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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.

Marchionne nixes talk of a reborn Dodge Viper

UPDATE: According to Automobile Magazine's Todd Lassa, FCA chief Sergio Marchionne shot down the idea of a reborn Viper, saying "it's not in the plan." Marchionne was referring to Fiat Chrysler's five-year plan, which we've been covering in bits and pieces as the news filters out. But it's not out of the realm of possibility, apparently, as Marchionne reportedly said he'd be happy to see the reptilian supercar back in production. And it's not all bad news, anyway. A reborn Alfa Romeo 8C will get a carbon-fiber chassis holding a mid-mounted twin-turbo V6. With more than 700 horsepower, including an electrically-driven front axle, the car should hit 62 mph in fewer than 3 seconds. Also, three versions of a Maserati Alfieri will be produced, including a convertible. An electrified all-wheel-drive powertrain is planned. So, performance is coming from FCA, it just may not be from Dodge. View 36 Photos First came the mourning for the Dodge Viper, which ended production last year. Then came the Viper's continued sales run as a "Zombie Car;" we just wrote about how the Viper has racked up 11 sales so far this year, two of them in April. Now Car and Driver reports that the two-seater snake will return shorty for its second encore after being discontinued in 2009. The mag isn't equivocal about it, either, writing, "trust us: A new Viper is happening." It won't, however, be the same Viper that brought ten-cylinder brass knuckles to shake down other coupes for their wallets and jewelry. CD says we should expect the same front-mid-engine layout and rear-wheel drive tucked into a new spaceframe. That engine will lose two cylinders, with Chrysler's next-gen, aluminum-block V8 Hemi slotting into the engine bay. The previous Viper's V10 had grown to 8.4 liters and 640 horsepower by the time it drove into the sunset. CD guesses the coming Viper will start with a naturally-aspirated version of the Hemi V8 working up around 550 horsepower. Healthy doses of aluminum and carbon fiber would restrain the car's weight, on top of the weight loss from swapping an iron V10 for an aluminum V8. SRT could tart up the horsepower with a few performance trims, before a supercharged V8 with 700-plus horsepower arrives at some point after launch. The mag also suspects the initial offering will be a convertible, the hardtop appearing "a few years after launch," which could coincide with the more powerful engine. A row-your-own shifter will sit between the seats.

2.1 million vehicles recalled again over faulty airbags

Fiat Chrysler Automobiles, Honda and Toyota will recall 2.1 million vehicles to fix faulty airbag modules "after the manufacturers' original attempts to fix the defects proved ineffective in some vehicles." These vehicles had all previously been recalled, but the National Highway Traffic Safety Administration found that the airbags could still potentially malfunction. This recall will cover Acura MDX, Dodge Viper, Jeep Grand Cherokee, Honda Odyssey, Pontiac Vibe, Toyota Corolla, Toyota Matrix and Toyota Avalon models made in the early 2000s. NHTSA has reportedly received about 40 reports of airbag deployment in such vehicles, even though the vehicle had not been involved in a crash. Roughly one million of these same vehicles, all from Honda and Toyota, are also subject to recalls due to faulty Takata airbag modules, though this particular recall is for "an electronic component manufactured by TRW" that is separate from the actual airbags from Takata. According to NHTSA Administrator Mark Rosekind: "This is unfortunately a complicated issue for consumers, who may have to return to their dealer more than once. But this is an urgent safety issue, and all consumers with vehicles covered by the previous recalls should have that remedy installed. Even though it's a temporary solution until the new remedy is available, they and their families will be safer if they take the time to learn if their vehicle is covered and follow their manufacturers' instructions. A hassle is much better than a family tragedy." If you're the owner of an affected car, expect to hear more from the official automaker and government channels in short order. In the meantime, we'd suggest getting your car checked and fixed at your local dealer. The official statement and recall information can be found below. Previously Recalled Vehicle Remedies Not Working as Designed; NHTSA Announces Follow up Recall of 2.12 Million Cars and SUVs Saturday, January 31, 2015 Contact: Gordon Trowbridge, 202-366-9550, Public.Affairs@dot.gov WASHINGTON – U.S. Transportation Secretary Anthony Foxx announced today the recall of more than 2.12 million Acura, Dodge, Jeep, Honda, Pontiac, and Toyota vehicles for a defect that may cause airbags to deploy inadvertently. The recalls will provide vehicle owners with a new remedy after the manufacturers' original attempts to fix the defects proved ineffective in some vehicles.