2005 Jeep Wrangler Rubicon 4.0 6-speed on 2040-cars

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FCA to idle Belvidere Jeep plant again for a week in February

Bloomberg reports that Fiat Chrysler will shut down the Belvidere, Ill., plant that assembles the Jeep Cherokee for a week this month, starting February 17. FCA has been tweaking the plant's headcount and production schedule for a while now, usually downward. The automaker laid off 1,371 workers last February and fired 32 more in May, the same month it eliminated the third production shift. In August, the automaker shut down the plant for one week, then did so again for two weeks last month. As in August and January, FCA explained this month's idling by saying it needs to get production in alignment with demand. Cherokee sales declined 20% in the U.S. last year, helping to account for Jeep's overall 5% domestic drop in 2019. On top of the shutdown, FCA is offering buyouts to certain plant workers among the 3,600 hourly and 300 salaried personnel. The choices are either taking a "separation package" that comes with a $60,000 lump sum payment, or accepting voluntary termination that pays a lump sum based on seniority. Employees that choose a buyout can't return to Chrysler, becoming no longer "eligible for recall, rehire or reemployment." Belvidere personnel have until March 11 to make their decisions. Bloomberg says the aim is to reduce the number of workers with more seniority and higher pay grades; a company spokesperson said the move would "create opportunities for those employees still on layoff," who were lesser-paid. Around 900 of those laid-off workers remain on standby for reassignment to another plant. Analysts predict a soft year for car sales, so FCA might not be the only automaker pruning the rolls. Early estimates have come in below 17 million, and if that comes true, 2020 will be the slowest year since 2014, when 16,531,070 units left lots. The new contract between FCA and the UAW made provisions for Belvidere, which has tempered talk of a total shutdown.The automaker will invest $55 million for "fresh models/features off of the current (KL) platform" that underpins the Cherokee as well as the Chinese-market Jeep Grand Commander (it was previously used for the Dodge Dart and Chrysler 200). Outside of that, some observers think the carmaker could be planning a three-row Chrysler crossover based on the KL platform, akin to the Grand Commander, for the United States. Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.

Toledo continues fight for Jeep Wrangler production, despite mayor's death

Where will the next-generation Jeep Wrangler be built? That's an open question, but it's one that the city of Toledo, OH desperately wants to be the answer to. The city suffered a major blow, though, with the death of Mayor Michael Collins earlier this month. Collins had been the city's biggest champion during talks with Fiat Chrysler Automobiles, before suffering a fatal heart attack on Feb. 6. But Collins' tragic death isn't dampening the city's desire to carry on as the home of the Wrangler. "The mayor's passing is tragic. But on Monday, when I came to work, I knew exactly what I needed to do and exactly what needed to be done," the city's director of development, Matt Sapara, told the Detroit Free Press. According to the Freep, Sapara said Toledo and the state of Ohio have delivered an outline of a development plan that would give FCA the ability to buy an extra 100 acres to expand the factory. This is to help accommodate FCA's targeted output of 300,000 to 350,000 next-generation Wranglers, up from the 240,000 the factory can make now. "Our target in the proposal is to provide a way to increase the production capacity to a number that allows Fiat Chrysler to meet its business model," Sapara told the Freep, adding that the land could be available later this summer. FCA, meanwhile, has shown a somewhat ambivalent attitude towards Toledo production, with CEO Sergio Marchionne openly discussing the pros and cons of continuing to build the Wrangler south of the Michigan border. "We are going to take a very hard look at this without ignoring what these guys have done," Marchionne told the Free Press at last month's Detroit Auto Show, adding that he'd like to keep production there, provided the cost of retooling is comparable to relocating to another facility. Related Video:

Stellantis and the UAW reach tentative contract deal to end strike

The United Auto Workers has made a tentative deal with Stellantis that follows a template set by UAW and Ford. The deals will amount to total pay hikes of more than 33% when compounding and cost-of-living are factored in. The contracts will start with an initial increase of 11%. "We look forward to welcoming our 43,000 employees back to work and resuming operations," Stellantis said on Saturday. The Ford and Stellantis agreements will have to be ratified by all workers. U.S. President Joe Biden said in a statement the Stellantis "contract is a testament to the power of unions and collective bargaining to build strong middle-class jobs." The deal includes an agreement to reopen Stellantis' assembly plant in Belvidere, Illinois, which will now build midsize trucks, Fain said in a video on social media. The trucks could compete against Ford's Ranger and GM's Chevrolet Colorado and GMC Canyon models. The factory was previously shuttered and became a rallying point for the union's bargaining campaign. Stellantis also agreed to build a battery plant next to the Belvidere plant, UAW said. Illinois Governor Jay Pritzker called the agreement a "huge win for Illinois" and said the state will offer incentives to help offset the automaker's costs. Stellantis will also keep open two facilities that were under threat of closure -- an engine manufacturing complex in Trenton, Michigan, and a machining operation in Toledo, Ohio, Boyer said. In all, the automaker committed $19 billion in new investments in U.S. operations and the creation of 5,000 jobs where previously it planned to cut 5,000 jobs, Fain and Boyer said. The UAW has won the right to strike over product investment decisions, Fain said. The United Auto Workers on Saturday expanded its strike against General Motors to include its Spring Hill, Tennessee, engine plant, a move that could stall GM's large pickup production and increase its financial pain. The expansion of the seven-week strike leaves GM the only Detroit automaker without a contract deal.  Those deals won workers a record 25% jump in wages over the 4-1/2-year contract and allow the companies to restart their profitable truck assembly lines. At GM, people familiar with the bargaining said sticking points in the UAW negotiations include retirement benefits and issues related to temporary workers. GM has more retirees than either Ford or Stellantis and increases to pension benefits for workers hired before 2007 cost GM more than its rivals.