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FCA chairman confirms Marchionne email to Barra

FCA CEO Sergio Marchionne is apparently backing up his talk about the need for consolidation in the auto industry with quite a bit of action. One recent report claimed that he even emailed General Motors CEO Mary Barra to make a deal. FCA chairman John Elkann has now confirmed that the correspondence actually happened, and that it wasn't a one-off occurrence. "It was not the only email, it was not the only conversation," Elkann (pictured above with Marchionne) said, according to Reuters. He is a member of the Agnelli family that has a controlling stake in FCA's stock and is supporting the idea of a merger. The automaker is willing to "act with determination if there are the prerequisites to do something that makes sense," Elkann said. Marchionne has been pushing for industry consolidation for months. While GM has been the main target of late, Ford was also rumored as a partner under consideration. In the past, there have also been reports of FCA negotiating with Volkswagen Group and PSA Peugeot Citroen for mergers, as well. According to Reuters, part of the reason for all of this effort might be as a way for Marchionne to ensure his legacy, though he's denied that. He's reportedly considering retiring after 2018. In his opinion, consolidation is needed because automakers are investing too much money to achieve the same goals. The situation would be better after mergers, and he predicts something to happen before 2018. Related Video: News Source: ReutersImage Credit: Massimo Pinca / AP Photo Earnings/Financials Chrysler Fiat Sergio Marchionne FCA merger John Elkann

GM seeks appeals court ruling to continue legal fight with Fiat Chrysler

DETROIT — General Motors on Friday asked a U.S. appeals court to allow it to continue pursuing its civil racketeering suit against rival Fiat Chrysler Automobiles, rejecting a lower court judge's belittling of the complaint. The automaker's filing with the Sixth Circuit Court of Appeals comes less than a week after U.S. District Court Judge Paul Borman called GM's suit against Fiat Chrysler a "waste of time and resources" at a time when both automakers should be focused on surviving the coronavirus pandemic. Borman ordered GM Chief Executive Mary Barra and Fiat Chrysler CEO Mike Manley to meet by July 1 to negotiate a resolution. "As we have said from the date this lawsuit was filed, it is meritless," FCA said on Friday. "FCA will continue to defend itself vigorously and pursue all available remedies in response to GM's groundless lawsuit. We stand ready to comply with Judge Borman's order," it added. In its motion, GM asked the appeals court to throw out Borman's order and reassign the case to a different district court judge. It called Borman's order "unprecedented" and "a profound abuse" of judicial power. GM sued Fiat Chrysler last year, accusing the Italian-American company's executives of bribing United Auto Workers union officials to secure labor agreements that put GM at a disadvantage. Fiat Chrysler is under investigation by the U.S. Justice Department as part of a wide-ranging probe of UAW corruption. GM's accusations came as Fiat Chrysler and French automaker Peugeot were in the early stages of preparing for a merger. Fiat Chrysler has said the suit was aimed at disrupting that deal. GM has said the suit has nothing to do with the merger. In a statement, GM rejected Borman's characterization of the suit as a "distraction" and defended its decision to press the case. "We filed a lawsuit against FCA for the same reason the U.S. Department of Justice continues to investigate the company: former FCA executives admitted they conspired to use bribes to gain labor benefits, concessions and advantages. Based on the direct harm to GM these actions caused, we believe FCA must be held accountable." Related Video: Government/Legal UAW/Unions Chrysler Fiat GM

Local UAW leaders recommend membership approve FCA contract

DETROIT — Union leaders from Fiat Chrysler factories are sending a new four-year contract to a membership vote. The 47,000 members of the United Auto Workers union at the company will vote on the deal starting Friday. Local leaders assembled on Wednesday in Detroit to go over the pact, which includes a $9,000 bonus per worker upon ratification. The company also has promised $4.5 billion worth of new investments in U.S. factories. The union reached agreement with Fiat Chrysler last weekend. The new contract also offers a mix of lump sums and pay raises for longtime workers, full top wages for new hires within four years and a path for temporary employees to become full-time after three years of work. The Fiat Chrysler contract also adds 12.5% to the union workers' profit-sharing formula, giving them $900 per 1% of profit margin generated North American. That's up from $800, and a $12,000 cap was lifted. The UAW says the deal created more than 7,900 jobs, including a $4.5 billion investment previously announced at two factories in Detroit. Fiat Chrysler is the last of the Detroit automakers to settle with the union. Workers at General Motors ratified their contract Oct. 31, ending a 40-day strike that paralyzed GM's U.S. factories. Ford workers followed by approving a contract in November. In a summary of the contract, the union said FCA agreed to extend a moratorium on outsourcing of jobs and will maintain its U.S. manufacturing presence through the life of the contract. The $9 billion of factory investment includes $4.5 billion previously announced at two factories in Detroit, including a new assembly plant. Also included is an agreement to build fresh models off the Jeep Cherokee SUV underpinnings and invest $55 million into the Belvidere, Illinois, assembly plant, where the Cherokee is built. At the Toledo, Ohio, North Assembly plant, which builds the Jeep Wrangler SUV, the company will invest $160 million and hire 100 more people to build a plug-in hybrid version of the Wrangler. The Toledo South plant gets $120 million to keep building the Jeep Gladiator pickup. At an assembly plant in Sterling Heights, Michigan, Fiat Chrysler will invest $210 million to keep building light-duty Ram pickup and new high-performance version of the truck. Another truck plant in Warren, Michigan, will get $2.8 billion including engineering and development expenses to keep building the Ram pickup and a new three-row SUV called the Wagoneer and Grand Wagoneer.