WASHINGTON — Chrysler Group has sued seven Detroit area dealerships in an attempt to gain legal support for the letters of intent it has given dealers reinstated through arbitration. Dealers have challenged the terms of those letters as onerous and unfair.

Chrysler claims it should be allowed to withdraw a letter of intent to a dealership if nearby stores protest its reinstatement The condition has been in at least 82 letters offered to dealerships that filed arbitration claims after being closed during the company’s bankruptcy last year.

Only 29 dealers have signed the letters of intent, although that number could grow because many of the others are in talks with Chrysler in an attempt to get the requirements eased. Continue reading Chrysler sues 7 Detroit dealers over disputed letters of intent

Fiat CEO says OKs from 4 of 5 unions not enough to save Italy plant
Final decision on factory expected on Tuesday

VENICE, Italy (Reuters) — Fiat S.p.A. CEO Sergio Marchionne wants approval from all unions involved in talks to save an Italian plant. Until then, the deal cannot be completed.

Four out of five unions agreed on Friday to working practices requested by Fiat before it will invest 700 million euros ($844 million) to start building the Fiat Panda, Europe’s top-selling minicar, at the plant in Pomigliano d’Arco, near Naples.

“I’m fairly happy. It is a step forward but now the issue must be closed,” Marchionne told reporters at a conference. Asked if agreement with four unions was enough to go ahead with the investment, Marchionne said no.

“Fiat’s declaration yesterday was clear. We reserve the right to see the conditions that are agreed in the end,” he told reporters on Saturday. Continue reading Fiat CEO says OKs from 4 of 5 unions not enough to save Italy plant

(Reuters) — Electric cars offer a chance to develop lucrative new technologies, and suppliers would benefit from grabbing more of this work — but they will have to fight carmakers keen to hold on to control of future profits.

Over the years, suppliers have gradually taken on more of car development, now covering around 75 percent of the cost, but carmakers chasing elusive profits may want to reverse this trend to keep control of new electric vehicle (EV) technologies.

“In an electric vehicle, the engine, in which a carmaker has a greater share, is taken away, the gear box is taken away, and an electric motor and, most importantly, a battery are added,” said Henri Trintignac, head of EVs at French car parts maker Valeo. Continue reading Carmakers, suppliers in electric car power struggle