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Chrysler Recalls Over 566,000 Trucks, SUVs

Fiat Chrysler is recalling more than 566,000 trucks and SUVs in two recalls for malfunctioning fuel heaters that can cause fires and a software glitch can disable the electronic stability control. The recalls bring the newly merged company's total for the year to 6.4 million vehicles worldwide and 5.1 million in the U.S. as it continues to struggle with reliability problems. It was not immediately clear whether those totals were annual records. On Tuesday, its longtime quality chief abruptly left after Fiat Chrysler performed poorly in Consumer Reports magazine's annual reliability rankings. The largest of two recalls announced Wednesday covers almost 382,000 Ram 2500 and 3500 pickups and Ram 4500 and 5500 chassis cabs from 2010 through 2014. In trucks with 6.7-Liter Cummins diesel engines, corrosion on a fuel heater terminal could cause overheating, fuel leaks and fires. Chrysler is not aware of any fires or injuries. Owners could be warned by an odor of diesel fuel. Customers will be notified by letters starting in December. Dealers will install upgraded terminals and fuel heater housings could be replaced. The second recall covers more than 184,000 Jeep Grand Cherokee and Dodge Durango SUVs from 2014. A debris cover over a circuit board in the steering column control module can disrupt communications and disable the stability control. The problem was discovered when dealers started getting reports from customers that electronic stability control warning lights were coming on. Fiat Chrysler says it knows of no crashes or injuries caused by the problem. Technicians will upgrade software to fix the SUVs, and customers will be notified in December. Fiat Chrysler has issued 33 global recalls and 27 in the U.S. so far this year. Doug Betts, its longtime quality chief, left the company to pursue other options after Consumer Reports' survey-based rankings this year showed four FiatChrysler brands at the bottom of its list. Dodge, Ram, Jeep and Fiat performed worst of 28 brands ranked by the magazine. Company spokesman Eric Mayne said Fiat Chrysler's recalls average fewer than 200,000 vehicles each, below the industry average of 301,000. That means the company is responding quickly to problems, he said, adding that eight of its 27 U.S. recalls were announced before the company received any consumer complaints. Chrysler is not alone with a high number of recalls so far this year.

SRT Viper plant idled over slow sales [UPDATE]

The SRT Viper is taking an extended production break later this spring while the factory copes with low demand and gears up for the 2015 model year. Chrysler will idle the Conner Avenue Assembly Plant from April 14 to June 23, and 91 employees there will be laid off during that time. Sales have been slow so far this year, with just 91 Vipers sold in the first two months of 2014 (591 were sold all last year), according to The Detroit News. According to Chrysler, this is all part of the plan for the Viper. The automaker says that the Connor Avenue factory was meant to fluctuate in this way because it only builds one vehicle, and the sports coupe was never meant to be a mass-production vehicle. The company claims that idling the plant will allow it to manage showroom inventories. "Customer and dealer demand for the SRT Viper continues at expected levels," said Chrysler spokesperson Dianna Gutierrez to The Detroit News. SRT hasn't revealed what changes are planned for the 2015 model. This isn't the first time we've heard of the Viper's weak demand. As of October 2013, SRT had hoped to build around 2,000 examples, but only about 1,000 had been made. At that point, officials then revealed production would likely be scaled back. We've contacted the Chrysler for further information, and we'll update this post if and when we hear back. UPDATE: Chrysler has passed along this official statement regarding the plant idling: Chrysler Group confirms that its Conner Avenue Assembly Plant will be down, beginning the week of April 14. Production will resume the week of June 23. Ninety-one UAW-represented employees will be laid off during this time. The SRT Viper is a hand-crafted American exotic car that is designed for a specific consumer that values performance, style and exclusivity. It has never been intended to be a mass-production vehicle as less than 29,000 vehicles have been produced in the past 20 years. The ability to increase and decrease production at the Conner Avenue Assembly Plant allows the company to continue to meet our customers' desire to keep these special cars exclusive. We will be able to take advantage of this transition to manage dealer inventories.

Fiat-Chrysler alliance in jeopardy due to Pentastar's IPO filing?

The four-year relationship between Fiat and Chrysler has thus far been beneficial for both automakers, but it has also proven to be a complicated battle between Sergio Marchionne and the United Auto Workers - the latter controlling the remaining 41.5 percent of Chrysler. With the recent filing for a US IPO, it looks like Marchionne and the UAW appear to be playing a billion-dollar game of chicken, with both sides far apart on how much the union's shares are worth. If it comes down to Chrysler's remaining stake being publicly traded, it could act to drive a wedge between the two companies.
According to Bloomberg, Fiat's chairman John Elkann says "if the IPO will take place, there will be two companies, and that's different than having a single one." Now, we're not great at math, but this sounds like the complete opposite of the full merger that Marchionne has been pushing for since taking the helm at Chrysler. Bloomberg notes that the UAW's shares should be worth around $5.6 billion, but Fiat could end up paying as little as $4.9 billion for Fiat to gain full control of Chrysler. A story by The Detroit News points out that Marchionne's "alleged low-balling" is just the latest hurdle the Auburn Hills-based automaker must overcome as its ownership is being fought over for the fourth time in 15 years.