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FCA and UAW deal could mean huge production shakeups

The big labor contract between Fiat Chrysler Automobiles and the United Auto Workers is likely to lead to some very serious production shakeups across the company's North American manufacturing operations. That's according to a new report from Automotive News, which details the sweeping changes at no fewer than five production facilities in Michigan, Illinois, Ohio, Mexico, and Poland. So without further ado, here's what's going where, presented in easy to digest bullet form. Ram 1500 production would move from Warren, MI to Sterling Heights, MI Warren, MI would be retooled for unibody production and would handle the Jeep Grand Wagoneer and could potentially build Grand Cherokees to ease the strain on Detroit's Jefferson North factory Chrysler 200 production would move from Sterling Heights, MI to Toluca, Mexico Dodge Dart production would move from Belvidere, IL to Toluca, Mexic Fiat 500 production, which is currently handled by Toluca, would be concentrated in Poland, where the Euro-spec Cinquecento is built Jeep Cherokee production would move from Toledo, OH to Belvidere, IL to make room for Wrangler and Wrangler Pickup production Like we said, those are some big changes. But, as FCA CEO Sergio Marchionne said in an earlier interview with Automotive News, this kind of shakeup would make a lot of sense. In that August interview the exec said that automakers moved truck production to Mexico because they were "threatened" by the UAW. "The only thing [the UAW] want is to move the truck back. Which is right. If you move the truck back here, which is [the UAW's] domain, [and move] all the cars that we get killed on somewhere else, we could actually make sense of this bloody industry and actually increase the number of people employed in this country and really share wealth because we are making money," Marchionne told AN. News Source: Automotive News - sub. req.Image Credit: Bill Pugliano / Getty Images Plants/Manufacturing UAW/Unions Chrysler Dodge Fiat Jeep RAM Sergio Marchionne FCA toluca warren sterling heights

Fiat Chrysler and the UAW reach tentative labor deal

DETROIT — Fiat Chrysler Automobiles and the United Auto Workers (UAW) union on Saturday announced a tentative agreement for a four-year labor contract, a boost for the automaker as it works to merge with France's Groupe PSA. Italian-American Fiat Chrysler and PSA, the maker of Peugeot and Citroen, last month announced a planned $50 billion merger to create the world's fourth-largest automaker. The tentative agreement with Fiat Chrysler, which is subject to ratification by the union members, follows contracts that the UAW already concluded with Ford Motor Co and General Motors Co. The deal with GM followed a 40-day strike in the United States that virtually shuttered GM's North American operations and cost the automaker $3 billion. The UAW on Saturday said the contract with Fiat Chrysler included a commitment from FCA to invest $9 billion, creating 7,900 new jobs over the course of the four-year contract. Of the $9 billion, $4.5 billion was announced earlier this year, to be invested in five plants and creating 6,500 jobs. Detailed terms of the tentative agreement were not released, but they are expected to echo those under the new contracts with GM and Ford, as the UAW typically uses the first deal as a pattern for the others. "FCA has been a great American success story thanks to the hard work of our members," UAW acting President Rory Gamble said in a statement. "We have achieved substantial gains and job security provisions for the fastest growing auto company in the United States." Ratification is not a sure thing. Rank-and-file UAW members at FCA in 2015 rejected the first version of a contract. In addition, a lawsuit related to a federal corruption probe could also raise doubts among union members about the terms agreed. The federal corruption led GM to file a racketeering lawsuit against FCA, alleging that its rival bribed union officials over many years to corrupt the bargaining process and gain advantages, costing GM billions of dollars. FCA has brushed off the lawsuit as groundless. Under the UAW's deal with GM, the automaker agreed to invest $9 billion in the United States, including $7.7 billion directly in its plants, and to create or retain 9,000 UAW jobs. Ford's contract included commitments to invest more than $6 billion in its U.S. plants and to create or retain more than 8,500 UAW jobs. The deals with GM and Ford also created a pathway to full-time employment for temporary workers and left healthcare insurance coverage unchanged.

Why Chrysler made the Pacifica Hybrid

There were a number of important details missing from Chrysler's debut of the Pacifica Hybrid yesterday. Pricing and availability, for example. We still don't know those specifics – Chrysler just says it will all be announced closer to launch – but we spent some time with Kevin Mets, the chief engineer for the Pacifica Hybrid, to learn more about the powertrain and why Chrysler decided to offer this vehicle at this time. "This could be a primary electric vehicle for someone." We started with the big question: why build a plug-in minivan at all? "It brings the ability that if you want an electric vehicle, a hybrid, you don't have to compromise size to get there," Mets said. "For instance just a few minutes ago I was talking to someone from Canada and they were saying in the US it's two vehicles per household is kind of the norm. In Canada it's not that way, it's more like a vehicle or even less than a vehicle. There's a lot of people that want an electrical vehicle in Canada but they can't make it their primary vehicle. This is a vehicle that could be a primary electric vehicle for someone in Canada, or anybody else for that matter, who wants a plug-in vehicle, an electric vehicle that doesn't have to compromise in size." So, was the development of the Pacifica PHEV influenced more by customers saying they wanted a plug-in hybrid minivan or was it driven more by green vehicle regulations? "That's a tough one to answer," Mets said. "Certainly you have to meet all the requirements. There's a little bit of everything there. You also can pick what vehicles you want to do it on. You pick which vehicle is the best opportunity and this is the one we chose. It's a little bit of both." As for when the Pacifica Hybrid will reach dealerships, all we know is, "late 2016." But Mets said that the minivan will at some point be available in all 50 states. Initial availability might be limited to places like California, but, "The idea is to sell it nationwide," he said. Chrysler decided on the "Pacifica Hybrid" name instead of the more-accurate "Pacifica Plug-In Hybrid" for simplicity. Anyone who might care that the minivan plugs in will find out that it, indeed, has a plug, the reasoning goes, but when Chrysler talks to the average mass market shopper, "hybrid" tells them everything they need to know. Under the hood (and the floorboards, where the batteries are) there are a lot of new bits.