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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

Fiat board makes Chrysler merger official, approves $5.4B bond sale

Fiat's board of directors has officially approved the merger plan that will see the conglomerate's automotive operations merged with Chrysler into the new Fiat Chrysler Automobiles.
The plan essentially provides a road map for the structure of the new company. It includes provisions for Fiat shareholders - one Fiat share will translate to one share of FCA common stock. The new company will also include a loyalty voting structure, which will provide for shareholders of Fiat stock or those that have held FCA stock for at least three years. According to the plan, these shareholders would see their voting power double, with two votes for every share of FCA's common stock. The overall merger plan still needs to be approved by the company's shareholders.
In other Fiat-related news, the company's board has announced a bond issuance of four billion euro ($5.4 billion). The new bonds should provide the company with a degree of flexibility in refinancing debts associated with the merger plan.

Now at Costco: Bales of toilet paper and a Volvo or Pacifica to haul them

Costco, the beacon of bulk buying, where you can buy everything from gasoline to your own casket at deep discount, is offering some Costco-only incentives through its Auto Program in partnership with specific car brands: for now, Volvo and Chrysler, with other brands planned for later. First, Volvo: Now through Oct. 2, you can get both special incentives AND employee pricing (aka "A-Plan" pricing) AND whatever rebates and incentives Volvo might already have going on. The Costco incentives are: $3,000 on 2017 and 2018 S90 sedans. $750 on 2017 and 2018 S60 sedans. $750 on 2017 and 2018 V60 and V90 Cross Country wagons. $750 on 2017 and 2018 XC90 SUVs. $750 on the outgoing 2017 XC60 crossovers. Automaker incentives usually vary by region, but in the Detroit area, at least, Volvo currently has a $2,500 incentive on the 2018 XC90 and $3,500 on the 2017 model. Those end Aug. 31 but could be renewed in September, and others could be added then as well. Volvo is also offering special interest rates on financing some of the other models. And when all is said and done, if you fill out a Costco customer survey you'll get a $200 cash card. The Chrysler Pacifica deal, also through Oct. 2, is even simpler: Go to the Costco site, print out a certificate worth $1,000, and take it to a Chrysler dealership — any dealership, not just those that usually work with Costco, which is a first. The incentive covers both 2017 and 2018 models. And like the Volvo promotion, these Costco incentives can be combined with whatever Chrysler's doing — and it currently has a myriad of incentives on 2017 Pacificas, in various combinations that differ depending on whether you're leasing or buying. If you register at the Costco Auto Program website, you'll be put in touch with a dealer who can review the bottom line after all the discounts are factored in. Participating dealerships have offered special pricing to Costco members for years, up to the price automaker employees get. Costco's program doesn't typically work the way these Volvo and Chrysler programs do, though a similar joint promotion with Volvo back in 2013 sold 7,500 cars. If you haven't used the Costco Auto Program, but you don't like haggling at a dealership, you might give it a try. The beauty of it is that a dealer is obligated to offer you a set price and is also obligated to treat you by certain rules, such as not trying to upsell you. Last year, 490,000 vehicles were sold to Costco members through the program.