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Sergio: Two-tier wage structure eliminated in FCA deal with UAW [w/video]

The two-tiered wage structure that governs the way domestic car companies pay their unionized employees – and rankles many of them in the process – could soon be a thing of the past. In a tentative deal seen as a bellwether for other ongoing negotiations, the United Auto Works and Fiat Chrysler Automobiles reached a tentative agreement on a four-year contract that would disband the two-tier structure, in which some workers earn higher hourly wages for performing the same job, over time. Officials who announced the tentative agreement late Tuesday in Detroit were short on details of its contents and union members still must ratify it. But FCA CEO Sergio Marchionne said the two-tiered structure will disband by the end of the contract. "The team has crafted together a very thoughtful process, where the issue will go away, go away over time," he said. Further details weren't divulged. Union negotiations with Ford and General Motors are ongoing, so hammering together a deal that sheds the two-tier structure with Chrysler first could set a precedent followed by the other members of Detroit's Big Three automakers. Other key issues that emerged in negotiations with FCA included escalating health-care costs and rewarding workers for the health of the auto industry. But dealing with the two-tier structure, born as GM and Chrysler circled bankruptcy during the Great Recession, was something the UAW wanted to confront. "The UAW has a philosophy about the economic balance of this country and the inequality, and our mission is to bridge the gap in this country," UAW president Dennis Williams said. "It's gotten out of whack. ... We don't want to share anything, and I truly believe that corporations that have that set of mind have lost their way." The UAW's executive board was expected to review the tentative agreement this morning before a union membership vote is scheduled. For Marchionne, who skipped the Frankfurt Motor Show to shepherd the negotiations during their final hours, the tentative agreement means he can shift his concern back toward pushing an FCA merger with General Motors or another company and touting the idea of industry consolidation in general. "The other side of this is capital usage in this business, which is something that remains unsolved," he said. "It makes the labor side sort of pale in comparison, given the magnitude of the potential synergies and benefits we'd be deriving from an intelligent approach.

Fiat Chrysler Automobiles targets mid-October IPO

The merged Fiat Chrysler Automobiles is targeting October 13 to launch its initial public offering on the New York Stock Exchange, CEO Sergio Marchionne told reporters assembled for a meeting in Rimini, Italy.
"The most likely date for the listing in the US is October 13," Marchionne said, according to Reuters.
Marchionne is trusting that the money made in the IPO will be contribute heavily his ambitious, $64-billion five-year growth plan, which will see FCA reboot Alfa Romeo and Maserati and expand Jeep's global presence. Should the IPO fall short, though, Marchionne has confirmed that "all decision [sic] on any capital increase will be taken by the board of FCA at the end of October."

FCA joins BMW, Intel and Mobileye on autonomous car project

Today, BMW, Intel and Mobileye announced that FCA would be joining their effort to build a sharable and scalable platform for autonomous cars. This project has been moving ahead full steam, with Intel purchasing Mobileye earlier this year, not long after Tesla and Mobileye parted ways. Not long after that, parts supplier Delphi joined the autonomous effort. The group's current goal is to have 40 autonomous test vehicles on the road by the end of 2017. The eventual end game is to create a new architecture that each partner can use and adapt to its needs. The platform will support level 3 to level 4/5 automated driving, and can be adapted to suit brand identity. The main headquarters for the effort will be in Germany. FCA staff will join the already established group of engineers from BMW, Intel and Mobileye. The group expects this new platform to hit the streets by 2021. It's unclear how this will affect FCA's relationship with Waymo, Alphabet's autonomous vehicle project. Waymo currently uses modified Chrysler Pacificas for its fleet. In addition to FCA, the trio of BMW, Intel and Mobileye have extended an invitation to any other automakers and suppliers that want to join the project. Related Video: News Source: BMW/Intel Green BMW Chrysler Fiat Autonomous Vehicles mobileye