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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

Wrangler Pickup, Triumph Fined, Cherokee Production Moves | Autoblog Minute

"Autoblog senior editor Greg Migliore reports on highlights from the week in automotive news. " UAW/Unions Jeep Autoblog Minute Videos Original Video FCA recap

The Apple of the auto industry isn't Tesla, it's Jeep

Whenever Apple is going to have a new product for sale in its stores, the fanboys line up in such great numbers that it's surprising Ticketmaster hasn't figured out a way to capitalize on the multitude of anxious buyers with credit cards ready to go. When Elon Musk talks about a new car being added to the lineup, there is an analogous group of people, and Musk has cleverly set up a model in which people place deposits for their place in line. The number of deposits (two per customer only, it should be noted) for the Model 3 is some 400,000. Because Tesla is a Silicon Valley company that has a highly desirable, highly designed suite of products for which there is demand the likes of which is completely uncharacteristic for the category, it is often compared to Apple. After all, has anyone gotten into line to buy a Windows phone? Do you even remember the Zune? So it must be that Tesla is like Apple. But there is one nontrivial problem with this comparison: Apple sells its products in mass quantity. Tesla, even though it just had its best quarter ever, delivering a record 25,418 vehicles - up 69 percent over the first quarter of 2016 - is still, when compared to the car industry in general, selling a specialized product. No, the automotive brand most like Apple is Jeep. Just as with Apple's quickly identified design language - either for the physical phones and computers or the interfaces for same - there is no mistaking a Jeep. Like Apple's legion of fans, there are people for whom a Jeep is not merely a form of transportation, but a statement about one's way of life. Like the companies that wish they could have designs that are Apple-like and do their utmost to have a similar objects or appearances (sometimes landing them in court, a la Samsung), is there a single automotive company that wouldn't like to have some of Jeep's magic? While there aren't people who are lined up outside of dealerships when a new Jeep goes on sale, there is probably more interest in the forthcoming Wrangler than in the accumulation of interest in a half-dozen other vehicles from other companies. And like Apple, Jeep is a comparative volume play. Last year FCA US LLC delivered 926,376 Jeeps. Walter P. Chrysler and the Dodge Brothers must be spinning at high velocity in their graves, because the U.S. total for Chrysler brand was 231,972, and Dodge was 506,858. The sum of the two - 738,830 - is well shy of Jeep's sales. On a global basis, Jeep sold some 1.4 million units in 2016.