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Posts Tagged ‘Sergio Marchionne’

Fiat Chrysler Loses Fuel Tank Fire Appeal

Automaker contends fuel tanks are not defective.

by on Nov.23, 2016

FCA CEO Sergio Marchionne testified that he believes the rear-mounted fuel tanks on Jeeps are safe.

Fiat Chrysler lost its bid to overturn a $40 million verdict granted to the parents of a 4-year-old boy killed in the fiery crash of a 1999 Jeep Grand Cherokee.

A Georgia appellate court found in favor of the plaintiffs, rejecting FCA’s argument that certain evidence was wrongly allowed and the award resulted from prejudice based on that evidence.

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The Court of Appeals of Georgia concluded that a lower court judge did not err by allowing the parents of Remington Walden to present evidence of instances of other fires to support their claims. (more…)

Ferrari Looking to Hybrids to Help Boost Demand

And it isn’t alone: many performance brands studying electrification options.

by on Nov.11, 2016

The LaFerrari showed that hybrid power can meet highest levels of performance Ferraristas expect.

While many folks still think of battery power as a way to create fuel-efficient, albeit boring, automobiles, Ferrari is looking at electrification as a way to boost both performance and sales.

Speaking to industry analysts following release of the company’s earnings this week, CEO Sergio Marchionne said Ferrari would like to be selling as many as 10,000 vehicles annually in the near-future. But to do that, it would probably add some sort of hybrid technology to every vehicle in the brand’s line-up by 2019.

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Ferrari has already used a Formula One-derived hybrid system for the flagship LaFerrari. And it’s not alone in looking at its battery options. Porsche has the high-performance Mission E under development, Aston Martin developing a battery-electric version of its Rapide. And there’s also the Tesla Model S with its Ludicrous mode. Even Mercedes-Benz is looking at a variety of battery-based options for its AMG line.

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FCA Earnings Increase Overwhelmed by Sales Reporting Scandal

Maker says profit rose 25% for second quarter.

by on Jul.27, 2016

FCA CEO Sergio Marchionne has reason to celebrate Q2 - albeit cautiously.

Fiat Chrysler Automobiles reported a 25% year-over-year increase in profits for the second quarter, despite hefty recall costs, thanks to strong demand in North America and Europe. That has led the maker to up its guidance for all of 2016.

But recalls aren’t the only problems the maker is dealing with. The trans-Atlantic automaker yesterday acknowledged misreporting its sales numbers in recent years, a problem that has reportedly led to a grand jury investigation. The problem could lead to closer scrutiny by industry analysts and investors.

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“Overall we had a good quarter,” Fiat Chrysler Chief Financial Officer Richard Palmer said during a conference call with analysts and reporters.

FCA earned 321 million euros, or $352 million, for the second quarter, a 25% jump from last year’s 257 million euros, or $282 million.

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Grand Jury Looking into FCA Sales Reporting Scandal

Maker acknowledges fudging numbers.

by on Jul.27, 2016

The FCA scandal could prove a new headache for CEO Marchionne' search for a merger partner.

A federal grand jury is issuing subpoenas as government investigators expand their investigation into potentially illegal Fiat Chrysler Automobiles sales reporting practices, according to published reports.

The news comes a day after the automaker acknowledged that it has misstated its sales figures for a number of years and that rather than having six straight years of sales records, its upward climb actually came to an end in September 2013.

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But several sources who have spoken to TheDetroitBureau.com caution that any probe of sales policies could eventually spread beyond Fiat Chrysler and look at broader industry practices that can misrepresent the numbers. Such practices, said a senior executive at one of the nation’s largest automotive retailers, can negatively impact investors, dealers and consumers alike.

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Dodge Killing Off Viper Again

Slow sales led to repeated production cuts.

by on Jun.22, 2016

The Dodge Viper will end its run this year.

For the second time since 2010, Fiat Chrysler is killing off the Dodge Viper sports car.

Reintroduced in 2012 to much fanfare, the Viper received strong reviews, but relatively few buyers ponied up the initial MSRP of $97,395. Dodge later cut the price but sluggish sales forced it to repeatedly put production on hold.

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“The Dodge Viper has had a great run and, 25 years after it was first introduced, it leaves the super car world reaching for the records it continues to set,” Tim Kuniskis, the head of the Dodge brand, said in a statement.

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FCA Set to Wind Down Passenger Car Production

Trucks Moving in at two current sedan plants.

by on May.09, 2016

The Jeep Crew Chief concept reveals some "hints" of a production Jeep pickup to come.

With pickups, utility vehicles and vans now capturing about 60% of the U.S. market, automakers are struggling to shift production to match consumer demand, in some cases dropping once-popular passenger car models and refitting plants to produce light truck lines.

Nowhere is that shift becoming more apparent than at Fiat Chrysler Automobiles. At least two of the maker’s sedans will soon head off to the junkyard, making room for expanded production of updated and possibly all-new pickups and SUVs.

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At least two plants will be impacted by the shift at the trans-Atlantic automaker, including one in Belvidere, Illinois and another in the Detroit suburb of Sterling Heights where 3,000 workers have been on temporary layoff due to slow sales of the Chrysler 200 since early this year. Nearly half will be put on indefinite layoff in July, likely for as much as two years.

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Marchionne Adds Ferrari CEO to His Resume

26-year veteran Amedeo Felisa retires.

by on May.02, 2016

Sergio Marchionne (l); Amedeo Felisa (cl), and FCA Chairman John Elkann (r) mark Ferrari's IPO.

As if he doesn’t have enough to keep himself busy, Sergio Marchionne is adding another title to his CV. With the unexpected retirement of Amedeo Felisa, Marchionne will now become chief executive officer at Ferrari.

The Canadian-raised executive also serves as chairman of the sports car company – as well as CEP of Fiat Chrysler Automobiles NV, which spun Ferrari off this past year. Marchionne also runs the North American region for FCA and serves as chairman of CNH Industrial, the heavy duty unit that was created by the merger of Fiat Industry and Case New Holland.

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The latest role comes just after Ferrari posted its best earnings ever. But the supercar maker is also has to deal with a variety of challenges, from its aggressive growth target to its ongoing struggles on the Formula One circuit it long dominated.

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Fiat-Chrysler Reportedly Talking Autonomous Car Deal with Google

But prior rumors of Google-Ford deal failed to materialize.

by on Apr.29, 2016

Google is already testing its bubble-shaped prototype in California, Texas and Nevada.

Two partners in search of mates? Both Google and Fiat Chrysler have been open in their need to form alliances, and the two companies just might be ready to team up.

According to several online reports, they’re in advanced talks that could lead to Fiat Chrysler putting Google’s self-driving vehicle technology into production. The Silicon Valley firm is already testing its autonomous car software with a fleet of prototypes, but Google officials have repeatedly said they want to find a partner within the auto industry, rather than setting up their own manufacturing operation.

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The talks have reportedly been underway for several months, according to the Wall Street Journal, while a separate online report on autoextremist claims negotiations are in late stages and could see Google’s autonomous technology used on a variety of different Fiat-Chrysler products.

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Fiat Chrysler Idling Midsize Sedan Plant Extra Three Weeks

Sterling Heights line to remain shut a total of nine weeks.

by on Mar.07, 2016

Before the shutdown, the Chrysler 200 stacked up on dealer lots despite hefty incentives.

Fiat Chrysler’s assembly plant in the Detroit suburb of Sterling Heights will remain closed until early April, three weeks longer than originally planned, due to sluggish sales.

FCA Chief Executive Sergio Marchionne has already said he wants to end in-house production of two midsize models, the Chrysler 200, as well as the Dodge Dart, shifting manufacturing to a contract supplier. That would free up space for more popular – and higher profit – models, such as the company’s pickups and SUVs.

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Even though the Sterling Heights plant has already been idled for five weeks, there was still a 147-day backlog of Chrysler 200 sedans, as of March 1, according to industry data. While down from a 217-day supply at the start of the shutdown, that’s still more than twice the industry norm of 60 to 65 days’ inventory.

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FCA’s Marchionne Takes Huge Pay Cut in ’15

CEO holds bigger stake in his company than rival leaders.

by on Mar.01, 2016

FCA's Sergio Marchionne took a 68% pay cut in 2015, but still holds a larger stake in his company than rival leaders do in their companies.

Fiat Chrysler Chief Executive Sergio Marchionne’s compensation in 2015 dropped by 68% from the previous year when he was rewarded for completing the merger and integration of Italian carmaker Fiat SpA and U.S.-based Chrysler Group.

Not including stock awards, Marchionne earned 10.03 million euros, or $10.9 million, down from 31.3 million euros in 2014, according to the company’s annual report made public on Monday.

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Marchionne, 63, received a salary of 3.6 million euros and was awarded 6.3 million in incentive compensation, as well as a travel allowance of 126,620 euros. His 2014 compensation included a one-time bonus of 24.7 million euros for finishing the Fiat-Chrysler merger. (more…)