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Fiat Chrysler agrees to plead guilty, pay $30M in UAW probe

DETROIT  — Fiat Chrysler Automobiles US has agreed to plead guilty and pay a $30 million fine for a corruption scandal at the union that represents its factory workers, authorities said Wednesday. Company representatives gave more than $3.5 million in cash and other things of value to senior officials at the United Auto Workers, federal prosecutors in Detroit said as they charged FCA with conspiracy from 2009 to 2016. Details of the payoffs have been public for a few years and acknowledged during guilty pleas by FCA employees and others. FCA spokeswoman Shawn Morgan confirmed the company's planned guilty plea and fine. Al Iacobelli was the head of labor relations at Fiat Chrysler and co-chairman of the UAW-Chrysler National Training Center in Detroit. The government said he signed off on $262,000 to wipe out a mortgage held by UAW vice president General Holiefield, who was the center's other co-chairman. Iacobelli also approved $25,000 from the training center for a party for union vice president Norwood Jewell and the UAW's international executive board, the criminal charge states. Training center credit cards paid for more than $30,000 in meals for UAW officials at various restaurants in Southern California, the government said. “They did that with the hope that the company itself could possibly get more favorable treatment from the unionÂ’s leaders” during labor negotiations, U.S. Attorney Matthew Schneider said Wednesday. Indeed, an indictment returned in 2017 said Iacobelli and others set up a liberal policy for credit cards to keep union officials “fat, dumb and happy." Iacobelli was sentenced to 5 1/2 years in prison in 2018, but the sentence was recently reduced by 18 months due to his cooperation. Holiefield died in 2015; his wife pleaded guilty to a tax crime three years later. The governmentÂ’s investigation began at the training center but stretched to other corrupt acts at the UAW. Eleven officials have been convicted, including two former union presidents. Investigators found that union dues were used to pay for golf, booze and vacation villas in California. The UAW recently agreed to have an independent monitor watch union finances and operations. Fiat Chrysler US is a subsidiary of Stellantis, a company created by the merger of Fiat Chrysler and PSA Peugeot.

Feds investigating FCA sales fraud focusing on strange code word

The US government is currently investigating Fiat Chrysler Automobiles (FCA) over the possibility of sales fraud, and according to The Wall Street Journal, the investigation has revealed a strange phrase about a nonexistent "unnatural acts department." People knowledgeable about the term told The Wall Street Journal that this phrase was a "rallying cry." Basically, if it looked like the company, region, or dealer wasn't going to hit sales targets, this was a sign that some outside-the-box sales solutions were needed. People told the news outlet those solutions could include selling cars at a loss or having the dealer buy a fleet of customer test-drive cars. However, this could also be evidence of some less savory ways to boost sales. In addition to the investigation, the company is already facing at least one lawsuit from a dealer group that alleges it would bribe dealers to pad monthly sales figures. FCA had an incentive to maintain sales numbers as well, considering that it was claiming a long streak of increasing sales. Under scrutiny recently, the company changed its sales reporting practices and numbers for previous years. Under the old reporting methods, it was possible for dealers to sell cars, report the sales, and then cancel or "unwind" the sales later. This wouldn't count as a lost sale, but the car also couldn't be recorded as another sale later. As a result, an unscrupulous dealer could have hypothetically used it to "sell" a car one month and "unwind" it the next. If FCA knew about this, it's also possible the company could have pushed dealers to use the system for false sales, something the Feds theorize may be related to the "unnatural acts department" phrase. It's still entirely possible this "unnatural acts department" was just a corporate term for thinking of creative ways to meet sales goals. And selling cars at a loss is definitely unnatural for businesses that are trying to make money. Whatever the phrase truly meant to dealers, it certainly is bizarre. Related Video: News Source: The Wall Street JournalImage Credit: GIUSEPPE CACACE/AFP/Getty Images Government/Legal Chrysler Fiat FCA fiat chrysler automobiles fca us investigation

2017 Chrysler Model Year Preview and Updates

FCA's now-iconic minivan is all-new. The 'Town & Country' tag is out, a resurrected CHRYSLER PACIFICA tag is in, and both the design and content are transformational – at least in the context of a minivan available in North America. And for those looking to both capacity and efficiency, Chrysler now offers a plug-in Pacifica hybrid with 30+ miles of all-electric range. While all Pacifica trims represent good value, with federal tax credits the Pacifica Plug-In is great value. 200: In 2017 Chrysler offers a 200 with both a new Dark Appearance package and an Alloy Edition. The 'Alloy' offers a sport-tuned suspension in combination with an all-wheel-drive system featuring a 'sport' mode for better all-season traction. And then, of course, Chrysler discontinued the 200, citing a lack of all-season sales traction. 300: The venerable (translation: 'old') 300 continues the long run with fourth-generation Uconnect, along with the addition of both Apple CarPlay and Android Auto. Beyond that, it's a new year with new colors, trims and packaging. And while the platform may be showing its age, it remains a compelling option for those wanting upmarket content at a reasonably accessible ($30K to $40K) price point.