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Fiat Chrysler UAW corruption had roots in federal bailout of Chrysler

The Detroit News continues its dogged coverage of the federal investigation into corruption at the United Auto Workers union and Fiat Chrysler in a lengthy in-depth report that ties the investigation together with Chrysler’s emergence from bankruptcy protection in 2009, a hefty federal bailout and former CEO Sergio MarchionneÂ’s push to force a merger with crosstown rival General Motors. ItÂ’s a staggering look at the brazen illegal payoffs, kickbacks and embezzlement in the top ranks of both Fiat Chrysler and the UAW, an investigation which has so far resulted in 11 criminal convictions — three of them former FCA employees, the rest former UAW leaders — with at least seven others implicated in wrongdoing to date, including former UAW President Gary Jones, who recently resigned. Prosecutors allege all of it was fueled by $12.5 billion in taxpayer-funded bailout funds within days of Chrysler LLCÂ’s emergence from Chapter 11 bankruptcy protection in June 2009. The News reports that former FCA Vice President Alphons Iacobelli, then its top labor negotiator, admitted to opening the spigot that same month. HeÂ’s now serving 66 months in prison, according to the U.S. Attorney Office in Detroit. All told, Iacobelli and FCA made more than $9 million in illegal payments over eight years to the UAW to cover salaries and benefits, many of them for "no-show" jobs at the joint UAW-FCA training center in Detroit, which is being dissolved. WhatÂ’s more, prosecutors say that Iacobelli answered on UAW matters solely to Marchionne, who died in a Swiss hospital in 2018. Marchionne was never charged with any wrongdoing, even though investigators reportedly caught him lying about providing gifts to UAW leaders during a meeting at the U.S. AttorneyÂ’s Office in Detroit in 2016. The story also details how prosecutors believe he tried to buy the support of UAW leaders for his repeated bids to get GM to agree to a merger, despite widespread belief that such a move would have led to massive job cuts and plant closures, given the two automakersÂ’ many overlapping products. The whole Detroit News story is highly worth a read. Find it here. Read This UAW/Unions Chrysler Fiat GM Sergio Marchionne FCA

Chrysler develops fix for Pacifica PHEV minivan fires

In February, Stellantis recalled 19,808 examples of the 2017 and 2018 Chrysler Pacifica plug-in hybrid minivan due to reports of fires in 12 vehicles. The minivans were manufactured between August 12, 2016, and August 7, 2018. All were parked and turned off when they caught fire; eight of them were plugged in and charging. While engineers worked to isolate the source of the fires, Chrysler advised what's become standard practice in the case of electrical-related fire risks: For owners to park outside away from other objects that could catch on fire. Since then, there have been two more fires in Pacifica PHEVs and the first report of a minor injury because of a fire. Chrysler says it's developed a solution to return the minivan to normal operation and is notifying owners now. The fix is a trip to the dealer to have upgraded software installed for the High Voltage Battery Pack Control Module (BPCM) that manages the 16-kWh lithium-ion battery. Dealers will also inspect the battery pack and replace it if necessary. Of note, Chrysler says it hasn't definitively pinned down the cause of the fires, but it understands the conditions that can lead to the fires. The software's been updated to address these preconditions, the automaker telling Green Car Reports it "has validated its remedy." Owners should continue to park outside and away from structures and refrain from plug-in charging until their vans are fixed, after which they can "resume vehicle operation as outlined in their owners’ manuals." The repair will take from 1.5 to two days; a rental or courtesy car will be provided free of charge.  Stellantis has already begun sending letters to owners. Those with questions can contact their Chrysler dealerships, or get in touch with Chrysler customer service at 800-853-1403 and refer to recall number Z11. They can also call the National Highway Traffic Safety Association (NHTSA) Vehicle Safety Hotline at 888-327-4236 (TTY 1-800-424-9153) and mention campaign number 22V077.   

How fracking is causing Chrysler minivans to sit on Detroit's riverfront

It's fascinating the way that one change to a complex system can have all sorts of unintended consequences. For instance, there are hundreds of new Chrysler Town and County and Dodge Grand Caravan minivans built in Windsor, Ontario, sitting in lots on the Detroit waterfront because of the energy boom in the Bakken oil field in the northern US and parts of Canada.
The huge amount of crude oil coming from these sites mostly use freight trains for transport, and that supply boom has resulted in a shortage of railcars to carry other goods. According to The Windsor Star, North American crude oil transport by train has gone from 9,500 carloads in 2008 to 434,032 carloads in 2013. Making matters worse, some North American rail infrastructure is still damaged because of this year's harsh winter, and that's slowing things down even further.
Chrysler admits to The Star that it has had some delivery delays due to the freight train shortage. In the meantime, it's using more trucks to deliver its vehicles. Trucking is a far less economical solution, partially because a train can carry so many more units at one time, but alternatives are slim. The Windsor plant alone has a deal for 33 trucks to distribute the minivans around Canada and the Midwestern US.