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Stellantis dealers plead that letting Chrysler die is not an option

Executives and dealers have recently cautioned that a dark cloud looms over Chrysler's horizon, and figuring out why doesn't require an MBA from Stanford. And yet, Stellantis dealers say bright days could be ahead, if only the company reinvigorates the Detroit-based brand with long-awaited and much-needed new products. "This whole thing started with Chrysler. I don't want to get emotional about a brand, that's not the case. But, I don't want to see a brand like that left at the sideline and just thrown out to pasture," said David Kelleher, the head of the Stellantis National Dealer Council, in an interview with industry trade journal Automotive News. Kelleher added he would feel "violated" if the 96-year-old carmaker shut down. Keeping it around is relatively easy, but transforming it into a thriving business is far more difficult. Years of underinvestment have crippled the brand. It's almost exclusively dependent on North America, where it sells two models: the 300 and the Pacifica/Voyager duo. Sales in the United States totaled 110,464 units in 2020, down from 126,971 in 2019. To add perspective, Ram, Jeep, and Dodge sold 624,642, 795,313 and 267,328 units, respectively, in 2020.  While enthusiasts and analysts understandably worried Chrysler would die under Stellantis, Kelleher opined that the merger between Fiat Chrysler Automobiles (FCA) and PSA Group can make the brand stronger. Products and technology from the French side of the partnership can be leveraged to help Chrysler expand its range and increase its sales while keeping development costs in check, he said. He stopped short of revealing which vehicles he has in mind, but his comments are interesting because PSA's lineup is almost entirely made of up small, European-flavored cars that are diametrically opposed to the models Chrysler's reputation is built on.  Hatchbacks are dropping like flies in the American market, so putting a Chrysler badge on, say, a Peugeot 208 and bringing it to America is out of the question. Wagons are unpopular, too, which leaves crossovers and SUVs. Oddly, the Chrysler brand is not represented in one of the most popular market segments in the United States. PSA doesn't dabble in burly SUVs, like the Jeep Grand Cherokee, but it does small crossovers reasonably well. Could Chrysler move into the space occupied by the Toyota C-HR and the Hyundai Kona, among others?

Marchionne: Maserati to ‘switch all of its portfolio to electrification’  

After 2019, all Maseratis will be electrified, according to FCA CEO Sergio Marchionne. It's part of a larger electrification strategy from FCA as a whole, which intends to have half of its fleet electrified by the end of its five-year plan through 2022, Marchionne said. On an earnings call last week, he said: I'll give you a couple of broad sort of indications of where we are today in terms of the delineation of the post 2018 FCA. The first one and I've mentioned this in passing and other occasions about the fact that there's nothing that will prevent an OEM from engaging in the type of development work that Tesla has done so far. We have been – as you well know, we have been reluctant to embrace that avenue until we saw a clear – a path forward. I think we're now in a position to acknowledge at least one of our brands and in particular Maserati will, when it completes the development of its next two models effectively switch all of its portfolio to electrification. It's especially significant because of FCA's feet-dragging when it comes to offering hybrid and electric vehicles. As it currently stands, Fiat offers the 500e ­– of which Sergio Marchionne has said "I hope you don't buy it" because the company loses money on them — and Chrysler offers the Pacifica Hybrid minivan, which experienced significant launch delays. While diesel is an important part of the emissions strategy for 2020 standards in Europe, Marchionne said he thinks the current situation leaves diesel in a "weaker state" as a solution. Hence the electrification push. He said, "I think what has really made the issue absolutely mandatory now is the fate of diesel and the fact that it's actually the inclusion of, especially in Europe, of some type of electrification on gas engines is inevitable." In the short term, at least, it will put pressure on prices. Though Marchionne said he's "encouraged" by the direction of battery costs, he said, "I still think that there's going to be a huge increase in prices in 2021, 2022. If effectively the electrification becomes as widespread as people expect, there has to be a shift in pricing." He also says that FCA has no intention of making its own batteries. "Given the level of knowledge and depth of that knowledge that sits with other people in the industry, what right do I have to enter that space? None." We already know what the first two plug-in vehicles from Maserati will likely be. The company plans to launch an all-electric Alfieri in 2020.

FCA inline-six rumored to be real, headed for Jeep Wagoneer

In September, Allpar reported that that clues being dropped at Fiat- Chrysler headquarters, in the carmaker's factories, and on engineer resumes pointed to the development of an inline six-cylinder engine. The site has just proclaimed the rumor is reality, writing that the straight-six, "turbocharged to meet or beat 5.7 Hemi power ratings, with a smoother torque curve, is on the way." The motor's first outing is expected to be either the next-generation Jeep Grand Cherokee, debuting perhaps next year, or the Jeep Wagoneer, debuting in 2020 or 2021. "Tornado" is the purported codename for the power plant said to be just under three liters in displacement, expanding the family begun with the Global Medium Engine 2.0-liter turbo codenamed Hurricane. Engine bay constraints and a long use horizon mean engineers won't simply add two more cylinders to the GME, however. Allpar says the brief is to keep the Tornado GME-T6 — the alphanumeric for "turbocharged six" — no more than three inches longer than the Tigershark 2.4-liter four-cylinder. That means "major design changes" that could include a space-saving head, more closely spaced cylinders, and no cylinder liners. An FCA division called Comau could be called on for its "SmartSpray" plasma lining technology. Allpar muses that the standard version of the engine for Chrysler, Dodge, Jeep, and Ram could get a single twin-scroll turbocharger. Performance trims for Alfa Romeo and Maserati could get different heads and maybe twin turbos, an SRT version might also get both those tweaks. History shows that the Italian versions would make changes to the block, as well. Even so, the Tornado would be less expensive than any Ferrari-supplied V6. A straight-six would put FCA in company with current adopters BMW and Mercedes-Benz, future users like Jaguar, and perhaps Aston Martin. The engine would span the widest range of use cases in the U.S. carmaker's portfolio, though. Potential applications include being a base engine for Ram trucks, serving double duty as a base engine and 5.7-liter Hemi replacement for the Dodge Charger and Challenger, working in the high-end Jeeps, and as a properly hot trim — with Ferrari-designed heads — in the luxury Italian sports cars. The Alfa Romeo Giulia begs for just such motivation to fill the gap between the 280-hp, $42,695 Ti Sport RWD and the 505-hp, $73,700 Giulia Quadrifoglio RWD. And a twin-turbo inline-six in a Maserati Alfieri would stack up nicely with the Germans.