Chrysler invented the minivan 43 years ago, and more than 16.6 million of them later, the Pacifica arrives at the 2026 New York International Auto Show with its most significant visual update in years. The 2027 Pacifica debuts a new front fascia that Chrysler says defines the design language for the brand going forward.

A New Face for the Brand

The exterior redesign applies to the Select, Limited, and Pinnacle trims. The new entry-level LX (the renamed Voyager) retains its familiar exterior and offers the lineup's lowest entry point, well-equipped with power-sliding doors and heated seats and steering wheel.

On the upper three trims, the centerpiece of the redesign is an illuminated version of the Chrysler wing badge, serving as the anchor for a cross-car LED lighting signature. Vertical headlamps flank the badge, and the grille features what Chrysler calls "piano key" accents: repeating vertical LED elements that frame the lower fascia. Forward lighting relocates to the lower bumper, drawing attention to the illuminated grille above it. New projector headlamps provide a 17% improvement in maximum reach compared to the previous generation. On Limited and Pinnacle trims, the Pacifica performs a welcome animation when unlocked: the center lamp, badge, and signature lights illuminate in sequence, followed by the piano key accents at each corner. A matching animation marks the end of the drive.

The rear receives a redesigned lightbar applique and updated wing badge to match the new front. New exterior colors for 2027 include Olive Green, with Steel Blue, Glass Gray, and Ember arriving as late-availability options. Eight wheel designs are available, including new 18- and 20-inch options for Limited and Pinnacle in Foreshadow and Machined finishes.

Pinnacle Interior

The Pinnacle debuts the most notable interior update with a new Blue Agave Nappa leather finish, a deeply saturated blue-gray that Chrysler positions as an alternative to the segment's typical blacks and tans. Seats feature an all-new Parquet perforation pattern, Sol Stopper copper accent stitching across the seats, instrument panel, doors, and armrests, and Tungsten Patina non-metallic piping on the seating surfaces. Copper Alloy accents replace chrome on the HVAC bezels and door elements.

The Pinnacle's Ultra Console integrates into the instrument panel, offering dual-level storage with a large pass-through for handbags or tablets. All trims receive a new Chrysler wing badge in Satin Chrome finish on the steering-wheel airbag cover. A new adjustable-height power liftgate is standard across the lineup, letting drivers set a maximum opening height to avoid garage ceilings, carports, or parking decks.

Stow 'n Go Still Stands Alone

Twenty-two years after its debut on the 2005 model year Pacifica, the Stow 'n Go seating and storage system remains the Pacifica's most consequential differentiator, and still the only such system available in any minivan. Second- and third-row seats fold flat into the floor in seconds, creating a load surface with more than 140 cubic feet of cargo space. More than 5 million minivans have been sold with the system since its introduction.

The combination that no competitor has matched also returns: available all-wheel drive paired with second- and third-row Stow 'n Go, offered on Select and Limited trims. The AWD system can send 100% of available torque to the rear wheels or to whichever wheels have the most traction, and fully disconnects the power-transfer unit and rear drive module when AWD isn't needed to reduce fuel consumption.

Pinnacle models take a different layout: premium captain's chairs in the second row are removable rather than fold-flat (to accommodate the integrated Ultra Console), with Stow 'n Go retained for the third row.

Powertrain and Capability

The 3.6-liter Pentastar V-6 carries over, delivering 287 horsepower and 262 lb-ft of torque through a segment-exclusive nine-speed TorqueFlite automatic transmission. With the available Trailer Tow Group, maximum towing capacity reaches 3,600 pounds, best in class, with trailer-sway damping and a heavy-duty radiator included.

Technology and Safety

The former Uconnect Theater Group splits into two separate packages for 2027. The Family Tech Group covers everyday cabin technology: Uconnect 5 NAV with a 10.1-inch display, upgraded audio, eight-way power front passenger seat, additional power outlets and USB ports, and FamCAM, an interior camera system that provides a split-screen view of rear passengers with a zoom-to-seat function useful for monitoring rear-facing child seats.

The Theater Group is now sold separately and focuses on rear-seat entertainment: Amazon Fire TV built-in, seatback screens, and a multi-channel remote. The decoupling lowers the cost of entry for families who want only one of the two bundles.

The updated Safety Sphere Package, optional on Select and Limited and standard on Pinnacle, adds two new technologies: turn signal-activated blind-spot view, which displays a live camera feed on the center touchscreen when a turn signal is engaged, and ParkSense-based camera activation, which automatically triggers the appropriate camera view when sensors detect an object during low-speed maneuvering.

2027 Pacifica Pricing

The 2027 Pacifica lineup starts at $41,495 for the front-wheel-drive LX. AWD is available on Select, Limited, and Pinnacle.

All prices exclude tax, title, fees, and a $1,995 destination charge. Dealership arrivals are scheduled for summer 2026.

This morning, Chrysler released information on the 2024 Chrysler Halcyon concept. The concept highlights a host of future technologies that Chrysler and Stellantis are working on. Halcyon combines three complementary technologies, STLA Brain, STLA SmartCockpit, and STLA AutoDrive to achieve "Harmony in Motion" and features a new lithium-sulfur battery technology that promise a 60% lower carbon footprint than the best-in-class batteries available on the market today.

The highly streamlined sedan, built on the STLA-Large platform, is optimized for range and efficiency. A functional front air blade and side aero blades direct airflow around the vehicle to improve aerodynamic performance. Side mirrors have been replaced with slim, blade-like camera pods, while autonomous entry eliminates the need for door handles. The windscreen extends forwards, towards the edges of the front end, elongating the cockpit and giving the driver and passenger a sweeping view of the road. Active Aero technology includes a sliding rear aero diffuser made from lightweight composite materials, a rear spoiler, and an active air suspension.

The Chrysler Halcyon Concept has several modes to connect with the driver and passengers.

• Prepare Mode uses an AI Virtual Assistant to help prepare the driver for the day. Using advanced STLA Brain and SmartCockpit technology, an Intelligent Cabin Comfort feature analyzes weather conditions and uses personalized preferences to set HVAC levels remotely. Predictive navigation, one of the concept’s many predictive interaction features, syncs with the driver’s calendar to prepare the vehicle for real-time traffic and navigation routing, staying one step ahead and eliminating unneeded driver inputs.
• Welcome Mode uses biometric identification to greet the driver as they approach. LED illumination animates with a personalized exterior sound to provide a sense of connection. The functional Chrysler wing logos indicate the vehicle's charge status.
• Entry Mode allows the driver to be the “key” to unlocking the concept, as facial biometrics allow safe and secure, hands-free vehicle entry and start-up, with doors unlocking and opening autonomously. Biometric functions can also detect if the driver is carrying a package or backpack and intuitively retract the next-gen Stow ‘n Go seats to create storage space. Air suspension assists with ingress by lifting the low-profile vehicle as the driver enters the cockpit, with the concept always at the right entry height.
• Pre-drive Mode brings to life a customized experience, with personalized vehicle cymatics – sound and vibrations mirrored through visuals – helping to create the mood of the vehicle. As the vehicle wakes up and welcomes the driver, it can share a calming or energetic sound based on driver presets. Different sound frequencies prompt corresponding product shapes on the console screen — calming frequencies align with a more dispersed particle pattern on the console screen, while more spirited sound frequencies generated during drive modes create energetic particle patterns that provide the driver with a real-world connection to the vehicle’s performance status. Ambient interior lighting and sounds also adjust to driver inputs and complement the cabin environment.
• Drive Mode delivers a dynamic, personalized driving experience. Drivers can sit back, relax and allow the Chrysler Halcyon Concept to take control while the STLA AutoDrive technology platform enables Level 4 autonomous driving features, such as Stargazing Mode or take the wheel, and controls for an exciting, connected-to-the road experience.
  • STLA AutoDrive technology platform enables Level 4 autonomous driving features that eliminate the stress of traffic using predictive navigation. The steering wheel and pedals retract, and the dimmable glass canopy and windshield can turn opaque for privacy and to create an immersive space, such as a Stargazing Mode in which seats morph into a laid-back position while the augmented-reality windshield HUD projects information on stars and constellations.
  • Occupants can also watch movies and play games, and the adaptive environment features a media system that chooses audio and content based on the driver’s personal preferences and history. The augmented-reality HUD includes a Memory Landmark feature that pins points of interest and previously visited locations during the drive, with landmark pins selectable and shareable.
  • Drivers who want to own the controls can use voice recognition to deploy the steering wheel and experience pure dynamic driving excitement in a low-profile vehicle that is one with the road. Customized EV drive modes enhance the driving experience with selectable levels of ADAS (Advanced Driver Assistance Systems) support, and holographic elements in the HUD blend seamlessly into the real world for both navigation and gamification. The concept can gamify travel through mountainous ranges by identifying certain landmarks or marking best lap times.
• Exit Mode, with Automated Parking features and automatic transformation of seats and ride height to accommodate vehicle egress. Smart exterior lighting enables vehicle-to-pedestrian communication, with indicator lighting such as blinkers or stopping displayed on the ground through near-field projection to aid in pedestrian safety. A send-off is communicated on the console screen and complemented through animated lighting and sounds.

Powering the concept is a breakthrough battery technology from Lyten.  The 800-volt lithium-sulfur EV batteries do not use nickel, cobalt, or manganese and have an estimated 60% lower carbon footprint than batteries currently on the market. Drivers would be able to recharge the Halcyon while driving using Dynamic Wireless Power Transfer technology to take on energy while traveling over specially equipped, dedicated road lanes. The batteries also feature a lighter weight for the same energy density.

The 2024 Chrysler Halcyon Concept is the latest in a series of concepts by Chrysler showcasing its move to an all-electric-vehicle future. The first Chrysler EV will launch in 2025.

Tomorrow morning, Chrysler will unveil the Chrysler Halcyon Concept EV on their website. The Halcyon is an evolution from the Chrysler Airflow Concept shown in 2022. Chrysler has teased various vague images over the last few weeks, showing an updated logo and some various, undefined body lines with little else in the way of clues. Two things that stand out from the teaser images are the shape of the back glass and the full-width tail lamps.

What we can expect is that the Halcyon will be a two-row crossover, and it will sit on the Stellantis STLA platform. We also already know that since the merger, Stellantis planned on moving most of the U.S. brands to PSA platforms. With that in hand, we can look around at the Stellantis portfolio.

The first obvious platform mate is the upcoming Jeep Wagoneer S. This two-row crossover features a low-slung design that is sleek by Jeep standards.  Sitting on the STLA-Large platform, it has a targeted 400-mile range and 600 horsepower.

While the Wagoneer S is sleek for a Jeep, the teaser images appear to show a crossover with a coupe-like roofline. For that, we can look across the pond to France and see what Chrysler's new step-sibling Peugeot is doing.

This is the Peugeot E 3008, an all-electric crossover that sits on a version of the STLA-Medium platform.

The max range of the E3008 is 435 miles on the WLTP testing protocol, which is generally more ambitious than the EPA rating scale. All-wheel drive models can produce 320 horsepower and a 5.2 second 0-60 sprint.  We think these specs and roof line would suit Chrysler just fine.  However, we don't think the Peugeot E3008's interior will carry over as it is probably too avant-garde for American tastes.

In Peugeot's home turf, the E3008 is priced at 37,730 € or about $39,900 for the base model and 42,140 € or $45,250 for the GT model.  If you knew nothing else except that Chrysler was coming out with a two-row electric crossover, you could probably pick those prices and win The Price is Right.

What it will come down to is size. We think that the most likely answer will be a Chrysler-styled version of the Peugeot E 3008. We will see how right we are tomorrow morning.

Chrysler showed off at the January 2022 CES (Consumer Electronics Show) the Airflow Concept in White which we covered in the following story.

Today Chrysler is now showing the Airflow Graphite, the alter-ego to the Airflow Concept showing Chrysler embodies a new contemporary, tech-forward, sleek, sophisticated package that combines Chrysler Galaxy Black exterior with Cyprus Copper Accents inside and out.

This combination of color features throughout the spacious interior, along the panoramic glass roof and continues onto select surfaces of the 22-inch wheels working to create the refined, sophisticated design you see here.

Chrysler had the following points they wanted to make about the Airflow Graphite EV.

• Chrysler reinforces commitment to launch its first battery-electric vehicle (BEV) by 2025 and full battery-electric portfolio by 2028
• All-electric Chrysler Airflow Concept integrates leading-edge drive-system technology with intuitive AI and connected-vehicle technology that delivers up to 400-mile range and fast-charging functionality
• Airflow’s seamlessly connected STLA SmartCockpit, powered by STLA Brain, enables an extension of digital, work and home environments, all in sync to create a personalized experience for every passenger
• Chrysler Airflow’s STLA Brain platform is fully over-the-air (OTA) capable; designed to quickly deliver new and upgraded features and functions that enhance and improve the vehicle throughout the ownership experience
• The Chrysler Airflow includes STLA AutoDrive to deliver Level 3 autonomous driving capabilities, which will also be upgradable via OTA updates

Chrysler Brand CEO Chris Feuell had this to say about the Airflow Concept:

 “This new persona of the Airflow highlights the flexibility of the Chrysler brand’s future design direction and our ability to create personalities reflective of our diverse customers. As our brand evolves to offer a full battery-electric vehicle portfolio, we are completely rethinking and reinventing the customer experience. Project Ingenuity is an initiative in which we collaborate with customers on our future innovations and services, offering uniquely personalized and delightful customer experiences throughout the purchase, service and ownership journey.”

Fully electric and fully connected by 2028 is the roadmap for Chrysler with a fully interactive dash and a sculpted, expressive design that is the future of Chrysler premium transportation and user experience. This is the Chrysler first-class travel experience that balances technological needs within a serene environment.

More photo's of the Airflow Graphic can be looked at here:

The Chrysler Airflow is equipped with STLA AutoDrive, a level 3 autonomous driving capable system with OTA upgradable capability.

This EV features AWD, powered by two 150 kW electric motors (201 hp, total 402 hp), one in the front and one in the rear. This platform is designed to accommodate larger capacity EDMs, offering future high-performance applications. Design is optimized for a perfect weight distribution while maximizing interior space and enabling large wheel size, wide stance and a battery pack designed to achieve 400 plus miles of range on a single charge.

The Airflow first came out under Chrysler from 1934 to 1937 and was the first full size American auto to use streamlining to build an automobile, one less susceptible to air resistance. Yet the public was not yet ready for such a sleek auto and today, the public is embracing the Airflow Concept according to Stellantis.

The first modern Airflow Concept release at the January 2022 Consumer Electric Show was their white Airflow concept, images here:

The dynamic design language of the Chrysler Airflow Graphite Concept leaves no small detail behind as the Chrysler wing logo ties a cross-car grille light blade illuminated with Crystal LED Lighting. This crystal LED lighting runs the full width of the vehicle, accentuating the wide stance of the Airflow. The Airflow features welcome, departure and animated lighting, including a unique aqua that signifies the vehicle is charging.

More details will be released as Chrysler moved closer to production and release of this auto.

More Details on the original Airflow can be gleaned here: Chrysler Airflow - Wikipedia

During Stellantis EV Day and Software Day at the beginning of 2021, we now will get a more detailed look at the New Chrysler EV brand as they plan to unveil the first of many EVs in the 96-year history of the iconic brand as Stellantis plans to build back better Chrysler.

The airflow as shown on Jay Leno's garage dates from 1934 and is now ready for a revival of the name in the all-new electric vehicle.

The plans for Chrysler at the 2022 CES show is as follows:

• Chrysler will introduce the Chrysler Airflow Concept and outline its future electrification strategy at CES 2022 in Las Vegas on January 5, 2022
• CES 2022 will feature first public display of the Chrysler Airflow Concept, which was previewed in Stellantis EV Day and Software Day presentations earlier this year
• Chrysler will share a roadmap for building on the iconic brand’s 96-years-plus reputation for innovative engineering, groundbreaking style and affordable luxury

While the current concept was shown earlier this year at the Stellantis EV day, CES 2022 will be the start of the Chrysler revival as they show off the Chrysler Airflow as the first of a new portfolio of EVs.

How much of the concept makes it into production and what all new changes and platform that will be used is expected to be touched on as CEO Chris Feuell will present on January 5th, 2022 @ 11am PST.

Chrysler has had amazing success with their latest version of the Pacifica AWD Hybrid minivan with the most advanced AWD system in its class.

Chrysler roadmap will show how they will deliver on their promise of iconic, elegant, executed autos for the 21st century delivering at an attainable value around the globe.

Stellantis plans to have a showcase of electrification at the CES 2022 show as they will display the production Citroen Ami Urban EV, Jeep Grand Cherokee 4xe equipped with the award-winning Uconnect 5 in-car-technology system, DS Automobiles Formula E race car, Fiat new 500 as well as the Chrysler Airflow.

One does not need to be in attendance at the CES 2022 to hear and see the reveal of the EV portfolio, you can watch it here:

https://stellantisces2022.com/

To quote the press release:

Elements of the Stellantis stand at CES 2022 include:

• Chrysler Airflow: Chrysler debuts the Airflow Concept, leading the brand's transformation to clean mobility and seamlessly connected customer experiences.
• Citroën Skate Mobility Concept: An autonomous and electric transport robot that that moves around cities, paired with Pods to offer fluid, shared and inventive urban mobility.
• Citroën Ami: An ultra-compact, two-passenger urban EV. In France, the Ami is accessible by users as young as 14, with “à la carte” offerings that target specific uses, a fully online journey, innovative distribution methods and a three-hour charge time.
• DS E-Tense FE21: Two-time defending champion in the ABB FIA Formula E World Championship, the 1,984-pound car (with driver) uses a 900-volt system that includes a 52 kWh battery, powering a 338-horsepower electric motor. The lightweight design combined with electric torque drives the car from 0-60 mph in about 2.8 seconds.
• New FIAT 500: The new 500 is the FIAT flagship and stands for New Dolcevita, social relevancy and sustainability. The iconic all-new small EV is the most popular FIAT and the epitome of the Italian car: beautiful, a classic design, an artwork, an inspiration. New 500 is connected, has a range of up to 199 miles, features 85kW fast charge and is the first city car with Assisted Driving Level 2. The New 500 is the most sold EV within the Company.
• Wagoneer and Grand Wagoneer: A Premium American Icon reborn as the new standard of sophistication, authenticity and mobility. The premium extension of the Jeep® brand offers legendary 4x4 capability, on-road refinement and a design that exudes American craftsmanship and heritage, delivering a host of leading-edge technology features, such as exclusive Fire TV built in and a front passenger screen experience.
• Jeep Wrangler 4xe: The most capable, technically advanced and eco-friendly Wrangler ever. Available in Europe, China and the United States, the Wrangler 4xe’s plug-in hybrid powertrain is capable of up to 21 miles of nearly silent, zero-emission, electric-only propulsion.
• Jeep Grand Cherokee 4xe: The first Grand Cherokee to offer a plug-in hybrid electric variant. Its introduction signals the continued pursuit of the brand’s global vision of accomplishing “Zero Emission Freedom,” by offering a fully electric Jeep vehicle in every SUV segment by 2025. The Grand Cherokee 4xe targets an estimated 25 miles (40 km) of all-electric range and 57 MPGe, with 375 hp and 470 lb.-ft. of torque and is equipped with the award-winning Uconnect 5, which offers new technology for 2022 Jeep Grand Cherokee, including a 10.1-inch (25.7 cm) display, five-times-faster operating speed (when compared to the previous generation) and over-the-air (OTA) updates.

Stellantis Media - MEDIA ADVISORY: Chrysler to Unveil Chrysler Airflow Concept, Announce Roadmap for Brand’s Future at CES 2022 (stellantisnorthamerica.com)

Stellantis Media - (stellantisnorthamerica.com)

Stellantis Media - Stellantis Showcases Technology Driven Future at CES 2022 With On-site and Virtual Experiences (stellantisnorthamerica.com)

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. 

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.

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.

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.

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. 

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. 

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.

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.

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. 

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

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:

Quote

 

"His eligibility for incentive compensation — like that of all corporate officers — is subject to a determination by the Board of Directors' compensation committee that he has satisfied the applicable company and personal performance conditions,” FCA said in an e-mailed statement to The News.

“Mr. Bigland's eligibility for his award remains subject to that determination and completion of a Board-level evaluation of issues that are the subject to governmental investigations (as previously disclosed by FCA) in which FCA continues to cooperate. Beyond that, it would be inappropriate to comment on ongoing litigation or internal compensation processes." 

 

We'll have more information as it comes out. 

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. 

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. 

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. 

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. 

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. 

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. 

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)

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

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

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

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

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

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.

Fiat Chrysler Automobiles isn't out of the dog house when it comes to vehicles rolling away. A few months after issuing a recall on a number of models equipped with the stubby transmission lever for rolling away, NHTSA is investigating models equipped with the rotary knob gear selector for the same problem.

The investigation is looking at the 2013–2016 Ram 1500 and the 2014–2016 Dodge Durango which have the rotary knob selector. NHTSA has gotten 43 complaints about these models moving away. Out of the 43 complaints, 25 have resulted in crashes and another 9 resulted in injuries. NHTSA also says that 34 complaints said the vehicle was moving while in park.

FCA said it is cooperating with the investigation. In the meantime, FCA and NHTSA are urging owners to engage the parking brake

Source: NHTSA, Reuters

As the Ford Falcon and current Holden Commodore head off into the sunset, Australian police departments are wondering what should replace them. V6 models were used for patrol duty, while V8 models would be used for pursuits. One possibility is the Chrysler 300.

“With the going away of Australian manufacturing, from potential fleet customers we’ve had a lot of enquires for the 300,” said Steve Zanlunghi, head of FCA Australia to Car Advice.

“Specifically we’ve had the police come to us, asking for a bid, if it would make sense.”

Zanlinghi didn't mention whether the police were interested in the V6 or the 300 SRT with a 6.4L V8. Our possible guess is that the police are interested in both.

The Chrysler 300 isn't the only vehicle under consideration by Australia's police forces. The Ford Mustang is a possible contender for replacing the V8 Commodore and Falcon. Both Kia and Holden have been in talks about having the Sorento and next Commodore be used for police duty. Meanwhile, the Queensland Police have opted for the Hyundai Sonata to take the place of their current six-cylinder fleet. The turbo version is under consideration for possible pursuit duty.

Source: CarAdvice
Pic Credit: William Maley for Cheers & Gears

Google and Fiat Chrysler Automobiles made waves earlier this year when it was announced the two would build 100 autonomous prototypes based on the all new Pacifica Plug-In Hybrid. Now the two could be working together on a ride-sharing service using autonomous vehicles.

Bloomberg has learned from sources that Google will deploy a semi-autonomous vehicle, most likely the Pacifica possibly towards the end of 2017 for this new service. The sources go on to say that Google will need more than 100 vehicles that FCA agreed to in their original deal.

This comes on the heels of Google's announcement today that it will be spinning off their autonomous vehicle project into a new holding company called Waymo. During the press conference, CEO John Krafcik said the goal of this new company isn't to make better cars but “making better drivers."

"We've completed the first versions of these cars and will get them on the road in the near future," said Krafcik when asked about the Pacificas.

“FCA has been a wonderful partner.”

Source: Bloomberg
Pic Credit: William Maley for Cheers & Gears

As Fiat Chrysler Automobiles continues its cooperation with the federal investigation into its falsified sales, they have begun to issue restate monthly sales results. They reveal that the Chrysler 200, a midsize sedan the company was hoping to be a success was even less popular than we first though.

Automotive News reports that in a three-month period from July to September 2015, FCA reported that it sold 21 percent more 200s (8,577) than the new numbers. To put this in perspective, the second-largest discrepancy in sales was the Dodge Charger with 2,258 over-reported sales. 

"There was a lot of pressure on the 200 to offset the loss of sales from discontinuing the Dodge Avenger," said Dave Sullivan, an analyst with AutoPacific.

"FCA was under pressure to deliver a midsize car that could compete with the Accord and Camry after they emerged from bankruptcy. They were vilified for not offering competitive cars after we saw gas spike to $4. The 200 was meant to show how FCA was committed to offering passenger cars that could compete."

There was also a $1 billion investment FCA made into the Sterling Heights Assembly Plant to build the 200. There was a lot of pressure for this sedan to succeed and could explain some of the reason as to the inflated sale numbers.

Source: Automotive News (Subscription Required)
Pic Credit: William Maley for Cheers & Gears

Fiat Chrysler Automobiles will produce no more passenger cars in the U.S. early next year. The Dodge Dart will end production in September, while production of the Chrysler 200 will cease in December. This is to make way for more production of SUVs and trucks - Jeep Cherokee at Belvidere, Illinois and Sterling Heights, MI for the next-gen Ram 1500.

"By the time we finish with this, hopefully, all of our production assets in the United States — if you exclude Canada and Mexico from the fold — all those U.S. plants will be producing either Jeeps or Ram," said FCA CEO Sergio Marchionne during a call with analysts yesterday.

Why would FCA end passenger car production in the U.S.? Profit margins. The Detroit Free Press reports this is part of Marchionne's multibillion-dollar plan to match the profit margins seen at Ford and General Motors. Part of the plan involves taking advantage of the popularity of crossovers, SUVs, and trucks in the U.S.; low gas prices, and the lower costs of producing passenger cars in Mexico.

"When you look at the economics of car manufacturing ...the margins that we were getting from our experience of both the Dart and the Chrysler 200 ...yielded returns that would not, on a competitive basis, match even anything close or remotely close to what we could derive from utilization of those assets in the Jeep or Ram world. So we have made that shift," Marchionne said.

Despite FCA ending production of both the Dart and 200, Marchionne said he is still looking for a partner to build these vehicles.

“I think we have made progress. We’re not in a position to announce anything."

But would any automaker be willing to take up FCA's offer?

"Who would want to commit to that capacity in their own plant when they didn't sell well when they were new?" said Dave Sullivan, an analyst with AutoPacific to Automotive News.

"No one wants to build sedans when their own capacity is at a premium and they can't build enough crossovers to satisfy demand."

Source: Detroit Free Press, Automotive News (Subscription Required)

Following the news last week that Fiat Chrysler Automobiles was under investigation by both the Department of Justice and Securities and Exchange Commission over inflated sales, Automotive News has learned from various sources that an investigation done by the company revealed misreported sales numbers.

According to the sources, FCA ordered an internal review last year over their sales reporting. What the review found is "that 5,000 to 6,000 vehicles had been reported as sold by dealers and then "unwound." It is unknown the time period that was covered by the review. After the review, U.S. sales head Reid Bigland attempted to put a stop to the practice. But a source said the overstating of sales has been creeping back in this year due to increased competitive pressures on FCA's field staff. Another source says this increased pressure is causing the turnover rate of FCA's sales staff to be four times higher than the rest of the company.

But why inflate the numbers in the first place? According to the sources, the inflation was to help preserve FCA's of U.S. monthly year-over-year sales increases (which currently stands at 75 months). This run is the longest streak of any automaker and has been a source of pride for them. But interestingly, Automotive News notes that FCA stopped mentioning this fact on its March sales release. This is also the same time they added this disclaimer,

"FCA US reported vehicle sales represent sales of its vehicles to retail and fleet customers, as well as limited deliveries of vehicles to its officers, directors, employees and retirees. Sales from dealers to customers are reported to FCA US by dealers as sales are made on an ongoing basis through a new vehicle delivery reporting system that then compiles the reported data as of the end of each month."

"Sales through dealers do not necessarily correspond to reported revenues, which are based on the sale and delivery of vehicles to the dealers. In certain limited circumstances where sales are made directly by FCA US, such sales are reported through its management reporting system."

FCA declined to comment.

Source: Automotive News (Subscription Required)

Fiat Chrysler Automobiles is facing an investigation by the U.S. Department of Justice and Securities and Exchange Commission over their sales reporting practices. Bloomberg learned about the investigation from two sources this morning and since then, FCA has confirmed it.

This investigation stems from lawsuits filed earlier this year by dealers in Florida and Illinois saying the automaker inflated sales numbers by having them file false 'New Vehicle Delivery Reports'. At the time, FCA denied the charges made and is seeking dismissal of the suit.

But as Automotive News notes, FCA added a disclaimer to their sales reports in April about how sales are reported.

“FCA US reported vehicle sales represent sales of its vehicles to retail and fleet customers, as well as limited deliveries of vehicles to its officers, directors, employees and retirees. Sales from dealers to customers are reported to FCA US by dealers as sales are made on an ongoing basis through a new vehicle delivery reporting system that then compiles the reported data as of the end of each month. Sales through dealers do not necessarily correspond to reported revenues, which are based on the sale and delivery of vehicles to the dealers. In certain limited circumstances where sales are made directly by FCA US, such sales are reported through its management reporting system.”

Investigators from the FBI and SEC visited various FCA field staff at their homes and offices on July 11th. That same day saw federal attorneys visit FCA's headquarters to gather information. According to a source, FCA employees were advised not to speak with investigators without counsel.

In a statement today, FCA said that it would "cooperate fully" with the SEC investigation into its "reporting of vehicle unit sales to end customers" in the U.S. It also mentioned that is has received similar inquiries from the DOJ and will cooperate with them.

The DOJ, FBI, and SEC declined to comment.

Source: Bloomberg, Automotive News (Subscription Required)

For better or worse, Fiat Chrysler Automobiles CEO Sergio Marchionne will say whatever comes to his mind. Case in point, saying the next-generation Chrysler 300 could go front-wheel drive.

"This plant and this architecture is capable of making the 300 successor, the front-wheel, all-wheel drive successor," Marchionne told reporters at FCA's Windsor plant - home to Pacifica production.

The architecture in question what underpins the new Pacifica minivan. Now when asked if the 300 would switch from a rear-wheel to a front-wheel platform, Marchionne said, "It's capable. It's not a commitment."

The current Chrysler 300 and its stablemates, the Dodge Charger and Challenger use the LX platform that uses suspension bits from older Mercedes-Benz models - the W211 E-Class and W220 S-Class. This move makes some sense as Chrysler is slowly being positioned as a competitor to the likes of Honda, Chevrolet, and Ford. Plus, it would give Dodge some breathing room to become the performance brand by having a rear-wheel drive platform for themselves.

But who can be sure at the moment since plans at FCA seem to be in a constant state of change.

Source: Reuters
Pic Credit: William Maley for Cheers & Gears

We had a feeling this was coming. The Detroit News reports that Fiat Chrysler Automobiles will be cutting a shift at the Sterling Heights Assembly plant - home of the Chrysler 200 - and laying off 1,420 workers at the plant and a supporting stamping plant. In a statement, FCA explained the cut is “to better align production with demand,” and “a direct result of shifting demand toward trucks and SUVs.”

“Our truck and SUV plants are running six days a week about 20 hours a day,” the company said. “And while 1,300 people will be impacted by layoffs (at Sterling Heights Assembly), we have been able to add 11,000 hourly jobs in Michigan since 2009 to keep up with that demand.”

Since February, FCA has put Sterling Heights Assembly on a temporary shutdown to in an effort to reduce the stockpile of 200s sitting on dealer lots.

FCA says the layoffs will start on July 5th and the affected workers will be placed in full-time positions in other plants “as they become available within the Detroit labor market based on seniority.”

Source: The Detroit News

It was in late January when Fiat Chrysler Automobiles' CEO Sergio Marchionne announced that the Chrysler 200 and Dodge Dart would "run their course”. A diplomatic way of saying we wouldn't see a second-generation of either model. But Marchionne mentioned that both models could continue on if a partner was found.

Motor Trend has learned that FCA is currently with potential partners, although who isn't mentioned.

“There are discussions going on now. I think we will find a solution. We continue to talk. It’s both a technical solution and an economic one. We need to find a solution that works economically,” Marchionne said to Motor Trend on the floor of the Geneva Motor Show.

The key thing FCA is looking for in a partner to build their small cars is someone “who is better at it than we are and who has got capacity available.”

This comes on the heels of FCA announcing an extension of the temporary shutdown at Sterling Heights Assembly Plant in Michigan - home of Chrysler 200 production. The plant was shut down on February 1st and workers were expected to return on March 14th. This was to help cut down on the massive supplies of 200s sitting on dealer lots. FCA has decided to extend it by three weeks to April 4th.

A FCA spokeswoman tells Reuters the reason for the extension is to match supply with demand. At the start of this March, FCA had a 147 day supply of 200s. This is an improvement from February where there was a 217 day supply.

Source: Motor Trend, Reuters

Today was Fiat Chrysler Automobiles' earnings report day and the results for the past year was a bit mixed.

FCA reported a profit of 377 million euros (about $410 million) for 2015. This is a large decrease compared to the 632 million euros (about $689 million) profit for 2014. FCA attributes the decrease to investment costs and a large number of recalls on their vehicles.

For the year, FCA said reported adjusted earnings increased 39 percent to 5.3 billion euros (about $5.75 billion) thanks to a strong performance in North America and a European market that is recovering. Total global deliveries for 2015 were 4.6 million vehicles. This is in line with 2014, but falls slightly short of FCA's goal of delivering 4.8 million vehicles.

Along with the announcement of earnings, FCA has updated its five-year business plan. Here are the highlights:

• FCA will be shifting North American production capacity to produce more SUVs and trucks. The reasoning behind this comes down to the company believing low fuel prices will be “permanent” and expects the trend of consumers going toward utility vehicles and pickups to continue.
  • This move will affect the Chrysler 200 and Dodge Dart. FCA CEO Sergio Marchionne both “will run their course,” likely meaning we will not see a second-generation of either model.
    

  [*]Alfa Romeo's product plans has been realigned once again (insert shocked face here -WM)

  • Reason for this comes from "uncertainties" in China and giving the brand extra time to "guarantee proper global distribution network execution."
  • Manufacturing, product investment, and R&D investments slimmed down till 2018.
  • The planned product lineup (including a hatchback, full-size sedan, two utility vehicles, and two speciality vehicles) will now be completed by mid-2020
  • The Guila is still planned to go into production and launched this year.
  • A midsize utility vehicle will be launched late 2016/early 2017
    

  [*]The next-generation Jeep Wrangler will be coming out in 2017 with a variety of new powertrains and a pickup version. 2018 will see a mild-hybrid and diesel powertrain options being available. 2022 will see a full-hybrid Wrangler. This is part of a plan to meet new regulations. [*]Ram is also expected to get a mild hybrid system sometime in 2020 or so
  

Source: Automotive News (Subscription Required), 2, The Detroit News

Fiat Chrysler Automobiles have been a bit behind the curve when it comes to alternative powertrains. But the Chrysler Pacifica Plug-In Hybrid shows the company is beginning to catch up.

Speaking with The Truth About Cars, FCA's global hybrid chief Michael Duhaime said that hybrid power found in the next-generation minivan is very scaleable.

“This’ll be the largest footprint — in the Pacifica. As we get into the smaller vehicles, basically what we’ll do is put smaller electric motors. The power electronics is part of the transmission … all that stays consistent. We’ll just go with smaller motors, and then the final drive will change with the different vehicles,” said Duhaime.

Compared to the old two-mode hybrid system, the new system uses planetary gears to increase variability and efficiency for the three modes, not a set of fixed gears. Also, the new system can be used in a number of front-wheel drive models. Two-Mode was never used on a front-wheel drive vehicle, only the four-wheel drive Chrysler Aspen and Dodge Durango.

Source: The Truth About Cars

Two Chicago area dealership groups have filed a lawsuit against Fiat Chrysler Automobiles accusing the auto manufacturer of falsifying monthly sales figures in the U.S. FCA says the allegations are without merit.

FCA has reported 69 monthly sales gains in the years since its bankruptcy in 2009.

In the lawsuit, the one of dealerships claim that they were offered $20,000 to falsely report the sales of 40 new vehicles on the final day of a month. Those sales would then be backed out on the first day of the next month preventing the warranty clock on those vehicles from starting.

The lawsuit further alleges that FCA rewards dealers who falsify the sales reports with a greater allocation of the best selling vehicles.

Source: Automotive News

FCA CEO Sergio Marchionne is giving it a rest when it comes to merger talk. Speaking with Bloomberg, Marchionne says he will focus on growing FCA through 2018. After 2018, Marchionne could retire from the company.

Last year, Marchionne campaigned publicly for a merger of FCA and General Motors. GM's board looked at his proposal in the summer and rejected it. After this, Marchionne backtracked somewhat, saying the merger could generate $30 billion a year in cash.

But now, Marchionne says any chances of a possible GM merge are done.

“I met Mary Barra less than a month ago in Washington. I don’t think I will have another coffee with her. It won’t happen again in the future.”

Of course, the talk of merging with GM must have brought some other companies out of the woodwork? Marchionne explained that he did get proposals, but were deemed not very attractive. He still believes a big merger is possible, but "it will be someone else's duty."

Now with the merger stuff mostly out of his system, Marchionne will focus on finishing the current five-year plan for the company. His overall goal is to increase global deliveries to seven million units a year by 2018. To achieve this, FCA will invest around $52 billion for new products.

Source: Bloomberg

FCA's second five-year plan had some interesting products for Chrysler, including a new compact called the 100 due in 2016. But there could be some changes in store for Chrysler's lineup due to current situation in the market.

Allpar reports that investor presentation mentioned that Chrysler's future lineup was “under re-evaluation”. Causes for the re-evaluation include fuel prices going down and are predicted to stay there for the next few years, the increasing popularity of crossovers, and the decline in small car sales.

The original plan for Chrysler in the second five-year plan included,

• Compact 100 sedan to be launched in 2016
• Next-generation minivan to be launched in 2016, with a PHEV to follow a year later
• New full-size crossover to be launched, with a PHEV in 2017
• 200 sedan is refreshed in 2017
• Midsize crossover is launched in 2018
• Next-generation 300 is launched in 2018
  

Allpar believes that the 100 might morph into a crossover, complementing the Fiat 500X and Jeep Renegade. But there could be the possibility of 100 being sold elsewhere in the world and not the U.S. and Canada. The midsize crossover is speculated to be the replacement for the Dodge Journey and is expected in the near future.

Source: Allpar

It is now official; the UAW and FCA have a new contract. This morning the UAW announced the 77 percent of its members at FCA approved a new four-year labor contract. This comes three weeks after a majority of UAW workers voted down the first agreement reached by the two parties.

“The recent bargaining process that took place on behalf of our members at FCA is a testament to the UAW’s democratic values and commitment to our members. The resolve of our membership and the dedication of our negotiating team has produced an agreement that affords UAW members a strong wage package and job security while still allowing the company to competitively produce high quality vehicles for our customers," said UAW President Dennis Williams in a statement.

So what does the new contract entail? According to the Detroit News, the new contact features a plan to end the two-tier wage program, a larger signing bonus, and cutting the proposed health care co-op.

"I think this contract was presented much more clearly. It included larger raises for the people who were considered tier two before and are now called 'in progression workers,' and it was much more clear about what changes were being made to health care," said Kristin Dziczek, director of the labor and industry group for the Center for Automotive Research in Ann Arbor.

So with FCA all done, the UAW turns its attention to the next automaker. Who is that lucky automaker? According to Automotive News, that happens to be General Motors

Source: Detroit News, Detroit Free Press, Automotive News (Subscription Required)

The next-generation Chrysler Town and Country has been kept under wraps for most part. That was until earlier this week when The Windsor Star was somehow able to get shots of the next-generation van as it was being loaded into a transport truck at the Windsor Assembly line.

From the couple of shots published, we can tell that the next-generation van will be using design from the 700C shown at the Detroit Auto Show in 2012. The front looks to have a similar shape the 200 sedan, while parts of the side match up to the 700C concept.

Its expected that we'll be seeing the production version of the Town and Country at the Detroit Auto Show.

Source: The Windsor Star

Last night was a tense time for Fiat Chrysler Automobiles as the clock was ticking to a 11:59 PM deadline before the contract extension for 40,000 UAW workers would end. But FCA and the UAW announced this morning they have reached another tentative agreement. The deal now heads to members to be voted on.

“We heard from our members, and went back to FCA to strengthen their contract. We’ve reached a proposed tentative agreement that I believe addresses our members’ principal concerns about their jobs and their futures. We have made real gains and I look forward to a full discussion of the terms with our membership,” said UAW President Dennis Williams in a statement.

Details of new contract are not being talked about at this time since members have to vote on it. But Bloomberg reports that entry-level workers - second-tier - will now have a top wage of $29 per hour. In the previous contact, second-tier workers had a wage cap of $19.50 per hour.

The wage cap increase for entry-level workers addresses was one of main reasons why the first proposed contract for union workers was voted down.

Source: The Detroit News, Bloomberg

The clock is ticking now as the UAW has issued a strike notice to Fiat Chrysler Automobiles that will end a previously agreed upon contract extension tomorrow at 11:59 PM EDT if a new deal for its 40,000 members isn't reached.

FCA issued a statement saying they have received the notice and are continuing discussions with the UAW to possibly alleviate this situation.

The Detroit Fress Press has learned from sources that negotiations between the two groups have broken down and that the UAW negotiators have left the bargaining table.

A number of union members have been wanting a strike since the two groups went into negotiations. How serious is the UAW with the strike. An unnamed UAW official says elected leaders are being asked to pick up picket signs and are meeting with plant officials on keeping machinery running for safety reasons.

What's unclear at this moment is the UAW's plan for the strike? Would it be national strike or would the Union target certain plants?

“They don’t have to go long if they do strike. A strike causes pain on both sides and applies pressure to get back to the table,” said Kristin Dziczek, director of the Labor & Industry Group at the Center for Automotive Research

Source: Automotive News (Subscription Required), Detroit Free Press, The Detroit News, Fiat Chrysler Automobiles

FCA US Statement Regarding UAW Strike Notification

FCA US confirms that it has received strike notification from the UAW. The Company continues to work with the UAW in a constructive manner to reach a new agreement.

The UAW Strike Notice is Below

More details about the tentative labor agreement between the UAW and Fiat Chrysler Automobiles (FCA) is coming to light. Automotive News has learned from sources that more production moving would be taking place.

As we reported last week, FCA's Toledo factory would be saying good-bye to the Cherokee to make room for more Wranglers and the possibility of a new truck. The Cherokee is expected to be built Belvidere Assembly in Illinois.

The big change in production is the Ram 1500 moving from the Warren Truck Plant to the Sterling Heights Assembly plant. This will mean production of Chrysler 200, currently built in Sterling Heights, will move to another plant. According to a source, that plant will be the Toluca, Mexico one. This is the current home of the Dodge Journey and North American version of the Fiat 500. Along with the 200, the Dodge Dart will move to Toluca.

So what is happening with the Warren Truck Plant? That will be retooled and converted from a body-on frame to a unibody production facility to make way for the Jeep Grand Wagoneer, the rumored three-row luxury SUV.

Source: Automotive News (Subscription Required)

Last night, the United Auto Workers (UAW) and Fiat Chrysler Automobiles (FCA) announced they had reached a tentative agreement. This comes a couple days after the UAW announced FCA would be the lead target for contract negotiations. Details of the new contract are still under wraps as the UAW's executive board need to vet it and members to vote on it.

But during a press conference last night, a couple of key details of the new contract did emerge. FCA CEO Sergio Marchionne said the two-tier wage system - an item that many UAW members wanted to be addressed in this go around - will be going away in due time.

"The team has crafted together a very thoughtful process, where the issue will go away, go away over time," said Marchionne.

One other key part of the contract talks was reducing health care costs. UAW President Dennis Williams has said previously of setting up a co-op where the UAW members of the three automakers are pooled together to give them some clout when dealing with health care providers. Marchionne says he likes this idea, but it remains to be seen whether Ford and GM also like this idea.

Source: Automotive News (Subscription Required), Detroit News, Detroit Free Press

Fiat Chrysler Automobile held their annual dealers meeting in Las Vegas and had some surprises in store for the dealers who attended.

Automotive News learned from several dealers that FCA would possibly be bringing out up to 30 new or refreshed products within the next two years. Some of the products include the next-generation Dodge Charger which will look more like the 1999 concept designed by Tom Gale, and a Dodge Barracuda convertible. Both models will be underpinned by the Alfa Romeo Giulia's platform.

Other models that were shown to dealers include,

• An Alfa Romeo SUV which is expected to be underpinned by the Giulia's platform
• The standard and Abarth versions of the Fiat 124 Spyder
• Next-generation Jeep Wrangler which was described by one dealer as staying "pretty true to its current form'
• Jeep Grand Wagoneer SUV with seating for eight people
• Jeep Grand Cherokee SRT Trackhawk
  

Source: Automotive News (Subscription Required)

Allpar is reporting that updates are incoming to the HEMI engine lineup, but likely after the 2016 model year according to sources. Details as to what the updates include are unknown at this time, but direct injection is a likely one. The delay is due to resources being somewhat limited. No word as to what vehicle will get the HEMI first.

There are also changes in store for the Hellcat as well. Allpar says the Hellcat is being tuned to have a bit more refinement in the Grand Cherokee as to match the character of the SUV and buyer. A reduction in power is possible. The other change is for more power that could be arriving in 2017.

Source: Allpar

Next month, the National Highway Traffic Safety Administration (NHTSA) will be holding a public hearing to probe Fiat Chrysler Automobiles' handling of 20 different recalls covering 11 million vehicles since 2013. The agency is concerned about the completion rates and other issues on these recalls.

But FCA believes this hearing should be skipped. In a 19-page response to questions from NHTSA that was released yesterday, the company argues that its overall recall completion rate is "nearly the best in the industry, with 77 percent. The response goes onto state that they are compliant with existing regulations and are in the process of implementing new programs to improve their completion rate.

FCA says their way “to review and identify with NHTSA input, and implement changes based on the learnings obviate the need for a hearing.”

But NHTSA administrator Mark Rosekind tells The Detroit News that the hearing is still on.

“Twenty recalls are a problem — 10 million vehicles. There’s a pattern here of things we’re concerned about. And they weren’t just little things — they were big things including major safety issues related to fire, door latches that could open up when people were driving. It’s not just, ‘Oh, they were late on something.’ If they didn’t start, it was late, it means all that time people are at risk. And they told us something different,” said Rosekind.

Source: The Detroit News

What is going on Fiat Chrysler Automobiles? Reuters reports that a number of new and redesigned vehicles have been pushed back as the company searches for a new partner. The delays allow FCA to save billions of dollars in investment.

Suppliers who have seen say at least 12 future vehicle programs from Chrysler, Dodge, Jeep, Maserati, and Ram have been delayed. Two of those vehicles, the next Jeep Wrangler and Ram 1500 are reportedly moving to dates later in 2017.

Suppliers say there are a number of reasons as to the delays such as last-minute design and engineering changes - some of which are helping save a fair amount of cash.

FCA declined to comment on the delays, but did say the plans outlined in their latest five-year plan "need to be flexible and fluid, with the potential to add some vehicles, pull some forward and extend the life cycle of others. We look at these programs on a vehicle-by-vehicle basis."

While FCA is delaying a number of vehicles, they are also moving some up. Suppliers tell Reuters that Alfa Romeo may be getting more models on a quicker basis.

Source: Reuters

Fiat Chrysler Automobiles has made the decision to cut the Chrysler brand in the UK to focus more on Jeep.

"We have made a decision to shift our focus away from Chrysler and toward other FCA brands," a Chrysler spokesman told Automotive News.

Fiat Chrysler Automobiles' deputy UK managing director Karl Howkins told Autocar the decision came down to Chrysler products not being very appealing to UK customers and that the CO2 emissions on their lineup were too high.

Chrysler sold the 300, Voyager (Town and Country), and a rebadged versions of the Lancia Delta and Ypsilon. According to the UK’s Society of Motor Manufacturers and Traders, Chrysler only sold 1,982 vehicles last year, down 21 percent when compared to last year. Most of those models sold were the Ypsilon.

Howkins went to say dealers were informed of the decision yesterday and would focus on other brands such as Jeep.

"The Jeep Renegade is more important to focus on as the volume is much higher. Plus there are more new Alfa and Fiat products coming that we need to focus on," said Howkins.

Source: Automotive News (Subscription Required), Autocar

Here's a bit of head scratcher. A member of the Allpar.com forum did a bit of poking around Chrysler's secure dealer site, DealerConnect and found an interesting configuration for the 2015 200. The site listed a a 2.2L 16-valve “DeTomaso” turbodiesel four-cylinder engine. Now Automotive News was able to confirm the existence of this engine on the site.

So what could this engine be? Well Automotive News has learned that Alfa Romeo is working a 2.2L turbodiesel producing somewhere between 135 and 210 horsepower. If Alfa Romeo was to share this engine, it would give the Volkswagen Passat TDI some much needed competition. But what the “DeTomaso” name? This is speculated to be a red herring to throw people off.

Chrysler's powertrain spokesman Eric Mayne denied the existence of the engine when asked about it.

Source: Automotive News (Subscription Required)

With stricter CAFE standards just around the corner, Chrysler is looking at giving their Pentastar V6 range some big changes.

Automotive News has learned from sources about a new plan called Pentastar Upgrade - or PUG. PUG will feature such improvements as direct injection, turbocharging, and other technologies to bring more power and better fuel economy. Fiat's MultiAir variable valve timing technology will remain.

Now the first of these updated engines could arrive in the 2015 Grand Cherokee in the guise of a 3.6L V6. This will be followed by a updated 3.2L V6 in the 2016 Town & Country minivan.

Source: Automotive News (Subscription Required)

The end is coming for Fiat Chrysler Automobile's CEO Sergio Marchionne. In a interview with Bloomberg, Marchionne says he will step down in 2018, the same time that his second five year plan will end.

“I’ll undoubtedly do something else” after the end of 2018, said Marchionne. "I am not going to do any more turnarounds. I’m done; let some of the young punks do it.”

Marchionne, 62, became the CEO of Fiat in 2004 and helped triple the automaker's revenue over the subsequent years. He was also a key person in the company's acquisition of Chrysler.

There is no mention of who will be successor to Marchionne. But the current CEO does mention his role may be split among a number of executives.

“There are a number of things that the next CEO will do which are totally different from what I do. The role as presently configured will have to be reconfigured.”

Source: Bloomberg

William Maley is a staff writer for Cheers & Gears. He can be reached at william.maley@cheersandgears.com or you can follow him on twitter at @realmudmonster.

Motor Trend had the chance to speak with Chrysler president and CEO Al Gardner about the upcoming crossover for the brand. Announced in Fiat Chrysler Automobile's five-year plan, the new crossover will be coming out in 2016. Gardner explained that the new crossover would be going head to head with such models as the Chevrolet Traverse and Toyota Highlander.

As for the new crossover itself, Gardner said it would use a front-wheel drive platform, with the option of all-wheel drive and a V6 engine. Gardner also talked about the need to build more models off of existing platform to help maximize their investment. This leads Motor Trend to speculate that the new crossover will utilize the platform from the new minivans.

Source: Motor Trend

William Maley is a staff writer for Cheers & Gears. He can be reached at william.maley@cheersandgears.com or you can follow him on twitter at @realmudmonster.

General Motors isn't the only automaker that is dealing with problems with the ignition switch. The National Highway Traffic Safety Administration has announced it is investigating the Chrysler Town & Country, Dodge Grand Caravan, and Dodge Journey from the 2008 to 2010 model years due to ignition switch problems.

NHTSA says they have been receiving complaints that the key can can shift from the “run” to the “accessory” mode while the vehicle is on the move.

"While in this intermediate position, harsh roadway conditions or driver interaction with the ignition key can cause the switch to move to the ACC position which may disable the frontal air bags in a crash where deployment is warranted," NHTSA wrote in a investigation notice.

NHTSA suspects a spring in the ignition switch is the likely culprit as it may may over-travel and leave the key between the 'run' and 'accessory' positions.

Chrysler has issued a recall before back in 2011, but only for vehicles built within a ten-month period between 2009 and 2010. However, NHTSA has continued receiving complaints from people who had their vehicles serviced in the original recall. Also, owners of 2008 and 2009 vehicles have reported the same problem.

In a separate investigation, NHTSA is looking into the 525,000 Jeep Commanders from the 2006 – 2007 model years, and the Grand Cherokee from 2005 – 2006 model years due to drivers bumping the key, causing it to be knocked into the accessory position.

Chrysler says it will fully cooperate with NHTSA's investigation.

Source: Auto Guide

William Maley is a staff writer for Cheers & Gears. He can be reached at william.maley@cheersandgears.com or you can follow him on twitter at @realmudmonster.

Fiat Chrysler Automobiles' five-year plan for each of its nine core brands doesn't sound realistic to analysts. Automotive News Europe reports that analysts cannot see FCA achieving its goal of doubling or tripling sales without investing a lot of money, something FCA doesn't quite have at the moment. Analysts believe for FCA to pull this monumental plan off, they'll need to cut some brands out.

“The problem is PowerPoint presentations are a lot easier than real life. These brands need a huge amount of work to get where they need to be. The world changes very slowly and you have brands at the bottom of the pile in many regions. It’s not going to happen overnight,” said Harald Hendrikse, a London-based analyst with Nomura Holdings.

CEO Sergio Marchionne disagrees with analysts, saying that FCA’s advantage is that “we now have brands in the marketplace that are not butting heads.” Marchionne also pointed out that plan already eliminated two brands; Lancia and SRT.

Marchionne also responded to comments that Chrysler and Dodge should be combined.

“Co-mingling Dodge and Chrysler would have cost us a lot of share. That combination doesn’t work in our view,” Marchionne said.

Source: Automotive News Europe (Subscription Required)

William Maley is a staff writer for Cheers & Gears. He can be reached at william.maley@cheersandgears.com or you can follow him on twitter at @realmudmonster.

One of the biggest critics of hybrid vehicles happens to be Sergio Marchionne, CEO of Fiat Chrysler Automobiles. But even he realizes that with upcoming fuel economy regulations, hybrids will have to play a key role in achieving this.

“The house will make it” to the 2025 model year fuel economy targets, Marchionne said to the press today. “Hybrids become a very large component of that fleet. You can’t get it without the hybrids. It’s impossible.”

Last year, Chrysler was ranked last among large automakers in the U.S. for fuel economy. Marchionne said the company is on track to meet the long-term fuel economy requirements by using such items as diesels and nine-speed automatic transmissions.

Source: Automotive News (Subscription Required)

William Maley is a staff writer for Cheers & Gears. He can be reached at william.maley@cheersandgears.com or you can follow him on twitter at @realmudmonster.

At the moment, Fiat's headquarters is located in Turin, Italy; while Chrysler's headquarters is in Auburn Hills, MI. But with Fiat and Chrysler merged together, the company is planning a new headquarters. Reuters reports that CEO Sergio Marchionne announced that the headquarters of FCA will be in London, Great Britain.

"Headquarters will be in London. It's clear that group executive functions, the board, my office, some of my functions, need to operate out of London, but that doesn't mean that I'm giving up my operational responsibilities of the U.S. We will be multi-faceted ... we will do stuff everywhere," said Marchionne.

Marchionne has said that the move will not not affect jobs in Italy or in the U.S.

No timeframe was given as to when the move would happen.

Source: Reuters

William Maley is a staff writer for Cheers & Gears. He can be reached at william.maley@cheersandgears.com or you can follow him on twitter at @realmudmonster.

Today in Auburn Hills, Fiat Chrysler Automobiles presented their five-year plan to the press and investors. The plan divulges what's in store for all of the brands in the coming years. The last time Chrysler did this back in 2009, many of the items shown were accurate (minus Alfa Romeo). We're going to fill you in on the plans in store for all of the brands and the company itself in the next few years.

Jeep

Leading off the presentations today was Jeep. Brand CEO Mike Manley described the off-road brand as the "lead global brand" of the company. The brand plans on expanding its lineup from five nameplates to six and sell them in more countries. Jeep hopes by 2018, 1.9 million vehicles will be sold worldwide.

To pull this off, Jeep is planning to expand production and sales in China and Latin America with localized models for each market. Jeep will also expand U.S. production from 800,000 vehicles to 1 million vehicles.

On the model front, Jeep will introduce a replacement for the Compass and Patriot, along with a refreshed Cherokee in 2016. 2017 will see a brand new Wrangler and Grand Cherokee, along with a refreshed Renegade crossover. A new three-row SUV named the Grand Wagoneer will arrive in 2018 and sit above the Grand Cherokee.

Chrysler

Next up was Chrysler who announced some dramatic changes. First is that Chrysler is changing their focus from premium to mainstream and become FCA's volume brand. The brand has set a sales goal of 800,000 vehicles by 2018. An ambitious goal to say in the least, but Chrysler model plan they hope can achieve this.

It begins with the refresh of the 300 sedan which will debut later this year. Then in 2016, two big debuts happen. The first is the next-generation Town & Country, which will become the sole minivan in FCA's lineup. Following that is the 100 which will be a compact sedan. 2017 brings forth a midsize crossover, while a compact crossover comes a year later. A redesigned 300 is due in 2018.

Dodge

Dodge took the stage next and the big news was a refocusing on the brand. The brand will change from being the mainstream brand to FCA's performance brand. This will mean the departure of the Avenger and Grand Caravan in 2015. It also means that SRT, Chrysler's performance will be folded into Dodge. What this means for the future of the 300 SRT and Grand Cherokee is unknown at this time, but expect both to drive off into the sunset. The brand has a sales goal of 600,000 vehicles in 2018.

The changes begin this year with the introduction of the refreshed Charger and Challenger. Mid-2015 brings a refresh to the Dodge Viper (not SRT Viper any more). 2016 brings a brings forth a new Dart and a Journey. Towards the end of the year, the long-rumored Dart SRT will become a reality. 2017 brings out a Journey SRT with a turbo V6 and all-wheel drive, along with refreshed Durango. 2018 is a big year as new versions of the Challenger and Charger come out, as well as a new B-Segment sedan and hatchback.

Fiat

Fiat came bnext and compared to all of the other brands, they didn't have much to talk about. The brand announced by 2018, they plan on selling 100,000 vehicles. 2015 will see the introduction of the 500X, which is the sister car to the Jeep Renegade, and a specialty model. No one is quite sure what that is, but there is some speculation that its the vehicle from the former Mazda/Alfa Romeo partnership.

Alfa Romeo

Alfa Romeo had the most intriguing presentation today. CEO Harold Webster talked about how the brand strayed from its roots of being brand that delivered sexy designs, perfect 50-50 weight-distribution, and a number of other items. To rectify this, Alfa Romeo has started a skunkworks that consists of two senior head from Ferrari and 200 handpicked engineers to get the brand back on track. That number will grow to 600 by the end of 2015. FCA will invest close to $7 billion into the brand.

Alfa Romeo is projecting sales of 400,000 by 2018. A bit ambitious to say in the least when you take into consideration the brand only sold 74,000 vehicles in 2013.

The plan calls for a new midsize sedan in late 2015, followed by a number of vehicles from 2016 to 2018 which include two compact cars, a second mid-sized car, a large car, two utility vehicles, and a specialty vehicle.

Ram

Ram's presentation was much like Fiat's, not much. The big story is Ram expanding their commercial vehicle sales in the coming years. The brand plans on enhancing capabilities of their dealers, increasing the amount of the dealers who specialize in commercial vehicles from 332 to 900, more marketing, and leveraging Fiat Professional, FCA's main commercial vehicle division. The commercial division will also get two new vehicles this year; the Promaster Diesel and the Promaster City. As for Ram, minor updates are due in 2015 for the 1500 and 2016 for the heavy duties. An extensive refresh follows two years after the minor changes.

Maserati

Maserati took the stage next and announced projected sales of 75,000 global sales in 2018. That made everyone raise their eyebrows and wonder how the company would pull this off. Well it begins next year as the Levante crossover arrives with the choice of either 350 or 425 horsepower V6 engines. Following that will be the Alfieri coupe in 2016. The Alferi will be the sole sports car in Maserati's lineup as the GranTurismo will be retired after 2014. The Alferi will be available with a 410 horsepower V6 with rear-wheel drive, or all-wheel drive with the choice of either a 450 or 520 horsepower V6. 2017 brings the Alferi convertible, and the year after is the return of GranTurismo coupe

Other changes include the addition of two new V6 engines for the Ghibli, a new V8 for the Ghibli and Quattroporte, and new diesel engines for the Ghibli, Quattroporte, and Levante.

Ferrari

Ferrari's presentation was very short. It consisted of the brand launching a new model every year. Each model will have a four-year lifecycle after which, "M" versions will be produced. Again, the 'M' versions will have a four-year lifecycle. Ferrari is also sticking with their 7,000 vehicle production limit for the time being.

Other Notes:

• Tim Kuniskis, Dodge brand CEO will oversee SRT immediately. Ralph Gilles who was the CEO of SRT will continue as FCA’s senior vice president of product design and CEO of Motorsports.
  
• The long-rumored Hellcat Supercharged 6.2L HEMI V8? Its real. In a slide during Dodge's presentation, there is a mention of supercharged 6.2L HEMI V8. No mention on when it will come out or how much power its packing.
  
• Sticking with engines, FCA will be introducing a new range of four-cylinder engines that will share parts and can be inexpensively customized for different markets.
  
• A Plug-In Hybrid Town & Country is coming in 2016
  
• CEO Sergio Marchionne said " I have better uses for aluminum than on a pickup truck" when asked about aluminum. Went onto say that they would consider it if Ford is successful with the next F-150
  
• Marchionne plans to stay as CEO through the duration of the current plan
  
• Quote of the entire presentation: “This thing is truly a freak show on wheels with almost compact-carlike fuel economy and the ability to tow 9,200 pounds,” said Ram brand chief Reid Bigland about the Ram 1500 EcoDiesel.
  

Source: Fiat Chrysler Automobiles

William Maley is a staff writer for Cheers & Gears. He can be reached at william.maley@cheersandgears.com or you can follow him on twitter at @realmudmonster.

A report from The Windsor Star says Chrysler is planning very soon to announce the next-generation of minivans.

“We’ve been told (by Chrysler Canada) that Windsor Assembly is in position for new products. We’re waiting for an official announcement that could come any time now,” said Mike Lovric, Unifor Local 444 vice-president.

Lovric went onto say that he has received a 2014 production schedule that shows layoff weeks slated for November and December, leading to the possibility that the plant could be retooled and production beginning sometime in 2015.

Trying to figure out what Chrysler has in mind for their next-generation minivans has been difficult. CEO Sergio Marchionne has said that one the minivans will be gone come this next-generation, but didn't elaborate whether that will be the Chrysler Town & Country or Dodge Caravan.

Source: The Windsor Star

William Maley is a staff writer for Cheers & Gears. He can be reached at william.maley@cheersandgears.com or you can follow him on twitter at @realmudmonster.

William Maley

Staff Writer - CheersandGears.com

December 13, 2013

Chrysler thought it would be a good idea to drive an uncovered 200 for a late-night photoshoot. What they weren't expecting is spy photographer crashing their photoshoot and bringing us our first good look at the next 200.

The new 200 is a massive improvement over the current model. There is a four-door coupe roofline that appears to have been lifted from the Audi A7 or Volkswagen CC. The front is quite different from recent Chrysler designs with a narrow grille and slim headlights. The back end is very reminiscent of the A7.

We also get a peek into the interior which looks somewhat familiar to the Dodge Dart with an oversized gauge cluster and similar center stack layout. There is a rotary knob which could be connected to a nine-speed transmission that has been rumored.

Luckily, we don't have to wait long for Chrysler to spill the beans on the 200 as its expected to debut at the Detroit Auto Show next month.

Source: Autoblog

William Maley is a staff writer for Cheers & Gears. He can be reached at william.maley@cheersandgears.com or you can follow him on twitter at @realmudmonster.

William Maley

Staff Writer - CheersandGears.com

November 25, 2013

The Chrysler IPO will not happen this year. Forbes is reporting that Fiat has decided to not to launch the initial public offering of Chrysler before the end of 2013, citing that the short window before the end of 2013 is "not practicable."

Not surprisingly, the hold up on the IPO is the disagreement between Fiat and the UAW's healthcare trust. Fiat currently owns 58.5 percent of Chrysler, while the trust owns the remaining 41.5 percent. The company wants to buy the trust's share, but for how much is what the two cannot come to an agreement.

The IPO was going to be the way of figuring out how much the UAW's healthcare trust share was. It's not entirely clear why Fiat decided to put the IPO on hold till next year. A possibility could be that advisers working for Chrysler are discussing a valuation of about $10 to $11 billion for the IPO. Given that amount, it would mean Fiat would be paying $4.15 billion for the share owned by the healthcare trust, a figure that considered to be much higher than what Fiat is looking to pay.

Source: Forbes, Detroit Free Press

William Maley is a staff writer for Cheers & Gears. He can be reached at william.maley@cheersandgears.com or you can follow him on twitter at @realmudmonster.

William Maley

Staff Writer - CheersandGears.com

October 3, 2013

The SRT Viper has been one of the most anticipated vehicles of this year. But it seems that anticipation isn't bringing many buyers. Automotive News is reporting that Chrysler is cutting back on Viper production from nine to six per day, and will be reassigning a number of employees to different facilities.

"We're really looking at the reality of this type of car in this economy, as well as us controlling the market and making sure that we don't overbuild," said SRT CEO Ralph Gilles.

A good thing since there 565 Vipers sitting on dealer lots at the moment. Dealers have only sold 426 Vipers since going on sale, a far cry from the 2,000 units per year target set by the company.

For now, Gilles said that SRT would begin visiting Viper dealers in the Southeast next month to allow buyers to test-drive factory-owned Vipers. This program will head north in the spring.

Source: Automotive News (Subscription Required)

William Maley is a staff writer for Cheers & Gears. He can be reached at william.maley@cheersandgears.com or you can follow him on twitter at @realmudmonster.

William Maley

Staff Writer - CheersandGears.com

September 18, 2013

When we have brought you spy shots of the next-generation Chrysler 200, it was usually under the cloak of a Alfa Romeo Giulietta. But this week, the first spy shots of the next-gen 200 in its own flesh has been released.

While Chrysler went crazy with the amount of camoflage on this mule, we can take away some information about the new 200. For starters, the next-gen 200 will adopt a four-door coupe silhouette. It also looks like the 200 will come with a short decklid with a spoiler. There isn't as many clues with the front end, though we're guessing a sleeker look is in play.

Power will come from two engines; the 2.4L four-cylinder from the Dodge Dart and 3.2L V6 from the new Cherokee. Also coming from the Cherokee is the new nine-speed automatic transmission.

Source: Autoblog

William Maley is a staff writer for Cheers & Gears. He can be reached at william.maley@cheersandgears.com or you can follow him on twitter at @realmudmonster.

William Maley

Staff Writer - CheersandGears.com

August 7, 2013

Bob Lee, head of Fiat and Chrysler global Powertrain said that the company will not be investing in electrified powertrains till consumers are willing to pay for it. He said this at the 2013 CAR Management Briefing’s Advanced Powertrain Forum this week.

Lee explained that consumers aren't willing to pony up the money to cost of battery packs, electric motors and chargers that hybrids and electric vehicles are saddle with. He said that it might take up to ten years before consumers are willing to pay for the tech.

"Many customers want to reduce C02, but they aren't willing to change their lifestyle or pay the cost -- yet," said Lee.

In the meantime, Chrysler will focus on developing more diesel and turbocharged engines to help improve fuel economy.

Source: Automotive News (Subscription Required)

William Maley is a staff writer for Cheers & Gears. He can be reached at william.maley@cheersandgears.com or you can follow him on twitter at @realmudmonster.

William Maley

Staff Writer - CheersandGears.com

July 9, 2013

Yesterday, Fiat exercised its option to purchase another 3.3 percent of Chrysler shares from the UAW's VEBA retirement fund. This brings Fiat's current share of Chrysler to 68.49 percent. This is the third time that Fiat has purchased shares from VEBA. Last July and earlier this year, the Italian automaker purchased 3.3 percent of the VEBA shares.

Fiat CEO Sergio Marchionne wants to buy up the remaining shares so Fiat can have full control of the company and hopefully help curb the large losses the Italian automaker is currently experiencing. That doesn't look like it will happen anytime soon. Currently, Fiat and VEBA are in court to try and reach agreement on buying the remaining shares.

Source: Automotive News (Subscription Required)

William Maley is a staff writer for Cheers & Gears. He can be reached at william.maley@cheersandgears.com or you can follow him on twitter at @realmudmonster.

By William Maley

Staff Writer - CheersandGears.com

May 30, 2013

According to Bloomberg, Fiat is reportedly seeking $10 Billion in financing to buy out the remaining 41.5% of Chrysler that is being held by the retiree trust of the United Auto Workers and refinance the two automakers' debt.

Fiat has been in talks with a number of banks such as Bank of America Corp., Deutsche Bank AG, and Goldman Sachs Group Inc., to secure financing. Earlier reports said Fiat was seeking around $4 Billion, but that figure has risen considerably. This is most likely due to a court case in Deleware between Fiat and the UAW arguing the total price for the remaining shares.

“The merger is the right choice for Marchionne and the only possible option to avoid Fiat being marginalized or bought by a competitor in the medium term. I see it as likely that they will get favorable financing by the end of the summer and then list in the U.S,” said Emanuele Vizzini, chief investment officer of Investitori Sgr in Milan.

The cquisition of remaining shares could happen by this summer, but the merging of the two companies isn't likely to happen until till next year.

Source: Bloomberg

William Maley is a staff writer for Cheers & Gears. He can be reached at william.maley@cheersandgears.com or you can follow him on twitter at @realmudmonster.

By William Maley

Staff Writer - CheersandGears.com

April 3, 2013

Chrysler is on a bit of a diesel kick by introducing three different vehicles with the choice of a diesel engine: Jeep Grand Cherokee, Ram 1500, and the new Ram ProMaster. But there could be a forth model getting a diesel engine.

Chrysler president and CEO Saad Chehab told Wards Auto that the company is investigating the possibility of a diesel powered Chrysler 300, but a decision is way off. In Europe, the Chrysler 300 is sold as the Lancia Thema and comes with the option of a 3.0L Diesel V6 built by VM Motori, the same company that will be building the diesel engine for the Grand Cherokee and Ram 1500.

“I think that we are in talks about the diesels because the Thema has a diesel in Europe anyway. It’s a matter of how much the customer is willing to pay for that premium. That’s the only issue with it,” said Chehab.

The 2014 Grand Cherokee will use a 3.0L Turbodiesel V6 making 240 horsepower and 420 pound-feet of torque, mated to an eight-speed automatic. This engine adds about $7,500 to the price of a Grand Cherokee.

Source: Wards Auto

William Maley is a staff writer for Cheers & Gears. He can be reached at william.maley@cheersandgears.com or you can follow him on twitter at @realmudmonster.

By William Maley

Staff Writer - CheersandGears.com

March 18, 2013

The current Chrysler 200 will have a short 2014 model year according to some internal documents.

Automotive News got their hands on the documents and report that production of the 2014 Chrysler 200 will start in July at Chrysler's Sterling Heights plant in Michigan and end in the second week of January. A bit surprising since production usually would run well through 2014. This has led everyone to think the next-generation 200 is just around the corner.

This is further substantiated by Chrysler CEO Sergio Marchionne saying the introduction of the new 200 would be delayed till early next year.

All we know about the next 200 is that it will be much more sleeker than the previous model, utilize the same platform as the Dodge Dart, and come with a nine-speed transmission.

As for the Dodge Avenger, the documents don't reveal any information.

Source: Automotive News (Subscription Required)

William Maley is a staff writer for Cheers & Gears. He can be reached at william.maley@cheersandgears.com or you can follow him on twitter at @realmudmonster.

By William Maley

Staff Writer - CheersandGears.com

January 22, 2013

We know that Chrysler has been readying a new nine-speed transmission to be used in certain models, but we didn't know how many of these gearboxes would be used. According to Bloomberg, Chrysler CEO Sergio Marchionne said the company expects to sell around 200,000 vehicles equipped with the new nine-speed automatic. The new nine-speed will come in three models: Chrysler's redesigned 200, Dodge's Dart, and Jeep's new Liberty.

The nine-speed transmission is the “future of the front- wheel drive and all-wheel drive world for Chrysler,” Marchionne said to reporters last week.

The nine-speed will first appear in the new Liberty, followed by the 200 and/or Dart.

Source: Bloomberg

William Maley is a staff writer for Cheers & Gears. He can be reached at william.maley@cheersandgears.com or you can follow him on twitter at @realmudmonster.

By William Maley

Staff Writer - CheersandGears.com

January 21, 2013

If you're wondering why your Viper is taking longer than expected, we have an answer for you. SRT CEO Ralph Gilles tells the Detroit Free Press that Vipers will begin arriving mid-February, about a month and half later than originally promised.

"I apologized to our dealer base. We are just holding ourselves to a higher standard," Gilles said.

Gilles explained that Chrysler wants to make sure every Viper that rolls of the line is perfect before being shipped out to dealers.

"To say it bluntly, the old Chrysler would have shipped them out already. It's really a hand-made car, so it takes a little finesse to get everything perfect."

Source:Detroit Free Press

William Maley is a staff writer for Cheers & Gears. He can be reached at william.maley@cheersandgears.com or you can follow him on twitter at @realmudmonster.

By William Maley

Staff Writer - CheersandGears.com

January 18, 2013

When the next Chrysler 200 is introduced in 2014, its design will signal a change for the brand.

“The current Chryslers on the road today certainly don’t reflect where we’re headed. What I can safely say is we are deviating from where we are today, completely. It’s a very different feeling (and) look," said Chrysler chief designer, Ralph Gilles.

Gilles didn't go into detail about the direction the styling will go for the 200 and ultimately the Chrysler brand.

“Saad (Chehab, Chrysler brand president and CEO) and Sergio (Marchionne, Chrysler CEO) both were very instrumental in finding the new mission of the car – new branding. I think it’s going to be a beautiful and relevant vehicle,” Gilles said.

Other things the next 200 will have is a new nine-speed automatic and use Fiat's CUSW platform that currently underpins the Dodge Dart.

Source: WardsAuto

William Maley is a staff writer for Cheers & Gears. He can be reached at william.maley@cheersandgears.com or you can follow him on twitter at @realmudmonster.

William Maley

Staff Writer - CheersandGears.com

December 18, 2012

When we last reported on Chrysler minivan debacle back in May, CEO Sergio Marchionne said that Town and Country would be leaving after 2013, leaving the Dodge Caravan as the sole minivan. Taking the place of the Town and Country would be a crossover in 2014/2015.

According to a report from the Detroit Free Press, Chrysler still hasn't made a decision. Chrysler is showing four different concepts; a minivan and crossover from Chrysler and Dodge to consumer clinics before making the final decision.

When the decision is made, the redesigned minivan and new crossover will go on sale in 2014 as a 2015 model.

Source: Detroit Free Press

William Maley is a staff writer for Cheers & Gears. He can be reached at william.maley@cheersandgears.com or you can follow him on twitter at @realmudmonster.

Related Stories

Marchionne Reveals Some Of Chrysler's Future Plans

William Maley

Staff Writer - CheersandGears.com

September 22, 2012

Back in July, SRT CEO Ralph Gilles told Automotive News that around 15 to 20% of the 2,300 Chrysler dealers (about 340 to 460) would be able to sell the Viper. Now, that amount has shrunk.

According to USA Today, the amount of dealers that will be able to sell the Viper is now around 5% (100 to 150 dealers). That number comes from Ralph Gilles.

All 2,300 Chrysler dealers are being sent a letter outlining what will need to happen for them to sell the Viper.

The No. 1 requirement "Is first of all, to have the fire, the passion. That's the unofficial requirement -- that you have a love affair with the cars and you just love fast cars," Gilles said.

If you happened to be one of the dealers picked to sell Viper, be prepared to shell out $20,000 as a one time fee. For an extra $5,000, any Chrysler dealer can purchase an agreement for tools, equipment, training, signs and, most importantly, preferential ordering and additional allocation of SRT vehicles.

Source: USA Today, Automotive News (Subscription Required)

William Maley is a staff writer for Cheers & Gears. He can be reached at william.maley@cheersandgears.com or you can follow him on twitter at @realmudmonster.

William Maley

Staff Writer - CheersandGears.com

September 11, 2012

Yesterday, Fiat-Chrysler CEO Sergio Marchionne led a day-long product preview in Las Vegas for Chrysler and Fiat dealers. The preview showed products from Alfa Romeo, Chrysler, Fiat, and Jeep.

According to Reuters, Alfa Romeo showed two new models to dealers. Most likely, one of those models was the 4C coupe. The other one could have been a crossover or the new Giulia.

Chrysler showed the 100 Subcompact and the new 200. The Wall Street Journal is reporting that Chrysler is spending $2 billion on the next 200, with the expectation to double sales. The new 200 will come with a nine-speed automatic transmission to help improve fuel economy.

The Wall Street Journal also reports that Fiat showed the new 500L and a electric version of the 500.

Jeep had the biggest showing. Reuters says the brand showed new versions of the Compass, Patriot, and Liberty. The appearance of the Compass and Patriot is a bit of surprise, since previous reports have the Compass going away.

A dealer who was at the preview says the three vehicles look more like the Grand Cherokee. The three vehicles will use Fiat platforms.

Source: Reuters, The Wall Street Journal (Subscription Required)

William Maley is a staff writer for Cheers & Gears. He can be reached at william.maley@cheersandgears.com or you can follow him on twitter at @realmudmonster.

William Maley

Staff Writer - CheersandGears.com

August 13, 2012

Chrysler's Pentastar V6 has been getting rave reviews since coming out in the new Grand Cherokee in 2010. However, the V6 has hit a snag.

A small portion of the Pentastar V6s (about 0.5% or 7,500 engines out of the 1.5 million engines built so far) to have faulty cylinder heads. Owners of Jeep Wranglers equipped with the 3.6L complain of a ticking sound coming from the left side of the engine, stalling, loss of power or misfires coming from cylinder No. 2 in NHTSA filings. The Jeep Wrangler isn't the only one Chrysler vehicle with this problem. Automotive News has learned from Chrysler dealers and Allpar.com, a popular Chrysler forum that the Chrysler Town & Country, Dodge Caravan, and Dodge Journey have a similar problem.

Chrysler has confirmed that the Pentastar V6 does have a problem with the cylinder head, but isn't saying why or what the flaw is, nor are they issuing a recall. What Chrysler is saying they're replacing the cylinder head with a “more robust” design. The “more robust” design cylinder head has gone into production for new Pentastar V6s and to repair effected V6s six weeks ago.

This has caused another problem. Dealers who are fixing vehicles with the bad cylinder heads are waiting for the new heads to arrive due to the supplies being constrained. This has caused the repairs to take longer than expected and leaving owners without their vehicles. Chrysler, for their credit, has been footing the bill for rentals.

“The biggest mistake we made is taking our eye off the ball on service parts. That always gets the dealers’ attention. Our intention is to always satisfy the needs of the service market ahead of production. This came to my attention a couple weeks ago. We have parts in the pipeline to remedy that shortfall,” said Doug Betts, Chrysler’s senior vice president for quality.

Betts said Chrysler went from a 1,300 unit shortfall to a 3,000 unit surplus. However, demand for the new cylinder head has now risen to about 500 requests per week.

Source: Automotive News (Subscription Required)

William Maley is a staff writer for Cheers & Gears. He can be reached at william.maley@cheersandgears.com or you can follow him on twitter at @realmudmonster.