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The UAW's 'record contract' hinges on pensions, battery plants

DETROIT - After nearly four weeks of disruptive strikes and hard bargaining, the United Auto Workers and the Detroit Three automakers have edged closer to a deal that could offer record-setting wage gains for nearly 150,000 U.S. workers. General Motors, Ford Motor and Chrysler parent Stellantis have all agreed to raise base wages by between 20% and 23% over a four-year deal, according to union and company statements. Ford and Stellantis have agreed to reinstate cost-of-living adjustments, or COLA. The companies have offered to boost pay for temporary workers and give them a faster path to full-time, full-wage status. All three have proposed slashing the time it takes a new hire to get to the top UAW pay rate. The progress in contract talks follows the first-ever simultaneous strike by the UAW against Detroit's Big Three automakers. The union began the strike on Sept. 15 in hopes of forcing a better deal from each major automaker. But coming close to a deal is not the same thing as reaching a deal. Big obstacles remain on at least two major UAW demands: restoring the retirement security provided by pre-2007 defined benefit pension plans, and covering present and future joint- venture electric vehicle battery plants under the union's master contracts with the automakers. On retirement, none of the automakers has agreed to restore pre-2007 defined-benefit pension plans for workers hired after 2007. Doing so could force the automakers to again burden their balance sheets with multibillion-dollar liabilities. GM and the former Chrysler unloaded most of those liabilities in their 2009 bankruptcies. The union and automakers have explored an approach to providing more income security by offering annuities as an investment option in their company-sponsored 401(k) savings plans, people familiar with the discussions said. Stellantis referred to an annuity option as part of a more generous 401(k) proposal on Sept. 22. Annuities or similar instruments could give UAW retirees assurance of fixed, predictable payouts less dependent on stock market ups and downs, experts said. Recent changes in federal law have removed obstacles to including annuities as a feature of corporate 401(k) plans, said Olivia Mitchell, a professor at the University of Pennsylvania Wharton School and an expert on pensions and retirement. "Retirees want a way to be assured they won't run out of money," Mitchell said.

NYIAS: 2017 Jeep Grand Cherokee Trailhawk, ooh-rah!

I was very happy to see Jeep offer a stand-alone, off-road-oriented model to the Grand Cherokee for 2017, the Trailhawk. This is not the first time for a GC Trailhawk, as they offered a limited run a few years ago to see if there might be a market for such a model. Looks like there is, as there are Trailhawk models for the Cherokee and Renegade, and now the Grand Cherokee as well. Just to be clear here, Jeep has always offered off-road ready packages (tow hooks, one inch more ground clearance, skid plates) for the Grand Cherokee and Cherokee in the past. They were called "Up Country," or more recently, "Off Road" groups. That was all well and good but, at least where I was living, almost impossible to find. Rarely would you ever find one so-equipped on dealer lots. If you ever saw one on the street, most likely the owner special-ordered it. Having said that, now that I'm living by the beach, I am seeing a few Up Country-equipped older Jeeps; not many, but more than I've seen in the past. As to the new Cherokee and Renegade Trailhawks; I'm seeing a bunch of them. It took a little while for the public to discover this trim level, but now I see them everywhere. Must be the orange tow hooks? Speaking of orange tow hooks... I'm not a big fan of them. Tow hooks for sure, orange ones, not so much; same with the matte black hood decal, not a fan. If I were ever to get a Trailhawk, it would be either dark gray or black, as that effectively hides the hood decal. So Jeep has packaged the Trailhawk as a premium model within each respective model line. While I fully understand the thinking, I do wish Jeep would also offer an entry-level off-road model, one with all the Trailhawk off-road goodness, but minus all the visual and luxury fluff. A lot of off-roaders don't want to pay, or can't pay top dollar for stuff they don't want or need. As to a name, how about "Trail," that being Trailhawk minus the "hawk;" or perhaps "Pioneer?" That's an old name from Cherokees of yesteryear. Back then the Pioneer was positioned as a mid-low level model. I think either name would work well for a back-to-basics-off-road-focused Cherokee and/or Renegade. Content it like the current entry-level Sport or mid-level Latitude models, but include the Trailhawk's off-road prowess. The Grand Cherokee should probably pass on that suggestion, as it would run counter to that model's high-end image. Related Video: Image Credit: Jeep Jeep open road

FCA Partners With Goolge, Marchionne Is New CEO Of Ferrari And We Spy The 2018 Jeep Wrangler | Autoblog Minute

Greg Migliore recaps the week in automotive news, including a look at the FCA, Google partnership, Ferrair's new CEO, and the 2018 Jeep Wrangler. Ferrari Jeep Autoblog Minute Videos Original Video FCA