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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.

$40M award for boy's death in Jeep fire upheld by Georgia high court

The Georgia Supreme Court on Thursday unanimously upheld a $40 million award to the family of a 4-year-old boy killed in 2012 when the 1999 Jeep Grand Cherokee in which he was riding was rear-ended and burst into flames. A lower court in 2015 reduced a jury verdict from nearly $150 million to $40 million. Fiat Chrysler spokesman Michael Palese said the company was "disappointed in this decision. We are considering our legal options." The Jeep's fuel tank was placed near the back of the vehicle, which plaintiffs said made it vulnerable to rear-end collisions. The Supreme Court ruling said "evidence showed that Chrysler had long known that mounting a gas tank behind the rear axle was dangerous. Evidence also showed that Chrysler's placement of the gas tank behind the rear axle was contrary to industry trends, which favored placing tanks in front of the rear axle." Fiat Chrysler lawyers said during the trial that the fire did not cause Walden's death and blamed the driver of the pickup truck that hit the vehicle. The company said Thursday it "continues to extend sympathies to the family of Remi Walden for their loss." On appeal, the company contended it was prejudicial to raise Fiat Chrysler Chief Executive Sergio Marchionne's compensation, which totaled more than $68 million, according to a company executive who testified at trial. The automaker had denied there was a safety issue and has said the vehicles were no more dangerous than comparable SUVs built at the time. The National Highway Traffic Safety Administration (NHTSA) linked more than 50 deaths to the Jeep fuel-tank issue. Under government pressure, Fiat Chrysler recalled 1.56 million 2002-07 Jeep Liberty and 1993-2004 Jeep Grand Cherokee SUVs in June 2013 to address fire risks and agreed to install trailer hitches to protect the gas tanks. The recall and a "customer satisfaction campaign" that covered the Jeep in the fatal Georgia crash occurred after Marchionne held private talks with senior U.S. Transportation Department officials in 2013. The Georgia Supreme Court opinion said the award was proper in part because Marchionne was "alleged to have specifically interjected himself in a federal safety investigation to the detriment" of the Walden family. In 2015, NHTSA announced Fiat Chrysler would pay a then-record $105 million civil penalty over lapses in safety recalls involving millions of vehicles, including older Jeep SUVs for fire risks. Reporting by David ShepardsonRelated Video:

Jeep burned down by new Samsung Galaxy Note 7

A Florida family is out a Jeep Cherokee and a brand new cell phone after a Samsung Galaxy Note 7 left on a charger allegedly burst into flames on Monday and destroyed both itself and the Jeep. According to Fox 13, Nathan Dornacher and his wife Lydia were cruising garage sales in St. Petersburg, Florida on Labor Day with their daughter and their service dog. They stopped at home to unload a desk they'd purchased earlier. While they got the desk out of the Cherokee's hatch Nathan left his shiny new Galaxy Note 7 charging in the Jeep's center console. When the family went to leave again to run more errands, they were shocked to see that the Jeep's interior was engulfed in flames and thick black smoke was pouring out of the panel gaps. The St. Petersburg Fire department responded to the Dornachers', but it was too late for the Cherokee. The fire destroyed the vehicle, which was dearly loved by Nathan and heavily modified with aftermarket equipment. The Galaxy Note 7 has gained a nasty reputation for spontaneous combustion since its release in August. Samsung has recalled the phone in ten countries after thirty-five instances of Galaxy Note 7s catching fire or exploding for no good reason were confirmed. Fox 13 received a statement from a Samsung spokesperson after they reported the story about the Dornachers' poor jeep. "We are aware of the incident and we are working with Mr. Dornacher to investigate his case and ensure we do everything we can for him. Consumer safety is Samsung's highest priority. With regard to the Galaxy Note7, we are asking owners to take advantage of the Product Exchange Program announced on Friday of last week. The program offers Note7 owners the opportunity to exchange the phone for a new one. More details on the program can be found at http://www.samsung.com/us/note7exchange/." News Source: Fox 13 Auto News Recalls Weird Car News Jeep Technology Smartphone SUV fire Samsung car fire