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Chrysler and Fiat are not going away, though the strategy is shifting

BALOCCO, Italy — At FCA's five-year plan extravaganza last week, most of the news was focused on just four brands — Jeep, Ram, Maserati and Alfa Romeo. In fact, Chrysler, Fiat and Dodge weren't even on the day's agenda. That led to some speculation that Chrysler might finally get the axe. Well, rumors of the brand's demise have been greatly exaggerated. In addition to an updated deal with Waymo, FCA CEO Sergio Marchionne expanded on future plans for Chrysler and Fiat during a Q&A session with investors and journalists. Marchionne said that Chrysler, Dodge and Fiat make up only 20 percent of global sales. While that means Jeep, Ram, Maserati and Alfa Romeo make up the bulk of FCA's profits (and most of that comes from Jeep and Ram). Currently, the Chrysler and Fiat brands just aren't important or valuable enough to warrant their own press conferences, but that doesn't mean things are doom and gloom. Marchionne said that both brands still have a future in FCA's portfolio. For Chrysler, that means more vans and possibly crossovers, and only in the North American market. The Pacifica and Pacifica Hybrid are doing well enough, so those will continue. Look for a crossover or two to come sometime down the line. Every Chrysler going forward will focus on utility and that's bad news for 300 enthusiasts: Marchionne said flat out that the Chrysler lineup won't contain any cars. Expect hybrid, plug-in hybrid and battery-electric versions of each new model. FCA plans to have an electrified version of every global model by 2022. Details were less clear for Fiat's future, though it won't be going away. The only new model that was announced was a new version of the all-electric Fiat 500e, a car Marchionne famously encouraged customers not to buy as the company lost $14,000 on each one sold. For North America, Fiat will focus on "green cars," though what exactly that means is unclear. Expect a refreshed version of the 500X in the next couple of years. Related Video: Image Credit: Reuters Earnings/Financials Green Chrysler Fiat Crossover Minivan/Van chrysler pacifica fiat 500e

Chrysler recalling 700k minivans and Dodge Journey for ignition switch woes

General Motors isn't the only automaker with ignition switch problems. Chrysler is fighting it too and is now announcing a recall of 695,957 examples worldwide of the Chrysler Town & Country and Dodge Grand Caravan minivans from the 2008-2010 model years, plus the 2009-2010 Dodge Journey.
According to a statement from Chrysler, the models have a bad wireless ignition node detent ring in the ignition switch, making it possible for drivers to appear to have the key in the "Run" position but for the spring not to fully engage. It can then slip back to the "Accessory" position and shut the car off. If this happens, the vehicle loses power steering, brake boost and the airbags.
There is some disparity about the number of vehicles affected under this recall. In its statement, Chrysler claims that it covers 525,206 vehicles in the US, 102,892 in Canada, 25,591 in Mexico and 42,268 elsewhere. However, the recall announcement posted by The National Highway Traffic Safety Administration lists an estimated 438,109 vehicles in the US. Chrysler spokesperson Nick Cappa told Autoblog via email that the reasoning for the different figures "will become clear at a later date."

UAW may be key to forced FCA merger with GM

Sergio Marchionne doesn't give up on a business deal easily. While outwardly not much has recently been said about FCA's attempted merger with General Motors, Marchionne might be hoping to garner a powerful, new ally that could help break things wide open. The United Auto Workers retiree health care trust is the single largest shareholder of GM with 8.7 percent of the stock, and having its support would certainly improve FCA's position in getting a deal done. "Whatever happens in terms of consolidation, it would never be done without the consent and support of the UAW," Marchionne said when FCA recently began contract talks with the UAW, The Detroit News reports. The boss is also allegedly on good terms with the union president Dennis Williams. Still, using the organization for a hostile takeover could be very difficult because of the way its votes are structured. Other activist investors might already be on board, though. Marchionne believes that consolidation in the industry is vital because automakers are investing to create the same technologies. A GM/FCA merger still has many roadblocks, though, including the fact that Marchionne's company is smaller than GM. From a regulatory perspective, the size of the merged company could raise serious anti-trust concerns among regulators, according to The Detroit News. There's also the concern for lost jobs from redundant work with the two combined businesses. Even if the UAW angle doesn't work out, there are contingency plans afoot for other merger targets. According to The Detroit News speaking to anonymous insiders, FCA bigwigs have a meeting in London on Thursday to take a close look at other options. In addition to GM, they are investigating possible deals with Volkswagen and the Renault-Nissan Alliance. In the past, PSA Peugeot Citroen and multiple Asian automakers have also been brought up as partners, and UBS has reportedly been providing financial advice on what to do.