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Strains between France and Italy risk Renault-FCA merger

PARIS/ROME — Fiat Chrysler's proposed $35 billion merger with Renault has cheered investors, won conditional support from Paris and Rome and even earned cautious backing from trade unions. Beneath this veneer, however, the bold attempt to create the world's third-largest carmaker risks becoming rapidly embroiled in the fraught relationship between France's europhile President Emmanuel Macron and Italy's euroskeptic leaders. For while Deputy Prime Minister Matteo Salvini hailed the proposal as a "brilliant operation," Italy's creaking, state-subsidized Fiat factories are likely to bear the brunt of any production-related cost savings. FCA and Renault said this week that more than 5 billion euros ($5.6 billion) of annual savings would come mainly from combining platforms, consolidating powertrain and electrification investments and the benefits of increased scale. Salvini and France's Finance Minister Bruno Le Maire, who called the deal a "good opportunity" to build a European industrial champion able to compete with China and the United States, have both said they want guarantees on local jobs. "It's not every day that I agree with Salvini," said Le Maire, whose government appears to hold the trump cards. When it comes to where any job cuts fall, France will be helped by its existing 15 percent holding in Renault, whose superior efficiency at its five French plants makes it better placed to handle a supply glut, the demise of the petrol engine and the investments needed for electric and autonomous vehicles. "It will take many, many years to find real savings, and ugly political and operational realities can often swamp the potential of such new entities," Bernstein analyst Max Warburton said of the FCA-Renault plan to rival Japan's Toyota and Germany's Volkswagen. Advantage France? As well as Italy's government having to cope with the aftermath of European elections, which coincided with news of the FCA-Renault plans, political leaders in Rome were only informed shortly before the deal was made public, an FCA source said. This contrasted with the way the French government was treated, with Fiat Chrysler Chairman John Elkann, a fluent French speaker, letting it know of his merger proposal to Renault weeks ago, a French government official said.

Stellantis wants to trim 3,500 hourly U.S. jobs, UAW says

WASHINGTON — Chrysler-parent Stellantis NV wants to cut approximately 3,500 hourly U.S. jobs and is offering voluntary exit packages, according to a United Auto Workers union letter made public Tuesday. The automaker is looking to reduce its hourly workforce offering incentive packages that include $50,000 payments for workers hired before 2007, UAW Local 1264 said in a letter dated Monday posted on its Facebook page. Stellantis spokeswoman Jodi Tinson declined to comment. A person briefed on the matter said the figure might be lower than the figure cited in the UAW letter. In late February, Stellantis indefinitely halted operations at an assembly plant in Illinois, citing rising costs of electric vehicle production. The action impacted about 1,350 workers at the Belvidere, Illinois, plant that built the Jeep Cherokee SUV and resulted in indefinite layoffs. The automaker has warned it may not resume operations as it considers other options. The UAW letter said openings created by workers leaving would be filled by workers on indefinite layoff. Stellantis said in February that about 40,000 U.S. hourly workers were eligible for profit sharing. Last week, UAW President Shawn Fain said Stellantis' decision to idle the Illinois plant was "a flat-out violation" of the union's contract with the UAW and is unacceptable. The UAW will enter talks with the Detroit Three before labor contracts expire in mid-September. Earlier this month, General Motors said about 5,000 salaried workers accepted buyouts to leave the automaker. GM CEO Mary Barra said February job cuts of a few hundred jobs and the 5,000 buyouts "provided approximately $1 billion towards" a $2 billion cost cutting target. Ford Motor Co recently announced significant job cuts in Spain, Germany and other parts of Europe and in August said it would cut a total of 3,000 salaried and contract jobs, mostly in North America and India. Hirings/Firings/Layoffs UAW/Unions Chrysler Dodge Fiat Jeep Maserati RAM Stellantis

How to tune a car right: Part 3, tuning Mopar with OST Dyno

Not long ago, I wrote a story about a pony car tuned with a supercharger. The blower install had been done properly. Then the car's owner bolted on a set of great looking wheels wrapped in good looking but inexpensive rubber. On my first test drive, I couldn't get any of that supercharged sweetness to the ground. It was the perfect ride for parking in a Burger King parking lot on a Friday night. I tooled around on a Sunday drive, shaking my head that someone had spent five figures to get more power the right way, with a clean install, then wiped out the gains so thoroughly that the stock engine would likely have overwhelmed the tires. This got me thinking about the ways people ruin their quest for horsepower, either on the front end by not insisting on a clean install and paying the money for it, or on the back end with supplemental purchases like cheap tires or cheap gas. So I called three tuners, one focused on GM, one on Mopar, one on Ford, to find out what people should know about how to get the best power for their goals, and how to make sure they are able to use all that power. The first interview in this three-part series was with Blake Leonard at Top Speed Cincy in Cincinnati, Ohio, the second with Brandon Alsept at BA Motorsports in Milford, Ohio. This third and last interview is with Micah Doban at OST Dyno in Slippery Rock, Pennsylvania, a family business with more than 40 years of Mopar expertise specializing in Gen III Hemis, but tuning everything from land-speed cars and drag racers to Jeeps The interview has been edited for clarity and concision. Do people who come to OST generally know what they want? Probably 80% of the people who come in simply want more power with no particular ET goal [ET is a kind of bracket handicapped drag racing – ed.]. WhatÂ’s the best way to start a Mopar tune? The first thing is what people often skip, and that's to find a tuner or a shop. People will throw parts on their cars that the Internet said to, then go to a tuner who does things a different way, and [the tuner is] like ‘No we don't like to use these injectors, we don't like these parts.Â’ You have to find someone familiar with the parts that are on your car or that you're planning to put on your car. So having a goal and then finding a tuner who can help you with that goal is proper way to start. Exactly. And a lot of tuners have their own formula – and when I say tuner I mean someone that also does work to the cars.