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Archive for the ‘FCA’ Category

FCA Reports Lower Than Expected Earnings as it Mourns Marchionne

Former chief memorialized with a moment of silence on earnings call.

by on Jul.25, 2018

Mike Manley, new CEO of FCA, led a moment of silence today before leading the reporting of the company's second quarter earnings.

Fiat Chrysler Automobiles reported Q2 earnings that were lower than expected, but that was surpassed by news that former CEO Sergio Marchionne died due to complications from surgery in Switzerland.

The company’s executives, including the newly appointed replacement for Marchionne, Mike Manley, soldiered on through the earnings call, starting with a moment of silence to honor the man many believe saved Chrysler from extinction.

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Then they moved on, as they believed Marchionne would have insisted, to describe how slow sales in China put a drag on the company’s earnings results despite impressive sales in North America during the first half of the year. (more…)

Genesis Tops JD Power APEAL Survey

Korean up-start topples luxury mainstays, but Detroit mainstream brands also gain ground.

by on Jul.25, 2018

The Genesis brand aced another test, a month ago also topping Power's IQS.

Genesis, the upstart Korean luxury brand, has pulled off another surprise, this time landing the top spot in the 2018 J.D. Power APEAL study, surpassing such traditional highline brands as Porsche, Mercedes-Benz, BMW and Lexus.

It’s the latest in a series of coups by Genesis, which was spun off by Hyundai just two years ago. And it comes barely a month after the Korean marque also landed in the top spot on Power’s widely followed In initial Quality Survey. But there were some other surprises in the APEAL report which measures how well individual brands and models are satisfying their owners. Mainstream brands, notably including some Detroit marques, are rapidly gaining ground on the luxury badges that have traditionally led in customer satisfaction.

Beyond the Headlines!

But the industry, as a whole, achieved record levels in the 2018 APEAL study – the name short for “Automotive Performance, Execution and Layout” – the second year in a row that has happened.

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Former FCA CEO Marchionne Dead of Stroke at 66

A “force of nature,” the Italian-born exec rescued two car companies.

by on Jul.25, 2018

Sergio Marchionne was a dynamic game-changer that many could only watch as he raced by.

Sergio Marchionne, a man more than once called “a force of nature,” has died from a stroke at the age of 66, an unexpected complication following what had been expected to be “routine” shoulder surgery last week.

In an era when many businesspeople crave anonymity, Marchionne’s public appearances often turned into events, rather than mere news conferences. And perhaps for good reason considering there are few executives who could lay claim to having saved two separate automakers, Fiat and Chrysler, before bringing them together to form a global powerhouse.

Word that something had gone wrong came around noon Eastern time on Saturday when FCA issued a brief statement revealing that the Italian-born and Canadian-educated Marchionne experienced “unexpected complications,” and that his conditions had “worsened significantly in recent hours.” Subsequent news reports from Europe indicated the executive had suffered a stroke, fallen into a coma and was placed on a ventilator at a Swiss hospital. FCA issued another terse statement indicating his passing early this afternoon in Europe.

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Feds Get Another UAW Official to Plead Guilty in Query

Investigators nab former Holiefield assistant.

by on Jul.24, 2018

Nancy Adams Johnson, right, is the highest ranking UAW official to plead guilty in the ongoing investigation into the theft of UAW-FCA training funds.

The highest-ranking United Auto Workers official implicated in a federal corruption investigation into the misuse of funds for a joint UAW-Fiat Chrysler Automobiles initiative pleaded guilty to felony.

Nancy Adams Johnson, a former top official in the UAW’s FCA Department, pleaded guilty to violating federal statutes prohibiting union officials from receiving cash or other emoluments from any employer. Adams Johnson also agreed to cooperate with federal prosecutors looking into the misuse of training funds, but still could face up to 18 months in prison.

Insight!

While unelected, Adams Johnson’s appointment as the top assistant first to the late UAW Vice President General Holiefield and later UAW Vice President Norwood Jewel makes her the highest ranked UAW official implicated. She was also a member of the joint training center’s board of directors. (more…)

Manly Manley Facing Tough Challenges at FCA

Great track record at Jeep, Ram, but lots more to do, observers caution.

by on Jul.23, 2018

New Fiat Chrysler CEO Mike Manley is not sliding into a cushy job, rather it is a position that faces several difficult challenges in the near and long term.

The head of Fiat Chrysler’s European, Mideast and African business operations reportedly has stepped down, the apparent departure of Alfredo Altavilla kicking into high gear what could become a period of significant turmoil in the automaker’s senior ranks touched off by the unexpected departure of long-time CEO Sergio Marchionne over the weekend.

The 66-year-old Marchionne, who brought Fiat in as a white knight to save Chrysler after its 2010 bankruptcy, was replaced over the weekend by Michael Manley after suffering a grave decline in health following seemingly routine shoulder surgery last week.

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The 54-year-old Manley was considered the front-runner to replace Marchionne when he retired nearly a year from now, but the unexpected shake-up will put plenty of pressure on the new CEO to hold things together while also moving ahead with the new FCA five-year plan Marchionne unveiled barely two months ago. Altavilla was seen as one of the other senior execs positioned to succeed Marchionne and it remains to be seen if his departure could be followed by others. (more…)

Detroit Auto Show Moving to June in 2020, Adding Major New Features

Sponsors aim to revive what's been North America’s leading car show.

by on Jul.23, 2018

Toyota Pres. Akio Toyota is shown here revealing the 2019 Camry during this year's NAIAS.

The North American International Auto Show will move from January to June in 2020, a new timeslot that organizers are betting will help revive the flagging momentum of what had long been one of the industry’s most important annual events.

The Detroit Auto Dealers Association had signaled its intention of abandoning its traditional, mid-winter schedule, though a switch to October was also under study. But that would have conflicted with other shows in Europe and Asia, the dealer group’s Executive Director Rod Alberts told TheDetroitBureau.com in an exclusive interview.

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In a background briefing ahead of today’s official announcement, Alberts said one of the advantages of a summer event is the ability to add new functions that expand beyond the confines of Detroit’s sprawling Cobo Hall convention center. “We realized we have to change the show (and) showcase Detroit, too,” said Alberts, who has been running the DADA for the past 28 years.

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Marchionne Out, Manley In as Fiat Chrysler CEO

Questions about health issues blamed for Marchionne’s early departure.

by on Jul.21, 2018

Larger than life: Marchionne outlined a broad 5-year-plan during a day-long June session in Milan.

Fiat Chrysler Automobiles announced on Saturday that Jeep and Ram brand boss Michael Manley will replace CEO Sergio Marchionne, who due to complications from recent surgery is gravely ill and will not return to work.

Though the 66-year-old Marchionne was known to have undergone surgery this past week for what was reported to be a shoulder problem. According to FCA’s statement, the Italian-born and Canadian-educated Marchionne experienced “unexpected complications,” while his conditions had “worsened significantly in recent hours.”

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Word of Marchionne’s departure quickly echoed through the automotive grapevine. Few industry executives have had a higher profile presence in recent decades, and even fewer could be said to have done more to shape a company in his own image as did Marchionne, who rescued the then-bankrupt Chrysler by securing a U.S. government bailout and then merging it with Italy’s Fiat S.p.A.

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Dodge Debuts 10,000+ HP Hellcat

New NHRA Funny Car to make its first race this weekend.

by on Jul.19, 2018

The new Dodge Funny Car aims to pick up design cues from the Charger SRT Hellcat.

While Dodge may have pulled the Demon out of production, it isn’t easing up its assault in the horsepower wars. In fact, it’s got a new Hellcat that it expects will churn out more than 10,000 horsepower when it makes its official debut this coming weekend.

Unlike the Challenger SRT Hellcat Demon, however, there has been no pretense at making the 2019 Dodge Charger SRT Hellcat NHRA Funny Car street legal. It’s designed to dominate the quarter-mile adding to the 50 wins and one NHRA Funny Car World Championship the previous Dodge Charger Funny Car racked up.

Track News!

“The Dodge//SRT brand is all about performance, and the introduction of the Mopar Dodge Charger SRT Hellcat NHRA Funny Car body showcases our commitment to performance and excellence at the dragstrip,” said Steve Beahm, who heads up North American passenger car brands, including Dodge, for Fiat Chrysler Automobiles.

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Holiefield’s Widow Gets 18 Months in Jail in FCA Scandal

Morgan also paying 100K in restitution.

by on Jul.16, 2018

Monica Morgan, the widow of former UAW VP General Holiefield, was sentenced to 18 months in jail for her role in the FCA-UAW scandal.

The widow of a former top United Auto Workers official was sentenced to 18 months in jail for tax evasion uncovered during a federal investigation of the illicit diversion from training funds set up jointly by the UAW and Fiat Chrysler Automobiles N.V.

Monica Morgan, 55, the widow of General Holiefield, the late UAW Vice President, who was at the center of the training-center scandal, was handed the jail time by a federal judge in Detroit.

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Holiefield headed the UAW’s Chrysler Department from 2006 until his retirement in 2014 and has been described by FCA CEO Sergio Marchionne as critical to the company’s comeback. Holiefield died in 2015. (more…)

First (Short) Drive: 2019 Maserati Levante GTS

Racing between the raindrops.

by on Jul.13, 2018

The new GTS is the second most powerful model in Maserati's GTS line-up.

What has been an otherwise hot and dry summer turned into a storm of almost biblical proportions as I headed up to the M1 Concourse near Pontiac, Michigan for a chance to check out the latest products from Maserati and sibling Italian brand Alfa Romeo. But almost as if on cue, the rain clouds briefly parted when I was handed the keys to the new Maserati Levante GTS for some lap time on the tight and twisty circuit.

There were plenty of skeptics when Maserati announced plans to get into the SUV game – as there were when Porsche revealed similar plans a decade earlier. But the Levante won over most of those naysayers when it made its debut two years ago, initially offering two versions powered by a twin-turbo 3.0-liter V-6. The GTS turns things up a notch.

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The latest version of Maserati’s first-ever sport-utility vehicle is, certainly on paper, an impressive piece of machinery, thrumming out 550 horsepower and 538 pound-feet of torque from its 3.8-liter twin-turbo V-6 – just a slight bit less than the Levante Trofeo first unveiled at the New York Auto Show last spring. That’s enough to launch the GTS from 0 to 60 in just 4 seconds – and to take a broadside at the Porsche Cayenne Turbo, destined to be its most direct competitor.

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