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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

Certain Chrysler owners eligible for buyback program

Certain car owners whose Chrysler vehicles contain dangerous defects will soon have a way to get rid of their lemons without losing money. As part of an agreement with federal regulators, Fiat Chrysler Automobiles has agreed to buy back more than 500,000 vehicles susceptible to veering out of control without warning at above market-value prices. The deal mainly covers certain models of RAM trucks, the Dodge Dakota pickup and Dodge Durango SUV. Further, owners of more than 1.5 million Jeep Liberty and Grand Cherokees at heightened risk for lethal fires are eligible to trade in their vehicles at above market value or, alternately, get a gift certificate if they prefer to have repairs made. Chrysler has "a heavy responsibility to make sure the products they make are safe for the traveling public," said Mark Rosekind, administrator of the National Highway Traffic Safety Administration. "... Here, we are sending an unambiguous signal to industry that if you skirt the laws or violate the law, or don't live up to the responsibility that consumers expect, we are going to penalize you." The buy-back and trade-in options for motorists come as part of an unprecedented penalty NHTSA slapped against Chrysler for violating federal motor-vehicle safety laws. Chrysler will pay a $105 million fine, the highest ever levied by the regulatory agency. In addition to the buy-backs, Chrysler also agreed to an independent monitor for three years. Investigators had outlined problems in the company's conduct in 23 recalls that affected more than 11 million defect vehicles. As part of a consent-order agreement, Chrysler acknowledged it did not notify vehicle owners of recalls in an effective manner and did not notify NHTSA of safety problems. Though those recalls affected millions of drivers, the buy-back and trade-in options are only for a small portion of the vehicles involved. Because Chrysler struggled to fix the problem and no repair was apparent, Rosekind said the buy-backs are reserved "for customers who didn't have a remedy." Buy-backs are for trucks and SUVs affected by three recalls that occurred in 2013 (recalls 13V-038, 13V-527 and 13V-529), that addressed a rear-axle pinion nut that could come loose and cause a loss of vehicle control. Those recalls covered 579,228 vehicles, including 2009-2012 Ram 1500, 2500, 3500, 4500 and 5500 trucks, 2009-2012 Dodge Dakotas, 2009 Chrysler Aspen and the 2009 Dodge Durango.

Inline-6 Hemi replacement on the cusp of production from Stellantis

It appears that Stellantis is ready to put its long-rumored inline-six into production at its Saltillo, Mexico plant, possibly marking the beginning of the end of Chrysler's long-running 5.7L Hemi V8. But so far, the automaker's American brands have remained mum on where exactly the new turbocharged "Tornado" I6 may land. Stellantis powertrain blog Stellpower (by way of Muscle Cars & Trucks) spotted an entry for a new "GME T6" inline-six engine on the Saltillo facility's web site, suggesting that it was either in production or close to it. That entry has since been removed, but the mystery remains.  We've been hearing tidbits here and there about this new inline engine for years, but this is the first time we've seen anything suggesting its arrival is imminent. Usually, such a significant powertrain update would coincide with the launch of a new product to showcase it. So far, Stellantis has remained mum, even overseas, about where this engine is destined to reside. 2022 model year vehicles are likely off the table entirely.  But while it's common for new engines to debut with new cars and trucks, it's not a universal truth. Ford's Coyote V8 missed the corresponding Mustang refresh by a year, for example, orphaning the 2010 model and its much-needed styling updates with the old 4.6L V8 (and the 3.8L V6, for that matter; the 3.7L Duratec was also late to that party). Even sticking just to Stellantis, the JL Wrangler's powertrains have been a work in progress since it arrived back in 2018. The standard V6 and 2.0-liter turbo-4 debuted at launch; the EcoDiesel, 392 and 4xe all came later.  And 4xe may be the model by which to measure our expectations. Its introduction didn't come completely out of nowhere, but it was rather sudden for what turned out to be such a solid offering. That bodes well for the company's existing Hemi-powered trucks and SUVs. The Ram 1500, Jeep Grand Cherokee and Wagoneer are all strong candidates to receive the new Hemi replacement, as all would greatly benefit from even small improvements in fuel economy. If there's to be a future for the Dodge Charger and Challenger and Chrysler 300, they'd benefit too. And how about a Gladiator with the wick turned up, positioned as its equivalent to the Wrangler 392. Turn that Tornado into a Dust Devil. Don't worry; we've got plenty more where that came from.  Related Video This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.