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Fiat Chrysler halts European production as coronavirus hits demand

MILAN — Fiat Chrysler Automobiles (FCA) is halting production for two weeks at most of its European plants to help protect staff against the coronavirus pandemic and adjust to a slump in demand, the Italian-American carmaker said on Monday. Italy has been the European country worst hit by the crisis and the first to enforce a nationwide lockdown, which has now been replicated by Spain and, to a lesser extent, by France as the virus sweeps through the continent. With all non essential services closed, including car dealers, and people forced home except for strict working needs, many forecast a heavy fall in car sales in March. FCA — which according to analyst estimates produces around 25% of its vehicles in Europe — said the suspensions through March 27 would allow it "to effectively respond to the interruption in market demand by ensuring the optimization of supply." Ferrari, meanwhile, said it closed its two plants until March 27. Ferrari said it had so far ensured production continuity, and it already implemented all the health measures decided by the Italian government at the two sites, in hometown Maranello and in Modena. But it was "now experiencing the first serious supply chain issues, which no longer allow for continued production." Marco Opipari, an analyst at Fidentiis, said a few weeks of closures was not a big problem in an over-supplied European auto industry and lost production could be recovered later on. "The real problem is on the demand side, people are not buying cars now, and sales volumes are expected to be very bad in March, with a real impact on automakers' earnings," he said. FCA said in a statement that production for its FCA Italy and luxury Maserati units would stop for two weeks, extending a temporary closure period already planned for some Italian facilities. Affected plants are Melfi, Pomigliano, Cassino, Mirafiori, Grugliasco and Modena in Italy, Kragujevac in Serbia and Tychy in Poland. The FIOM union said FCA's decision was "necessary". The carmaker said the freeze would help it to resume activity promptly once market conditions allow it. "The group is working with its supply base and business partners to be ready to enable our manufacturing operations to deliver previously planned total levels of production despite the suspension when market demand returns," it said.

GMC wants to target Jeep with compact crossover

GMC execs might consider adding a Jeep competitor to the range, but rather than new rumors of a Wrangler-fighter, this time the Professional Grade brand could go after the Renegade. Division boss Duncan Aldred would like to broaden the brand's lineup with a subcompact crossover. "I keep telling everyone, 'How can General Motors' truck brand not be in the fastest-growing segment in the industry, an SUV segment," he said to Automotive News but wouldn't confirm whether the model was under development. General Motors already offers small crossovers like the Chevrolet Trax and Buick Encore, but the CUV segment in general continues to drive auto sales in the US. Adding a similarly sized GMC to the mix might increase the automaker's volume by appealing to different customers. "A GMC buyer is very different from a Buick buyer. This is like comparing the Fiat 500X to the Jeep Renegade. They are very similar but appeal to different people," Dave Sullivan, Product Analysis Manager at AutoPacific, told Autoblog. Aldred started the speculation about a Wrangler-fighting model in an interview in late 2014, and the company reportedly even raised the idea of an offroad-focused vehicle to dealers to see how they reacted. The development process was only in the very early planning stages, but the brand considered using Hummer for a little of the new product's inspiration. Aldred later suggested to journalists the possibility of adding a compact or midsize SUV to the GMC range in the next 10 years to appeal to more buyers. He didn't comment directly on the possibility of the Wrangler-challenger at the time beyond saying: "I can't confirm that ... everything's on the table." Related Video:

2015 Easter Jeep Safari Concepts First Drive

Imagine if once a year your grandmother made a chocolate cake. Not a chocolate cake, that chocolate cake. Blow-your-mind chocolate cake. But she won't ever let you have any – you can only have the spatula and whatever's left over in the mixing bowl. And you don't care. You look forward to that spatula and bowl every year because – "Gadzooks!" – that is some stupendous cake. For us, that cake is the Easter Jeep Safari. An annual pilgrimage to Moab, Utah for a taste of what Fiat-Chrysler's off-road brand has cooked up in its Design Dome. "No, you can't have any," the company tells us, "but you can taste it here, then dream about it until next Easter." In Detroit, Jeep gave us a close look at the seven concepts it built for this year's 49th annual event. Then it went a step further and took those show cars to Mill Canyon, UT, to crawl the red rocks in Jeep's natural habitat. After all, the company calls Moab, "Our home away from home." And it's not true that we never get more than a taste of Jeep's conceptual goodness – 2011's JK8 pickup conversion kit is a slice of Safari creation we can now take home, for instance, as are the hood decals that adorned two of the concepts we drove this year. Pietro Gorlier, President and CEO of Mopar, told us that the evolution of Jeep Performance Parts came from listening to journalists and customers in his first year on the job in 2010. So there's that. But still, we want more cake. Like a full-on production Wrangler Africa. These being one-of-a-kind prototypes traipsing through a canyon of nearly immovable objects, we didn't go fast, we didn't go far, we didn't push hard. But we did drive all the Easter Jeeps, and even just this small taste was outstanding. View 30 Photos Jeep Chief While we listened attentively to the detailed spiels on all this conceptual candy, one question ran through our minds: "How am I going to get in the Chief before everyone else?" And we could see the same thought every colleague's face, those scheming bastards. And why not? The Ocean Blue tribute to the venerable Cherokee of old grabbed everyone's attention since the first teaser images weeks before the event, in part because the vintage truck is up there with mermaids for rarity and lustworthiness. Anything that goes this far in obeisance to that classic Jeep is always going to score huge marks. The Chief is a four-door Wrangler underneath, but in many ways it feels nothing like a Wrangler.