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Feds accuse Fiat Chrysler, UAW of conspiring to break labor laws

DETROIT — Top officials of Fiat Chrysler Automobiles and the United Auto Workers union conspired to violate U.S. labor laws, federal prosecutors alleged in a court document, saying a former executive at the automaker knew bribes paid to union leaders were designed to "grease the skids" in labor negotiations. U.S. Justice Department officials for the first time called the company and the union "co-conspirators" in a document related to a guilty plea agreed by former Fiat Chrysler director of employee relations Michael Brown. The document was filed with the U.S. District Court in Detroit on May 25. Its contents were reported by the Detroit News on Wednesday. Brown pleaded guilty to one count of concealing a felony. The plea agreement stated that he knew Fiat Chrysler executives authorized $1.5 million in improper payments and travel, liquor, cigars and other goods for UAW officials who served on the union's negotiating committee. Prosecutors say FCA executives paid UAW representatives to influence union business. including collective bargaining on contracts ratified in 2011 and 2015. The government contends money was run through the UAW-Chrysler National Training Center, via false charitable donations and training center credit cards. Fiat Chrysler Chief Executive Officer Sergio Marchionne has said in the past that the misconduct "had nothing whatsoever to do with the collective bargaining process" and the "egregious acts were neither known to nor sanctioned" by the company. Fiat Chrysler had no further comment Monday. Outgoing UAW President Dennis Williams told union leaders at a conference in Detroit on Monday "our leadership team had no knowledge of the misconduct — which involved former union members and former auto executives — until it was brought to our attention by the government." Brown pleaded guilty on May 25, according to court documents, and will be sentenced on Sept. 20. Five other people have pleaded guilty in the government's ongoing investigation into the UAW and Fiat Chrysler, including the wife of a late UAW official, two other former UAW employees, former Fiat Chrysler vice president Alphons Iacobelli and another former Fiat Chrysler employee. Reporting By David Shepardson and Nick CareyRelated Video: Government/Legal UAW/Unions Chrysler Dodge Fiat Jeep RAM FCA

CEO Sergio Marchionne curses FCA spokesman for emissions cheating denial

WASHINGTON — Fiat Chrysler Chief Executive Officer Sergio Marchionne reprimanded the company's top U.S. spokesman for issuing press releases about Fiat's vehicle emissions practices days after Volkswagen's disclosure in September 2015 that the German automaker had used illegal software to evade emissions tests, documents released Monday show. Lawyers suing Fiat Chrysler Automobiles in a securities case filed excerpts of an email from Marchionne to Gualberto Ranieri, then the company's U.S. spokesman, in a filing in federal court in New York criticizing him for saying that the company does not use defeat devices. "Are you out of your goddam mind?" Marchionne wrote in an email on Sept. 22, 2015, adding that Ranieri should be fired and calling his actions "utterly stupid and unconscionable." The company said in a statement on Monday it was "understandable that our CEO would have a forceful response to any employee who would opine on such a significant and complex matter, without the matter having been fully reviewed through its appropriate channels." The statement added that Ranieri's comments came just days after VW's emissions issue became public "and before a comprehensive internal review and discussions with component suppliers was possible." Fiat Chrysler was sued in 2015 along with Marchionne and other executives over claims it defrauded shareholders by overstating its ability to comply with vehicle safety laws. An amended version of the complaint filed in 2017 added claims about its compliance with emissions laws. The shareholders accused the defendants of inflating Fiat Chrysler's share price by hundreds of millions of dollars from October 2014 to October 2015 by downplaying safety concerns. They said the shortcomings materialized in 2015 when the automaker was fined $175 million by the National Highway Traffic Safety Administration, and took a roughly $670 million charge for recalls. Plaintiffs filed the excerpts seeking approval to take up to 40 additional depositions, including Marchionne's. The U.S. Justice Department sued Fiat Chrysler in May 2017, accusing it of illegally using software to bypass emission controls in 104,000 diesel vehicles sold since 2014. Fiat Chrysler has held numerous rounds of settlement talks with the Justice Department and California Air Resources Board to settle the civil suit, including talks as recently as earlier this month. It faces a separate criminal probe into the matter.

Junkyard Gem: 1991 Dodge Monaco LE

When Chrysler took over the American Motors Corporation in 1987, the hot-selling Jeep brand was the big prize of that deal. At a stroke, Iacocca's company got the XJ Cherokee (which remained in production into our current century) plus its Comanche pickup sibling, the Wrangler, the Grand Wagoneer, and the AMC Eagle as bonuses. The Eagle gave its name to Chrysler's new marque, which worked out well for quite a few years, and of course the PowerTech V8 engine began life as an AMC design. Yes, Chrysler made out like a bandit on the AMC purchase, but one of the most important acquisitions that came with that coup ended up being a Renault design from the last gasp of Kenosha: the Eagle Premier. Genetic material from this car made its way into Chrysler products for decades to come, and the Dodge Division got the opportunity to slap Monaco badges on the Premier for the 1990 through 1992 model years. Here's one of those super-rare cars in a Denver self-service yard. Dodge sold plenty of Detroit-designed Monacos from the 1965 through 1978 model years, and so the name seemed ripe for a revival in 1990. We rated the 1974 Dodge Monaco "Bluesmobile" #3 on the Best Movie Cars of All Time list, and Monacos may be found in countless cop movies and TV shows over the decades. Did the name belong on a Renault design? Absolutely! The radical-looking and big-selling Chrysler LH cars were built on a modified Eagle Premier chassis, enabling Chrysler to print money from a 1980s Renault design all the way through 2004. After that, Mercedes-Benz engineering (with a dash of Mitsubishi thrown in for good measure) got stirred into the mix, but I'm told by a Chrysler engineer that you can still see the Renault 25 structure beneath the dashboard in modern Challengers and Chargers. All of this comes thanks to Lee Iacocca's score of that advanced European car way back in 1987. One thing from the Premier that Chrysler dropped like a monkey dropping a red-hot penny once production of the Premier/Monaco ended: the PRV V6, a sophisticated-but-flaky overhead-cam V6 originally developed by a partnership between Peugeot, Renault, and Volvo (hence the acronym). This engine achieved its greatest fame as the powerplant that went into the DeLorean DMC-12. You could get the chugging AMC 2.5-liter straight-four in the Eagle Premier, but all the 1990-1992 Monacos got the 3.0-liter PRV, rated at 150 horsepower.