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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

For his last act, Marchionne will outline an EV/hybrid roadmap this week

MILAN/LONDON — Fiat Chrysler (FCA) boss Sergio Marchionne is expected to outline new plans for electric and hybrid cars in a strategy presentation on Friday, aiming to ensure the world's seventh-largest carmaker remains in the race in the absence of a merger. The 65-year-old will present FCA's strategy to 2022, his final contribution to the company he turned around and multiplied in value through 14 years of canny dealmaking. After failing to secure a tie-up he said was necessary to manage the costs of producing cleaner vehicles, Marchionne needs to show the group can keep churning out profits on its own, even as emissions rules tighten, SUV competition intensifies and worries around his succession abound. Marchionne had long refused to jump on the electrification bandwagon, saying he would only do so if selling battery-powered cars could be done at a profit. He even urged customers not to buy FCA's Fiat 500e, its only battery-powered model, because he was losing money on each sold. But Tesla's success and the need to comply with tougher emissions rules have forced Marchionne to commit to what he calls "most painful" spending. "FCA is way behind rivals in terms of hybrid and electric vehicles and they need to hit the accelerator to convince investors they can close that gap," said Andrea Pastorelli, a fund manager at 8a+ Investimenti. Germany's Volkswagen, Daimler, BMW and U.S. rivals GM and Ford have committed to spending billions of euros each in coming years to try produce profitable cars powered by cleaner fuels. FCA needs to present a clear roadmap, just like Volvo Cars, which ditched diesel from its best-selling XC60 SUV, launched a new electric brand and pledged to shift all brands to hybrid by 2019, a banking source close to FCA said, noting: "The tech divide determines winners and losers in the industry." Marchionne has already said half of the wider FCA fleet will incorporate some elements of electrification by 2022, while luxury marque Maserati will spearhead FCA's electrification drive by making all new models due after 2019 electric. But its plans remain vaguer and less advanced than most big rivals and some investors wonder about the capital required to make vehicles compliant, and what share of spending can go to electrification given FCA's numerous demands.

2019 Jeep Renegade, Fiat 500X fuel economy revealed, slightly improved

The 2019 Jeep Renegade and Fiat 500X twins each get a new engine option, a turbocharged 1.3-liter four-cylinder. At 177 horsepower and 210 pound-feet of torque, it's substantially more potent than the 160-horsepower turbocharged 1.4-liter engine it replaces, and nearly matches the naturally aspirated 2.4-liter engine for power while beating its 175 pound-feet of torque. But we haven't known until now is how the new engine fares in terms of fuel economy. The numbers are a little tricky to parse, since both the Jeep and Fiat have changed what transmissions are available, as well as what combinations of engine and driveline are offered. We'll start with looking at the Jeep Renegade. It offers both the new turbo engine and the old 2.4-liter engine, but the manual transmission is gone, and the Renegade Trailhawk gets the turbo engine instead of the naturally aspirated one. All the numbers are below. Overall, the new turbo engine coupled with front-drive and the standard nine-speed auto returns better fuel economy than even the old manual-equipped combo. Both all-wheel-drive models do worse, though, with the automatic and the new engine than with the old engine with a manual. The new turbocharged Trailhawk also doesn't do as well on the highway as the old model, but does better in town. Fuel economy is unchanged for the 2.4-liter versions of the Renegade. 2019 Fiat 500X View 11 Photos The Fiat 500X range is simpler to follow, since only one variant is available now: the turbo 1.3-liter engine with all-wheel drive and an automatic. It's not quite as frugal as the fuel-sipping manual, front-drive turbo model from last year, but it does offer noticeable gains over the 2.4-liter versions. All the numbers are below.