1964 Chrysler New Yorker on 2040-cars

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PSA shares rise following FCA's breakup with Renault

Shares in Groupe PSA, parent company of automakers Peugeot, Citroen and the DS brand, rose on Thursday as analysts considered the possibility that Fiat Chrysler could turn back to PSA after withdrawing its $35 billion merger offer for Renault. "Both parties have acknowledged the need for scale or [mergers and acquisitions] and may pursue other opportunities. If Nissan was an obstacle (to an FCA-Renault deal) PSA-FCA discussions could resume," wrote brokerage Jefferies. Back in March at the Geneva Motor Show, rumors started swirling that PSA was interested in a potential merger with FCA. Mike Manley, who took over at the helm of Fiat Chrysler following the death of Sergio Marchionne, had indicated a willingness to look into potential partnership options. Of course, that was all before FCA proposed a merger with Renault — with that deal now off the table, attention naturally turns back to PSA, which is also based in France. "We expect both shares to react negatively but see FCA having wider strategic options and Renault shares more downside risk near-term," said Jefferies. According to Reuters, PSA shares were up 1.5% at the time this was published, making it the top-performing stock on France's benchmark CAC-40 Index. Renault saw its shares slump 7%. Shares for FCA fell 3% in early trading on the Milan Stock Exchange. Considering that FCA said in its statement confirming the withdraw of its merger offer with Renault that "political conditions in France do not currently exist for such a combination to proceed successfully," we have to wonder how keen the company is to begin negotiations with another French automaker like PSA. Those thoughts were similarly voiced by Bernstein Research analyst Max Warburton, who said (via Forbes), "Expect PSA to rise on unrealistic hopes it may be FCA's next date." Earnings/Financials Chrysler Fiat Mitsubishi Nissan Citroen Peugeot Renault FCA renault-nissan

Judge refuses to reconsider GM lawsuit against Fiat Chrysler

A federal judge in Detroit said Friday that he will not reconsider his July dismissal of General Motors’ racketeering lawsuit against Fiat Chrysler Automobiles. U.S. District Judge Paul Borman wrote in an opinion that new evidence presented by GM regarding bribes and foreign bank accounts “is too speculative to warrant reopening” the case. Borman also ruled that the earlier dismissal of the case was not done in legal error. GM alleged that FCA used foreign bank accounts to pay bribes to former United Auto Workers Presidents Dennis Williams and Ron Gettelfinger, as well as Vice President Joe Ashton. It also alleges that money was paid to GM employees including Al Iacobelli, a former FCA labor negotiator who was hired and later released by GM. GM said the payments were made so the officials would saddle GM with more than $1 billion in additional labor costs. “Even if the affidavits establish that these foreign bank accounts exist, that fact does not rise to the inference advanced by GM, that FCA was more-than-likely using the bank accounts to bribe UAW officials,” BormanÂ’s order stated. GM said Friday that it would appeal BormanÂ’s ruling to the Sixth Circuit Court of Appeals. “TodayÂ’s decision is disappointing, as the corruption in this case is proven given the many guilty pleas from the ongoing federal investigation,” GM said in a statement. “GMÂ’s suit will continue — we will not accept corruption.” FCA lawyers wrote in court documents that allegations it bribed union officials are “preposterous” and read like a script from a “third-rate spy movie.” Gettelfinger denied the allegations in a statement and said he had no foreign accounts. WilliamsÂ’ California home was raided by federal agents but he has not been charged. Iacobelli, who is awaiting sentencing in the federal corruption probe, also denied the claims. “Judge BormanÂ’s ruling this morning once again confirms what we have said from the beginning — that GMÂ’s lawsuit is meritless and its attempt to submit an amended complaint under the guise of asking the court to change its mind was nothing more than a baseless attempt to smear a competitor that is winning in the marketplace,” FCA said Friday in a statement. Related Video: Government/Legal Chrysler Fiat GM

FCA updates 700k-vehicle recall to replace ignition switches

FCA US is revising a previously announced recall of 702,578 minivans and SUVs; now specifying that owners replace their ignition switches, rather than just a component. The campaign affects the 2008-2010 Chrysler Town & Country, 2008-2010 Dodge Grand Caravan and 2009-2010 Dodge Journey. The National Highway Traffic Safety Administration initially opened an investigation last summer following complaints about the ignition switches in these models. FCA US (then Chrysler Group) responded with a recall of 695,957 examples of these vehicles because the key could appear to be in the "Run" position but not be fully engaged. If it slipped out, and there was an accident, then the airbags might not deploy. The company had initially planned to install a new detent ring to fix the problem. According to the timeline in a NHTSA document (available here as a PDF), the government agency and FCA US continued their research into the problem. The automaker found that the time needed to create a new ring design and updated software would be longer than replacing the whole ignition switch. The company worked with the supplier Marquardt to negotiate an accelerated schedule to manufacture the extra replacement parts. According to NHTSA, the investigation has now been closed because of FCA's recall. Company spokesperson Eric Mayne confirms to Autoblog via email, "No additional vehicles are affected and all affected customers have already been made aware their vehicles are subject to recall." FCA US sent out an initial notification advising owners of the problem in September 2014. The company will now send out a second letter in April and will replace the parts in two phases. Repairs for affected models from the 2008 and 2009 model years will begin in April, and 2010 examples will start being fixed in August. RECALL Subject : Ignition Switch may Turn Off , 1 INVESTIGATION(S) Report Receipt Date: JUN 26, 2014 NHTSA Campaign Number: 14V373000 Component(s): AIR BAGS , ELECTRICAL SYSTEM Potential Number of Units Affected: 702,578 All Products Associated with this Recall Vehicle Make Model Model Year(s) CHRYSLER TOWN AND COUNTRY 2008-2010 DODGE GRAND CARAVAN 2008-2010 DODGE JOURNEY 2009-2010 Details Manufacturer: Chrysler Group LLC SUMMARY: This defect can affect the safe operation of the airbag system. Until this recall is performed, customers should remove all items from their key rings, leaving only the ignition key.