Posts Tagged ‘chrysler news’

Sorry, Says Marchionne for Italian-American Slur

Fiat/Chrysler apologizes for jest.

by on May.21, 2013

Fiat/Chrysler CEO Marchionne gets his point across -- but angers some listeners.

Fiat/Chrysler CEO Sergio Marchionne has apologized for using what some took as an offensive term for Italian-Americans during the Detroit Auto Show last January.

Describing his frustrations with the slow effort to return the Alfa Romeo brand to the U.S. market, Marchionne said the new 4C sports car didn’t have the right powertrain yet, adding that, “With all due respect to my American friends, it needs to be a wop engine.”

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The term was meant to convey the desire to have a distinctly Italian engine for the little Alfa – which ultimately won approval from Marchionne a few weeks later.

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Fiat May Move HQ from Italy to US

Rumored move could follow Italian maker’s complete merger with Chrysler.

by on May.17, 2013

Fiat/Chrysler CEO Sergio Marchionne has some critical decisions to make in the coming months.

With Fiat SpA hoping to wrap up its takeover of Chrysler LLC sometime this year, the maker appears to be thinking over what could be an equally significant step, the possible move of its corporate headquarters from Italy to the U.S.

Marchionne recently indicated he’d like to switch from having Fiat, Italy’s largest manufacturer, listed on the Milan exchange and instead traded on the New York Stock Exchange. But several sources say the Canadian-educated executive is also giving serious thought to basing the merged automaker out Chrysler’s sprawling campus in the Detroit suburb of Auburn Hills.

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It would be a sharp blow for recession-plagued Italy, but perhaps no surprise despite the fact that Fiat has been headquartered in the northern industrial city of Turin since it was founded in 1899 as Fabbrica Italiana Automobili Torino.

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Detroit Makers Dominate New Quality Survey

But “the challenge” will be getting import buyers to notice.

by on May.15, 2013

The new Dodge Dart drives off with a win in the latest Total Quality Index.

After long lagging their import rivals in terms of quality and reliability, Detroit makers have begun closing the gap in recent years – and a new study suggests that domestic models may even be taking the lead in many key market segments.

Motown manufacturers led or at least tied for the lead in 12 of 21 categories in Strategic Vision’s closely watched Total Quality Index, products like the Ford Fusion and Dodge Dart besting traditional import stalwarts such as the Toyota Camry and Honda Civic.

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“There’s no questioning domestic car makers want to lead,” said Alexander Edwards, President of Strategic Vision. “For the first time in over a decade our comprehensive and complete study of Quality resulted in more domestic winners than imports.”

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BMW, Fiat Take Steps to Woo EV Buyers

Makers offer free loaners, cheap financing, other incentives.

by on Apr.19, 2013

The BMW i3 will debut next year.

Studies show American consumers remain wary of battery-electric vehicles for a variety of factors, including high costs and limited range. So, when their new electric vehicles go on sale, both Fiat and BMW aim to address those concerns directly with such innovative incentives as free gas-powered loaners for longer trips, software designed to find charging stations and, the old standby, low-cost financing.

BMW plans to install optional at-home fast-charging systems for the i3 city car coming out at the end of 2013. Onboard navigation software will be programmed to detect the nearest public charging station during trips, and i3 owners will be able to borrow a gasoline-fueled car from the maker when longer trips are necessary.

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“The BMW group is charting new territory,” Harald Krueger, the carmaker’s head of production, said at a presentation near Leipzig. “We are confident we will earn money with every BMW i3 we sell from the launch on.”

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Chrysler Will Lose $10,000 on Every Fiat 500e, Marchionne Warns

“We need to innovate,” CEO tells automotive engineers.

by on Apr.19, 2013

Fiat plans to sell only a few 100 of its 500e battery cars in California -- at a significant loss.

Chrysler Group will lose a substantial amount of money on every battery powered Fiat 500 that it plans to sell in the state of California, Fiat/Chrysler CEO Sergio Marchionne warned during a speech in Detroit Thursday night.

Marchionne said the new Fiat 500e is technically very impressive, having posted some of the best fuel-economy figures yet for a vehicle with an alternative powertrain. But the potential losses on the project will likely be equally notable.

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“We will lose $10,000 per vehicle. Doing that on a large scale would industrial masochism,” noted Marchionne, who also took an oblique swipe at California regulators, particularly the California Air Resources Board, or CARB.

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Chrysler Shakes Up Brand Management Team

Maker moves fast after Diaz defects to Nissan.

by on Apr.15, 2013

Chrysler CEO Sergio Marchionne and new Ram Truck boss Reid Bigland.

After unexpectedly losing one of its top brand bosses to Nissan, the Chrysler Group is shaking up its executive lineup, putting new managers in charge at its Ram, Dodge and Fiat brands.

The quick switch following the loss of Ram chief Fred Diaz, appears designed to maintain momentum at a maker that has posted three years of month-over-month sales gains. But while Chrysler might be showing off the “depth of our talent pool,” the shake-up also reveals how a handful of top executives are each being asked to handle multiple assignments in an unusual lean corporate structure.

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“These appointments are part of the Chrysler Group’s strategy to continuously reinforce its leadership ranks as we continue on our path to achieve our business targets,” declared Sergio Marchionne, chairman and chief executive officer of Chrysler Group LLC, in a statement issued Monday morning.

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Diaz Defection Good News for Nissan, But Big Trouble for Chrysler

Are further defections facing Chrysler’s overworked management team?

by on Apr.15, 2013

Fred Diaz is shown here during the recent launch of the new Ram 1500 pickup.

Chrysler is scrambling to fill a big hole left in its senior management ranks following the unexpected defection of Fred Diaz, who had been running its fast-growing Ram truck brand. A 24-year Chrysler veteran, Diaz now becomes the new head of sales and marketing for the Nissan Brand in the U.S.

Considered one of the most influential Hispanic business leaders in the U.S., Diaz was one of a small cadre of close confidantes to Chrysler CEO Sergio Marchionne and helped the Ram brand generate a steady stream of month-over-month sales gains that outpaced the overall U.S. automotive recovery.

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Nissan now hopes that magic can rub off as it sets its sights on achieving a record 10% share of the U.S. market. The Japanese maker also hopes Diaz can help it finally pick up some traction in the light truck market when it launches an all-new version of the Titan pickup a little more than a year from now.

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Chrysler Recalling Nearly 120,000 Vehicles for Airbag Problems

Wiring issues becoming increasingly serious industry problem.

by on Apr.09, 2013

The Dodge Challenger R/T.

Chrysler is recalling 120,000 of its full-size models because of problems with airbag warning lights that trigger for no apparent reason.

It’s the latest in a series of industry-wide safety-related problems involving faulty wiring that reflect the increasingly complexity of today’s high-tech automobiles. In some cases, the issues have been mere inconveniences, but in other instances the problems can lead to serious safety problems, such as vehicle fires and brake intervention systems that trigger for no obvious reason, leading to a potential loss of vehicle control.

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The new Chrysler recall involves 119,500 of its Chrysler 300 and Dodge Charger sedans, as well as the Dodge Challenger muscle coupe. The airbag warning lights appear to trigger for no reason and do not mean that they have become deactivated.

The maker says it was advised of the problem though customer complaints and adds there have been no reports of injuries or accidents.  It blames faulty wiring for the problem.

The recall covers vehicles produced between April through December of 2011, some marketed as 2011 models, others during the 2012 model-year

Owners will be notified of the problem starting this month and repairs will be made at no charge. The maker also plans to reimburse owners who have previously paid for warning light repairs.

The 2013 version of the Dodge Challenger was subject to a separate wiring-related recall announced less than a month ago. In this case, faulty wiring harnesses can overheat and lead to a fire. The maker went so far as to warn owners to park their vehicles until repairs could be made.

About the same time, Honda announced a short-circuit in a stability control unit on as many as 250,000 different vehicles could cause their brakes to briefly operate without any input from the driver.

Toyota, meanwhile, began the year with a recall of 752,000 vehicles due to a short-circuit that could could cause the airbags on some Corolla and Matrrix models, as well as the front seat pre-tensioners to inadvertently deploy. The Japanese giant last year recalled several million products because of a faulty driver’s-side window switch that could lead to smoke or even vehicle fires.

Industry analysts note that today’s automobiles have become high-tech systems that rival – and typically exceed – the complexity of the most advanced consumer electronic devices. Where problems with a faulty circuit board on a smartphone or audio system might be an inconvenience or lead the customer to swap out the device at a store, the greater risks faced with flawed vehicle control circuits has been leading to a steady increase in related recalls.

By comparison, problems with more conventional mechanical defects, such as engine failures, appear to be on the decline, according to research by J.D. Power and Associates.

Fiat Has Cash to Complete Chrysler Acquisition

Marchionne tells shareholders he plans to skip IPO.

by on Apr.09, 2013

Fiat/Chrysler CEO Sergio Marchionne sits on the hood of a new LaFerrari during the Geneva Motor Show.

Almost four years after it took effective control of the then-struggling Chrysler Group LLC, Italian automaker Fiat SpA says it has the cash in hand to complete the acquisition of its U.S. ally — and hopes to complicate the deal in little more than a year.

There had been some question about whether Fiat could complete the deal considering the financial drain it is facing in Europe, where the automotive market has fallen to its lowest level in a quarter century and most automakers are plunging deep into the red. It might be necessary, hinted Fiat/Chrysler CEO Sergio Marchionne, that the Italian side of the alliance sell off some assets to complete the takeover, however.

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Exactly what the remaining Chrysler stake will cost still depends upon resolution of a legal battle between the automaker and the United Auto Workers Union’s retiree health-care fund. Known as a VEBA, it is now the second-largest Chrysler shareholder, after Fiat. The two sides have reached an impasse over putting a value on the union holdings and a Delaware court is expected to now issue a ruling.

“If we ever reach a deal with VEBA to buy the remaining stake, we have enough cash for it,” Marchionne told investors at the annual Fiat stockholders meeting in Turin today.

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Chrysler Grabs #1 Spot in Canada

Strong demand “North of the Border” offsets other problems.

by on Apr.04, 2013

Oh, Canada! Chrysler takes a rare lead.

Fiat/Chrysler boss Sergio Marchionne has had some tough times lately trying to launch production in China while hoping to revive a faltering deal in Russia. Then there’s the challenge of a crumbling European car market that has hammered the Italian side of the trans-Atlantic automaker – so it’s good to be getting a lift from one corner of the globe.

Chrysler is now the sales leader in Canada, nudging its way in the relatively small market past traditional industry leader General Motors, as well as rival Ford Motor Co. and Japanese giant Toyota. With its strong network of rural dealers, Chrysler’s unexpected dominance “North of the Border” serves to provide some credibility to Marchionne’s ongong efforts to build Chrysler/Fiat into a global power house.

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(It also comes as a point of personal celebration for the Fiat/Chrysler CEO who grew up in Canada.)

Up until now, Marchionne’s efforts, while scoring some impressive results in the U.S., have still been greeted by a large measure of skepticism by analysts who don’t believe the American-Italian company can compete long-term.

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