2012 Chrysler 200 Limited on 2040-cars

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Fiat stock rockets up after word of Chrysler deal

Now that Fiat has finalized a deal to purchase the outstanding shares of Chrysler owned by the United Auto Workers' VEBA retiree heathcare fund without having to file for an IPO, you can count the Italian automaker's stockholders among the happy. The Detroit News reports that Fiat stock closed Thursday with a 12-percent gain for the day on the Borsa Italiana, having been up by as much as 15.8 percent during the day's trading, at prices not seen since mid-2011. One trader reasoned the run was because Fiat "paid less than the market had expected and there will be no capital increase to fund this."
But there are some who worry, including bank analysts and unions. The final price of the stake will be $4.35 billion - $1.9 billion in cash from Chrysler, $1.75 billion from Fiat and extraordinary dividends in the amount of $700 million paid over three years. Adding that sum to its ledger will raise Fiat's debt level to roughly 10 billion euros ($13.8 billion), which Citibank says will make it the most indebted OEM in Europe.
Italian unions are also concerned about what the deal means for the future. Fiat CEO Sergio Marchionne has had an at-times contentious relationship with both unions and the Italian government over the future of Italian manufacturing, a fact that makes headlines because Fiat is Italy's largest private employer. At least two left-leaning unions have publicly called on Fiat to give guarantees and to explain what the deal means for its Italian operations, while a centrist union argues this is "good news for Fiat workers, for the auto industry and for our country."

NHTSA closes book on Jeep 'trailer hitch' recall after all

After much debating and hand-wringing, the National Highway Traffic Safety Administration now says it has "no reservations" with Chrysler's plan to recall certain Jeep Liberty and Grand Cherokee models over concerns that their fuel tanks, which are located behind the rear axle, could rupture or leak in the event of a rear impact. The longstanding argument between the two entities saw Chrysler openly defy the Feds after a request to recall 2.7 million units back in June.
Chrysler's "voluntary campaign" will instead see it recall 1.56-million 1993-2004 model year Grand Cherokee SUVs, along with 2002-2007 Liberty models. Affected vehicles will get a trailer hitch installed free of charge, which Chrysler says will provide an additional degree of protection for the fuel tanks in the event of a crash. Jeeps with Mopar-branded hitches or hitches that were installed at the factory aren't affected by this recall.
Chrysler's argument throughout this battle has been that the Jeeps in question are no more susceptible to fires than comparable vehicles from the same time period, a position that NHTSA has seemingly arrived at as well. "Those vehicles performed at a rate similar to their peers. That is the keystone analysis as to whether something poses an unreasonable risk to safety," said outgoing NHTSA boss David Strickland during an interview with the The Associated Press.

Big Black Friday discounts key to Chrysler 200 sales success

A lot of people go shopping for deals on TVs or computers around the holiday season, but it looks like some folks are finding some fantastic deals on cars too. Take the Chrysler 200 for example. The new sedan had a great November in terms of sales, and by Chrysler's numbers, it delivered 14,317 of them for the month, a 155 percent increase from the same month last year. It even beat the November 2013 sales of the old 200 and Dodge Avenger combined. However, a report from Daily Kanban based on TrueCar data suggests that the good month came at least in part from steep incentives. Based on 20,156 sales of the 200 from TrueCar's database, average transaction prices were about $2,500 to $4,000 under MSRP for all but the base LX front-wheel drive model. That one actually went for about $68 above the typical base price. Going by these numbers, most people could have bought nearly any trim cheaper than the listed price of the one above it. For example, the top C AWD averaged $27,423, less money than the stated MSRP of the lower-spec S AWD. TrueCar's website also shows 200 pricing dipping in the latter part of November and into early December. There's no doubt that the 200 had a stellar month for November. But these figures suggest that it might have come partially because buyers found stacks of money on 200 hoods, while out doing some holiday shopping. Related Video: