Fiat Chrysler pleads guilty in corruption case
DETROIT – Fiat Chrysler Automobiles, now part of Stellantis, has pleaded guilty in a long-running corruption probe. There will be a federal monitor making sure that there are no improper payments to UAW going forward. FCA stands for Fiat Chrysler Automobiles, which now is part of Stellantis, a company created by the merger of Fiat Chrysler and PSA Peugeot. “Your honor, we plead guilty,” FCA general counsel Chris Pardi told U.S. District Judge Paul Borman. They are awaiting their sentences in Detroit federal court.
The Latest: Robinhood's ad emerges from the time capsule
The latest news on Super Bowl commercials. ___10 p.m.Smartphone-based stock market investment service Robinhood bought its Super Bowl spot in December after a successful year, unaware that it was about to make global headlines. Ad___9:45 p.m.Jeep starred iconic singer Bruce Springsteen in his first ever ad promoting the idea of unity. Most brands that have money to spend on Super Bowl ads are already household names, but the big game is also a chance for upstarts to make a big splash. ___7:15 p.m.General Motors used humor in a Super Bowl ad to promote its ambitious push to get more Americans to buy electric vehicles.
Fiat Chrysler agrees to plead guilty, pay $30M in UAW probe
DETROIT – Fiat Chrysler Automobiles US has agreed to plead guilty and pay a $30 million fine for a corruption scandal at the union that represents its factory workers, authorities said Wednesday. Al Iacobelli was the head of labor relations at Fiat Chrysler and co-chairman of the UAW-Chrysler National Training Center in Detroit. Training center credit cards paid for more than $30,000 in meals for UAW officials at various restaurants in Southern California, the government said. The government’s investigation began at the training center but stretched to other corrupt acts at the UAW. Fiat Chrysler US is a subsidiary of Stellantis, a company created by the merger of Fiat Chrysler and PSA Peugeot.
What Stellantis means for jobs, future prospects in Metro Detroit
DETROIT – What was Chrysler went to Daimler Chrysler then Fiat Chrysler and now Stellantis. The merger was announced over the weekend and the new CEO on Tuesday talked about how the enlarged company will compete. The one thing Stellantis CEO, Carlos Tavares, said Tuesday that should give FCA employees comfort is he doesn’t expect layoffs saying the company’s new global scale will put a shield around jobs. But the CEO says global scale provides strength to handle a lot meaning no layoffs. “I think Stellantis is at a point of strong fundamentals to do great things in the future,” said Tavares.
Stellantis sign goes up outside Auburn Hills HQ after FCA-Peugeot merger
AUBURN HILLS, Mich. – The merger between PSA Peugeot and Fiat Chrysler Automobiles (FCA) that will lead to the creation of Stellantis was officially complete Saturday. The Stellantis sign is now up outside the now former FCA headquarters in Auburn Hills. Stellantis was launched Monday on the Milan and Paris stock exchanges, giving life to the fourth-largest auto company in the world. Read more: Carmaker Stellantis shares jump in Milan, Paris on first day
Merger between FCA and Peugeot finalized amid concern over business deal
Fiat Chrysler Shareholders of Fiat Chrysler and France's PSA Group met Monday, Jan. 4, 2021 to vote on a merger that will create the world's fourth-largest automaker. (AP Photo/Michel Euler, File)DETROIT – The merger between Peugeot maker PSA and Fiat Chrysler Automobiles that will lead to the creation of Stellantis was complete Saturday. The Peugeot and FCA merger has been the subject of much controversy. Speaking to Local 4 News earlier this month, Frank Rhodes, the great grandson of Walter Chrysler who founded famed auto company Chrysler in 1924 expressed concern over the business deal. Read more: Great grandson of Walter Chrysler worries about fate of automaker
Revamped Detroit auto plant to start making new Jeep by March
DETROIT – A revamped version of the Jeep Grand Cherokee SUV with three rows of seats will roll off the assembly line this spring at a restored Detroit factory complex. Fiat Chrysler unveiled the Grand Cherokee L on Thursday and said production would start by the end of March. It hired 3,850 people to work at the company's first new auto plant in Detroit in nearly three decades. Current versions of the Grand Cherokee are now being built at FCA's Jefferson North plant in Detroit. Once Detroit Assembly is up and running, Jefferson North will be converted to build the new versions, FCA said.
Fiat Chrysler contributes $400K to Detroit neighborhood fund
DETROIT – Fiat Chrysler is contributing $400,000 to a Detroit neighborhood fund as part of a community benefits agreement tied to its new assembly plant on the city’s east side, the automaker said Monday. Another $400,000 will be contributed in 2021, according to Fiat Chrysler. The community benefits agreement calls for Fiat Chrysler to invest in the surrounding neighborhoods, jobs training and education. Fiat Chrysler also said Monday that it is contributing $285,000 to the Chandler Park Conservancy to help the nonprofit start construction on a community-based environmental education plaza. The automaker’s commitment to Detroit goes beyond its facilities, said Ron Stallworth, a Fiat Chrysler external affairs manager.
Fiat Chrysler CEO Manley to run Americas after PSA merger
FILE - In this Jan. 14, 2019 file photo, Fiat Chrysler's new CEO, Mike Manley, is interviewed at the North American International Auto Show in Detroit. Manley will run operations in the Americas when his company merges with Frances PSA Peugeot early next year. FCA Chairman John Elkann announced Manleys new post on Friday, Dec. 18, 2020 in a letter to employees. (AP Photo/Carlos Osorio)DETROIT – Fiat Chrysler CEO Mike Manley will run operations in the Americas when his company merges with France’s PSA Peugeot early next year. PSA CEO Carlos Tavares will run the overall company, to be named Stellantis.
Warren auto workers concerned about coronavirus procedures at FCA plant
WARREN, Mich. – A photo taken at a local automotive plant is raising questions about how coronavirus procedures are being handled, if at all. A concerned worker at the Fiat Chrysler Automobiles (FCA) assembly plant in Warren sent a photo to Local 4 that shows a hallway packed wall-to-wall with employees -- with some shoulder-to-shoulder. The photo clearly shows a lack of social distancing among plant workers. In response, FCA sent a statement to Local 4 to shed light on what occurred inside of the Warren plant Tuesday. "Masks are distributed to plant employees once they have cleared the thermal imaging station to ensure they have the proper protection before entering the plant floor.
Pickup truck sales remain strong during coronavirus pandemic
DETROIT – Despite the coronavirus pandemic, automakers are holding their own as pickup truck sales remain strong. Automakers can charge much more than the cost for a pickup truck. “Even though they’re going flat out, and even though they are running three shifts and they’re going as fast as they can, that was two months of production that you cannot go back and make it up," Brinley said. So that has made a difference with new players in the segment," Brinley said. The more competitive it gets, the more they’re going to bring it," Brinley said.
Jeep introduces its newest concept SUV: Grand Wagoneer
The Jeep Grand Wagoneer SUV will be the lead the automakers luxury vehicle line, and could top $100,000 when it arrives in showrooms in 2021. Our new Grand Wagoneer Concept marks the first step in the rebirth of Wagoneer a true and rare premium American icon, said Christian Meunier, global president of the Jeep brand FCA. The Wagoneer and Grand Wagoneer names were previously used by Jeep for large SUVs from 1963 until 1991. pic.twitter.com/laaZR8gALX Wagoneer (@Wagoneer) September 3, 2020For more than a quarter century, the first Wagoneer and Grand Wagoneer created a new segment for American consumers as the ultimate premium SUV of its day, Meunier said. The Grand Wagoneer Concept is inspired by the original, but with a modern interpretation of luxury and freedom.
Jeep reveals hybrid Wrangler, 1st US battery-powered vehicle
DETROIT Fiat Chrysler's Jeep brand is starting to offer gas-electric hybrid and eventually full electric powertrains across its lineup. The market in the U.S. also is unclear for a plug-in Wrangler, or any electric vehicles for that matter, Abuelsamid said. Last year in the U.S., only 310,000 plug-in hybrid and fully electric vehicles were sold, less than 2% of the market. Meunier said FCA is working on a fully electric Wrangler, but he wouldn't say when it would arrive. The company showed off a Grand Wagoneer concept vehicle with a fully electric powertrain.
US investigates electrical fires in 2014 Chrysler minivans
DETROIT The U.S. government's road safety agency is investigating complaints of fires in a power and charging port in some Chrysler Town and Country minivans. The National Highway Traffic Safety Administration says it has three reports of fires and one injury in minivans from the 2014 model year. The agency says owners complained of fires starting in the ports, which are mounted in a trim piece on the driver's side between the second- and third-row seats. Fiat Chrysler, which makes the minivans, says it's cooperating with the investigation. The agency will determine what caused the fires and how often they happen.
Fiat Chrysler to recall vehicles that may pollute too much
DETROIT About 1 million Fiat Chrysler vehicles with four-cylinder engines in the U.S. may spew too much pollution, and the company is working with government officials on a recall. Fiat Chrysler says in a quarterly filing with securities regulators that it found the excess pollution during internal testing of vehicles with 2.4-liter Tigershark engines. As this population ages, some vehicles exceed in-use emission requirements, depending on drive cycle and mileage, Fiat Chrysler said in a statement. The issue is not connected with any other emissions problem and the EPA does not plan any enforcement action against the company, Fiat Chrysler spokesman Eric Mayne said. Fiat Chrysler maintained that it didnt deliberately scheme to cheat emissions tests and the company didnt admit wrongdoing.
GM alleges Fiat Chrysler spent millions to bribe UAW leaders
GM alleges that payments were made so the officials would saddle GM with more than $1 billion in additional labor costs. GM alleged that accounts apparently exist in Gettelfingers name, and the name of a relative in Panama and Switzerland. In July, U.S. District Judge Paul Borman in Detroit tossed out GMs lawsuit that alleged that Fiat Chrysler paid off union leaders to get better contract terms than GM. In a 2019 lawsuit, GM alleged that Fiat Chrysler bribed officials of the United Auto Workers union to get lower labor costs. GM alleged that FCA CEO Sergio Marchionne, who died in 2018, wanted to pressure GM into merging by weakening it with higher costs.
Fiat Chrysler recalls 925K older-model vehicles due to air bag issue
Fiat Chrysler is recalling more than 925,000 older-model vehicles to fix an issue with air bag covers on the steering wheel. An FCA investigation discovered these vehicles are equipped with certain clips, no longer in use, that may over time loosen and disengage. Should these things happen, and there is a driver-side air bag deployment, the clips and/or plastic emblems they are meant to secure, may act as projectiles. The recall is limited to model-year 2007-2011 Dodge Nitro SUVs, and model-year 2008-2010 Chrysler Town & Country and Dodge Grand Caravan minivans. In the interim, FCA strongly advises against tampering with the emblems, which are located in the center of the vehicles steering wheels.
FCA, Groupe PSA merger officially named Stellantis
DETROIT The merger between Fiat Chrysler Automobiles (FCA) and Groupe PSA (PSA Peugeot) has born a new name: Stellantis. Actually, its officially STELL/\NTIS, a name rooted in the Latin verb stello meaning to brighten with stars, according to the automakers joint news release on Wednesday. FCA and PSA announced in December they signed a binding merger deal creating the worlds fourth-largest auto company with the scale to confront the challenges of stricter emissions regulations and the transition to new driving technologies. The companies said the new group will be led by PSAs cost-cutting CEO Carlo Tavares, with Fiat Chryslers chairman John Elkann as chairman of the merged company. Fiat Chrysler CEO Mike Manley will stay on, but it was not announced in what capacity.
Man charged with assault after stabbing at FCA plant in Sterling Heights
STERLING HEIGHTS, Mich. – A 27-year-old man has been charged following a stabbing at a Fiat Chrysler Automobiles plant in Sterling Heights on Monday night. Gerald Demetrius Burrell, Jr., a Sterling Heights resident, was charged Wednesday with assault with intent to do great bodily harm less than murder. Burrell was arrested after reportedly stabbing a co-worker in the parking of the plant during their lunch break on Monday night. Sterling Heights police said one of them cut in line at the turnstile to get into the plant, leading to a weeklong dispute. A video shared with Local 4 from a FCA employee shows the two men facing off in the parking lot.
Stabbing at FCA assembly plant in Sterling Heights under investigation
STERLING HEIGHTS, Mich. Officials said two employees stabbed each other at an FCA assembly plant in Sterling Heights. The stabbings occurred when the two employees got into an argument. Police did not say what the argument was regarding. One of the employees is in critical condition. Click here for more local crime reports
Watch Local 4 News at 11 -- July 6, 2020
Heres whats coming up on Local 4 News at 11:Stabbing at FCA assembly plant in Sterling Heights under investigationOfficials said two employees stabbed each other at an FCA assembly plant in Sterling Heights. The stabbings occurred when the two employees got into an argument. Police did not say what the argument was regarding.
Video shows moments after FCA Sterling Heights Assembly Plant worker stabs another in parking lot
STERLING HEIGHTS, Mich. Police are still investigating a stabbing that happened in a parking lot at the FCA assembly plant in Sterling Heights on Monday night. READ: FCA Sterling Heights Assembly Plant worker stabbed during lunch breakLocal 4 obtained video from a viewer that shows the minutes after an employee at the plant stabbed a co-worker. About 10 p.m., we were dispatched to the parking lot of Chrysler in the area of 16 and Van Dyke. Officers arrived, they found a victim that was stabbed, the suspect already fled the area, Lt. Mario Bastianelli, with the Sterling Heights Police Department, said. He chase shim around the parking lot while people watch and record the incident.
Appeals court: CEOs of General Motors, Fiat Chrysler dont have to meet to settle lawsuit
DETROIT General Motors is suing Fiat Chrysler for an alleged bribery scheme involving the United Auto Workers (UAW). A federal judge hearing the case wanted the companys CEOs to sit down and hash out a deal. READ: General Motors appeals ruling in FCA lawsuit after judge tells CEOs to make a dealGM filed a racketeering lawsuit against FCA and its now deceased CEO Sergio Marchionne last November. On June 23, a district judge ordered that CEOs Mary Barra of GM and Michael Manley of FCA to meet in person, without legal counsel. They were ordered to personally report back to the district judge on July 1 on their progress on settling the case.
Why the startling drop in auto sales may not be as bad as it looks
DETROIT Two thirds of the Big Three have released their second quarter sales numbers and they are not good. GMs year-over-year-sales were down 34%, selling nearly 500,00 vehicles; and it was even worse for FCA with its second quarter sales falling 39%, selling 367,000 vehicles. Analysts expected numbers to drop amid COVID-19, but not this much. GM sold 17 million vehicles in 2019 and is excepted to be closer to 13 million in 2020. Autotrader analyst Michelle Krebs said fleet sales should pick up to make for a good year.
LIVE STREAM: Detroit mayor, local leaders host news briefing
DETROIT Detroit Mayor Mike Duggan is hosting a news briefing at 2 p.m. on Wednesday to discuss a new program, City Hall reopening and the upcoming Detroit Jazz Fest amid the coronavirus (COVID-19) pandemic. Duggan will be joined by Chrystal Wilson, DPSCD Assistant Superintendent of Communications and Marketing. The mayor is also expected to discuss the reopening of the Fiat Chrysler Automobiles job application window. RELATED: GM and FCA keep sparring while Ford rolls out big new incentiveDetroit Jazz Fest organizers and sponsors will be present Wednesday to discuss the annual event and a call for artists to design this years poster. Duggan is expected to announce the resumption of in-person services at City Hall with restrictions in place amid the pandemic.
GM and FCA keep sparring while Ford rolls out big new incentive
GM went to federal court with a RICO claim saying the UAW and FCA colluded costing the company millions of dollars. Now GM wants the judge off the case. The judge wants it settled. In 2015, the late FCA CEO Sergio Marchionne is seen hugging then UAW president Dennis Williams kicking off national contract negotiations. GM appealed and the appeals court ruled today that hearing wouldn’t happen and wanted to hear from FCA and the judge over the next week.
FCA helps feed more than 200 seniors in Auburn Hills
AUBURN HILLS, Mich. A generous donation from Fiat Chrysler Automobiles has made it possible to purchase and distribute food to 215 senior citizen households in the Auburn Hills community. The Auburn Hills Community Foundation, dedicated to supporting the Auburn Hills community, received a donation from FCA and with the assistance of senior center volunteers, put together food boxes filled with non-perishable items such as trail mix, cereal and Ensure, to name just a few, for senior citizens in need of assistance. Many seniors in the Auburn Hills community are facing unprecedented, extraordinary times. The Auburn Hills Community Foundation, with the generous donation from FCA, is proud to be able to take this step to support the seniors of the community, said Kristen Baiardi, Chairperson, Auburn Hills Community Foundation. Members of the community came together at the Auburn Hills Community Center last week to pack over 645 boxes of food.
UAW issues statement in response to coronavirus concerns at FCA plants
Many employees at the plant refuse to work due to safety concerns. According to FCA, an employee at the plant was tested and the persons work area is being disinfected. Workers at the Detroit plant refused to return Friday over concerns they may have been exposed to the coronavirus. Meanwhile, FCA reported there were no confirmed cases at the Detroit plant. Under the protocols that we worked out when there are concerns, the UAW and our members work with FCA to address those concerns.
Workers at FCA Sterling Heights plant stop working over COVID-19 concerns
STERLING HEIGHTS, Mich. Several workers at Fiat Chrysler Automobiles Sterling Heights plant refused to work over concerns about coronavirus. June 27, 2020 -- Michigan coronavirus (COVID-19) cases up to 63,009, Death toll now at 5,907According to FCA, an employee at the plant has been sent for testing and the employees work area is being disinfected. FCA said its working alongside the UAW to address the issues and hopes to resume operations Saturday night. Local 4 checked in earlier this month to see how plant operations are running amid coronavirus restrictions. Auto workers are trying to tread carefully and avoid spreading COVID-19.
No COVID-19 cases at Jefferson North Assembly Plant in Detroit, FCA confirms
DETROIT Coronavirus concerns have hit a Fiat Chrysler plant here in Detroit disrupting the line at Jefferson north just a week after the company ramped up to full production. The plant here is not running after those workers refused to return Friday over the concern they may have been exposed to the coronavirus. Auto planet employees at Fiat Chryslers Jefferson North plant in Detroit refusing to work over fears about the spread of the coronavirus. But overnight videos and images were posted online allegedly showing line workers refusing to work. We got word late this afternoon that the employee who were sent home sick has tested negative for COVID-19.
FCA: Work temporarily stopped this week at Jefferson North Assembly over virus concerns
DETROIT Work was temporarily stopped Thursday afternoon at the Jefferson North Assembly Plant in Detroit over workers concerns about the coronavirus (COVID-19). Heres the statement from FCA, explaining several employees stopped working over virus concerns:The health and safety of our workforce has continued to be our top priority since our plants resumed production on May 18. An employee at the Jefferson North Assembly Plant was sent home today after complaining of not feeling well. However, several employees stopped working over concerns about the virus, causing a temporary pause in production. Read back: Checking in with Metro Detroit auto plants 3 weeks after reopening
Checking in with Metro Detroit auto plants 3 weeks after reopening
WARREN, Mich. Three weeks ago, the Big Three automakers in Metro Detroit -- Ford, General Motors and Fiat Chrysler -- reopened their parts and assembly plants. Auto workers are trying to tread carefully and avoid spreading COVID-19. The Warren Truck Plant continues working two shifts per day, and the new protocols have caused many changes. While everyone is trying to get their feet under them, the industry as a whole appears to be ready for a comeback. Meanwhile, for car and truck buyers, the shutdown caused inventory shortages, so dealers are doing what they can to deal with that issues.
How first day of reopening went for Ford, GM, FCA autoworkers in Metro Detroit
DETROIT Thousands of Metro Detroit autoworkers were back on the job Monday as Ford, General Motors and Fiat Chrysler assembly plants started rolling again. At the Warren Truck Assembly Plant, UAW line workers were pleasantly surprised. It fogs your glasses up, but were going to be alright.It was safe, said Moses Brooks, of UAW Local 600. Arnett Weatherspoon, of UAW Local 140, said the first day went smoothly at the Warren Truck Plant, but he still has concerns. The second shift workers at the Ford F-150 plant were also in line getting ready for their shift.
New safety precautions in place as The Big Three reopen plants today
WARREN, Mich. After nearly two months, the Big Three will restart production Monday and thousands of line workers will be back on the job. It wont be business as usual -- GM, Ford and FCA have implemented new safety procedures to limit the possibility of COVID-19 exposure. READ: President Trump to visit Ford plant in Ypsilanti ThursdayExtensive safety protocols are being used at every plant. The UAW will continue to do everything we can to protect the health and safety of all members as plants reopen. We will continue to be vigilant in protecting the health and safety of our members, their families and their communities.
Metro Detroits Big Three automakers restart production after being shut down for months
DETROIT Metro Detroits Big Three automakers -- General Motors, Ford and Fiat Chrysler -- have restarted production after being shut down for nearly two months because of the coronavirus (COVID-19). FCA officials showed Local 4 the work being done inside the Sterling Heights Assembly Plant to mitigate the spread of the virus. Local 4 spoke with current and retired workers to see if they feel safe going back to work. Thats what Im worried about.Ford is using technology to keep workers safe, having them wear watches that vibrate when they get too close to each other. Ford CEO Jim Hackett said the last couple of months have convinced him a reopening can be done safely.
Big 3 restart production today in Michigan with new safety measures
DEARBORN, Mich. After nearly two months, the Big Three will restart production Monday and thousands of line workers will be back on the job. It wont be business as usual -- GM, Ford and FCA have implemented new safety procedures to limit the possibility of COVID-19 exposure. The Big Three of the automotive industry will cautiously restart production Monday. The UAW will continue to do everything we can to protect the health and safety of all members as plants reopen. We will continue to be vigilant in protecting the health and safety of our members, their families and their communities.
FCA worker reports cough, continues to work, tests positive for COVID-19, employee says
STERLING HEIGHTS, Mich. A worker with Fiat Chrysler said she feels unsafe on the job after returning back to the plant. A co-worker reported a cough on her health questionnaire and she continued to work before she tested positive for coronavirus. The UAW said if an member is afraid to go back, they will work with that member on a case by case basis. The Michigan Occupational Safety and Health Administration said anyone with safety concerns about their work place should make a report with the state. She said FCA is offering that employees who are afraid to come in can take a leave of absence and not get paid.
Mahindra’s Auburn Hills plant gets ready to restart vehicle assembly
AUBURN HILLS, Mich. – Mahindra and Mahindra Limited’s plant in Auburn Hills never fully shut down. The switch to making PPE has helped the manufacturer get ready to resume normal operations Monday. “The crew was highly excited to start back up," Clarence Bringe said, "We want to start producing. 120 employees will undergo a temperature check Monday before heading into their own zone inside the building and stay there. The company said they have also factored in the ability to handle any stress for employees coming back.
Mahindra’s Auburn Hills plant gets ready to restart vehicle assembly
Mahindra’s Auburn Hills plant gets ready to restart vehicle assemblyPublished: May 13, 2020, 5:45 pmMahindra and Mahindra Limited’s plant in Auburn Hills never fully shut down. Like many automakers, its workers switched over to make PPE.
Finance of America Reverse Agrees to Pay $2.47 Million to Resolve Alleged Liability for FHA-Insured Reverse Mortgage Lending Violations
FAR will pay $1.97 million to resolve FCA claims and an additional $500,000 to HUD to resolve its administrative liability. FAR is a mortgage lender based in Tulsa, Oklahoma, that acquired Urban Financial Group Inc. in November of 2013. The department is committed to working with HUD to protect vital lending programs such as the FHAs HECM program, said Assistant Attorney General Jody Hunt of the Department of Justices Civil Division. The HECM program is a reverse mortgage program specifically for senior homeowners who are 62 and older. The program relies heavily on lenders using reliable and accurate appraisals to approve loans for FHAs mortgage insurance.justice.gov
How to: Applying for unemployment in Michigan
Due to the coronavirus (COVID-19) outbreak in Michigan, Gov. Whitmer signed an executive order to expand eligibility for unemployment benefits. Access to unemployment benefits will also be extended:Benefits will be increased from 20 to 26 weeks. If you need to apply for unemployment in Michigan, you can visit the state government’s website to file a claim by clicking here. For more information on the application process click here for a fact sheet on applying for unemployment benefits in Michigan.
Fiat Chrysler, Peugeot sign $50B merger deal
Fiat Chrysler, Peugeot sign $50B merger dealPublished: December 18, 2019, 6:23 amThe companies said in a joint statement the new group will be led by PSA's cost-cutting CEO Carlo Tavares, with Fiat Chrysler’s chairman John Elkann as chairman of the merged company. Fiat Chrysler CEO Mike Manley will stay on, but it was not announced in what capacity.
Fiat Chrysler and Peugeot are behind on electric and autonomous vehicles, but their $50 billion merger should help them catch up
FCADETROIT The merger of Fiat Chrysler and French automaker PSA Group will reshape the global automotive industry in an effort to address unprecedented change occurring around autonomous and all-electric vehicles. The merged company is expected to achieve cost savings of 3.7 billion euros (US $4.1 billion) a year without closing factories. "It is better to face the challenges of the future together than on a standalone basis," PSA CEO Carlos Tavares told investors during a call to discuss the agreement. Tavares, who will lead the yet-unnamed $50 billion combined entity, described the merger as "a once in a lifetime opportunity." Carlos Tavares, CEO of PSA Groupe at a press conference in Germany on November 9, 2017.cnbc.com
Ex-Fiat Chrysler financial analyst Jerome Durden pleads guilty in scheme
ANN ARBOR, Mich. – A former Fiat Chrysler financial analyst who federal prosecutors say helped illegally funnel worker training funds over a number of years pleaded guilty in the case. Jerome Durden entered the pleas Aug. 8, 2017, in U.S. District Court in Ann Arbor to charges of conspiracy to defraud the U.S. and failure to file a tax return. As part of a plea agreement, he faces up to 37 months in prison. Prosecutors in July 2017 announced charges. Former Fiat Chrysler executive Al Iacobelli was indicted in an alleged conspiracy involving United Auto Workers union vice president General Holiefield and Holiefield’s wife, Monica Morgan.
UAW, FCA reach proposed tentative agreement on new four-year contract
DETROIT – Fiat Chrysler Automobiles confirms that the company and the United Auto Workers have reached a proposed tentative agreement on a new four-year contract. UPDATE: UAW members ratify contract with Fiat Chrysler“Our UAW Bargaining Committee worked diligently, over many months, during the General Motors strike and Ford negotiations to maintain productive negotiations with FCA,” said UAW Vice President Cindy Estrada, director of the UAW-FCA Department. “During the previous four-year agreement, FCA added over 6,400 new UAW members.”The UAW-FCA National Council will meet on Dec. 4 to go over details of the proposed tentative agreement. If adopted as a tentative agreement, it will go to all FCA hourly and salary members for a ratification vote that will begin on Dec. 6. Related: UAW-FCA national contract almost complete
Fiat Chrysler, UAW reach new tentative labor deal
The UAW Bargaining Committee agreed to a deal with Fiat Chrysler to add $4.5 billion in investments, translating to 7,900 jobs over the course of a four-year deal, according to a UAW statement. Fiat Chrysler confirmed in a statement that it had reached a tentative deal with UAW. It also comes nearly a month after Fiat Chrysler announced plans to merge with French automaker PSA Group. Ford agreed to $9,000 ratification bonuses, however previous contracts have included lower amounts for Fiat Chrysler workers. The federal probe into corruption of the UAW, which started with Fiat Chrysler, has led to charges against 13 people, including seven convictions of people affiliated with the union and three Fiat Chrysler executives.cnbc.com
GM sues Fiat Chrysler alleging bribery scheme in union negotiations
GM said that Fiat Chrysler "corrupted" collective bargaining agreements between GM and UAW in 2009, 2011 and 2015 by paying millions in dollars in bribes. GM said the alleged bribery scheme was authorized at the highest levels of Fiat Chrysler, including the company's late CEO Sergio Marchionne. Fiat Chrysler called the lawsuit "meritless" and said it plans to vigorously defend itself. Glidden also said that the lawsuit won't affect existing collective bargaining agreements, and that there are no current allegations against Fiat Chrysler CEO Michael Manley. Shares of GM slipped 3% following the news, while Fiat Chrysler shares dropped nearly 4% during midday trading.cnbc.com
GM Sues Fiat Chrysler Over Union Bribes
DETROIT (AP) General Motors is suing Fiat Chrysler, alleging that its crosstown rival got an unfair business advantage by bribing officials of the United Auto Workers union. The lawsuit alleges that Fiat Chrysler corrupted the bargaining process with the UAW in the 2009, 2011 and 2015 union contracts to gain advantages over General Motors. FCA was the clear sponsor of pervasive wrongdoing, paying millions of dollars in bribes to obtain concessions from the union, GM General Counsel Craig Glidden said. We are astonished by this filing, both its content and its timing, Fiat Chrysler said. In addition to Fiat Chrysler, the lawsuit names former FCA labor relations chief Alphons Iacobelli, and former FCA officials Jerome Durden and Michael Brown as defendants.detroit.cbslocal.com
Auto Union Opens Talks With Fiat Chrysler; Strike Possible
DETROIT (AP) The United Auto Workers union on Monday turned its bargaining focus to Fiat Chrysler, raising the possibility of another strike against a Detroit automaker. But industry analysts say the same deal will cost Fiat Chrysler a lot more money because of the makeup of its workforce. Workers hired after 2007 now are paid lower wages than workers hired before that, even though theyre doing the same jobs. Also, Fiat Chrysler workers in the past have received lower annual profit-sharing checks than those at the two Detroit competitors. Complicating the talks is an agreement for Fiat Chrysler to merge with Frances PSA Peugeot, with the new entity run by PSAs chief executive.detroit.cbslocal.com
Departments of Justice and Housing and Urban Development Sign Interagency Memorandum on the Application of the False Claims Act
Attorney General William P. Barr and Housing and Urban Development (HUD) Secretary Ben Carson today issued a Memorandum of Understanding (MOU) between the two agencies that sets prudential guidance on the appropriate use of the False Claims Act (FCA) for violations by Federal Housing Administration (FHA) lenders. Additionally, a third of FHA loans are made to minority borrowers. The MOU is part of a comprehensive plan to bring greater clarity to regulatory expectations within the FHA program, and fulfills a key component of the HUD Housing Finance Reform Plan. In addition to the MOU, FHA is simplifying the certifications that lenders make in connection with the FHA program. Together, these new and revised components are intended to make affordable FHA-insured mortgages more accessible to qualified borrowers, reduce risks within the FHA program, and preserve appropriately tailored remedies.justice.gov
Dakkota Integrated Systems to build plant, bring 625 manufacturing jobs to Detroit
Dakkota Integrated Systems announced today that it will build a $55 million, 600,000-square-foot manufacturing plant in Detroit and hire 625 employees. The new facility will be on the east side at the 32-acre site of the former Kettering High School and Rose Elementary School. The company purchased the site from the Detroit Public Schools Community District for $2.6 million. FCA says it will bring 5,000 jobs to Detroit. Like the FCA plant, Dakkotas will prioritize hiring Detroiters.detroit.curbed.com