fiat chrysler

Trade tensions return after the US government pulls out of talks with European countries over their digital tax plans, dashing hopes of a global deal and reviving the prospect of tariffs. Brussels launches an anti-trust probe into Fiat Chrysler and PSA's 50 billion dollar mega merger, citing concerns over their dominant market share in the small vans market. In Asia, markets trade lower, but JD.com rallies on the e-commerce giant's 3 point 8 billion dollar Hong Kong debut. And in the U.K., the Bank of England is expected to expand its bond buying plan but steer clear of negative rates despite Governor Andrew Bailey saying they are QUOTE 'under active review'.

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

U.S. President Donald Trump reportedly goes ‘apoplectic’ during a phone call with UK Prime Minister Boris Johnson over his decision to choose Huawei for Britain’s 5G roll-out. This as the U.S. Attorney General William Barr urges the state to buy shares in Ericsson and Nokia to help create viable Western competitors. CNBC learns that Elliott Management has moved to acquire a $2.5bn stake in Softbank following Masayoshi Son’s WeWork misstep. Meanwhile, Chinese stocks look set to mark their worst week in nine months as the Coronavirus shows no signs of abating. The doctor credited with raising the alarm about the outbreak has died in Wuhan, as the overall death toll surpasses 600. The spread of Coronavirus is also being felt in the automotive sector with Fiat Chrysler warning it may shut down a European plant should Chinese factory closures affect its supply chain. And in corporate news, ride-hailing app Uber has said it hopes to turn profitable by Q4 2020 despite an expected loss of $1bn this year.

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Earlier in the week, Fiat Chrysler became the last among the Detroit 3 to sit down at the bargaining table with the United Autoworkers Union. And while it’s easy to predict at least some drama, a new twist revealed Wednesday will provide a backdrop for the talks that NBC News is calling “explosive.”

That’s because rival automaker General Motors has just filed a federal racketeering lawsuit, alleging a decade-long conspiracy between FCA and the UAW. And the mastermind behind it, according to the suit, is former – and now deceased – Fiat Chrysler CEO, Sergio Marchionne.

GM contends that FCA corrupted bargaining agreements between 2009 and 2015, meaning GM wound up on the hook for labor costs it otherwise wouldn’t have. GM also alleges that the union was directed to deny the same benefits to GM that it was allowing for FCA, a claim they support by pointing to the $8-per-hour difference in labor costs between the two automakers, perhaps because FCA was quietly permitted by the union to hire more temporary workers at lower wages.

The suit said FCA was "the clear sponsor of pervasive wrongdoing, paying millions of dollars in bribes to obtain benefits, concessions and advantages in the negotiation, implementation and administration of labor agreements over time." GM contends this scheme saddled it with billions in costs and a significant disadvantage – and while it won’t yet put a number on the damages it intends to pursue, GM’s general counsel Craig Glidden says it is likely to be “substantial.”

FCA responded harshly to the lawsuit, suggesting its content and timing were “intended to disrupt (its) proposed merger with PSA as well as (its) negotiations with the UAW.” That said, FCA’s cozy relationship with the UAW has come to light in recent years, as an ongoing corruption probe into the union has revealed several executives complicit in a bribery scheme intended to divert funds to union officials in the name of “relationship building.”

In perhaps the most explosive of all the claims is the part of the lawsuit where GM alleges that Sergio Marchionne was scheming to take over GM by merger, and he would enable favorable terms by having the union in his pocket – a pursuit he allegedly laid the groundwork for by authorizing UAW bribery.

For its part, GM denies the lawsuit was timed to either disrupt union talks or to derail FCA’s proposed merger.

Download and listen to the audio version below and click here to subscribe to the Today in Manufacturing podcast.

See omnystudio.com/listener for privacy information.

Big bank earnings and a mega merger in the auto sector set the tone. Swiss banking giant Credit Suisse more than doubles net profit in the third quarter thanks to strength in its wealth management business. But German rival Deutsche Bank suffers a different fate as restructuring costs weigh on results, leading the lender to post a steeper than expected loss in Q3. Emerging markets focused bank Standard Chartered sees shares rise after it beats estimates with a 16 percent jump in third quarter profit. We speak to the CFO about the growing headwinds due to geopolitical tensions. In the autos sector, Italian-U.S Fiat Chrysler and French rival PSA are reportedly in talks to merge in a deal that would create a near 50 billion dollar car giant. And in the U.K., lawmakers back PM Johnson's call for a December 12th general election, in an effort to break the Brexit impasse.

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Last week, we brought you the news that the iconic Lincoln Continental was more than likely living out the last of its golden years in a suburban Michigan facility before being ferried away to sedan heaven where it could be free to drive around with the Buick LeSabre.

It just so happens that there’s another ailing model that’s soon to be stricken from the production lines and, well, I feel like you should know.

This time, it’s not Ford planning a funeral, rather, Fiat Chrysler.

FCA has been riding the waves of the Jeep craze for the last several years, but it’s the automaker's small cars that are languishing, especially its Fiat brand. According to a recent report in USA Today, Fiat sales peaked in the U.S. in 2014, which was the last time gas was over $3 a gallon, and since then they’ve basically been in free fall – dipping 66 percent over the four years that followed.

It’s no surprise, then, that Fiat has confirmed it will be killing, for the North American market, the Fiat 500 and 500e, the smaller versions of its tiny coupe.

According to a statement made by the automaker, Fiat will continue to offer the Fiat 500X all-wheel-drive compact crossover in North America, along with the 500L wagon, and the Fiat 124 Spider roadster. According to the company, riding out the inventory should bring 500 and 500e enthusiasts into about 2020.

USA Today says that low gas prices and an SUV-hungry market aren’t the only things that have worked against the 500. It says the brand ranked second to last in shopping considerations for American buyers and part of it was due to poor dependability ratings and a lack of body style modifications, leaving the model “out of sight, out of mind.” Even massive dealer incentives and discounting wasn’t enough to move the needle.

They say these things come in threes. Which vehicle is next? You can bet when we find out, we’ll tell you.

Download and listen to the audio version below and click here to subscribe to the Today in Manufacturing podcast.

Craig talks with Paul Eisenstein of TheDetroitBureau.com about how much Americans are spending on new cars and trucks...and also about the failed partnership (so far) between FCA and Renault.   Also, a chat with Rachel Alternative of the Alternative Foundation about their investment in an eastside Detroit neighborhood that needs a boost.  

In WITK's tenth episode, Morgan examines this past week with New York Times political reporter and author Amy Chozick, WITK staff writer Raquel D'Apice and wisecracking musician Jon Spurney. Partying with North Korea, North Carolina's Muslimless airport bomb attempt, Maverick McCain, Mississippi killing Mockingbird, leaving Chad hanging and Rohinga's horrors heard. If you are currently driving a Fiat Chrysler please SLOWLY pull to the side of the road and listen to this week's show.