2022 Chrysler Pacifica Touring L on 2040-cars

Auto blog

PSA reportedly ditching its two tiny gasoline city cars ahead of merger

The Peugeot 108.   PARIS — PSA is ending the production of Peugeot and Citroen small city cars, three sources told Reuters, withdrawing from an increasingly unprofitable market as its starts a strategic review ahead of its planned merger with Fiat Chrysler. While PSA had already agreed to sell its stake in its Czech joint venture with Toyota where the Peugeot 108 and Citroen C1 models are made, the decision to stop selling the gasoline cars altogether has just been taken, the sources said. Carmakers are reviewing the production of vehicles with combustion engines as they need to fit costly exhaust filtering systems to meet tighter emissions laws. That's pushing up the cost of some so-called entry-level A segment cars to the point where they are hard to justify economically. "PSA is getting out of both the factory and the A segment business, as it is offered today, and on which manufacturers have arguably lost the most money in Europe," one of the sources familiar with the matter said. PSA declined to comment on the future of the two small cars. It said it was reviewing which products would best meet customer expectations in the A segment and cope with European carbon emissions targets. "This means a reflection with fresh and disruptive ideas," a spokesman for the French carmaker said. The European Commission is planning to tighten its emissions limits for cars under new proposals designed to cut the bloc's greenhouse gas output further by 2030. PSA's merger project with FCA has also increased the options available, two of the sources said, as the Italian-U.S. company has no intention of abandoning its small best-selling Panda and 500 models. Both already have hybrid versions and the 500 is also available in full electric mode. "Current projects could be replaced by new ones made possible by the merger with FCA", another source said. "The merger is turning all the cards around, especially when you consider that the A segment, from the very first 500 to the Panda, is inseparable from Fiat history". FCA declined to comment. PSA and FCA aim to finalize their merger in the first quarter next year to create a new company called Stellantis, which will be the fourth-biggest automaker in the world. Market contraction The European market for frugal city cars has been shrinking for several years.

Chrysler 300 could become an electric sedan for 2026

Australian outlet Drive says it got eyes on "insider information" that revealed Chrysler has an electric sedan in development. As has been practice for the Pentastar since long before Stellantis, this Chrysler four-door would be the platform sibling of an electric Dodge sedan, the Dodge version to arrive sometime in 2024, the Chrysler variant about two years later. Nothing in the documents identified the EV sedan as a replacement for the 300, but Drive lays out a trail of circumstantial evidence that points to this conclusion. The documents say the vehicles will run 800-volt electrical architectures, thought to mean they'll also get the most powerful versions of Stellantis' new electric motors making anywhere from 201 to 443 horsepower. And because of that, Drive expects these products to use the STLA Large platform, the platform an electric 300 would sit on. Chrysler's working up a range of new products as part of the numerous brand resets Stellantis committed to. In January, Chrysler CEO Christine Feuell told Automotive News the coming portfolio "will include a number of brand-new products that don't exist today, but also products that are still playing in segments that we're in already," calling out the fact that Chrysler only plays in the large sedan and minivan segments. Then she said, "Our intention is to redefine products for those segments, and they're certainly going to be a vast departure from what's in market today."  The automaker's first EV is expected to be the Airflow, teased during the Stellantis EV day last summer before being debuted at CES in January. With Dodge already making a muscle car, turning that into a product for Chrysler seems like a no-brainer. Thing is, Drive's information and Feuell's comments could be applied to the Airflow. It's on the STLA Large platform, will pack two motors producing a combined 402 hp, and fit a battery capable of juicing a 400-mile range. As far as we can tell, Chrysler has never called it a crossover yet. Not that the nomenclature would matter anyway, since any model name with brand equity can be turned into any other kind of vehicle (see: Aspen, Blazer, Maverick, et al). The Airflow name on an EV makes a logical tie to the original Airflow produced from 1937 to 1940, that original car so named because of its aerodynamic features. But if the Airflow EV hit the market as the new 300, we couldn't say we hadn't seen that trick before.

With contract expiration days away, UAW targets GM first for negotiations

The United Auto Workers union on Tuesday said that it would target General Motors as the first of the Detroit automakers for talks ahead of the current four-year contract's expiration on Sept. 14. This year's contract talks between the union and GM, Ford and Fiat Chrysler Automobiles NV are expected to be contentious as U.S. new vehicle sales are slowing and automakers face rising costs associated with the development of electric vehicles and self-driving cars. Rising healthcare costs, job security, profit sharing and the use of temporary workers are expected to be major sticking points. GM in particular has been a target of union ire since announcing the closure of five North American plants late last year. That move drew a wave of criticism, including from U.S. President Donald Trump. Trump has repeatedly prodded GM and last week said the No. 1 U.S. automaker should begin moving its operations in China back to the United States. "We are prepared and we are all ready to stand up for our members, our communities and our manufacturing future," UAW President Gary Jones said in a statement. In a statement, GM said, "We look forward to having constructive discussions with the UAW on reaching an agreement that builds a strong future for our employees and our business." The contracts come at a difficult time for the UAW, as a federal corruption investigation into the union continues to grow. Last week, the FBI conducted searches at Jones' home, a union retreat and multiple other locations, including the home of the union's previous president, Dennis Williams. To date, seven people linked to the union and the automaker have been sentenced in the government's corruption investigation. Reporting by Nick Carey.