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FCA denies report it's pulling Chrysler brand from Japan

TOKYO - Fiat Chrysler Automobiles denied it had decided to pull the plug on the Chrysler brand in Japan, after local media reported it was planning to stop selling the US cars in the country as early as next year following years of poor sales. "Although FCA Japan has already announced its intention to concentrate its resources on the Jeep brand ahead, no decisions have been made regarding (the) Chrysler brand," the automaker said ion Monday. The Nikkei business daily reported that the European-US automaker, which also sells the Jeep, Fiat, Alfa Romeo, and Abarth brands in Japan, was close to deciding to throw in the towel on the Chrysler brand, which posted sales of less than 300 vehicles in 2016, having fallen steadily since around 2000 and are about a tenth of what they were a decade ago. FCA sells only one Chrysler model in Japan, the full-size 300s sedan, which is sold at the company's Jeep dealerships. FCA's Fiat brand, which includes smaller models, and its Jeep brand have been growing in the country. Last year they sold around 6,700 and 9,400 units, respectively, making them top 10-selling foreign branded vehicles in the Japanese market. However, foreign cars constitute a small portion of the total Japanese auto market, which is dominated by domestic brands. Last year, 295,000 foreign-branded new cars were sold in the country, roughly one-tenth of total new vehicle sales. Reporting by Naomi TajitsuRelated Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. Featured Gallery 2017 Chrysler 300S Sport Appearance Package: New York 2016 View 12 Photos Auto News Chrysler Fiat Jeep Sedan FCA

Chrysler dealers terminated in bankruptcy still stuck in court

Part of the deal for the federal bailouts of Chrysler and General Motors was that both organizations were required to trim their vast array of dealerships. This move did not sit well with the people that would be losing out on franchises, though, and in Chrysler's case, 148 of the shuttered dealers have fought for money they feel they are entitled to.
These dealers believe that they should be compensated by the federal government, as Chrysler wouldn't have trimmed its sales centers had it not been ordered to by Uncle Sam. Now, thanks to the ruling of three judges on the US Court of Appeals for the Federal Circuit, the dealers will get a chance to argue their point.
According to Automotive News, the dealers argue that the mandatory shuttering of dealers was unconstitutional, because the federal government was taking property without compensation. If the dealers are victorious, not only would the government be out millions of dollars, but a precedent could be set that would allow similarly closed GM dealerships to cash in.

FCA seeks partner to keep building Dodge Dart, Chrysler 200

Mere weeks after FCA announced it was shutting down production of the Dodge Dart and Chrysler 200, new hope emerges to give the sedans a stay of execution. Speaking at the Geneva Motor Show last week, Sergio Marchionne said that the company was looking for a partner "who is better at it than we are and who has got capacity available" in order to continue building the models on its behalf. "There are discussions going on now," said Marchionne, according to Motor Trend. "I think we will find a solution. We continue to talk. It's both a technical solution and an economic one. We need to find a solution that works economically." Contracting vehicles to be manufactured offsite is more common practice among European automakers than it is with American ones. Chrysler's former patron Mercedes, for example, has the G-Class built for it by Magna Steyr in Austria, the A-Class by Valmet in Finland, and the R-Class by AM General in Indiana (even though it's no longer sold in the US). This arrangement would, on the surface at least, appear more similar to the deal that Toyota struck with Mazda to build the Scion iA, drawing on the contractor's expertise and capacity to build the small sedan on the client company's behalf. Only rather than basing a new model on one of the partner's existing ones, this deal would ostensibly continue building FCA models on FCA platforms using FCA components. We'll have to wait to find out with whom FCA strikes up the manufacturing deal, but we wouldn't be surprised to see Marchionne turn to a partner he already knows. The company is, after all, at the center of an intricate web of joint ventures and manufacturing contracts. The Fiat 124 Spider, for example, is built by Mazda. The Fiat Sedici that preceded the 500X was built by Suzuki. Models like the Dodge Stealth and Eagle Talon were built in Illinois at the Diamond-Star Motors joint venture before Mitsubishi took it over altogether. And Dodge continued selling the Mercedes-made Sprinter long after DaimlerChrysler split. The Ram ProMaster, though built by FCA in Mexico for the North American market, stems from a partnership in France with PSA Peugeot Citroen. And the ProMaster City is built in a joint-venture plant in Turkey, from which it's also sold by GM as an Opel in Europe and a Vauxhall in the UK. With all those deals coming and going, after all, what would one more add to the complexity?