2022 Chrysler Pacifica Limited on 2040-cars

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FCA and Peugeot reportedly agree on merger

Citing a Wall Street Journal report, the Detroit Free Press says "Fiat Chrysler and PSA Groupe have agreed to merge." The Journal reported on talks between the two car companies only yesterday. It's said that Peugeot's board met yesterday to approve the deal, FCA's board met today, and an announcement could come as soon as tomorrow, Thursday. Both automakers have released statements, but neither company has released any information beyond admitting to ongoing talks. If the merger happens, the combined entity would become the world's fourth-largest carmaker with a $50 billion valuation, slotting in behind Toyota, the Volkswagen Group, and the Renault Nissan Mitsubishi alliance. Among the merger options possible, "an all-stock merger of equals" is the one analysts and Moody's seem to give the best grade. The reported merger would come about four months after FCA walked away from merger talks with Renault. FCA said the French government scuppered those talks over the role of Nissan in a reformed entity, but there were also brewing issues with French unions, and ongoing turmoil among Renault and Nissan leadership thanks to continuing fallout from ex-CEO Carlos Ghosn's arrest last year. FCA makes most of its revenue in the U.S. and rules Italy, while Peugeot is the second-best-selling automaker in Europe with its own brand in France and Opel in Germany. The two companies already have a partnership in Europe making vans, one that FCA CEO Mike Manley has spoken highly of. Among the list of obvious benefits in a potential merger, FCA would get access to Peugeot's small, modern platforms, $10.2 billion in cash, and electrified and hybrid architecture developments, the latter especially important to FCA as those are fields where it lags. Peugeot would get much easier access to the U.S. market, and the money-printing brands Jeep and Ram. A merged carmaker would have combined sales of nearly 9 million a year, based on 2018 results. By comparison, both Volkswagen and Toyota sell over 10 million cars a year, while the Renault-Nissan-Mitsubishi alliance almost 11 million. Peugeot CEO Carlos Tavares has proved he knows how to do turnarounds and mergers. After leaving a position as Carlos Ghosn's right-hand man in 2012, Tavares took over Peugeot in 2014, navigated a bailout from the French government and China's Dongfeng Motors in 2015, and turned PSA into a regional powerhouse.

Chrysler develops fix for Pacifica PHEV minivan fires

In February, Stellantis recalled 19,808 examples of the 2017 and 2018 Chrysler Pacifica plug-in hybrid minivan due to reports of fires in 12 vehicles. The minivans were manufactured between August 12, 2016, and August 7, 2018. All were parked and turned off when they caught fire; eight of them were plugged in and charging. While engineers worked to isolate the source of the fires, Chrysler advised what's become standard practice in the case of electrical-related fire risks: For owners to park outside away from other objects that could catch on fire. Since then, there have been two more fires in Pacifica PHEVs and the first report of a minor injury because of a fire. Chrysler says it's developed a solution to return the minivan to normal operation and is notifying owners now. The fix is a trip to the dealer to have upgraded software installed for the High Voltage Battery Pack Control Module (BPCM) that manages the 16-kWh lithium-ion battery. Dealers will also inspect the battery pack and replace it if necessary. Of note, Chrysler says it hasn't definitively pinned down the cause of the fires, but it understands the conditions that can lead to the fires. The software's been updated to address these preconditions, the automaker telling Green Car Reports it "has validated its remedy." Owners should continue to park outside and away from structures and refrain from plug-in charging until their vans are fixed, after which they can "resume vehicle operation as outlined in their owners’ manuals." The repair will take from 1.5 to two days; a rental or courtesy car will be provided free of charge.  Stellantis has already begun sending letters to owners. Those with questions can contact their Chrysler dealerships, or get in touch with Chrysler customer service at 800-853-1403 and refer to recall number Z11. They can also call the National Highway Traffic Safety Association (NHTSA) Vehicle Safety Hotline at 888-327-4236 (TTY 1-800-424-9153) and mention campaign number 22V077.   

FCA US under-reported death and injury claims to NHTSA

The National Highway Traffic Safety Administration says FCA US significantly under-reported death and injury claims due to flaws in its early warning system. The government first discovered a potential problem with the automaker's reporting in late July, and FCA US has been investigating the issue since. NHTSA claims that the problem appears linked to the way the company gathers and reports safety information. The agency is still investigating how serious the flaws are and their causes. "This represents a significant failure to meet a manufacturer's safety responsibilities," NHTSA Administrator Mark Rosekind.Rosekind said in a statement. FCA US admits that it "identified deficiencies" in the reporting, but in a statement the company said that it notified NHTSA of the issue immediately. The company promised that it is taking this problem "extremely seriously" and pledged to remedy the situation. In late July, FCA US was hit with a potential $105-million fine by NHTSA for the way the automaker conducted some recalls. As part of that agreement, the company also consented to more rigorous oversight by safety regulators in the future and a buy-back of some affected vehicles. Other automakers have been punished for failing to submit EWR data. Honda incurred a $70 million fine in January from NHTSA for missing 1,729 incidents over 11 years. Ferrari had to pay $3.5 million in 2014 for not sending them in for three years. Statement from NHTSA Administrator, Mark Rosekind, on Fiat Chrysler Automobiles' under-reported discrepancy in FCA's Early Warning Report data September 29, 2015 "In late July, NHTSA notified Fiat Chrysler Automobiles of an apparent discrepancy in FCA's Early Warning Report data. FCA has informed NHTSA that in investigating that discrepancy, it has found significant under-reported notices and claims of deaths, injuries and other information required as part of the Early Warning Reporting system. Preliminary information suggests that this under-reporting is the result of a number of problems with FCA's systems for gathering and reporting EWR data. This represents a significant failure to meet a manufacturer's safety responsibilities. NHTSA will take appropriate action after gathering additional information on the scope and causes of this failure." – Mark Rosekind, NHTSA Administrator. Statement: TREAD Reporting September 29, 2015 , Auburn Hills, Mich.