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Marchionne defends FCA recalls, says Wrangler won't be all-aluminum

FCA CEO Sergio Marchionne recently received the 2015 Industry Leadership Award from the SAE Foundation. While speaking with the press after the event, the boss discussed his thoughts about some key issues regarding the company's future. One of the big regulatory issues facing FCA at the moment is the upcoming public hearing by the National Highway Traffic Safety into the automaker's handling of 20 recalls. Marchionne has no intention of testifying there, according to The Detroit News. The CEO also thinks that the government regulator is becoming much more aggressive in how it handles safety campaigns, but the Feds aren't necessarily doing a very good job of communicating that. "We need to work with the agency in a very cooperative and open way to make sure that we can meet their requirements for their new stance," he said, according to the newspaper. "We have no option but to comply with their requirements and we will. I have nothing to hide in this process. I just want clear rules." Marchionne also dropped the news that the company has changed its mind about making the next Jeep Wrangler totally from aluminum. "Because of the difference in cost, not just the new material but the actual assembly process, I think we can do almost as well without doing it all-aluminum," he said to The Detroit News. This seemingly opens the door for the model to remain in production in Toledo, OH, but only just a crack. Marchionne says that the new Wrangler would still use a large amount of aluminum, and there are "at least" two sites in contention for the assembly. The company doesn't have too long to make a decision because the model reportedly launches in 2017.

2017 Chrysler Pacifica Hybrid electrifies the family hauler

The 2017 Chrysler Pacifica Hybrid is the first-ever hybrid minivan – why didn't anyone think of this before? The extra jolt of electric propulsion lets Chrysler estimate this hauler can get a very green 80 miles per gallon equivalent, with 30 miles of full electric range. To make those amazing numbers possible, the Pacifica Hybrid uses a version of the 3.6-liter Pentastar V6 that runs on the Atkinson cycle for improved efficiency, matched with an electric motor. A 16-kWh lithium-ion battery sits underneath the second-row floor to supply the energy. The PHEV doesn't launch until the latter half of 2016, but Chrysler currently estimates the powertrain's output at 248 horsepower, versus 287 hp from the non-hybrid Pacifica. Charging the system to full takes just two hours from a 240-volt outlet. Other than the charging port just head of the driver's door and different wheel designs, the Pacifica Hybrid looks the same as the other model. The nearly identical styling isn't a bad thing because this is one of the most attractive minivans ever. The aesthetics are similar inside, too, but the battery removes the ability to stow the second row of seats. However, the third row can still fold flat. First hybrid powertrain in minivan segment "Due to its large footprint and multiple daily trip patterns, the minivan is ideally suited for electrification technology," said Bob Lee, Vice President and Head of Engine, Powertrain and Electrified Propulsion Systems Engineering, FCA – North America. "The all-new 2017 Chrysler Pacifica lives up to this promise and then some, with efficiency, power and refinement." Launching in second half of 2016, the Pacifica Hybrid is the industry's first electrified minivan. With an estimated 248 horsepower, the vehicle will deliver an estimated range of 30 miles solely on zero-emissions electric power from a 16-kWh lithium-ion (Li-ion) battery. In city driving, it is expected to achieve an efficiency rating of 80 miles per gallon equivalent (MPGe), based on U.S. Environmental Protection Agency standards. When the battery's energy is depleted to a certain threshold, the Pacifica Hybrid becomes a part-time electric vehicle, like a conventional hybrid. Power to the wheels is supplied by the electric drive system or supplemented by a specially adapted new version of the award-winning FCA US Pentastar 3.6-liter V-6 engine.

Weekly Recap: Marchionne's Manifesto again calls for industry consolidation

Sergio Marchionne isn't taking no for an answer. Despite public rebuffs from General Motors and Ford, the leader of Fiat Chrysler Automobiles continues to push for consolidation within the auto industry. His latest assertion came Wednesday when he said a combination of FCA with another automaker could net savings of $5 billion or more annually. No, this isn't about selling his company, he claimed, it's about cutting costs. Put simply, the auto industry wastes money, Marchionne said during FCA's earnings conference call. Companies invest billions to develop basic components that all cars use, but many consumers don't care how they work or recognize the differences. "About half of this is really relevant in terms of positioning the car in the marketplace," he said. "The other half, in our view, is stuff which is neither visible to the consumer nor is it relevant to the consumer." In 2014, top automakers spent more than $100 million on product development, FCA estimated. Marchionne said consolidation could save up to $1 billion on powertrains alone, noting that almost every automaker offers four- and six-cylinder engines. Not everyone has to make their own, he contended. "The consumer could not give a flying leap whose engines we are using because they are irrelevant to the buying decision." That's pretty provocative for enthusiasts, but less so for average consumers. Still, there are major differences in power and efficiency ratings, even among similar engines. Skeptics could argue consolidation would also weaken competition and reduce choices for car buyers. Marchionne stressed his presentation, curiously entitled Confessions of a Capital Junkie, wouldn't require closing factories or dealerships. It's not his final "big deal" as CEO, intent to sell FCA, or a way to elevate his company up the automotive food chain. He claims he wants to fundamentally change the industry and its habit for burning cash. "The horrible part about this, and the thing that I find most offensive, is that the capital consumption rate is duplicative," he said. "It doesn't deliver real value to the consumer and it is in its purest form, economic waste." Other News & Notes Ford Profits dip in first quarter Ford profits fell $65 million to $924 million in the first quarter, hampered by slight dips in revenue and sales.