1940 Chrysler New Yorker on 2040-cars

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Detroit and Silicon Valley: When cultures collide

Culture is a subject that rarely, if never, gets discussed when traditional auto companies buy — or hugely invest — in Silicon Valley-based companies. The conversation surrounding the investments is usually about how the tech looks appealing and how it's an appropriate step to move the automakers toward autonomy. Culture — the way things are done, the expectations, and the approaches — is something that is overlooked only at one's peril. The potential cultural gap is almost always evident in the obligatory photos of the participants in these deals, with is essentially a photo op of auto execs with their Silicon Valley counterparts. The former — rocking jeans and no ties — look like parochial school kids playing hooky. Don't worry: The regimental outfits will be back in place once they get back in the Eastern time zone. Consider what happened back in 1998 when Daimler bought Chrysler. First of all, there was a denial in Detroit that it happened. It was positioned as a "merger of equals." Which it wasn't. In any corporate situation, when one has more than 50 percent of the business, it owns the whole thing. And the German company was in the proverbial driver's seat. People who were around Auburn Hills back then kept their heads down and their German Made Simple books at hand. Things did not go well. Daimler had had enough by 2007, when it offloaded Chrysler to Cerberus Capital Management — which brought ex-Home Depot CEO Bob Nardelli into the picture, which is a story onto itself. But when you think about the Daimler-Chrysler situation, realize that these were two car companies (at least the Mercedes part of the Daimler organization), so they had that in common, and the language of engineers is something of an Esperanto based on math, so there was that, too. Yet it simply didn't work. It doesn't take too many viewings of HBO's Silicon Valley to know that the business people in that part of the world are far more aggressive than people who ordinarily head and control car companies in Detroit. About 20 years ago, a book came out about the founder of Oracle titled The Difference Between God and Larry Ellison* - and the asterisk on the book jacket leads to: God Doesn't Think He's Larry Ellison. It would be hard to imagine a book about a Detroit executive, even a book that had the decided bias that the tome about Ellison evinces, that would be quite so searing. Sure, there are egos. But they are still perceived to be, overall, "nice" people.

Stellantis will give its brands 10 years to prove they deserve to live

Formed by the merger of PSA Peugeot-Citroen and Fiat-Chrysler Automobiles, Stellantis has 14 brands under its roof, a number that makes it one of the largest groups in the industry. Rumors claimed not every brand would survive, with Chrysler often earmarked to get axed, but the firm said it will give them all a chance to shine. "We're giving each (brand) a chance, giving each a time window of 10 years and giving funding for 10 years to do a core model strategy. The CEOs need to be clear in brand promise, customers, targets, and brand communications," announced Stellantis boss Carlos Tavares during the Financial Times' Future of the Car event. His comments confirm Chrysler fans and dealers don't need to worry about the future — at least not yet. And, against all odds, Lancia enthusiasts can breathe a sigh of relief, too. Former FCA head Sergio Marchionne warned of the brand's demise on several occasions. Alfa Romeo is safe for now, too, as is Vauxhall, which are basically just Opels sold in the United Kingdom with a different badge. The engagement made by Tavares also means Stellantis won't divest any of its brands to raise capital until at least 2031. It's now up to each executive team to make a case for the brand they run, an unusual survival-of-the-fittest strategy in an era when cutting costs is more common than spending cash. Diving into the vast Stellantis parts bin should help even the most troubled brands turn their fortunes around on a relatively tight budget. It seems likely that survive Chrysler will need to look beyond the 300 and the Pacifica/Voyager, the only models in its range, and completely reinvent its image, which is currently nebulous at best. Lancia, once the champion of luxury, performance, and innovation, faces the same challenge. It's not starting quite from scratch, it's relatively popular in its home country of Italy, but it will need to think globally and expand outside of the city car segment to survive. Featured Gallery 2020 Chrysler 300 View 24 Photos Chrysler Dodge Fiat Jeep RAM Citroen Lancia Opel Peugeot Vauxhall

Fiat-Chrysler CEO: Please Don't Buy The Fiat 500e

Fiat-Chrysler's CEO had a strange request for electric vehicle shoppers on Wednesday: don't buy the all-electric Fiat 500e. While CEO Sergio Marchionne was speaking at a conference in Washington, he told the crowd he's tired of Chrysler-Fiat losing money, The Detroit News reported. "I hope you don't buy it [the 500e] because every time I sell one it costs me $14,000," he said to the audience at the Brookings Institution. "I'm honest enough to tell you that." Marchionne said federal and state fuel efficiency mandates are forcing the automaker to build unprofitable cars, according to Reuters. A normal Fiat 500 starts at $16,195, and the 500e starts at $32,650, before federal and state tax credits. There are no sales data to indicate how the 500e is performing. Related Gallery The Best Hybrids For The Money View 12 Photos Green Chrysler Fiat Car Buying Electric fiat 500e