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Fiat Chrysler pleads guilty to paying off Detroit union officials

DETROIT — Fiat Chrysler pleaded guilty to conspiracy Monday, admitting that it paid off leaders of the United Auto Workers to try to win concessions in negotiations covering thousands of factory workers. FCA's conviction follows a series of guilty pleas from UAW officials who were showered with more than $3.5 million in cash and items of value from a jointly run training center over an eight-year period. FCA stands for Fiat Chrysler Automobiles, which now is part of Stellantis, a company created by the merger of Fiat Chrysler and PSA Peugeot. “FCA violated federal labor law and undermined the collective bargaining process and the faith of the UAWÂ’s membership in their leaders,” said acting U.S. Attorney Saima Mohsin. The head of FCA labor relations, Al Iacobelli, executed the scheme with five UAW officials and a spouse, especially General Holiefield, who was a union vice president. He eliminated a $262,000 home mortgage in 2014 with training center money. Union officials used credit cards for spending sprees. “Your honor, we plead guilty,” FCA general counsel Chris Pardi told U.S. District Judge Paul Borman. 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. Holiefield's successor, Norwood Jewell, was sentenced to 15 months in prison. His plea deal listed $60,000 in meals and golf paid with training center credit cards. FCA will pay a $30 million fine to the government. An independent monitor will be appointed to oversee the end of the training center as well as handle other tasks. The government's investigation became public in 2017, but agents soon were uncovering other corruption at the UAW. Union dues were used to pay for golf, booze and vacation villas in California, and contractors were giving kickbacks for union business. Eleven officials have been convicted, including former presidents Gary Jones and Dennis Williams. They are awaiting their sentences in Detroit federal court. Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. Earnings/Financials Government/Legal UAW/Unions Chrysler Fiat

Chrysler Airflow Vision concept pairs today's platform with yesterday's name

Fiat-Chrysler has a number of notable announcements at this year's CES, including a formal announcement of its plug-in hybrid plans and branding, as well as the North American debut of the Fiat Centoventi concept. But it's also bringing something new and forward-looking to the show in the form of the slippery-looking Chrysler Airflow Vision concept. If that name sounds familiar to you, it's because the Airflow name was used on some streamlined and highly distinctive-looking Chrysler products of the 1930s. One thing both the old and new Airflows share is a slippery shape. The new Airflow is nothing but soft organic curves, looking like the automotive equivalent of Disney/Marvel robotic hero Baymax. It even has spats that cover the wheels, which are translucent to show off the big, copper-accented wheels underneath. While not unattractive, the modern Airflow does look a bit generic compared to the bold original, since so many modern EVs have a rounded rounded shape that's undoubtedly aerodynamic, but also unexciting. Maybe Chrysler should give it big hood strakes to evoke the stretched grille of the '30s Airflow. Peel away the pearly white exterior and you have a blend of future and contemporary technology. The interior shows off pedestal mounted seats swathed in suede and leather. The dashboard is minimalist and curvy like the exterior, and it features many screens as is the modern custom. In the center are dual displays for infotainment and climate controls like in an Audi. A small instrument screen sits ahead of the steering wheel, and the passenger gets a screen directly ahead of their seat. Chrysler says a unique feature will be the ability to swipe different menus and functions over to other occupants' screens so they can fiddle with things. Chrysler hasn't explicitly said what powers the Airflow Vision, but it makes mention of using the floor of the Pacifica Hybrid. It could share that van's powertrain, a hybrid V6 arrangement that might even preview the reported electrified all-wheel-drive version. We'll hopefully get more details on the powertrain after the reveal.

UAW may be key to forced FCA merger with GM

Sergio Marchionne doesn't give up on a business deal easily. While outwardly not much has recently been said about FCA's attempted merger with General Motors, Marchionne might be hoping to garner a powerful, new ally that could help break things wide open. The United Auto Workers retiree health care trust is the single largest shareholder of GM with 8.7 percent of the stock, and having its support would certainly improve FCA's position in getting a deal done. "Whatever happens in terms of consolidation, it would never be done without the consent and support of the UAW," Marchionne said when FCA recently began contract talks with the UAW, The Detroit News reports. The boss is also allegedly on good terms with the union president Dennis Williams. Still, using the organization for a hostile takeover could be very difficult because of the way its votes are structured. Other activist investors might already be on board, though. Marchionne believes that consolidation in the industry is vital because automakers are investing to create the same technologies. A GM/FCA merger still has many roadblocks, though, including the fact that Marchionne's company is smaller than GM. From a regulatory perspective, the size of the merged company could raise serious anti-trust concerns among regulators, according to The Detroit News. There's also the concern for lost jobs from redundant work with the two combined businesses. Even if the UAW angle doesn't work out, there are contingency plans afoot for other merger targets. According to The Detroit News speaking to anonymous insiders, FCA bigwigs have a meeting in London on Thursday to take a close look at other options. In addition to GM, they are investigating possible deals with Volkswagen and the Renault-Nissan Alliance. In the past, PSA Peugeot Citroen and multiple Asian automakers have also been brought up as partners, and UBS has reportedly been providing financial advice on what to do.