Members of the United Auto Workers employed by Fiat Chrysler Automobiles NV’s unit in North America will see their profit-sharing checks increase by 45%.
The $4,000 payment due members of the UAW represents a substantial increase from the $2,750 UAW-represented employees received last year, the company said. The FCA profit-sharing payments are expected to fall short those of union members at General Motors and Ford, which could approach $10,000
The company said the hike in profit sharing was a result of the company’s 2015 financial performance.
FCA earlier in the day reported a better-than-expected quarterly performance in North America, the region that accounted for 85% of the company’s 2015 profit.
(Fiat Chrysler earnings slide 40%. For more, Click Here.)
The UAW hailed the increase in profit sharing.
“Eligible UAW-FCA US members have earned through their quality products and hard work up to $4,000 in profit sharing payment,” said Norwood Jewel, UAW vice president, in a statement. “The financial strength of FCA relies on their UAW workforce as evidenced in their financial report earlier today.
“Our members are proud to share in the profits of their hard work and dedication to Chrysler, Jeep, Ram and Dodge customers and the strength of the collective bargaining process.”
The union was mum, however, on CEO Sergio Marchionne’s plans to look for a partner to build passenger cars.
(Click Here for details about Sergio Marchionne’s plans to ride Jeep and trucks to bigger profits.)
Marchionne said during a conference call Wednesday he is looking for partners to build future versions of the compact Dodge Dart and the midsize Chrysler 200 as part of a revised strategic plan for the company that runs through 2018. The two plants that currently build the Dart and 200 will be retooled for more profitable SUV and truck models, he suggested.
The CEO did not identify any potential partners to continue manufacturing the Dart and the 200, which compete in segments where Japanese automakers have the wind at their backs thanks to the cheaper yen. Cheap gasoline is driving a shift away from smaller cars toward SUVs across the U.S. auto market.
The midsize Chrysler 200, which competes with high-volume Japanese cars, such as the Toyota Camry and Honda Accord, is also a slow seller. Chrysler 200 inventories ballooned to 148 days’ supply on Jan. 1, roughly twice the levels automakers normally target, according to the Automotive News data center.
(To see more about Ford’s Q4 and full-year earnings, Click Here.)
FCA has now scheduled a six-week shutdown this winter to reduce the inventories of the Chrysler 200 now sitting on dealer lots.
Marchionne sounds as though he’s falling into the old GM trap of cleaning house of cars and heading head first into the truck / SUV pool. Hopefully when he’s on the diving board he’ll see that pool is really empty. Outsourcing car production is a huge mistake…