreement with the United Auto Workers Union to end a six-week strike by more than 14,000 workers at its assembly plants in Michigan and Ohio, and at parts warehouses across the nation. Stellantis does not report full earnings for the third quarter, instead providing shipments and revenues. It said that global sales of electric vehicles rose by 37% over a year earlier, powered by the Jeep Avenger and commercial vehicle sales. North America continued to be the revenue leader, contributing 21.5 billion euros, an increase of 2% over last year, and representing nearly half of global revenues. Europe, the next biggest performing region, saw revenues grow 5% to 14 billion euros, as sales rose 11%. Related video: Earnings/Financials UAW/Unions Alfa Romeo Chrysler Dodge Fiat Jeep Maserati RAM

UAW turns its focus to Fiat Chrysler, which may resist more than Ford did

DETROIT — The United Auto Workers union on Monday turned its bargaining focus to Fiat Chrysler, raising the possibility of another strike against a Detroit automaker. Ford workers ratified their contract Friday night, while the union settled with General Motors last month after a 40-day strike by 49,000 workers that shut down the companyÂ’s U.S. production. Ford, which has 55,000 UAW workers, mostly followed the pattern agreement set at GM. But industry analysts say the same deal will cost Fiat Chrysler a lot more money because of the makeup of its workforce. Fiat Chrysler CEO Mike Manley said recently that automakers are in “different conditions” in terms of labor forces, hinting the company may be reluctant to follow the pattern. The union, however, expects FCA to follow the template set by GM and Ford. “We look forward to bargaining a fair, balanced and patterned contract as FCA is a profitable company,” the UAW said in a statement. “You cannot brag about your earnings to Wall Street and at the same time ignore the sacrifice of your workforce that put you in that profitable position.” The deal with Ford and GM gives workers hired after 2007 pay raises so they reach top UAW production wages within four years. It also gives temporary workers a path to full-time jobs within three years. Workers hired after 2007 now are paid lower wages than workers hired before that, even though theyÂ’re doing the same jobs. Workers hired before 2007 get a mix of annual pay raises and lump sum payments. Fiat Chrysler has more workers hired after 2007, and a higher percentage of temporary workers than either Ford or GM. That means the terms of the contract would cost the company more money, said Kristin Dziczek, vice president of labor and manufacturing with the Center for Automotive Research, an industry think tank in Ann Arbor, Michigan. “They are looking at significant cost increases,” Dziczek said of FCA. She says a strike against FCA isnÂ’t out of the question, and depends on how willing the company is to follow the pattern set by Ford and GM. FCA said in a statement it welcomes bargaining toward a deal to keep investing in the companyÂ’s future and creating opportunities for employees and communities. Ford has about 18,500 workers hired after 2007 who will get big pay raises with the new contract, compared with GM's 17,000. But Fiat Chrysler has over 20,000 union employees hired after 2007.

FCA facing class-action lawsuit over Grand Cherokee shifters

Fiat Chrysler Automobiles is now facing a multi-million-dollar class-action lawsuit over the recalled shifter design in the 2014 and 2015 Jeep Grand Cherokee, and the 2012 to 2014 Dodge Charger and Chrysler 300. Grand Cherokee owners, galvanized by Star Trek actor Anton Yelchin's fatal accident, filed the suit. According to The Wall Street Journal, the owners allege that FCA concealed the shifter's problems. On top of restitution, the class action suit is demanding a court order force FCA to issue a do-not-drive warning to owners of affected vehicles until it fixes the problem. FCA started distributing a software fix to dealers last week – according to the WSJ, the update will add more warnings about the shifter's position and will automatically kick the vehicle into park if the driver steps out. FCA's shifter problems have been bubbling under the surface as part of the company's recall issues. The US government dinged FCA with a $105 million fine last year for its recall practices (or lack thereof) last year, but things have exploded this week after Yelchin's death. The 27-year-old, best known for playing Ensign Pavel Chekov in the rebooted Star Trek film series, was killed after his 2015 Grand Cherokee rolled down his driveway and pinned the actor against a security gate. According to Jeep CEO Mike Manley, the company will dispatch engineers to analyze Yelchin's vehicle. Related Video: