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FCA employees likely to reject UAW contract

For a brief, blissful glimmer of time, it seemed like we might have a period of labor harmony here in the Motor City. The United Auto Workers and Fiat Chrysler Automobiles, the UAW's lead bargaining company, came to a pending agreement that seemed promising enough that union president Dennis Williams, shown above with FCA boss Sergio Marchionne, thought it'd be ratified by the membership. Well, he was wrong. It's widely expected that FCA's rank-and-file workforce will vote against the deal, which gave workers a raise, would establish a VEBA-style healthcare pool, and deliver a $3,000 bonus for signing the agreement, while retaining the much-hated two-tier wage system. According to The Detroit News, it'd be the first time in over three decades the union's general population didn't follow its leadership's recommendation. Two of FCA's big US facilities, Toledo Assembly and Sterling Heights Assembly, overwhelmingly voted no, with The News saying they "mathematically sealed the deal's fate." According to The News, UAW Local 1700 President Charles Bell said roughly 90 percent of SHAP's 3,000-plus union workforce voted "no" on the deal. Should the pending agreement fail as it's expected to, there are three potential avenues for the union. First, as The News details, both sides could return to the bargaining table. Second, FCA workers could hit the picket line. Finally, union leadership may opt to focus its firepower on General Motors or Ford. It's a good thing we aren't the gambling sort, because those all seem very much within the realm of possibility. Not surprisingly, rank-and-file UAW members have taken issue with the survival of the two-tier wage structure, while others simply think that union employees deserve a wage hike. There was also, we're betting, some serious concerns over the reshuffling of production that would come with a new FCA/UAW deal. As previously reported, no fewer than four UAW facilities would have their vehicle lines shuffled around, including both SHAP and Toledo. Expect more news as soon as the UAW formally announces the results of its FCA voting. News Source: The Detroit NewsImage Credit: Paul Sancya / AP Plants/Manufacturing UAW/Unions Chrysler Fiat FCA toledo sterling heights

Say goodbye to the Dodge Dart and Chrysler 200

Fiat-Chrysler CEO Sergio Marchionne outlined an update to the company's five-year business plan Wednesday, and among the changes, the Dodge Dart and Chrysler 200 sedans will soon be phased out. The company's presentation to investors states that the "market shift from cars to trucks and UVs [utility vehicles is] now seen as permanent shift in demand," and FCA wants to respond as quickly as possible. Killing the 200 and Dart will allow FCA to build more Jeep and Ram models at the Sterling Heights, MI, and Belvidere, IL, plants where the sedans were produced. We already knew FCA was planning to shift 200 and Dart production to Mexico, to free up the Sterling Heights facility for Ram 1500 production, and the Belivdere site for Jeep Cherokee output. The Cherokee will move from its current home in Toledo, OH, to allow for increased Wrangler production. It's no shock that FCA wants to shift its focus to crossovers and trucks. In December 2015, for example, combined sales of the Dodge Dart and Chrysler 200 were 15,310. The Jeep Cherokee, which uses the same platform as the Dart and 200, outsold both models combined, with 24,049 sales. Both the Dart and 200 had troubles from the beginning. Marchionne recently blamed designers for the 200 not receiving a Consumer Reports 'recommended' rating, and the Dart was one of the lowest-scoring cars in a CR reliability study. Featured Gallery 2013 Dodge Dart: Review View 27 Photos Related Gallery 2015 Chrysler 200 View 43 Photos Image Credit: Copyright 2016 Drew Phillips / AOL Chrysler Dodge Jeep RAM FCA confirmed

GM, Chrysler bailouts saved 2.6 million jobs

The Center for Automotive Research (CAR) has been studying the effects of the General Motors and Chrysler bailouts in 2009. Now that the US Treasury has officially sold off the rest of its stake in GM (and Chrysler has already paid back its loan), CAR has released its study on the effects of the bailout with this concluding note: "CAR is confident that in the years ahead, this peacetime intervention in the private sector by the US government will be seen as one of the most successful in US economic history."
Big words, for sure, but there's plenty of evidence to back up the claim. Bailing out GM alone saved 1.2-million jobs. If both GM and Chrysler hadn't been bailed out, US employment would have been reduced by 2.631-million jobs in 2009 and another 1.519-million jobs in 2010, according to the study. If both automakers were allowed to fail, personal income in the US would have decreased by $173.5 billion in 2009 and $110.9 billion in 2010. Instead, the study found that $284.4 billion of personal income was saved by the bailouts.