Auto blog
Fiat Chrysler and Peugeot boards meet to finalize merger
Tue, Dec 17 2019MILAN/PARIS — The boards of Fiat Chrysler Automobiles and Peugeot will meet separately on Tuesday to discuss finalizing an initial agreement for a $50 billion merger to create the world's number four carmaker, sources said. A source close to FCA said the two companies could announce the signing of a binding memorandum early on Wednesday, followed by a conference call to explain further details later in the day. The two mid-sized carmakers announced plans six weeks ago for a tie-up to help them deal with big challenges in the industry, including a global demand downturn and the need to develop costly cleaner cars to meet looming anti-pollution rules. Ahead of the meetings, entities representing the Peugeot family, Etablissements Peugeot Freres (EPF) and FFP, unanimously approved a proposed memorandum of understanding for the planned merger, a source familiar with the situation said. FCA and PSA have said they would seek to finalize a deal by year-end to create a group with 8.7 million in annual vehicle sales. That would put it fourth globally behind Volkswagen, Toyota and the Renault-Nissan alliance. PSA's Carlos Tavares will be chief executive and FCA's John Elkann — the scion of Italy's Agnelli family, which controls FCA through their holding company Exor — chairman of the combined company. The group will include the Fiat, Jeep, Dodge, Ram, Chrysler, Alfa Romeo, Maserati, Peugeot, DS, Opel and Vauxhall brands, allowing it to serve mass and premium passenger car markets as well as those for trucks and light commercial vehicles. Related Video:    Chrysler Dodge Fiat Jeep RAM Citroen Peugeot
UAW papers reveal release dates for new Dodge, Jeep and Ram models
Fri, Dec 6 2019Documents published by the United Auto Workers union reveal key information about some of the products Dodge, Jeep and Ram will release during the early 2020s. All three brands will try to capitalize on the growing demand for trucks and SUVs in the United States. The agreement between the UAW and Fiat Chrysler Automobiles (FCA) outlines what the period between 2019 and 2023 will look like from an employee's vantage point. The $4.5 billion factory the automaker is building in Detroit will begin manufacturing a three-row Jeep model in 2020, and it will add the next-generation Grand Cherokee to its roster the following year, according to CarScoops. The new Grand Cherokee will also roll out of the Jefferson North facility that makes the current model scheduled to retire shortly before its successor arrives. The Dodge Durango will continue to be built there, and the UAW papers mention a mild-hybrid variant of the SUV due out before the end of 2020. Two body-on-frame Jeep models tentatively scheduled to revive the heritage-laced Wagoneer and Grand Wagoneer nameplates will break cover in 2021. They will be built alongside Ram pickups at the Warren Truck plant, and odds are the three models will share several components under the sheetmetal. Adding the two Jeep models is expected to create 1,400 jobs, FCA predicted. Speaking of Ram, the high-performance TRX model (pictured) aimed at the Ford F-150 Raptor's jugular is penciled in for a 2020 launch. The concept that previewed the model made its debut in 2016, so it's reasonable to assume it will have changed considerably by the time it reaches showrooms. It will be based on the newest variant of the 1500, not on the last-generation model still sold as the Classic. What won't change is the supercharged, 6.2-liter Hellcat V8 between its fenders. The plug-in hybrid Wrangler remains on track for a 2020 launch. The Cherokee will continue to come out of Belvedere Assembly in Illinois, but the UAW's documents mention "fresh models / features" off of its unibody platform. Whether that means new trim levels or additional body styles remains to be seen, but it sounds like something new and Cherokee-related is around the corner. The ancient Dodge Journey shares at least one thing with the beater you drove in high school: a four-speed automatic transmission. The gearbox is finally on its way out, according to the UAW, and the 2.4-liter four-cylinder engine that powers the entry-level model isn't long for this world, either.
Fiat Chrysler and the UAW reach tentative labor deal
Sat, Nov 30 2019DETROIT — Fiat Chrysler Automobiles and the United Auto Workers (UAW) union on Saturday announced a tentative agreement for a four-year labor contract, a boost for the automaker as it works to merge with France's Groupe PSA. Italian-American Fiat Chrysler and PSA, the maker of Peugeot and Citroen, last month announced a planned $50 billion merger to create the world's fourth-largest automaker. The tentative agreement with Fiat Chrysler, which is subject to ratification by the union members, follows contracts that the UAW already concluded with Ford Motor Co and General Motors Co. The deal with GM followed a 40-day strike in the United States that virtually shuttered GM's North American operations and cost the automaker $3 billion. The UAW on Saturday said the contract with Fiat Chrysler included a commitment from FCA to invest $9 billion, creating 7,900 new jobs over the course of the four-year contract. Of the $9 billion, $4.5 billion was announced earlier this year, to be invested in five plants and creating 6,500 jobs. Detailed terms of the tentative agreement were not released, but they are expected to echo those under the new contracts with GM and Ford, as the UAW typically uses the first deal as a pattern for the others. "FCA has been a great American success story thanks to the hard work of our members," UAW acting President Rory Gamble said in a statement. "We have achieved substantial gains and job security provisions for the fastest growing auto company in the United States." Ratification is not a sure thing. Rank-and-file UAW members at FCA in 2015 rejected the first version of a contract. In addition, a lawsuit related to a federal corruption probe could also raise doubts among union members about the terms agreed. The federal corruption led GM to file a racketeering lawsuit against FCA, alleging that its rival bribed union officials over many years to corrupt the bargaining process and gain advantages, costing GM billions of dollars. FCA has brushed off the lawsuit as groundless. Under the UAW's deal with GM, the automaker agreed to invest $9 billion in the United States, including $7.7 billion directly in its plants, and to create or retain 9,000 UAW jobs. Ford's contract included commitments to invest more than $6 billion in its U.S. plants and to create or retain more than 8,500 UAW jobs. The deals with GM and Ford also created a pathway to full-time employment for temporary workers and left healthcare insurance coverage unchanged.
Fiat Chrysler to recall 100,000 Ram ProMaster vans over engine fire risk
Wed, Nov 27 2019Fiat Chrysler is recalling nearly 100,000 Ram ProMaster vans sold in the U.S. to address an overheating issue in fan motors. The recall is limited to vans from the 2015 through 2018 model years equipped with air conditioning. The recall affects ProMaster vans equipped with 3.0-liter diesel or 3.6-liter gasoline engines. FCA says the engine cooling fans may seize up and the circuit breaker may not protect them from overheating, presenting a heightened risk of fire. That’s despite a warning-light illumination in the vans. FCA first opened an investigation in July after the U.S. Postal Service reported incidents where the engine compartment caught fire. It says it is not aware of any injuries related to the issue despite 21 complaints of smoke or fire and 13 reports from dealers. A remedy is still under development. The recall is estimated to launch in the first quarter of 2020. Separately, FCA says itÂ’s recalling an estimated 51,788 Fiat 500 compact cars from 2012 and 2013 in the U.S. to replace faulty shift-cable bushings that may degrade over time from exposure to heat and humidity. That could cause the shift cable to separate from the transmission linkage, making the shifter inoperable. The company says itÂ’s aware of three minor accidents that could be related to the issue, but no potentially related injuries. Affected customers may notice looser shifter movement, although the instrument cluster will always indicate the correct gear selected. Service will be provided free of charge, and customers will be notified. Owners with questions can also call 800-853-1403. The Fiat 500 recall also affects an estimated 10,627 models in Canada, 3,520 in Mexico and 6,826 outside North America.
Fiat Chrysler dumped 40,000 unordered vehicles on dealers
Thu, Nov 14 2019In a move that echoes recent history, Fiat Chrysler has been making more cars and trucks than dealers in the U.S. are willing to accept, with Bloomberg reporting that at one point the automaker had built up a glut of around 40,000 unordered vehicles. That’s led some dealers to accuse FCA of reviving the dreaded “sales bank” accounting practice of obscuring inventory to improve the balance sheet. The company reportedly began building up its inventory of unordered cars this summer despite an industrywide slowdown in sales and an eagerness by some dealers to thin their inventories because rising interest rates are making it more expensive to hold unsold cars. The inventory build-up also coincided with Fiat ChryslerÂ’s efforts to find a merger partner, first with Renault, which fell through, then last monthÂ’s announcement that it will merge with FranceÂ’s PSA Group. FCA denies any such scheme and tells Bloomberg the rising inventory is down to a new predictive analytics system designed to better square supply with demand from dealers that is helping the company save money and narrow the numbers of unsold vehicles. The company recently agreed to pay a $40 million civil penalty to the U.S. Securities and Exchange Commission to settle a complaint that it paid dealers to report fake sales figures over a span of five years. While no one is suggesting that FCA is in dire financial straits — the company saw higher than expected earnings in the third quarter and record profits in North America — the practice has strong historical precedent by Chrysler, which built up bloated inventories in the run-up to its two federal bailouts, in 1980 and 2009. It was also common at GM and Ford during the 2000s, when all three Detroit automakers struggled with excess manufacturing capacity and plummeting sales in the lead-up to the Great Recession. Back in 2012, CFO Magazine wrote about a report that explained automakersÂ’ rationale for the practice and how it works: Say fixed costs for a given factory are $100, and that the factory can make 50 cars. Consumers, however, demand only 10. Under absorption costing, if the company makes all 50 cars, its cost-per-car is $2. If it makes only up to demand, or 10 cars, the cost-per-car is $10. Although each car adds variable costs for steel and other parts, if those costs are low, the company still has an incentive to make more cars to keep the cost-per-car down.
Ram 'Built to Serve' special editions honor five U.S. military branches
Wed, Nov 6 2019Ram has just announced a series of special-edition trucks that honor the five branches of the U.S. military and the roughly 7% of Americans who currently serve or are veterans. Called the "Built to Serve" editions, five trucks released over the next year will come in exclusive liveries and offer exclusive options to commemorate the Army, Navy, Air Force, Marines and Coast Guard. Available on every bodystyle and powertrain, a Built to Serve package will add $2,795 to the price. Ram hasn't said which branch the first truck honors, but that pickup will debut tonight — Wednesday, Nov. 6 — at the “Stars and Strings” concert at the Fox Theater in Detroit. Each of the five comes in one of two special colors chosen to "evoke the spirit, the mission and history of that service," and a limited build number. The colors and quantities are: Gator (1,000) and Diamond Black (1,000) Ceramic Gray (1,000) and Patriot Blue (1,000) Anvil (1,000) and Billet Silver (1,000) Tank (1,000) and Flame Red (1,000) Spitfire (500) and Bright White (500) The interiors are set off with contrasting stitching in either Light Frost, Light Ambassador Blue, Light Diesel Gray, Core Green, or Orange. Built to Serve trucks will be known by their U.S. flag and edition decals on the rear quarter panels. Cosmetic upgrades for all five versions include an all-black grille and surround, black badging, side steps, black four-inch exhaust tips, body-colored wheel arch trim, and 20-inch wheels finished in Technical Gray. The option price adds the Off-Road Group, normally a $795 extra, including features like four underbody skid plates, electronic-locking rear axle, off-road shocks, tow hooks, and all-terrain tires. Special features in the cabin come in the Black Onyx Chrome trim, Velcro panels on the front and sides of the front seats for service patches, PALS/MOLLE webbing to hang pouches on the front seatbacks, lockable front center tunnel storage, all-weather floor mats, and an instrument panel badge. Ram will use the trucks to help bring more attention to an initiative the automaker has run since 2015, also called Built to Serve, that works to organize grassroots volunteer efforts. Between now and Veteran's Day on Nov. 11, 2020, the Built to Serve program wants to log 1.3 million volunteer hours. That figure represents one hour for each active member of the five services.
1968 Dodge D200 'Lowliner' adds low-down diesel torque to a lowrider
Wed, Oct 30 2019When Mopar does a custom classic car, it's always spectacular, whether it's a Dodge muscle car like the 1,000-horsepower Super Charger or the monster Jeep Five-Quarter off-road pickup. For SEMA this year, Mopar skipped another Dodge sports coupe in favor of a 1968 Dodge D200 pickup truck done up as a lowrider, but with a twist. Or more accurately, with lots of twist. Under the gorgeous candy red metallic body is a 5.9-liter 24-valve Cummins turbodiesel straight-six. It makes an estimated 325 horsepower and 610 pound-feet of torque, and it's paired with a six-speed manual transmission. Representatives from Chrysler estimated the weight of the engine and transmission alone at 1,100 pounds. The diesel engine's power goes to the rear wheels, which are 22 inches in diameter and 11 inches wide with fat 325-mm tires. The front wheels are a tad narrower at 9.5 inches. 1968 Dodge D200 View 7 Photos As cool as the powertrain is, the exterior and the interior of the truck can't be ignored. This generation of Dodge pickup is already intriguing with its distinct character line with a little kink at the end and ribbed and louvered hood. These unique styling cues are accented now that Dodge removed various other details from the body such as the door handles, metallic trim and such. The bumpers were also reshaped to better fit the contours of the body, and the front wheels were pushed forward to reduce the long overhang of the stock truck. The bumpers, grille, and "smoothie" style alloy wheels were also painted in a solid cream color rather than chrome, which both accents the deep red body and gives the truck a more workmanlike feel, as low-trim cars typically had painted trim instead of chrome or stainless steel. The red paint also features subtle Cummins logos on the fenders and Dodge block lettering on the tailgate. The interior continues the simple and classy theme. The original bench seat remains, but with saddle brown leather upholstery. Leather trim has been added throughout, and exposed metal parts have been painted in the same color as the exterior. Simple gray cloth floor mats cover the bottom of the cab, and the instrument panel uses new Mopar gauges in a machine-turned metal housing. The original steering wheel remains, but a custom shifter with red Cummins shift knob sticks through the floor.
Ram 1500 diesel overlander, off-road Jeep Wrangler show present and future of Mopar
Wed, Oct 30 2019Ram and Jeep both have some heavily customized off-roaders for SEMA this year. The Ram is a 2020 1500 Rebel with the diesel engine and an overlanding theme, and the Jeep is a 2020 Wrangler Unlimited with a general off-road theme. Each features loads of Mopar accessories, and, in the case of the Ram, accessories from other companies. They both have a few parts that haven't made it to market yet. 2020 Ram 1500 Rebel View 16 Photos 2020 Ram 1500 Rebel OTG The Ram 1500 has the suffix of OTG, which stands for off-the-grid. It's designed to be an overlanding vehicle perfect for getting you far away from civilization and still have your needs taken care of. As such, the new EcoDiesel with its strong fuel economy and large amounts of torque is a good engine choice, and the Rebel has plenty of rugged style to begin with. That style is augmented by some special concept Mopar parts such as a high-flow grille complete with flow-through Ram block letters, a la the Chevy "Flow Tie," and steel bumper with a retro-fitted Power Wagon winch. Another concept part is the intake snorkel. Dodge also dug into the existing catalog of Ram parts and added the base Tradesman's vinyl flooring for easy interior cleaning, as well as the Tradesman's rear bumper that doesn't have cut-outs for exhaust. The exhaust was then tucked away behind the bumper, giving the truck a better departure angle. Many ready-to-purchase accessories have been added to the Ram 1500 OTG, too. From the Mopar catalog comes off-road lights, rock rails, wheels and bolt-on fender flares. The utility rack, basket and tent all came from Yakima. A roof-mounted solar array along with sliding cooking areas and bed-mounted cooler all come from Dometic. A representative from Dodge also showed how the split tailgate can be used as an easily accesible place to have fold out cooking or table space. 2020-jeep-wrangler-mopar-accessories-01 View 4 Photos 2020 Jeep Wrangler Unlimited While the Ram has parts from all around the aftermarket world, the Jeep Wrangler Unlimited has been outfitted entirely with Mopar parts. And most of those parts are already available, with two exceptions. On one side of the truck, Jeep is showing off some concept mesh covers for its tube-doors. The idea behind them is that they still allow for plenty of air flow, but help keep shrubbery, mud clods and other things from getting in. They're also simple to install or remove, since the slide on and zip up.
Ram recalls 2014-2019 1500 EcoDiesel trucks for coolant leaks
Sat, Oct 26 2019Ram will recall 108,000 Ram 1500 EcoDiesel pickup trucks in the United States for coolant leaks tied to reports of some fires and four minor injuries. Another 50,000 trucks will be recalled in Canada, and fewer than 2,000 sold in markets outside of North America. The recall covers trucks from the 2014 through 2019 model years. The automaker said it found microscopic cracks in some Exhaust Gas Recirculation coolers through dealer-service reports and "other data streams." Such cracks may allow coolant to "escape and – in rare circumstances – pose an engine fire risk." The injuries occurred when customers attempted to manually extinguish engine compartment fires. FCA said it is not aware of any crashes tied to the recall. The automaker will alert owners when they can get recall repairs. Until then customers should monitor coolant levels and contact dealers if they are consistently low. The recall does not affect the redesigned, current-generation Ram 1500, nor any gasoline-powered Ram 1500 from any model year. Customers with questions or concerns may call 1-800-853-1403.
Fiat Chrysler faces $79 million U.S. penalty for fuel economy shortfall
Wed, Oct 16 2019WASHINGTON — Fiat Chrysler Automobiles NV on Wednesday said it faces a $79 million U.S. civil penalty for failing to meet 2017 fuel economy requirements, as regulators reported more automakers were falling short of U.S. greenhouse gas emissions standards. The Italian-American automaker said the payment is not expected to have a material impact on its business. Of 18 major carmakers in the United States, 13 including Fiat Chrysler failed to comply with fuel economy and greenhouse gas emissions standards for the 2017 model year without using credits, according to the National Highway Traffic Safety Administration (NHTSA). The agency said its review of model year 2017 vehicles showed "automakers falling further behind current standards." The 2017 model fleet fell 1 1/2 miles per gallon short of the 33.8 mpg standard based on yearly performance without including credits, NHTSA reported. The shortfall was a half-mile per gallon for the 2016 model year. NHTSA said more automakers were failing to comply with standards for the 2018 and 2019 model years, "and the potential penalties on automakers, which are passed along to consumers, are expected to continue to increase." The Trump administration has used the widening gap between the emissions of automakers' U.S. fleets, which are skewing toward larger vehicles, and national vehicle CO2 emissions standards to bolster its case for freezing vehicle emissions and mileage standards at current levels through 2026. Environmental groups and regulators in California and other states are fighting against any rollback in standards, saying tough rules are needed to address climate change and reduce consumer outlays for fuel. NHTSA and the Environmental Protection Agency are working to finalize as early as next month a rewrite of the Obama administrationÂ’s fuel efficiency requirements, which call for sharp reductions in fleet-wide emissions by 2026. Fiat Chrysler is paying fines for the shortfall in its domestic passenger car fleet, which includes several front-wheel-drive Jeep and rear-drive Dodge SUVs and some sedans and muscle cars. The automaker killed its slow-selling domestic small and midsize sedans. After paying $77.3 million last year for a 2016 model year fuel-economy shortfall, a Fiat Chrysler spokesman confirmed Wednesday the company had received a letter on the 2017 penalty and has 60 days to pay the fine.