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Ford spotted testing new Fiesta RS hot hatch

There's a lot to love about Focus ST and Fiesta ST, but if neither of those is enough for you, we've got good news: Ford has even more potent RS versions of both in the works. The Focus RS we already saw last month, but here we have our first spy shots of the smaller Fiesta RS undergoing testing. Spotted alongside still-camouflaged prototypes of its big brother, the new Ford Fiesta RS is wearing a modified front end, flared fenders packing a wider track and a revised rear-end. The beefed-up bodywork is all well and fine, but we're looking forward to finding out what's underneath it all. Sources point towards a 250-horsepower version of Dearborn's 1.6-liter EcoBoost turbo four, along with upgraded brakes and suspension. The big question, though, is whether the production Fiesta RS will pack the new performance all-wheel-drive system from its larger counterpart, or stick with front-drive and some sort of clever diff. It may be too early to tell, as this pocket rocket is likely a good year away from its debut, but in the meantime you can scope out the spy shots in the slideshow above for a taste of what's to come. Related Video:

Mulally confirms he's not leaving Ford for Microsoft

In recent months, rumors had been flying about Ford CEO Alan Mulally potentially leaving the company to take a position at Microsoft. Last we heard, Mulally was planning to stick around at Ford through at least 2014, and in an interview today, that bit was confirmed by the CEO himself.
According to the Associated Press, in a report from The Detroit News, Mulally said he will not be leaving Ford for Microsoft, and reiterated that he will remain at the Blue Oval through 2014, if not longer. Mulally has "no plans other than to serve Ford," according to the report.
Mulally did not say whether or not he had been in talks with Microsoft at any point. Microsoft CEO Steve Ballmer has said he plans to leave the software company sometime this year.

Here's what the UAW will be angling for in next year's contract negotiations

The United Auto Workers union is about to enter a new round of negotiations with the Detroit Three automakers, and this time, the focus is on the end of the two-tier wage system. Introduced in 2007, the two-tier wage system was enacted to allow General Motors, Ford and Chrysler to categorize its hourly employees under two categories: Tier 1 for veteran employees with full rights and benefits, and Tier 2 for short-term or entry-level employees compensated under a different schedule. The idea was that the system would permit the automakers to invest more in their plants and hire new employees as part of their respective recovery plans without being saddled with all the costs associated with hiring full-time employees. Now that the automakers are (more or less) back on their proverbial feet, however, the UAW wants to see an end to the two-tier system, and will likely make that a center-point of its negotiations next year to replace the current arrangement that is scheduled to end in September 2015. Not all members of the UAW will necessarily be interested in ending the two-tier system, however. According to The Detroit News, some Tier 1 workers may be more interested in negotiating a raise in their hourly rate – something which they haven't received in almost a decade. Tier 2 workers, meanwhile, may be more motivated to keep the tiered system in place, as their arrangement includes provisions for profit-sharing payments that have seen the automakers pay out billions to so-called short-term employees in lump-sum payments. Reconciling the two competing demands from two categories of union members and presenting a united front in negotiations may prove the biggest challenge for the UAW's new president, Dennis Williams. And with the right to strike – something which was suspended during the last round of negotiations in 2011 – the union has a bigger bargaining chip in its pocket.