Automakers may try to negotiate a massive health care co-op with the United Auto Workers — similar to the one it has with its retirees — and potentially change private health care in the U.S., Bloomberg is reporting.
At issue are the roughly 300,000 workers and beneficiaries, and 750,000 retirees and their families who rely on the UAW for health care.
The pool of more than one million workers and their families could give the Big Three unprecedented negotiating power with U.S. hospitals and clinics.
In 37 pages of Fiat Chrysler Automobile’s consent order with the government, the unprecedented action mentions little about what life will be like for the cars re-sold by the automaker after being repaired.
At issue are thousands of trucks and SUVs — Ram 1500s, 2500s, 3500s, Dodge Durangos and Dakotas, and Chrysler Aspens — that could be eligible for buyback from the automaker. FCA spokesman Eric Mayne told us in July that FCA has the ability to buy, repair and resell those cars under the order.
The recall order doesn’t address whether those cars would need to be identified as “buyback” cars, which the manufacturer isn’t obligated to disclose. But already, the consent order asks FCA to go above and beyond what the law requires for a while.
Fiat Chrysler Automobiles posted a 2-percent overall gain in sales for August, keeping its 65-month streak of increased sales alive, the automaker reported Tuesday.
Jeep jumped the largest amount for the automaker; Jeep reported an 18-percent increase as a brand and four of its models posted sales gains. Sales of Dodge-branded vehicles slid 15 percent overall, and Chrysler-branded cars fell 14 percent.
FCA reported it sold more than 200,000 vehicles in North America for the second month this year.
Stocks for automakers such as General Motors, Fiat Chrysler Automobiles and Ford took a pounding Tuesday after China devalued its currency in an effort to boost exports from the country, stemming the economic slowdown already underway.
In a statement released Tuesday, GM said it had enough of a local supply chain within China to offset its exposure to international currency fluctuations.
“We believe that our exposure is limited and manageable, and do not expect that the devaluation will have a material impact on the company’s financial performance,” the company wrote.
Each and every month, a great deal of attention is paid to the length of Fiat Chrysler Automobiles’ U.S. growth streak. July 2015, for example, was the 64th consecutive month in which FCA, formerly known as the Chrysler Group, reported a year-over-year sales gain.
Yet so much of FCA’s rate of expansion in the U.S. market is muddied by dreadful results in a few small corners of their lineup. (Read More…)
Alfa Romeo is finishing its first crossover and will bring the car to market in mid to late 2016 in Europe and the United States, Automotive News Europe is reporting.
Fiat Chrysler Automobiles CEO Sergio Marchionne confirmed the model in his call last week about the automaker’s second-quarter earnings. The BMW X3 and Audi Q5-sized Alfa hasn’t been publicly named, but will be based off of Alfa Romeo’s coming Giulia.
The car would launch in Europe around September 2016 with a U.S. launch three months later, Marchionne said.
Fresh from the recent Fiat Chrysler Automobiles infotainment-hacking flap, the National Highway Traffic Safety Administration announced last week that it would look further into supplier Harman Kardon for possible vulnerabilities in other cars, the Associated Press reports (via Autoblog).
Harman Kardon produces radios for automakers such as BMW, Subaru, Mercedes-Benz and Volvo, in addition to FCA.
A U.S. Senate committee for transportation passed along a bill Thursday that included provisions to help domestic automakers develop and build cleaner vehicles, the Detroit News is reporting.
The proposal, dubbed the Vehicle Innovation Act, was included in a larger clean energy bill taken up by the committee. The Vehicle Innovation Act would set aside $313.6 million next year for research and development of hybrid technology, battery development and alternative fuels such as natural gas. Funding would increase by 4 percent every year up to 2020.
Nearly all major U.S. automotive lobbies representing manufacturers supported the proposal. (Read More…)
Fiat Chrysler Automobiles said strong North American sales and brisk worldwide Jeep sales propelled the company to a $364 million profit in the second quarter of 2015, despite record fines from the federal government.
Overall, the company earned a pre-tax profit of $1.4 billion, which is double the $650 million it made in the same quarter last year, the Detroit Free Press reported.
The earnings beat expectations for the company, whose profit margins are still below the other domestic automakers. FCA reports its margin was 7.7 percent in the second quarter, up from 4.9 percent last year, but well behind the double-digit margins of Ford and General Motors.
After this morning’s announcement that Fiat Chrysler Automobiles would be subject to one of the largest civil penalties for an automaker, reports that the automaker could be on the hook for $2.5 billion in cars aren’t true, the automaker said today.
“While such amounts may exceed the $20 million, contrary to certain reports, FCA US does not expect that the net cost of providing these additional alternatives will be material to its financial position, liquidity or results of operations,” the automaker said in a statement.
In other words, expect to find some screaming deals on Ram trucks in the next few months.