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J.D. Power 2020 Initial Quality Study puts Dodge and Kia in first place

For the first time ever, an American automaker is ranked at the top of J.D. Power's yearly Initial Quality Study as Dodge tied with Kia for the top spot. Kia landed in first from second place last year — though it's Kia's sixth consecutive year as the top-ranked "mass market" brand — while Dodge jumped an impressive seven spots to move into a tied first from eighth in the 2019 edition of the study. Dodge is one of seven domestic automakers that find themselves in the top half of J.D. Powers' 34th consecutive IQS study. Dodge and Kia's score of 136 problems experienced per 100 vehicles (PP100) puts them ahead of Chevrolet and Ram (141 PP100), Genesis (142 PP100), Mitsubishi (148 PP100) and Buick (150 PP100), which make up the top five after accounting for tied scores. GMC, Volkswagen, Hyundai, Jeep and Lexus round out the top 10. As you probably noticed, Mitsubishi and Lexus are the only Japanese brands to make it into the first 10 spots, and Genesis took home the award as the top-ranked premium brand. This is the first year that J.D. Power released data on the survey results from Tesla owners, and it's not good news for the California-based electric vehicle manufacturer. With an adjusted score of 250 PP100, Tesla is in dead last place on the 2020 IQS Study, just behind Land Rover's score of 228 PP100. It's worth noting that Tesla's score isn't an official entry into the IQS study because surveys were only available in 35 states as the company is the only automaker that has not granted J.D. Power permission to survey Tesla owners in the 15 other required states. According to J.D. Power, about a third of all problems reported by owners of 2020 model-year vehicles within the first three months of ownership relate to issues with infotainment and technology. In many cases, the high-tech systems aren't broken, but are difficult for owners to use or don't work as well as they should. Those issues are "just as severe as other problems," according to Dave Sargent, vice president of automotive quality at J.D. Power, especially since a "customer is stuck with this [issue] for the rest of the time they own the vehicle." J.D. Power surveys the owners of new cars with a questionnaire that covers 223 problems organized into nine categories: climate, driving assistance, driving experience, exterior, features/controls/displays, infotainment, interior, powertrain and seats.

FCA CEO Mike Manley will run Americas for Stellantis after PSA merger

DETROIT — Fiat Chrysler CEO Mike Manley will run operations in the Americas when his company merges with FranceÂ’s PSA Peugeot early next year. FCA Chairman John Elkann announced ManleyÂ’s new post on Friday in a letter to employees. ManleyÂ’s role in the merged company had been a mystery. PSA CEO Carlos Tavares will run the overall company, to be named Stellantis. Shareholders of both companies will vote on the merger Jan. 4 to seal the deal creating the worldÂ’s fourth-largest automaker. The merger is expected to be completed by the end of March. PSA will get six seats on the new companyÂ’s 11-member board, which will be chaired by Elkann. The Americas, especially the U.S., are key to the new companyÂ’s success. Fiat ChryslerÂ’s Jeep and Ram brands are highly profitable, and Tavares has long wanted to sell PSA vehicles in the U.S. Manley has been the Italian-American automakerÂ’s CEO for 2 1/2 years, taking over when Sergio Marchionne died in 2018. Stellantis will have the capacity to produce 8.7 million cars a year, just behind Volkswagen, the Renault-Nissan alliance and Toyota. Related Video: Hirings/Firings/Layoffs Chrysler Dodge Fiat Jeep RAM Citroen Peugeot Mike Manley Stellantis

Stellantis wants to outfit cars with AI software to drive revenue

MILAN — Carmaker Stellantis announced a strategy Tuesday to embed AI-enabled software in 34 million vehicles across its 14 brands, hoping the tech upgrade will help it bring in 20 billion euros ($22.6 billion) in annual revenue by 2030. CEO Carlos Tavares heralded the move as part of a strategy that would transform the car company into a “sustainable mobility tech company,” with business growth coming from features and services tied to the internet. That includes using voice commands to activate navigation, make payments and order products online. The company is expanding existing partnerships with BMW on partially automated driving, iPhone manufacturer Foxconn on customized cockpits and Waymo to push their autonomous driving work into light commercial vehicle delivery fleets. StellantisÂ’ embrace of artificial intelligence and expansion of software-enabled vehicles is part of a broad transformation in the auto industry, with a race toward more fully electric and hybrid propulsion systems, more autonomous driving features and increased connectivity in automobiles. Ford and General Motors also are banking on dramatically increased revenue from similar online subscription services. But the automakers face immense competition for monthly consumer spending from movie and music streaming services, news outlets, Amazon Prime and others. Stellantis, which was formed from the combination of PSA Peugeot and FCA Fiat Chrysler, said the software would seamlessly integrate into customers' lives, with the capability of live updates providing upgraded services over time. New products will include the possibility to subscribe to automated driving features, purchase usage-based car insurance or even increase the power of the vehicle with a tune-up to add horsepower. As a baseline, Stellantis generates 400 million euros in revenue on software-generated services installed in 12 million vehicles. To meet the targets, Stellantis will expand its software engineering team of 1,000 to 4,500 in North America, Asia and Europe. More than 1,000 of the expanded team will be retrained in house. Stellantis also announced a new partnership with Foxconn to develop semiconductors to cover 80% of the companyÂ’s needs and simplify the supply chain. The first microchips from the partnership are targeted to be installed in vehicles in 2024.