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FCA's UAW workers to get $8,010 profit-sharing payout

UAW workers at FCA will soon be receiving $8,010 checks, which represent profit-sharing based on the company's 2020 performance. Although FCA's profit margins in 2020 were slimmer than the year prior, the union-employee payouts are slightly larger, due to a change in the formula that was negotiated in 2019 and has now gone into effect. Employees are now paid $900 for every 1% of profit margin FCA achieves in its North American operations. For 2020, the company enjoyed an 8.9% profit margin, and although that was down slightly from 9.1% in 2019, the checks are larger than last year's $7,280 payout. Still, FCA employees didn't fare quite as well as their counterparts at GM, who stand to receive profit-sharing checks of up to $9,000. GM workers did even better last year, netting $10,000. UAW workers at Ford had less to celebrate. They'll receive $3,525, based on the company's 2020 performance. That's a steep drop from last year's $6,600. FCA earned $6.472 billion in North America in 2020. The company is expecting an improved financial performance in 2021, as it's expected to avoid another coronavirus-related shutdown. It's also expected to benefit from the launch of the three-row Grand Cherokee L, as well as the Jeep Wagoneer and Grand Wagoneer, all of which are high-margin products. Related video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.

Sergio Marchionne, the man who saved Fiat and Chrysler, dies at 66

MILAN — Sergio Marchionne, one of the auto industry's most demanding and tenacious chief executives, who rescued Fiat and Chrysler, two of its most storied brand, has died after complications from recent surgery. He was 66. The gruff chief executive spent 14 years at the wheel of Fiat Chrysler, the group he built. He was replaced as boss last weekend after his condition worsened. In Italy, where his turnaround of Fiat earned him legendary status, he was treated like a rock star. The former philosophy student and accountant almost never wore a tie and preferred casual sweaters, half-joking that it saved him time on dressing. A heavy smoker until giving up the habit a year ago, he was known for working extraordinarily long hours before falling ill. He demanded others keep a similarly grueling schedule, earning him a reputation from friends and foes alike for being stubborn and arrogant. "I feel like I live in a tunnel. He is not just demanding; he wants all your life devoted to him," said one banker who worked with Marchionne on various deals in recent years. Some could not keep up with his round-the-clock approach. Another banker who worked with Marchionne said he would receive emails from him at all hours, even in the middle of the night. In his last public appearance on June 26, wearing his signature sweater, Marchionne appeared fatigued and out of breath as he presented a Jeep Wrangler to Italy's paramilitary police, the Carabinieri, at a ceremony in Rome. Days later, he went to Switzerland to undergo what Fiat Chrysler (FCA) described as a shoulder operation. FCA has not said what happened after he left the operating theater, but according to media reports in Italy, the surgery was for an invasive sarcoma he had known about for some time but had not revealed to his boss, FCA Chairman John Elkann. The reports say he underwent a risky surgery in Switzerland but developed a cerebral embolism on the operating table that left him in a coma. In an emergency board meeting at the weekend, FCA chose the head of its Jeep division, Mike Manley, as his successor. On Wednesday, Elkann announced that the longtime CEO had passed away, saying: "Sergio Marchionne, man and friend, is gone." Marchionne has done what many thought impossible, most notably his huge gamble just over a decade ago when he set in motion the marriage between the then-ailing Fiat with bankrupt U.S. rival Chrysler. It is now the world's seventh-largest carmaker and is debt-free.

Chrysler recalling 700k minivans and Dodge Journey for ignition switch woes

General Motors isn't the only automaker with ignition switch problems. Chrysler is fighting it too and is now announcing a recall of 695,957 examples worldwide of the Chrysler Town & Country and Dodge Grand Caravan minivans from the 2008-2010 model years, plus the 2009-2010 Dodge Journey.
According to a statement from Chrysler, the models have a bad wireless ignition node detent ring in the ignition switch, making it possible for drivers to appear to have the key in the "Run" position but for the spring not to fully engage. It can then slip back to the "Accessory" position and shut the car off. If this happens, the vehicle loses power steering, brake boost and the airbags.
There is some disparity about the number of vehicles affected under this recall. In its statement, Chrysler claims that it covers 525,206 vehicles in the US, 102,892 in Canada, 25,591 in Mexico and 42,268 elsewhere. However, the recall announcement posted by The National Highway Traffic Safety Administration lists an estimated 438,109 vehicles in the US. Chrysler spokesperson Nick Cappa told Autoblog via email that the reasoning for the different figures "will become clear at a later date."