2014 Jeep Cherokee Latitude on 2040-cars

Auto blog

FCA to test Jeep car-sharing and other pilots

Fiat Chrysler plans to launch a trio of pilot programs in Boston aimed at boosting sales of its Jeep cash cow and other brands, according to media reports. The programs, which involve car-sharing and subscription services, are expected to roll out starting this month. Bloomberg reported earlier this month that Jeep is launching two small pilot programs in Boston — one in which owners can rent out their Jeeps through peer-to-peer car-sharing startup Turo, the other a three-month subscription service in partnership with Avis Budget Group in which owners can swap their Jeeps for other vehicles, like a Ram 1500 pickup or a Dodge Challenger. There's also a third program in the works, according to Motor Authority. It's called "Car Borrowing" and it's also a partnership with Avis. According to the report, it'll allow Jeep owners in Boston starting next month to purchase six "Jeep Coins," each good for a one-day rental of most Chrysler, Dodge, Jeep and Ram vehicles, valid for a year. Participants will be able to pick up the borrowed vehicles or have them delivered. The former two programs will reportedly be limited to the first 100 owners who register for each. Jeep brand manager Tim Kuniskis says the programs will help develop new prospective customers and help generate customer feedback to see whether the programs are right for the brand and could be offered at the dealerships at the point of sale. Avis would supply the inventory in the subscription pilot, and participants would be able to swap models up to six times in three months, two with delivery and the remainder by picking them up. It wasn't clear what services would be offered with the program. In a blog post, Turo CEO Andre Haddad said the "Jeep Freedom Experience" program was aimed at introducing Jeep enthusiasts to new models of mobility and was a natural fit, since Jeep models "have long been among the most popular vehicles for guests on Turo," and the Wrangler and Cherokee rank tops in the company's recent study ranking vehicles based on their potential return by sharing them on the platform. "As Turo hosts, Jeep buyers can get help covering their payments, offset the cost of ownership entirely, or even turn a profit," Haddad wrote.

Stellantis moves to set up its own lending unit

Stellantis is buying Houston-based auto lender First Investors Financial Services Group to set up its own finance arm in the U.S., a move that should support sales and eventually boost profit. The only major traditional automaker in the U.S. without its own finance company agreed to pay $285 million to a group of investors led by Gallatin Point Capital and Jacobs Asset Management, according to a statement. The transaction is expected to close by year-end. Stellantis was formed via the merger between Fiat Chrysler and PSA Group early this year. Carlos Tavares, the PSA boss who became the combined company’s chief executive officer, called the deal to acquire First Investors a milestone that will increase earnings and enhance customer loyalty. “Direct ownership of a finance company in the U.S. is a white-space opportunity which will allow Stellantis to provide our customers and dealers a complete range of financing options,” Tavares said Wednesday in the statement.  Having an in-house finance company has helped rivals General Motors Co. and Ford Motor Co. pad profits, especially during the global semiconductor shortage that has limited production and crimped sales. GM bought subprime lender AmeriCredit Corp. in 2010 and renamed it GM Financial. The operation generated a $2.76 billion profit in the first half -- roughly a third of the companyÂ’s adjusted earnings before interest and taxes. Trouble for Santander? The First Investors acquisition could spell trouble for Chrysler Capital, the operation that Santander Consumer USA Holdings Inc. and Chrysler set up in 2013 before the U.S. automaker completed its merger with Fiat. In a statement, Santander Consumer said itÂ’s committed to supporting Stellantis through the term of their existing agreement and its transition. Santander Consumer will also have “ongoing conversations with Stellantis about long-term mutually beneficial opportunities beyond 2023,” the company said, adding that its consumer business remains strong and has “delivered solid results for our shareholders.” This, along with support from its parent company, will allow the lender to “pursue additional opportunities as they arise.” The lenderÂ’s U.S.-listed stock fell 1.5% in New York trading Wednesday after Bloomberg reported Stellantis was preparing to announce a new finance partner. Stellantis shares rose as much as 1.3% in Paris trading Thursday.

Chrysler investigating complaints of vehicles with faulty power modules

Chrysler owners are hopping mad after experiencing a series of electrical gremlins in some of the company's vehicles. Issues range from mere annoyances - windows rolling down and radios turning off of their own accord - to serious safety issues, with headlights that randomly shut off at night and cars that stall and refuse to start.
The issues are being blamed on the total integrated power module, which can cost up to $1,000 for customers to replace. This, of course, has led to a hefty batch of complaints to the National Highway Traffic Safety Administration, with 240 owners expressing their displeasure so far. Another site, CarComplaints.com, has registered over 300 complaints relating to the 2010 to 2011 Jeep Grand Cherokee and Dodge Durango, alone, according to The New York Times.
Chrysler has acknowledged that it's investigating the complaints and is analyzing the faulty TIPMs, but that isn't quite enough for customers of the affected vehicles. The newspaper has snagged a few of the more harrowing tales with the electrically challenged Chrysler products, culled from the NHTSA complaints.