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Fiat Chrysler's UAW members ratify new four-year contract

DETROIT — The United Auto Workers union said on Wednesday that rank-and-file members at Fiat Chrysler Automobiles NV have voted in favor of a new four-year labor contract with the automaker, helping the Italian-American firm avoid a strike as it works to merge with France's Groupe PSA. FCA and PSA, the maker of Peugeot and Citroen, in October announced a planned $50 billion merger to create the world's fourth-largest automaker. FCA's 47,200 rank-and-file UAW members voted 71% in favor of the new contract. The deal follows contracts the UAW already concluded with larger rivals General Motors and Ford. “Every full-time production employee currently at FCA will be at top rate by the end of this four-year agreement,” Cindy Estrada, UAW vice president and director of the union's FCA department, said in a statement. She added that all temporary workers also have a path to full employment. “We are pleased to have reached a new agreement that allows us to continue our record of adding good-paying UAW-represented jobs,” FCA North America Chief Operating Officer Mark Stewart said in a statement. Ratification of the contract had not been viewed as a sure thing, as union members at FCA in 2015 rejected the first version of a contract. In addition, a federal corruption probe related to embezzlement at the union drew attention. The federal corruption probe led GM to file a racketeering lawsuit against FCA, alleging 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. The contract with GM that was ratified by workers in October 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 has said the contract with FCA included a commitment by the automaker to invest $9 billion, creating 7,900 new jobs over the course of the contract. Of the $9 billion, $4.5 billion was announced earlier this year, to be invested in five plants and creating 6,500 jobs. The investments include $2.8 billion at Warren Truck Assembly plant in Michigan to build a new a plug-in hybrid SUV in 2021 and a potential increase of 1,500 jobs.

Google-Chrysler autonomous project will include ride-sharing

Google's new Waymo automobile-technology division might have just gotten "way mo" interesting, if you'll excuse the pun. Google, which this spring said it would work with Fiat Chrysler Automobiles on the development of a self-driving Chrysler minivan prototype, is adding a ride-sharing component to the project, Bloomberg News says, citing people familiar with the process. Representatives with both Fiat Chrysler and Google parent Alphabet Inc. declined to comment to Bloomberg. The ride-sharing service, which would compete with fellow San Francisco Bay Area-based companies such as Uber and Lyft, may debut as soon as the end of next year. Uber continues to move forward with its own self-driving efforts, launching self-driving tests (with engineers behind the wheel) in Pittsburgh in September and announcing this week that it would start tests in San Francisco. Those efforts may be delayed, however, as the state of California requires special permitting for testing out self-driving technology, and while the state has granted those permits to automakers such as General Motors, Tesla and Ford, it hasn't for Uber. Google and Chrysler said earlier this year that it would develop about 100 autonomous-driving Pacifica prototypes, but the ride-sharing service would require more of those vehicles to be built. Google's auto-technology operations, now called Waymo, have been headed by former Hyundai executive John Krafcik since September 2015. The division has reportedly brought in more executive-level personnel to speed things along. Meanwhile, Chrysler is slated to unveil an all-electric prototype version of the Pacifica at Las Vegas's annual CES show next month. Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.

To grease the skids for Stellantis, PSA offers to boost Toyota's fortunes

BRUSSELS/MILAN — Peugeot maker PSA has offered to boost Japanese rival Toyota to try to address EU antitrust concerns about its plan to create the world's fourth-biggest carmaker, to be called Stellantis, by merging with Fiat Chrysler, people familiar with the matter said on Friday. PSA has offered to increase the production capacity for Toyota in their van joint venture, one of the sources said. Another source said the French company would sell the vans at close to cost. PSA makes vans for Toyota in its Sevelnord plant in northern France. The van collaboration started in 2012. PSA submitted its offer to the European Commission earlier on Friday, three months after the EU enforcer opened a full-scale investigation into the deal with FCA on concerns that it would hurt competition in small vans in 14 EU countries and Britain. "As of now, the transaction has obtained merger clearance in 14 jurisdictions. As previously stated, closing of the transaction is expected to occur in the first quarter of 2021," PSA and FCA said in a joint statement. The Commission, which temporarily halted its investigation into the deal in July while waiting for the companies to provide requested data, did not set a deadline for its decision. "The deadline is still suspended. This procedure in merger investigations is activated if the parties fail to provide, in a timely fashion, an important piece of information that the Commission has requested from them," the EU executive said. It is now expected to seek feedback from customers and rivals before deciding whether to demand more concessions, or either clear or block the deal. Government/Legal Chrysler Fiat Peugeot Stellantis