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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.

FCA CEO Mike Manley will take undefined new role after PSA merger

MILAN — Fiat Chrysler Chief Executive Mike Manley will remain with the new group set to result from a planned merger with French rival PSA-Peugeot, Chairman John Elkann said on Wednesday. In a letter to Fiat Chrysler (FCA) employees on the day the two companies announced a binding agreement for a $50 billion tie-up to create the world's fourth-largest carmaker, Elkann said he was "delighted" that the combined group would be led by current PSA CEO Carlos Tavares. "And Mike Manley, who has led FCA with huge energy, commitment and success over the past year, will be there alongside him," he said. He did not say what position Manley would hold. Elkann — who will chair the new group — said there was still much to be done to complete the merger. "Over the coming months we must work tirelessly and determinedly to fulfill all the approval requirements needed to finalize the commitment we have signed," he said. Related Video:     Hirings/Firings/Layoffs Chrysler Dodge Fiat Jeep RAM Citroen Peugeot FCA PSA merger Mike Manley carlos tavares

Weekly Recap: Lincoln Continental serves up the style, Cadillac CT6 delivers the substance in New York

Lincoln and Cadillac grabbed the spotlight this week at the New York Auto Show in a dramatic fashion that evoked the brands' glory days. America's two luxury carmakers went toe-to-toe with their glittering reveals and plans for ambitious expansion. Both were selling their technology, style and the promise of a better future. Cadillac vs. Lincoln. At the Javits Center, 2015 seemed a lot like 1956. Neither company was interested in drawing comparisons with the other, which is fair, and accurate. They're in vastly different places in terms of sales and the pace of their turnarounds, but they hope to reach the same eventual destination at the pinnacle of the luxury-car world. Lincoln used the element of surprise to great effect with the Continental concept. A production version is still at least a year away, and the company was vague on details. Officially, we don't even know if it is front- or rear-wheel drive, though speculation abounds. Who cares? The seats can be adjusted 30 ways! The Continental also showed off a bold chrome grille that will be the new face of Lincoln. The blue bomber also rolled on blinged-out 21-inch polished aluminum wheels, used a 3.0-liter EcoBoost engine and had huge LED head lights with "laser-assisted" high beams. All of this resulted in almost blinding attention. The concept drew rave reviews, stirred controversy with Bentley designers who argued Lincoln ripped them off, and most importantly, pointed a way forward for the newly determined brand that hopes to compete with Mercedes, BMW, Audi, Cadillac and Lexus. View 32 Photos Meanwhile, Cadillac showed the CT6, a finished product that will top its range and is loaded with the best and latest technologies General Motors has at its disposal. With production starting late this year, Cadillac had more specifics at the ready. Engines? Cadillac has a couple V6s and a turbo four for sure. It's working on a hybrid, and has considered a V-Series variant. It's based on a new rear-wheel-drive, aluminum-intensive chassis called Omega, features an advanced collision-mitigation system with automatic braking and has a cabin that's laden with "leathers, exotic woods and carbon fiber." It will be assembled at GM's Detroit-Hamtramck factory and goes on sale next year. At this point, Cadillac is more than willing to talk about every except for the price. The devil was not in the details for Cadillac, as evidenced by the CT6. But it wasn't for Lincoln either.