Chrysler will be spending $165 million to add a body shop to its plant in Sterling Heights, Michigan.

The one-million square foot plant will be used to build the next generation of Chrysler's mid-size sedans, starting in 2013.

The new body shop will replace the current one, which will be used for other purposes. There will be no net gain of jobs.

This news shows that Chrysler is serious in competing from a product stand point. The company will need to be competitive in the mid-size segment, and the current Chrysler 200 and Dodge Avenger, while better than their predecessors, still fall a bit short. While no jobs will be gained by this announcement, the new body shop could mean better quality, and it shows a commitment to improved product overall in the segment.

[Automotive News]

The UAW and Chrysler agreed to a new contract on Tuesday, though it's unclear if some of the promised benefits to the UAW were part of the deal or were items that were already on the table and under the discussion.

The tentative deal, which still must be ratified by workers, is a four-year contract that promises 2,100 new jobs, a $4.5 billion investment by Chrysler in the company's plants, a $3,500 signing bonus, and a $1,000 annual bonus. Entry-level wages will be raised to $19.28 per hour by 2015, and Chrysler employees could take part in profit-sharing.

The problem, according to Automotive News, is that much of the $4.5 billion isn't "new" investment--it's already earmarked for items that have already been discussed.

Whatever the case, a new deal is now in place, and if it's ratified, it will help both the UAW and Chrysler move forward.

[Philadelphia Inquirer, Automotive News]

Union support for the Occupy Wall St. movement has been growing, but the bet here is that despite the bailouts of the GM and Chrysler, there won't be much involvement from either the UAW or management, especially as UAW contract talks with the Big Three are fresh in everyone's mind.

That doesn't mean the UAW won't show support to union brethren, but it just appears that this protest and any backlash have little to do with auto industry and more to do with banking, finance, and policy-making regarding those two industries. So I just can't imagine Occupy Wall St. doing much to help or hurt bottom lines.

Ford will keep the production of its mid-size Ford Fusion sedan in Mexico as it negotiates its next contract with the UAW.

That means that the UAW won't gain about 4,000 jobs its seeking as part of the negotiations, even as Ford and the UAW talk about adding 10,000 jobs overall.

Since the UAW is unlikely to get wage increases or a cost-of-living allowance, getting more jobs will help get UAW workers to ratify the contract.

[Automotive News]