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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.

Chrysler recalling 280k Dodge Ram 1500 pickups over axle seizures

Following a June investigation by the National Highway Traffic Safety Administration, Fiat Chrysler Automobiles will be recalling 280,000 Dodge Ram pickups from model year 2005. The issue, NHTSA told The Detroit News, centered on a loose pinion nut, which could cause the rear axle to seize and, potentially, the driveshaft to detach. The affected vehicles were built between January of 2004 and August of 2005, while of the 280,000 trucks, only 257,000 were sold in the US market. According to The News, the recall will begin on February 13, and will see owners report to dealerships to have "a retention feature" added to the pinion nut.

The Dodge Challenger plays its trump card: all-wheel drive

Perennially stuck in third place behind the Ford Mustang and Chevy Camaro in sales and enthusiast comparisons, the Dodge Challenger is doing something unconventional for a muscle couple. It's adding all-wheel drive. It's a new feature for Detroit's pony cars – none of the three have ever had it – and it could be a game-changer. Called the Challenger GT, the Dodge launches this winter for a starting price of $34,490. The Challenger GT comes with the Pentastar 3.6-liter V6 rated at 305 horsepower and 268 pound-feet of torque. It teams with an eight-speed TorqueFlight automatic transmission and is estimated to get 18 miles per gallon in the city and 27 mpg on the highway. An FCA spokesperson said no manual transmission or V8 models will be offered on the all-wheel-drive Challenger. It will be on display in January at the Detroit auto show. View 8 Photos All-wheel drive is a widely expected addition for the Challenger. The coupe shares underpinnings with the four-door Charger, which offers an all-wheel drive variant and the cars have similar powertrain offerings (the AWD Charger is also V6 and automatic only). Naturally, the Challenger borrows the Charger's AWD system and during regular driving conditions, the front axle disengages and full torque goes to the back wheels, allowing the Challenger to function as a rear-wheel drive car. It automatically goes back to AWD when more traction is needed. Handling is also fortified with a vehicle dynamic control system. Conversely, the electronic stability control has three modes and can be switched off for drift-happy enthusiasts. The GT has features familiar to other Challenger and Dodge owners, including an 8.4-inch touchscreen radio, Performance Pages (accessible through the Super Trak Pack button), and paddle shifters. A Sport Mode changes shift points to improve acceleration. It all rolls on 19-inch wheels wrapped in all-season rubber. The exterior gets a hood bulge, LED head- and taillights, and a decklid spoiler. The Challenger GT also offers a $995-interior package different than RWD models, adding Nappa leather, Alcantara suede seats, a nine-speaker Alpine audio system, performance steering wheel, and more. All of that is just window dressing. It's all-wheel drive that could be a difference-maker for consumers. The Challenger won't likely be able to take down the Mustang, which will finish 2016 as the pony car sales king.