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Fiat Chrysler and the UAW reach tentative labor deal

DETROIT — Fiat Chrysler Automobiles and the United Auto Workers (UAW) union on Saturday announced a tentative agreement for a four-year labor contract, a boost for the automaker as it works to merge with France's Groupe PSA. Italian-American Fiat Chrysler and PSA, the maker of Peugeot and Citroen, last month announced a planned $50 billion merger to create the world's fourth-largest automaker. The tentative agreement with Fiat Chrysler, which is subject to ratification by the union members, follows contracts that the UAW already concluded with Ford Motor Co and General Motors Co. The deal with GM followed a 40-day strike in the United States that virtually shuttered GM's North American operations and cost the automaker $3 billion. The UAW on Saturday said the contract with Fiat Chrysler included a commitment from FCA to invest $9 billion, creating 7,900 new jobs over the course of the four-year contract. Of the $9 billion, $4.5 billion was announced earlier this year, to be invested in five plants and creating 6,500 jobs. Detailed terms of the tentative agreement were not released, but they are expected to echo those under the new contracts with GM and Ford, as the UAW typically uses the first deal as a pattern for the others. "FCA has been a great American success story thanks to the hard work of our members," UAW acting President Rory Gamble said in a statement. "We have achieved substantial gains and job security provisions for the fastest growing auto company in the United States." Ratification is not a sure thing. Rank-and-file UAW members at FCA in 2015 rejected the first version of a contract. In addition, a lawsuit related to a federal corruption probe could also raise doubts among union members about the terms agreed. The federal corruption led GM to file a racketeering lawsuit against FCA, alleging that its rival bribed union officials over many years to corrupt the bargaining process and gain advantages, costing GM billions of dollars. FCA has brushed off the lawsuit as groundless. Under the UAW's deal with GM, the automaker agreed to invest $9 billion in the United States, including $7.7 billion directly in its plants, and to create or retain 9,000 UAW jobs. Ford's contract included commitments to invest more than $6 billion in its U.S. plants and to create or retain more than 8,500 UAW jobs. The deals with GM and Ford also created a pathway to full-time employment for temporary workers and left healthcare insurance coverage unchanged.

With Ram truck sales surging, FCA may continue production in Mexico

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2022 Ram 1500 TRX MSRP up another $2,795

We're not sure if we should be more awed by how fast and how high the new batch of super performance trucks can jump, or that consumer prices are jumping just as fast and just as high. When we published our First Drive Review of the 2021 TRX at the end of November 2020, we wrote, "Another pitfall to Ram TRX ownership is the cost. Ram asks a minimum of $71,790 for the TRX (including a $1,695 destination charge)." When we published our review of the 2022 TRX six weeks ago, the base price had risen to $74,085 after destination (optioned out to $91,575). Considering what the world's been up to for the past 15 months, a $2,295 MSRP increase — a mere 3% — couldn't be considered banditry. But the P/L department at Stellantis is done playing nice. As Mopar Insiders discovered, the MSRP for the 2022 Ram 1500 TRX is $76,880, which is before a spendier destination fee of $1,795. Anyone who wants to own a TRX this year will need $78,675 before options.   It's almost comical that Ram advertises the hurt on its configurator. Click to build and price the 2021 TRX, the configurator shows $70,245 before destination. Change that 2021 to 2022, the configurator shows $76,780. There's a bit more sleight-of-hand during the build process, too, as Ram charges $100 for the sole solid color available, which is black, that sum added as an option even though its the least expensive paint choice possible. The two-tone paints cost at least $200, despite a few of them advertising a price of zero. The diabolical cherry on top is when you check the total after options and read the small print, which informs you, "Pricing provided may vary significantly between website and dealer as a result of supply chain constraints. Pricing shown is nonbinding and does not constitute an offer. Contact your dealer for updated vehicle pricing."  Admittedly, the TRX is only up 4% over the last base price we posted, and we don't expect the new price to deter buyers. We don't blame Ram, either; this is the cost of doing business, and a quick trip to Craigslist or eBay will illustrate that everyone is trying to do the same kind of business, getting every hand into every cookie jar. The Ram buyers who really have it bad are the ones after a 2022 Ram 1500 Laramie. That truck went up $7,180 bucks — a gut-punching 16.4% — to $50,845.