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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.

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.

2014 Jeep Cherokee: Long-term wrap-up [w/video]

Sorry, Sweet Brown. Your place in Autoblog history as the most highly demanded long-term car has come to an end. We just finished a one-year test of a 2014 Jeep Cherokee Trailhawk, and after 27,000 miles of hard use, one thing is very clear: this is one of the best all-rounders we've ever tested. The Jeep Cherokee isn't perfect, and our long-term tester proved that. But no compact crossover is. Still, the Trailhawk oozed personality where other small CUVs seem bland, and the Jeep felt more like a trusty companion than just another test car. For road trips, the requests weren't, "Can I have a long-term car this weekend?" They were specific: "I'd like the Cherokee, please." No matter the season, the driver, or the situation, the Jeep was always a sure fit. Fiat Chrysler bet big with this one. It had a global platform, a new engine, and one heck of a funny face. The end result was a CUV that we'd gladly welcome back into our fleet any day. View 51 Photos Our car carried a sticker price of $38,059, but that's without goodies like HID headlamps, a sunroof, or even full leather seats. Lots To Like Admittedly, we picked the Trailhawk trim for cosmetic reasons (more on it's off-road capability in a second). To this day, many of us still think the Cherokee is a homely little thing, but its inherent weirdness doesn't stand out as much when you add the black accents and big, knobby tires of the Trailhawk model. The butched-up look really works here, and we wouldn't have wanted the Jeep any other way. Of course, opting for Trailhawk package meant getting one of Jeep's more expensive Cherokees. Our car carried a sticker price of $38,059, but that's without goodies like HID headlamps (which we could have used – the halogens were pretty weak), a sunroof, or even full leather seats. This car genuinely felt premium, though. Right off the bat, the Cherokee received compliments for its comfortable, supportive seats, not to mention the high quality of interior materials and the general fit and finish. Specifically, the interior packaging won us over early on. We appreciated things like the higher-end stereo, smart layout of the center console, and ample storage, including a bin under the front passenger seat cushion. (That said, we also found that this bin becomes a catch-all for wrappers, french fries, and anything else that might get dropped on the seat.) The Uconnect infotainment system was a joy to use, never giving us any finicky problems or usability issues.