UAW seeks answers from FCA CEO regarding small car production image

The President of the United Auto Workers recently said he planned to meet with Fiat Chrysler Chief Executive Sergio Marchionne to discuss the company’s plans to cut production of some small cars.

Fiat Chrysler’s future strategy is to boost the profitability of the company by focusing on segments which bring higher margins. Therefore, smaller cars are not playing a major role in automaker’s plans. Chief Executive Sergio Marchionne already said FCA wanted to adapt and to respond to customers’ high demand for big SUVs, pickups and crossovers and to “defocus the passenger car market” in favor of more production of profitable and in-demand vehicles. During the recent company business strategy update, Marchionne revealed the automaker has decided to give up on the Dodge Dart and Chrysler 200, “which will run their course” in 18-month time. As expected, the United Auto Workers did not welcome the news, seeking now some answers from Marchionne. The head of the Union said on Friday he has asked FCA CEO for a meeting to discuss the company’s plan to stop making those two low-profit models, but he has not yet heard back from the manager.

UAW President Dennis Williams wants to ensure that the strategy will not affect whatsoever the workers’ jobs, planning also to propose various options, including opening another plant in the United States that would be flexible enough to make several types of vehicles. Marchionne said he was looking for a partner to share the production of smaller cars, but finding such partners would be quite challenging, as the segment was not bringing big profits.

Via Reuters