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    Drew Dowdell

    ...going with the more modern stuff...

    In a discussion about their pending merger, Fiat Chrysler revealed that the combined company's future vehicles in the small to mid-size range will be built on two of PSA's platforms.  The reasoning behind it is that PSA's platforms are more modern than FCA's which first debuted in 2003. They are also capable of a wider range of propulsion methods like electrification that are harder to incorporate into the aging platform that FCA is using.  
    The smaller of the two platforms, PSA's CMP, launched last year is found under the Peugeot 208, 2008, DS 3 Crossback and the new Opel Corsa.  The larger platform is called EMP2 and launched in 2016.  It underpins the Peugeot 3008, 5008, 508, DS7 Crossback, Citroen C5 Aircross, and Opel Grandland. Both of these platforms could become the basis for new Jeep, Dodge, and Fiat models. The first possible FCA model to debut on one of these platforms is likely to be a small crossover for Alfa Romeo, due out in 2022.
    On the other hand, the Ram trucks and larger Jeep models will continue to use technology developed by FCA.  The next generation Jeep Grand Cherokee is already well into development and the forthcoming Wagoneer and Grand Wagoneer are set to go into production in early 2021. 
    The primary question mark remains around the larger Chrysler 300, Dodge Charger and Challenger, and Chrysler Pacifica. 

    Drew Dowdell

    ...Merger of Equals...

    Fiat Chrysler Automobiles and Peugeot S.A. have signed a binding agreement to a 50/50 merger of their businesses. Once the merger is complete, the combined company will be the fourth largest automobile producer in the world.  Based on 2018 numbers, the business will sell roughly 8.7 million vehicles annually and have revenues near €170 billion. There will be a strong balance sheet that will allow the new entity headroom to execute strategic plans. Geographically, 46% of revenue will come from Europe and 43% from North America.
    A number of operational efficiencies will be gained by the sharing of platforms and engine technology. The number of platforms will be reduced with approximately 6 million cars a year concentrated on just two platforms.The platform consolidations will account for approximately 40% of the estimated €3.7 billion in savings expected from the merger. 
    Peugeot CEO Carlos Tavares will be CEO of the new company and a board member, while John Elkann of FCA will be Chairman of the Board. The completion of the combination is expected to take 12 to 15 months during which time they will be completing items to the satisfaction of antitrust and other regulatory requirements.

    Drew Dowdell

    ...finalizing negotiations with the big 2.5...

    The United Auto Workers membership has ratified the new four-year agreement with FCA.  The agreement covers 47,000 employees at FCA's manufacturing facilities and parts distribution centers. FCA will expand manufacturing in the US including a new assembly line in Detroit that will produce two new Jeep models as well as the next generation Jeep Grand Cherokee as well a some electrified models.
    The four year contract includes:
    Signing bonus of $9,000 for full-time employees, $3,500 for temporary workers. Full-time workers can now reach the top pay bracket in four years rather than the current eight. FCA will create 7,900 jobs through 2023 which includes the 6,500 jobs already announced for a new plant in Detroit. $9 Billion in U.S. manufacturing investments. Dissolution of the jointly-run National Training Center, the focal point of a federal corruption investigation. An increase in profit sharing from $800 per percent of N.A. profit margin to $900 per percent. "In-progression" employees will now get the same healthcare as senior hourly employees.

    Drew Dowdell

    ...looks roughly the same as Ford's deal...

    Details emerged Wednesday of the labor agreement between the United Auto Workers and Fiat Chrysler Automobiles.  The overall contract is similar to the one agreed to by Ford last month.
    The four year contract includes:
    Signing bonus of $9,000 for full-time employees, $3,500 for temporary workers. Full-time workers can now reach the top pay bracket in four years rather than the current eight. FCA will create 7,900 jobs through 2023 which includes the 6,500 jobs already announced for a new plant in Detroit. $9 Billion in U.S. manufacturing investments. Dissolution of the jointly-run National Training Center, the focal point of a federal corruption investigation. An increase in profit sharing from $800 per percent of N.A. profit margin to $900 per percent. "In-progression" employees will now get the same healthcare as senior hourly employees. FCA will also offer $60,000 retirement packages to eligable workers in Belvidere Assembly, Marysville Axle, Mount Elliot, and a parts-distribution center in Wisconsin. UAW leaders from the various plants are meeting in Detroit to review the deal and decide whether to send it to the rank-and-file membership as a whole for ratification. If approved for voting, it will likely start on Friday and take a week to complete. 
    FCA is the final of the domestic auto manufacturers to complete their deal with the UAW.

    Drew Dowdell

    ...the final U.S. automaker makes peace with the UAW...

    The United Auto Workers and Fiat Chrysler Automobiles have reached a tentative labor agreement for a four-year contract the union and FCA said today.
    While details were not provided, the main framework of the deal is expected to mirror that of the deals made with Ford Motor Company and General Motors.   Those deals include signing bonuses of at least $9,000, no changes for healthcare, and a clearer way forward for temporary employees to become permanent status. 
    On December 4th, a council of the heads of UAW locals will meet and review the agreement and must approve it prior to sending it to members to ratify. 
    Some media reports say that negotiators secured promises of another $4.5 billion in investments on top of the previous $4.5 billion to open a new assembly plant in Detroit. Other facilities in Southeast Michigan would receive upgrades.   Further, the company has promised not to close any plants, and will allocate a new product to an Illinois assembly plant. 

    Drew Dowdell

    ...Margin is at an all-time high also...

    Fiat Chrysler posted a record $2.3 billion in operating profit in North America for third quarter 2019. Must of that was attributed to maintaining a firm hold on costs and customers opting for higher-trim level vehicles.  Margin for the quarter in North America climbed to 10.6 percent, an all time high. Overall, North American revenue was flat at $21.3 billion and shipments down 11 percent.
    Globally, adjusted earnings rose 5 percent while revenue declined 1 percent.  Global shipments were also down 9 percent. 
    Even with all of that good news, one time charges added up to a $200 million loss, including $795 million for a settlement over the diesel scandal, and a $1.5 billion impairment charge from its European small-car lineup and the Alfa Romeo brand. 
    FCA announced earlier today their intention to merge with European manufacturer PSA. The combined companies would form the fourth largest automobile company in the world. 

    Drew Dowdell

    ...but they haven't been dating that long...

    Fiat Chrysler Automobiles and PSA Group have agreed to the terms of a merger just after it was announced they were talking just yesterday.  PSA's board has already agreed to the deal and is awaiting approval from FCA's board which is meeting later tonight.
    The merger, if approved, would create the 4th largest automotive company in the world with nearly $50 billion in value. 
    FCA Chairman John Elkann would retain his chairmanship of the new company while Peugeot CEO Carlos Tavares would stay on as CEO.  The board would be comprised of six appointees from Peugeot while FCA would get five.
    Both companies would pay dividends to their shareholders, €3 billion from Peugeot and €5 billion from FCA plus an additional €250 million from the sale of its Comau unit.  Peugeot will sell its stake in auto parts make Faurecia.
    Where the new company would be based has not yet been decided.  Both the French and U.S. governments have been briefed on the deal.

    Drew Dowdell

    ...It was only a matter of time till another suitor came along...

    According to a report in the Wall Street Journal, Fiat Chrysler Automobiles and PSA are in merger talks.  This after the failed merger negotiations last spring between FCA and Renault.   The merger is reportedly an all-share merger of equals with PSA CEO Carlos Tavares at the helm as CEO and FCA Chairman John Elkann retaining his position in the new company. 
    The "talks are fluid" and the paper reported that "no guarantee that any final agreement will be reached".
    FCA had previously turned down a merger offer from PSA back in March.  PSA is still digesting their acquisition of Opel from General Motors.

    Drew Dowdell

    ...End of the line for the famous Grand Caravan...

    The Dodge Caravan is one of the vehicles that helped saved Chrysler Corporation in the 1980s. Introduced in November 1983, the Caravan, along with the Plymouth Voyager, was based on the K-Car platform championed by Lee Iaccoca.  Chrysler recently re-introduced the Voyager under the Chrysler brand as the low cost entry into the minivan market. The Voyager is a low cost version of the Chrysler Pacifica Minivan that was introduced in 2016.  Dodge continued production of the Grand Caravan as the low-cost model while the Pacifica aims for higher end customers.
    The Voyager, starting at $26,958, will come in three trims, L, LX, and LXi, the last one reserved for fleet buyers. Chrysler has previously taken this two-prong approach of Voyager being the value option and Town & Country being the premium offering during the 2001 - 2007 time frame. Voyager production begins in August 2019 at Chrysler's Windsor Ontario plant and will run alongside the Grand Caravan for now.
    If you're looking for a Grand Caravan, you have some time left.  The Grand Caravan is scheduled to go out of production in May 2020. 

    William Maley

    And yes, the Hellcat models could play a role

    Fiat Chrysler Automobiles has been lagging behind other automakers in terms of electrification, tending to focus more on how many more vehicles they drop the Hellcat V8 into. But that appears to be changing.
    The Detroit Bureau had the chance to speak with FCA's new global powertrain chief, Micky Bly. He said that within the next twelve to eighteen months, FCA would try to reposition itself as one of the industry’s leaders in electrification.
    “We’re not leaders now,” said Bly, “but we will be soon.”
    Bly wouldn't go into detail as to how FCA plans to do this. But we already know that a number of FCA brands have plans for hybrid and electric vehicles - including a new Fiat 500e. Sources also revealed that there is the possibility of the Hellcat V8 being teamed with a mild-hybrid setup that could add 130 pound-feet, and only add around 100 pounds to the overall curb weight. There is also the possibility of a production version of the Chrysler Portal concept, going with a full electric powertrain.
    Source: The Detroit Bureau

    Drew Dowdell

    ...Head of Ram blows the horn...

    At FCA, amid the backdrop of a proposed merger and its subsequent collapse,  a lawsuit has been filed by Reid Bigland, head of the RAM brand and CEO of FCA Canada alleging that FCA has retaliated against Bigland for cooperating in a Federal prob of FCA's sales reporting process. 
    Bigland joined Chrysler in 2006 and in turn took over the reigns of Alfa Romeo, Maserati, and Dodge, eventually serving as CEO of FCA Canada.  The lawsuit filed Wednesday accuses FCA of retaliation for not taking the fall for the sales reporting prob.  Bigland claims his compensation has fallen by more than 90% and that the sales reporting process under scrutiny was one that he inherited. 
    The probe of FCA's sales reporting started after two dealerships in Illinois filed a lawsuit alleging they were offered cash in return for reporting falsely inflated sales numbers. From that lawsuit, FCA was forced to recount and re-report its previous sales reports.  The Security and Exchange Commission continued its investigation and Bigland cooperated. 
    Bigland's position is that the sales reporting methods existed well before he assumed his roles, and he did nothing to change the reporting process already in place.  Bigland claims that the SEC tried to settle with some admission of wrong-doing by the company and Bigland. Bigland declined to admit wrong doing and later sent a letter detailing the sales reporting practices to the SEC.
    Bigland sold his shares in the company in 2018 and he claims that FCA is withholding bonuses to pay for SEC fines if and when they come. 
    For FCA's part they say via Detroit News:
    We'll have more information as it comes out. 

    Drew Dowdell

    ...FCA accepts a compromise from the French government...

    The merger between FCA and Renault has crossed another hurdle overnight with FCA agreeing to a compromise with the French government.   The issue surrounded the French government's desire for a guaranteed seat on the company's board of directors and effective veto power on CEO appointments.  In a compromise, Renault would give up one of its own board seats for one occupied by a representative of the French government. The makeup of the board would then be 4 seats allocated to FCA appointees, three to Renault appointees, and one to the French government. France is Renault's largest shareholder with a 15% stake in the company. 
    Additionally, Renault would give up one of its two seats on the 4 member CEO selection committee to the French government. 
    The new proposal goes to Renault's board for consideration. 

    Drew Dowdell

    ...50/50 proposal is being reviewed by Renault's board of directors...

    FCA has sent a merger proposal to Renault in what would start as an operational tie-up leading to a full merger. The proposal is a 50/50 deal that will not involve Nissan or Mitsubishi and it estimated to be worth around $33 billion. Few details have been revealed, however, Renault's board said it would issue a press release after the meeting. Rumor has it that Renault is negotiating with FCA without the approval from Nissan or Mitsubishi.
    If the merger does go through, it would happen over the next 12 months and the combined companies would rank 3rd in the world in terms of production, just behind Toyota and Volkswagen.  One complication to the deal is the French government's 15% stake in Renault. FCA has offered a guarantee to keep existing production locations but left the door open for white-collar job cuts. 
    This comes after FCA turned down a merger proposal from PSA back in March of this year. 

    Drew Dowdell

    ...worth hundreds of millions for Tesla...

    FCA is paying Tesla hundreds of millions of dollar to pool their vehicles with Tesla to avoid EU fines over emissions. Tesla put out an invitation to other automakers to use its fleet to lower their emissions totals and FCA took them up on it.  Neither company released financial specifics of the deal, but it is estimated by the Financial Times to be worth hundreds of millions of dollars.  
    Similar to California which allows manufactures with a surplus of ZEV credits to sell them to manufacturers who need them, the EU Commission allows manufacturers to pool together their fleets to avoid paying fines. Tesla makes significant money selling these credits in the US, earning $103.4m in 2018 and $279.7m in 2017. Once set up, the pool in Europe is good for several years.
    Vehicles in 2018 are allowed an average CO2 emission of 120.5g per kilometer. That figure will drop to 95g per kilometer next year.  FCA's average for 2018 was 123g per kilometer, one of the largest off the mark of the 13 major manufacturers. FCA is seen to have fallen to near the back of the pack when in comes to reigning in CO2 emissions.
    FCA was forecast to be facing fines exceeding €2 billion ($2.25 billion) without pooling with Tesla. 

    Drew Dowdell

    ...company bosses are no longer talking.

    The rumors that PSA and FCA may merge can be put to bed now.  Sources familiar with the discussion told the Wall Street Journal that executives from the respective companies are no longer in talks.  FCA was reticent about the idea because it would increase the companies reliance on the struggling European market, and the Agnelli family, who has a controlling stake in FCA, was not interested in a deal that was paid for with PSA stock. PSA would need to use equity to pay for FCA because they are still digesting their acquisition of Opel from General Motors. 
    Had they merged, the combined company would produce over 9 million vehicles per year, putting them on a playing field with Volkswagen and Nissan-Renault.  It would also give PSA a much needed foothold into the U.S. market for their planned 2026 re-entry. 

    Drew Dowdell

    Issue was discovered and reported by FCA.

    The EPA has announced that FCA will be issuing a voluntary recall of 862,520 gasoline vehicles in the United States that do not meet emissions standards. The vehicles covered are the 2011-2016 Dodge Journey, 2011-2014 Chrysler 200 and Dodge Avenger, 2011-2016 Jeep Patriot and Compass (with CVT and FWD), and 2011-2012 Dodge Caliber.
    Due to the scope of the recall, the fixes will be issued in stages starting with the oldest vehicles. The fix involves replacing the catalytic converter. FCA has stated there are no safety concerns and no fines will be issued by the EPA. 
    The issue was discovered during routing in-use emissions testing by FCA and subsequently reported to the EPA. 
    FCA just settled a claim by the EPA that FCA used a cheat device in its diesel trucks and SUVS. 

    Drew Dowdell

    One way to make the best even better.

    The Chrysler Pacifica is often considered the best of a very small market.  There are only five mini-vans left on the market, and only one of those has all-wheel drive optional, the Toyota Sienna.
    That stat could be changing if rumors about the Chrysler Pacifica prove true.  According to Automotive News, Chrysler is hard at work on an AWD option for the Pacifica.  While not officially confirmed by Chrysler, the union chief for the Windsor plant where Pacifica is built appears to have spilled the beans. If AWD does come to the Pacifica, it may not be until the 2021 model year.
    Adding AWD would be likely help to boost sales in the North East US and in Canada. Chrysler moved 118k Pacificas in 2018 vs. 151k Dodge Caravans which sell at a lower price. Combined, the two minivans are 56% of the total minivan market. 

    Drew Dowdell

    $4.5B for new plant; around 6,500 jobs created

    Fiat-Chrysler announced a $4.5 billion investment today to build a new assembly plant in Detroit and add production at five existing facilities in Michigan. The move will increase capacity for Jeep, Ram, and Dodge Durango. 
    $1.6 billion will go to the Mack Avenue Engine complex to convert the site into a manufacturing facility for the next-generation Jeep Grand Cherokee and an all-new three-row full-size Jeep SUV. This will create 3,850 new jobs. $900 million will go to Jefferson North for retooling and modernization for production of the Dodge Durango and next generation Jeep Grand Cherokee. This will create 1,100 jobs. The investment into Warren Truck increases to $1.5 Billion for the production of the Jeep Wagoneer and Grand Wagoneer, plus continued production of the Ram 1500 Classic. This will create 1,400 new jobs. In addition to the plant investments, FCA has announced that future Jeep products will be electrified.  All three facilities will be able to produce plug-in hybrid versions with fully electric model capability in the future.  
    The project is contingent on land acquisition near the Mack Avenue plant.  FCA plans to move quickly and start construction on the new facility in late Q2 2019.  When complete, the facility will be the first new vehicle assembly plant built in the City of Detroit since 1991.  The Mack Ave I plant currently builds the 3.0, 3.2, and 3.6 liter Pentastar V6. That production will move to the Dundee Engine Plant. 
    The plan would bring around 6,500 total jobs to the region.
    FCA Press Release on Page 2

    FCA to Expand Production Capacity in Michigan to Grow Core Brands, Electrify Jeep® Vehicles

    $4.5 Billion to Build New Assembly Plant in Detroit and Add Production at Five Existing Michigan Facilities, Creating Nearly 6,500 Jobs
    FCA total committed investments in the U.S. grow to nearly $14.5 billion since 2009, with nearly 30,000 jobs created to date Investment would be next step in Company’s U.S. industrialization plan, announced in 2016 to expand Jeep® and Ram brands Introduces two new Jeep-branded “white space” products in key market segments Enables electrification of new Jeep models $1.6 billion investment would convert Mack Avenue Engine Complex into manufacturing site for next-generation Jeep Grand Cherokee and an all-new three-row full-size Jeep SUV, creating 3,850 new jobs $900 million investment at Jefferson North to retool and modernize plant for continued production of Dodge Durango and next-generation Jeep Grand Cherokee with 1,100 new jobs expected Warren Truck 2017 investment increases to $1.5 billion for production of all-new Jeep Wagoneer and Grand Wagoneer, as well as continued assembly of Ram 1500 Classic with addition of 1,400 new jobs All three assembly sites would also produce plug-in hybrid versions of their respective Jeep models with flexibility to build fully battery-electric models in the future Sterling Stamping and Warren Stamping plants to receive more than $400 million total investment to support additional production, potentially creating about 80 new jobs at Sterling $119 million investment to relocate Pentastar engine production currently at Mack I to the Dundee Engine Plant; production at Mack would end by Q3 2019 Projects contingent on land acquisition and the negotiation of development incentives with the cities of Detroit, Sterling Heights, Warren, Dundee and state of Michigan City of Detroit has 60 days to deliver on commitments outlined in Memorandum of Understanding related to Mack and Jefferson North projects February 26, 2019 , London - Fiat Chrysler Automobiles N.V. (NYSE: FCAU / MTA: FCA) confirmed today plans to invest a total of $4.5 billion in five of its existing Michigan plants, and to work with the city of Detroit and state of Michigan on building a new assembly plant within city limits. The move would increase capacity to meet growing demand for its Jeep® and Ram brands, including production of two new Jeep-branded white space products, as well as electrified models. The proposed projects would create nearly 6,500 new jobs.

    The plant actions detailed in today’s announcement represent the next steps in a U.S. manufacturing realignment that FCA began in 2016. In response to a shift in consumer demand toward SUVs and trucks, the Company discontinued compact car production and retooled plants in Illinois, Ohio and Michigan to make full use of available capacity to expand the Jeep and Ram brands. Those actions have resulted in the recent launches of the award-winning all-new Jeep Wrangler and all-new Ram 1500, and the introduction of the newest member of the Jeep family, the all-new Jeep Gladiator, at the 2018 Los Angeles Auto Show.

    “Three years ago, FCA set a course to grow our profitability based on the strength of the Jeep and Ram brands by realigning our U.S. manufacturing operations,” said Mike Manley, Chief Executive Officer, FCA N.V. “Today’s announcement represents the next step in that strategy. It allows Jeep to enter two white space segments that offer significant margin opportunities and will enable new electrified Jeep products, including at least four plug-in hybrid vehicles and the flexibility to produce fully battery-electric vehicles.”

    The city of Detroit has 60 days to meet the terms of a Memorandum of Understanding, which requires the acquisition of property critical to the execution of the Mack project. The additional investments are subject to the successful negotiation and final approval of development packages with the state and other local governments.

    Plant Investment Details
    FCA would invest $1.6 billion to convert the two plants that comprise the Mack Avenue Engine Complex into the future assembly site for the next-generation Jeep Grand Cherokee, as well as an all-new three-row full-size Jeep SUV and plug-in hybrid (PHEV) models, adding 3,850 new jobs to support production. The Company intends to start construction of the new Detroit facility by the end of Q2 2019 with the first three-row vehicles expected to roll off the line by the end of 2020, followed by the all-new Grand Cherokee in the first half of 2021.

    Also as part of this announcement, the Jefferson North Assembly Plant would receive an investment of $900 million to retool and modernize the facility to build the Dodge Durango and next-generation Jeep Grand Cherokee. FCA expects to create 1,100 new jobs at Jefferson North.

    The reborn Mack facility would be the first new assembly plant to be built in the city of Detroit in nearly three decades. In 1991, Jefferson North was the last new assembly plant built in the city. When complete, Mack would join Jefferson North as the only automotive assembly plants to be located completely within the city limits of Detroit.

    The Pentastar engines – the 3.6-, 3.2- and 3.0-liter – currently built at Mack I would be relocated to the Dundee Engine Plant as part of a $119 million investment. Pentastar production at Mack I would end by Q3 2019. Mack II has been idle since it ceased production of the 3.7-liter V-6 in September 2012.

    FCA also confirms the investment at Warren Truck to retool for production of the all-new Jeep Wagoneer and Grand Wagoneer, announced in 2017, along with their electrified counterparts, would increase to $1.5 billion. Production is expected to launch in early 2021. In addition to the new Jeep models, the plant would continue building the Ram 1500 Classic, which is being extended to meet market demand. It is expected that 1,400 new jobs would be added. As a result of this investment announcement, production of the all-new Ram Heavy Duty will continue at its current location in Saltillo, Mexico.

    To support the additional production, the Company’s Warren Stamping (Warren, Michigan) and Sterling Stamping (Sterling Heights, Michigan) plants would receive investments of $245 million and $160 million, respectively, with Sterling Stamping expected to add more than 80 new jobs.

    This investment is part of the Company's capital spending plan presented in June 2018.

    Realignment of FCA U.S. Manufacturing Operations
    Over the past two years, FCA has realigned production at four plants in Illinois, Ohio and Michigan to increase capacity for the Jeep Cherokee, Jeep Wrangler and Ram 1500 light-duty truck, and created additional manufacturing capacity for the Jeep Gladiator in Ohio.

    The investments included:  $350 million in the Belvidere Assembly Plant (Illinois) to produce the Jeep Cherokee, which moved from Toledo, Ohio, in 2017. More than 300 new jobs were added to support production, which launched in June 2017. $700 million in the Toledo Assembly Complex (Ohio) to retool the North plant to produce the next-generation Jeep Wrangler. Approximately 700 new jobs were added to support production, which began in December 2017. $1.48 billion in the Sterling Heights Assembly Plant (Michigan) to build the next-generation Ram 1500 truck, adding more than 700 new jobs. Production of the new truck began in March 2018. Production of the Ram 1500 Classic continues at Warren Truck (Michigan). $273 million in the south plant of the Toledo Assembly Complex to prepare the facility to produce the all-new Jeep Gladiator. The new truck is scheduled to launch in the first half of 2019.   In total, FCA has committed to invest nearly $14.5 billion in its U.S. manufacturing operations, creating nearly 30,000 new jobs since June 2009.

    William Maley

    Van to based on 2017 Portal Concept

    The Chrysler 300 will disappear in two years according Automotive News. Their annual future product pipeline reports that Chrysler will eliminate the 300 from their lineup in 2020. No replacement is planned. This follows rumors we've been hearing for the past couple of years that the 300 would be bumped off.
    But this presents a big problem for Chrysler. Without the 300, the only car in the lineup is the Pacifica minivan. But Automotive News says there is a model to take its place. It will be a fully-electric minivan based on the Portal concept that debuted at the 2017 CES in Las Vegas. The report says expect the concept to retain the reconfigurable interior that seats up to six people and possibly the sliding French doors. Production is expected to begin in 2020.
    Source: Automotive News (Subscription Required)

    William Maley

    Marchionne answers a number of questions on the future of FCA

    For the past few years, Fiat Chrysler Automobiles CEO Sergio Marchionne holds a conference with journalists and analysts at the Detroit Auto Show, taking various questions. According to Motor Trend, Marchionne revealed that more crossovers are on the way for Alfa Romeo, Chrysler, and Ferrari.
    Alfa's Three-Row Crossover: Sergio Marchionne confirmed that Alfa Romeo is working on a larger SUV to sit above the Stelvio. He says this model is very important for the brand. As we reported towards the end of December, the model would use a stretched version of the Stelvio's platform and possibly feature a mild-hybrid powertrain.
    Chrysler's Pacifica-based crossover: It seems the platform that underpins the Pacifica will be used for a long-promised crossover. The model was in the previous five-year plan for FCA, but was pushed back. The model will be in the next five-year plan (expected to be shown sometime later this year) and could go into production within the next 18 months.
    Ferrari SUV: Progress on Ferrari's upcoming SUV is moving quite quickly as Marchionne said it would be ready by the end of 2019 or early 2020. At the moment, the Italian automaker has mock-up bodies of the SUV, but nothing driveable.
    “I have seen the car when I was in Europe. It’s not finished. It’s going to be Ferrari. It will drive like a Ferrari or I’ll be taken to the shed. But it looks good,” said Marchionne.
    Other bits from Marchionne:
    When asked about a performance electric vehicle, Marchionne said, “Ferrari has looked at this forever, and if there is an electric supercar to be built, Ferrari will do it,” FCA hasn't "found an economic way to get this done” when asked if there was the chance of a midsize Ram pickup. Wrangler Pickup is expected to debut towards the end of 2019 Marchionne is planning to retire as FCA CEO next year The most pressing question asked during the session? Where does he buy his sweaters? Answer: Online. Source: Motor Trend

    William Maley

    We have some clarification on the right-hand drive mess at FCA

    On Friday, we brought you the news that Fiat Chrysler Automobiles would be pulling Chrysler and Dodge from South Africa.
    "This unfortunate situation has arisen from our principals in the USA no longer building Chrysler or Dodge vehicles in Right Hand Drive configuration," the company told Wheels24.
    But there was a wrench thrown into this story, courtesy of FCA's Australian office. 
    “I am not at liberty to comment on South Africa’s decision. What I can tell you is that Australia will continue to sell the right-hand drive Chrysler 300 as an ongoing product in our lineup. In relation to Dodge, at this stage, this brand is represented as a parts and service operation only,” said FCA Australia's manager of public relations Alessia Terranova.
    This left us confused. Was FCA ending RHD production or not for Chrysler and Dodge models? Thankfully, we might have some clarity.
    “We do continue to build the Chrysler 300 RHD at the FCA Brampton Assembly Plant,” said Lou Ann Gosselin, head of communications for FCA Canada to The Truth About Cars.
    It seems for the time being, FCA will continue to build RHD variants of the 300 which plays into the comment made by FCA Australia. We're wondering if there was some sort of miscommunication that to this confusion.
    We also need to note that Chrysler isn't a big seller. To use Australia as an example, Chrysler has only sold 210 300s so far this year.
    Source: The Truth About Cars

    William Maley

    What are you doing Fiat Chrysler Automobiles?!

    If there is one thing that Fiat Chrysler Automobiles is consistent on, it is their ability to change their future plans on a whim and cause us to scratch our heads. Case in point, Automotive News has learned that FCA has ditched plans on moving the Chrysler 300 and Dodge Charger/Challenger to the Giorgio platform - what underpins the Alfa Romeo Giulia. Instead, all of the models will get will one more refresh in 2019 that will cut weight and boost fuel economy. There is also talk about the 300 getting the option of the Hellcat V8 because FCA thinks we don't have enough vehicles with it?!
    In 2021, the Charger and Challenger will be (finally) redesigned. They'll be based on the platform the underpins the Maserati Ghibli. There is no mention about the 300 moving to this platform, possibly hinting that the 300 will be shown the door - something we reported on back in November.
    Will there be any Chrysler or Dodge model that will use the Giorgio platform? Yes and that will be the next-generation Journey that is possibly arriving in 2019.
    Source: Automotive News (Subscription Required), 2

    William Maley

    Except in California

    There is a huge difference between hybrid and plug-in hybrid models. So it seems interesting that Chrysler will be dropping the plug-in part of the Pacifica Plug-In hybrid in their marketing for almost all of the U.S.
    Bloomberg reports that Chrysler will advertise the Pacifica PHEV as the Pacifica Hybrid for the majority of the country. The reason is that most Americans see 'plug-in' and think limited range. For the record, a plug-in hybrid can run on electric power alone for a time. Once the battery is depleted, the gas engine will kick on to provide propulsion and charge the battery.
    There is one exception to this plan, California. Tim Kuniskis, head of FCA's passenger-car brands in the U.S. tells Bloomberg buyers in the state understands what a plug-in hybrid vehicle is.
    “People here see it as a benefit and understand that that’s worth more,” said Kuniskis.
    Jessica Caldwell, an analyst with Edmunds echo's Kuniskis' statement, saying Californians under the value of plug-in hybrids. It doesn't hurt that plug-in hybrids qualify for government incentives.
    “In California, it’s not seen as something that’s negative. It’s seen as like ‘that’s cool, that’s progressive,’” said Caldwell.
    In due course, Chrysler will be marketing the Pacifica PHEV as plug-in hybrid in the rest of the U.S. once more consumers become educated on what plug-in hybrid is and isn't.
    Source: Bloomberg

    William Maley

    What is up with this 300 SRT?

    The internet went mad yesterday when spy shots of a unique 300 SRT mule was caught.
    The pictures - caught at an apartment complex and on the highway - show a 300 SRT sporting some wider fenders and a set of drag radials. The spy photographer notes the wheels fitted to the 300 are the same ones that Dodge was using for the early Demon mules. Behind the wheels are a set of four-piston Brembo brakes. Also, the spy photographer says the mule was making engine noises similar to the Charger/Challenger Hellcat.
    What could this be? It might just be an engineering mule that will likely not go into production. Another possibility is Chrysler building a Hellcat version of 300 for certain markets. While Chrysler hasn't sold the 300 SRT in the U.S. for a few years, it is sold in other markets such as the Middle East and Australia. 
    Source: Autoblog, Car and Driver

    Cmicasa the Great


    WASHINGTON -- The EPA has accused FCA of using similar software as, already found guilty VW,  that allowed excess diesel emissions in over 100,000 U.S. trucks and SUVs sold since 2014.
    FCA has declined to comment, and Reuters cites sources that declare that FCA will contest the claims.
    It is common practice for automakers to use secondary emission controls to protect engines from internal damage. When doing so the maker must proclaim and document it to the EPA.
    Currently, Fiat-Chrysler’s 2017 diesels are not certified for sale in the United States, forcing Chrysler to continue selling 2016 models instead.
    On Wednesday, January 11, 2017, Volkswagen was fined $4.3 Billion for criminal and civil violations in misleading regulators and selling vehicles that pollute.

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