2023 Dodge Challenger Demon 170 on 2040-cars

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The UAW's 'record contract' hinges on pensions, battery plants

DETROIT - After nearly four weeks of disruptive strikes and hard bargaining, the United Auto Workers and the Detroit Three automakers have edged closer to a deal that could offer record-setting wage gains for nearly 150,000 U.S. workers. General Motors, Ford Motor and Chrysler parent Stellantis have all agreed to raise base wages by between 20% and 23% over a four-year deal, according to union and company statements. Ford and Stellantis have agreed to reinstate cost-of-living adjustments, or COLA. The companies have offered to boost pay for temporary workers and give them a faster path to full-time, full-wage status. All three have proposed slashing the time it takes a new hire to get to the top UAW pay rate. The progress in contract talks follows the first-ever simultaneous strike by the UAW against Detroit's Big Three automakers. The union began the strike on Sept. 15 in hopes of forcing a better deal from each major automaker. But coming close to a deal is not the same thing as reaching a deal. Big obstacles remain on at least two major UAW demands: restoring the retirement security provided by pre-2007 defined benefit pension plans, and covering present and future joint- venture electric vehicle battery plants under the union's master contracts with the automakers. On retirement, none of the automakers has agreed to restore pre-2007 defined-benefit pension plans for workers hired after 2007. Doing so could force the automakers to again burden their balance sheets with multibillion-dollar liabilities. GM and the former Chrysler unloaded most of those liabilities in their 2009 bankruptcies. The union and automakers have explored an approach to providing more income security by offering annuities as an investment option in their company-sponsored 401(k) savings plans, people familiar with the discussions said. Stellantis referred to an annuity option as part of a more generous 401(k) proposal on Sept. 22. Annuities or similar instruments could give UAW retirees assurance of fixed, predictable payouts less dependent on stock market ups and downs, experts said. Recent changes in federal law have removed obstacles to including annuities as a feature of corporate 401(k) plans, said Olivia Mitchell, a professor at the University of Pennsylvania Wharton School and an expert on pensions and retirement. "Retirees want a way to be assured they won't run out of money," Mitchell said.

I sold my Viper, but the memories I'll keep

The following is written by auto industry veteran Tow Kowaleski. The words are his own, but the memories now belong to everyone thanks to his willingness to share. If you're an industry veteran with a story to share, contact us at tipsATautoblogDOTcom.
It became the flame that started the fire of belief in the next life of Chrysler.
I just sold a car. Nothing new. Millions do it every day. But my car was a 1995 Dodge Viper, so maybe it was a bit more unique since just 12,000 were built. And like others selling a car that's been a part of the family for close to 20 years, this was a confluence of emotions for me. I was sad to see it go, but happy to have the cash and one less big, shiny, under-utilized object in my life.

Dodge Viper plant will close for good Aug. 31

It has been a long time coming, an end rumored since at least 2015, but after 25 years, the Dodge Viper's demise is nigh. Production of the $90,000 bespoke sports car is ending. Therefore, FCA will be shutting down its Conner Assembly Plant on Aug. 31. Automotive News reports that the Detroit plant will be shutting down. The car has been hand-built there since 1995, save for a hiatus in 2010-13 (production began at FCA's Mack Plant in 1992). The Prowler was built there, too, from 1997 to 2002. More than 80 workers currently build the Viper, making Conner FCA's smallest assembly facility. But not many Vipers are sold - 630 last year - despite an enthusiastic following. And of course FCA's own 707-horsepower Dodge Challenger and Charger SRT Hellcats and new 840-horsepower Challenger SRT Demon can't help matters. But the last straw is the fact the Viper can't comply with new safety requirements going into effect. On the bright side, the UAW has seen the plant closure coming since 2015, and FCA has told the state of Michigan that it expects to find positions at other plants for the Viper crew. FCA has been celebrating the Viper valedictory for a couple of years now, offering serialized special editions, including the $121,000 Viper ACR, and touting the ability to build unique Vipers with its "1 of 1" customization program, with a choice of 16,000 unique paint colors and 48,000 unique stripe combinations. Related Video: