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Archive for the ‘Chrysler’ Category

What’s Fiat Chrysler Automobiles Without Fiat and Chrysler?

Two namesake brands will survive – barely, for now.

by on Jun.04, 2018

The Chrysler Pacifica may soon go it solo as the brand continues to shrink.

It’s been nearly a decade since struggling European automaker Fiat combined with the post-Chapter 11 Chrysler, and if the 5-year plan unveiled during a day-long meeting in Milan last week comes close to being accurate, the carmaker could be in for a “brighter future” than ever, according to John Elkann, the chairman of Fiat Chrysler Automobiles, and the heir to the Italian side of the company’s founders.

There’s just one problem: neither the Fiat nor Chrysler brands seem poised to share in the spoils. The Fiat Capital Day briefing focused all but exclusively on just four brands – Jeep, Ram, Alfa Romeo and Maserati – expected to dominate FCA’s future. For now, Fiat and Chrysler will survive, but in greatly diminished form, and observers question whether they’ll be around for the long-term.

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“There was enough doubt…about their future because they barely showed up in the presentations,” said Joe Phillippi, chief analyst with AutoTrends Consulting, after attending the day-long session at Alfa’ proving grounds near Milan. Fca’s management team “took pains to say (Fiat and Chrysler will have a future, at least in the near-term. But it will be up to the next management team to determine whether they will remain in the portfolio for the long-term.”

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FCA Maps Out a Self-Driving Strategy

Automaker teams up with Waymo, BMW and Aptiv, but carves out its own path.

by on Jun.01, 2018

A Waymo-modified Chrysler Pacifica Hybrid.

While there are a growing number of autonomous vehicle prototypes on the road these days, Waymo and Fiat Chrysler Automobiles made headlines when they announced, earlier this week, plans to direct as many as 62,000 Pacifica Hybrid minivans into the self-driving ride-sharing service the Google spin-off will launch later this year.

By some estimates, 20% or more of the miles Americans clock on the road will be in driverless vehicles operated by ride-sharing services like Waymo, Uber and Lyft by the end of the coming decade. Millions of motorists may opt to give up their personal vehicles and switch to those services. Millions more are expected to own their own autonomous vehicles.

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Until recently considered a laggard in the self-driving field, FCA has jumped in big, relying on partnerships with not only Waymo, but BMW and mega-supplier Aptiv. And that approach will not only help it to make up for lost time but give FCA several alternative paths to follow.

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FCA Planning to Plug In

After slow start, automaker reveals big plans for electrification.

by on Jun.01, 2018

The production version of this Maserati Alfieri concept will use an electrified drivetrain to launch from 0 to 60 in barely 2 seconds.

Sergio Marchionne isn’t much of a fan of battery power, or at least he hasn’t been until recently. When Fiat Chrysler Automobiles launched its first all-electric model, five years ago, the CEO actually urged motorists not to buy it, admitting FCA lost about $25,000 on every one of them.

But at the automaker’s “Capital Day,” in Milan on Friday, Marchionne and his management team were far more upbeat, announcing plans to add dozens of electrified vehicles – everything from mild hybrids to pure battery-electric vehicles – into the FCA line-up over the next give years.

Electrifying!

The economics still aren’t great, noted Mark Chernoby, the automaker’s head of technology compliance, but in an era of increasingly stringent emissions and mileage regulations, it’s the only real day to meet targets being set in markets as diverse as the U.S., Europe, China and Brazil. That’s all the more so as FCA continues to migrate from traditional sedans and coupes to the less efficient SUVs and CUVs that will overwhelmingly dominate its global line-up.

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SoftBank Investment Triggers GM Best Share Gain Ever

Cruise Automation could be floated in IPO.

by on Jun.01, 2018

The Chevy Bolt will be General Motors first fully autonomous car when it brings a self-driver to the market in the future.

Shares of General Motors posted their biggest gain in years, rising nearly 13% Thursday on news that Japanese tech investment fund SoftBank was investing $2.25 billion in GM’s autonomous vehicle development subsidiary, Cruise Automation.

SoftBank’s big investment was one of several major announcements yesterday that underscored the growing interest in self-driving vehicles. Waymo, the spinoff of Google, said it would purchase as many as 62,000 Chrysler Pacific Hybrid minivans for use in its planned self-driving ride-sharing service. Currently in a pilot program, it intends to begin commercial operations in Phoenix later this year and then begin a national rollout.

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GM plans to launch a similar ride-sharing operation through another subsidiary, Maven, using versions of its all-electric Chevrolet Bolt EV modified by Cruise. Mary Barra, the automaker’s CEO, said GM will look at “other opportunities” for Cruise that could involve alliances with other companies SoftBank has funded, including Uber and China’s Didi Chuxing. (more…)

More Products, More Volume, Bigger Margins: FCA Lays Out Aggressive, 5-Year Growth Plan

Morning presentation outlines plans for Jeep, Ram, Maserati and Alfa Romeo brands.

by on Jun.01, 2018

The Ram TRX will be among the new models FCA will bring out over the coming five years.

(This story has been revised to update plans for Jeep’s pickup and a midsize pickup from Ram that, CEO Marchionne now says will come to the U.S. market.)

In a sweeping presentation designed to give analysts, investors, media and potential buyers a good look at its future, Fiat Chrysler Automobiles executives are spending a day detailing their plans for the company and its various brands.

At the midway mark, as they break for lunch, they’ve already lifted the kimono far enough to show what’s coming for the Jeep, Ram, Maserati and Alfa Romeo brands and, in a nutshell, it can be summed up as more products targeting lots more volume and much bigger margins.

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The new five-year plan will be the last crafted under the guidance of Sergio Marchionne, the 65-year-old executive who helped pull off the pairing of two struggling manufacturers to form Fiat Chrysler Automobiles. His third five-year plan, Marchionne stressed that “The true finish line is the one always yet to come.”

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Waymo Set to Purchase 62k Chrysler Pacifica Hybrid Minivans for Autonomous Ride-Share Service

Announcement follows news of a major investment in GM Cruise self-driving car program.

by on May.31, 2018

An early version of a Waymo-modified Chrysler Pacifica Hybrid minivan roams the streets of Phoenix.

Fiat Chrysler Automobiles and Waymo will radically accelerate their alliance, FCA announcing it will supply as many as 62,000 more Chrysler Pacifica Hybrid minivans to the autonomous vehicle spin-off of Google.

FCA previously committed to providing several thousand of the plug-in people-movers. Waymo has also committed to purchasing up to 20,000 Jaguar I-Pace battery-electric SUVs, and CEO John Krafcik has told TheDetroitBureau.com that it expects to add still other models for use in the planned self-driving ride-share service that is currently in pilot testing in Phoenix. Commercial service will launch in that city later this year, Krafcik announced in March, and will eventually expand to “other” cities across the U.S.

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The FCA-Waymo announcement comes just hours after General Motors revealed that Japanese venture capital fund SoftBank is investing $2.25 billion in GM Cruise Holdings, the carmaker’s autonomous vehicle unit. That news quickly sent shares of GM surging by 10% in early Thursday morning trading.

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Fiat Chrysler Recalling Nearly 5m Vehicles Because Cruise Control Could Lock On

Problem could make it more difficult to stop vehicles.

by on May.25, 2018

The Jeep Grand Cherokee is one of 15 different models covered by the new FCA recall.

Fiat Chrysler is recalling 4.8 million sedans, utility vehicles and pickups due to a problem that could prevent drivers from shutting off their cruise control, making it difficult, though not impossible, to stop a vehicle.

The problem is the latest in a series of large recalls involving the third-largest of the domestic automotive manufacturers, FCA recalling millions of vehicles over the last several years for issues as varied as transmission problems and fire hazards.

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The latest service action involves a wide range of products produced for the 2014 through 2018 model-years, and even one 2019 model, and is meant to cope with a cruise control circuit that could short out.

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In Final Move as FCA CEO, Marchionne Expected to Order Massive Shift in Product, Manufacturing Plans

Small Fiat models likely to be dropped, brand may leave U.S.

by on May.18, 2018

Could FCA pull the Fiat brand out of the U.S.?

As Fiat Chrysler Automobiles prepares for life beyond its founding chief executive, CEO Sergio Marchionne is expected to announce major shifts in the automaker’s product and manufacturing strategy, according to several reports.

During a June 1 meeting meant to reveal FCA’s next five-year plan, the 65-year-old executive reportedly will announce that the Fiat brand will abandon two of its base models, the Punto and Mito, while shifting emphasis to more up-market models. The automaker also will put more emphasis on its Jeep brand which, Marchionne said during the Detroit Auto Show earlier this year, could help Fiat Chrysler double its earnings during the next five years.

The Last Word!

One of the key questions hanging over the Euro-American automaker may not be resolved during a meeting bringing together analysts and journalists from around the world: who will replace Marchionne as CEO? He has dropped hints that his successor will come from FCA’s current top management ranks, which means no women or outsiders are in the running.

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FCA Halts Production in Brampton Due to Supplier Strike

Dodge Challenger, Charger on hold for now.

by on May.04, 2018

Fiat Chrysler was forced to shut down its plant in Brampton, Ontario, due to a strike at its seat supplier, Lear.

Fiat Chrysler Automobile N.V. has been forced to close its assembly plant in Brampton, Ontario, due to a strike at a plant in Ajax, Ontario, that feeds seats to the FCA factory.

A contract dispute between Unifor, the union representing some 320 hourly workers at the Ajax plant, and Lear Corp., led to a walkout last weekend. Workers rejected Lear’s latest contract offer and Lear responded by announcing that it planned to shut the Ajax plant permanently.

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The dispute mainly over wages, according to the Toronto Globe and Mail. (more…)

Car of the Year? Even Honda Accord Falls into a Black Hole as Sedan Sales Continue to Wither

Slumping sedan sales putting a chill on spring sales.

by on May.02, 2018

It may be new for 2018, but U.S. buyers have had only a tepid response to the latest Honda Accord.

Few recent product launches generated more buzz than the debut of the 2018 Honda Accord. Long one of the U.S. market’s best-selling nameplates, the 10th-generation sedan quickly racked up a slew of awards, including North American Car of the Year.

But despite all the rave reviews, Honda is struggling to retain momentum for the Accord. American motorists purchased just 21,751 of the sedans in April, a 19.3% year-over-year decline. And even when adjusting for the fact that April 2018 had two fewer sales days than the year before, the dip was 12.5 percent. And Honda isn’t alone. The completely redesigned 2018 Toyota  Camry, a Car of the Year runner-up, suffered a 5.0% drop in volume in April.

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“They’re both brand new vehicles and award winners, but I’m not sure that has any impact now,” said Joe Phillippi, head of AutoTrends Consulting. “Consumer tastes are changing. Everybody wants SUVs and CUVs.”

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