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Detroit 3 and UAW could create healthcare pool

Healthcare costs continue to multiply in the US with no clear end in sight, but the United Auto Workers and the Big Three are negotiating a way to rapid growth under control. As part of the latest contract talks, the union has an idea to create a healthcare pool across all of its members at Ford, General Motors, and FCA US. If accepted, the company-wide integration would spread out the expenses and create a massive member base for bargaining with insurance companies. Both Ford and GM are at least considering the proposal, according to The Detroit News, and FCA US might be on board, as well. The idea is the work of current UAW president Dennis Williams and is based on the similar pool for the Voluntary Employee Beneficiary Association for retirees. "I've walked through this several ways; I just don't have any other answer," Williams said to The Detroit News. "I do believe this will work. It's worked with the VEBA." Williams was elected UAW president last year and won by an overwhelming margin. He vowed no more concessions to automakers. In addition to healthcare, the two-tier wage system is another major talking point in the contract negotiation because it gives fewer benefits to entry-level workers. Higher wages are also a request. Healthcare costs are a massive expense for automakers and are expected to reach over $2 billion this year, according to The Detroit News. The payments are up nearly 50 percent or more in just the last four years.

FCA goes all-in on Jeep and Ram brands on cheap gas bet

It's no surprise that as SUV and truck sales remain strong in the wake of unusually cheap gas, Jeep and Ram sales are taking off. What is a surprise is that FCA CEO Sergio Marchionne thinks that cheap gas will be a "permanent condition," and feels strongly enough about it to change up North American manufacturing plans. Jeep appears to be the biggest beneficiary of the product realignment. In addition to increasing the sales estimates for the brand worldwide upwards to 2 million units a year by 2018, the brand will get a flood of investment for new product and powertrains. Consider the Wrangler Pickup to be part of the salvo, as well as the Grand Wagoneer three-row announced in 2014 as part of the original five-year plan. The Wrangler four-door will get at least two new powertrains, a diesel and mild hybrid version, in its next generation. That mild hybrid powertrain may utilize a 48-volt electrical system like the one that's being developed by Delphi and Bosch – which the suppliers think will be worth a 10 to 15 percent fuel economy gain at a minimum. Down the road, in the 2020s, the Wrangler could adopt a full hybrid system. The diesel powertrain is planned for 2019 or 2020. The Ram 1500 is also pegged to receive a mild hybrid system, again potentially based on 48-volt architecture, sometime after 2020. Lastly, Jeep and Ram will take over some of the production capacity of existing plants. The Sterling Heights, MI, plant that builds the Chrysler 200 will now build the Ram 1500; the Belvidere, IL, facility that produces the Dodge Dart will take over Cherokee output; the big Jeep facility in Toledo, OH, will be used for increased Wrangler demand. In 2015, according to FCA's numbers, car and van demand went down by 10 percent, but SUV demand went up 8 percent and truck demand 2 percent. Considering that these are high-margin vehicles, FCA can't ignore the math. FCA also won't build any new factories to supplement production to meet demand, but instead are reshuffling production priorities. Think of it this way: FCA is gambling on cheap gas being a permanent part of our lives, at least into the 2020s. By doubling down on SUVs and trucks, the company stands to win big, unless a spike in gas prices changes the landscape. FCA isn't talking about a Plan B, so they're all in. It'll be interesting to see how this plays out.

Bonhams to auction Carroll Shelby's prototypes and personal cars

Fans of Carroll Shelby will want to make their way to Greenwich, Conn., this June, because Bonhams will be selling a great many cars from the man's personal collection. And many of them are the first of their kind, marking important milestones in Shelby's career. One of those important cars is a 1982 Dodge Charger prototype, which might not look as impressive as a Cobra, but it was important in that it was the first car on which Shelby collaborated with Chrysler. That car led to the first Shelby Charger, as well as other special small Chryslers including the GLH Omnis and Chargers (GLH standing for "Goes Like Hell"). In fact, the first Charger GLH-S (Goes Like Hell S'more) is also part of this collection. There are even some prototypes up for auction that never resulted in a production car, such as a Shelby modified Dodge Ram. That one is probably our favorite: the gold ram hood ornament, the huge pentastar in the grille, the double-barrel truck horn on the roof. It's wonderful nonsense. Of course it isn't just Chryslers going up for sale. There are a couple of GT500 and GT350 Mustangs in the mix from a variety of years. Perhaps most interesting is the very first Shelby Series I, Shelby's ill-fated roadster designed from the ground-up by the Texan's company. Unlike the other early Series I models, Shelby's had a supercharger, which led to a supercharger option being offered later. You can check out the full list of cars below, and pictures of each one in the gallery at the top. The auction will happen on June 3, and every vehicle offered has no reserve, so they'll all be sold for whatever price is shown at the drop of the gavel. 1927 Ford Model T 1931 Ford Model A 1935 Chrysler Airflow Sedan 1955 DeSoto Hard Top 1966 Shelby GT350 Convertible 1967 Lincoln Continental Convertible 1968 Shelby GT350 1969 Shelby GT 500 previously owned by Jackie Cooper Jr. 1969 Shelby GT 500 1982 Shelby Charger Prototype 1983 De Tomaso Pantera 1983 Dodge/Shelby Pickup Concept 1987 DeTomaso GT5-S 1987 Dodge CSX Serial #1 1987 Shelby Charger GLH-S Serial #1 1987 Dodge Shelby Lancer Serial #1 1988 Dodge Shelby Dakota Prototype 1989 Dodge CSX VNT Serial #1 1965 Shelby Cobra 427 Continuation 1999 Shelby Series 1 Serial #1 2008 Shelby GT 500 KR 2011 Shelby GT 500 Super Snake Aurora Race Car Related Video: Featured Gallery Shelby Collection View 72 Photos Image Credit: Bonhams Chrysler Dodge Ford Auctions Performance Classics shelby