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FCA eliminates just under 2,000 supplemental contract workers due to coronavirus constraints

Car companies have jumped in quickly to help combat coronavirus. They’re even beginning to manufacture some of the badly needed medical supplies, like ventilators and masks. However, with stay-at-home orders sweeping across the nation and folks practicing social distancing, automotive sales and manufacturing have quickly dried up in North America. That leads us to todayÂ’s news coming out of FCA. A company spokesperson told us that approximately 2,000 supplemental workers (a subcategory of the companyÂ’s many contract workers) are being laid off. HereÂ’s the official statement from FCA: “In light of the challenges created by the COVID 19 situation, and the various ‘stay at homeÂ’ orders from multiple states, a number of development projects within FCA have been temporarily put on hold. "As a result of this, subcontract companies who were providing external support to a number of these projects have been asked to temporarily suspend their activities as we reprioritize certain initiatives and projects. We will continue to monitor the situation with the intent to return to normal activity as soon as the situation allows.” FCA made it clear in our communications with the company that it is not terminating all contract workers, nor is it terminating any employees of the company itself. The rationale here is that certain development work is on pause, so those who were contracted to be a part of that work are now out. We're told that those workers are in white-collar functions, not manufacturing jobs. We asked FCA if it had plans to reinstate all of the affected workers once the coronavirus crisis has passed, but received no commitment either way. “At this point weÂ’re going to continue to monitor the situation,” a company spokesperson told us. Questions still remain when it comes to the stimulus package moving through Congress right now as it pertains to the automotive industry. FCA says itÂ’s currently studying the bill, but hasnÂ’t offered up a comment on the situation yet. We havenÂ’t heard of any similar cuts happening at Ford or GM yet, but now that FCA has made a move, weÂ’ll be on the lookout for more. Hirings/Firings/Layoffs Chrysler Fiat coronavirus

Dodge Grand Caravan to live in fleets through 2017

After a hard-working career of hauling around families for decades, the Dodge Grand Caravan name was set to retire in 2016 under FCA's five-year plan for the US. The decision would have put all of the automaker's focus behind the next-generation Chrysler Town & Country, but that original strategy might have changed. Now, Dodge's minivan may have to work just a few more years before it can finally shuffle off. There are set to be 2016 and 2017 model year examples of the current Grand Caravan, according to an internal FCA production document obtained by Automotive News. This report suggests no changes in the minivan between those two years, and there's no mention of the company's intentions deeper into the future. "While we've announced the Grand Caravan will eventually be the minivan that goes away, we're not going into more detail at this time," a Dodge spokesperson said to AN. For the next Town & Country, production would start in Windsor, Ontario, in late February 2016. This document also suggests a brief run of 2016 Chrysler minivans based on the current model from August 2015 until February 2016. Automotive News speculates that the reprieve for the Grand Caravan could allow that model to focus on fleets and the Canadian market while the new Town and Country gets up and running. The latest generation T&C will reportedly debut at the 2016 Detroit Auto Show and will possibly carry a higher price to befit a vehicle with a more modern platform and improved tech.

Vans aren't glamorous, but they're key to EU blessing FCA-PSA merger

MILAN/PARIS — Their silhouettes don't stir dreams of adventure like a sports car or trendy SUV, but vans are a rare source of profit for European carmakers, which is why EU regulators are focused on them as they decide whether to back an industry mega-merger. European competition regulators are worried that Fiat Chrysler and Peugeot maker PSA's proposed merger may harm competition in small vans. With a total of 755,000 vans sold last year in Europe, the combined Fiat Chrysler (FCA) and PSA would get a market share of around 34%, based on industry data, more than double that of Renault and Ford, with shares around 16% each. Volkswagen and Daimler follow with market shares of 12% and 10% respectively. "Commercial vans are important for individuals, SMEs and large companies when it comes to delivering goods or providing services to customers," European Union competition chief Margrethe Vestager said in a statement, announcing an in-depth investigation into the proposed merger. "They are a growing market and increasingly important in a digital economy where private consumers rely more than ever on delivery services." Dario Duse, a managing director at consultancy firm AlixPartners, said demand for vans was not based on people's disposable income, as for cars, but rather on GDP and industrial trends, and in particular the logistics industry, where big players such as Amazon or DHL operate. "Logistics is a business segment which is having a significant growth, for several reasons including e-commerce, where you need efficient and agile vans for interurban and city deliveries," he said. "LCVs (light commercial vehicles) may recover faster than passengers cars in the post-COVID-19 phase." Sales of vans up to 3.5 tonnes in Europe amounted to 2.2 millions vehicles last year, compared to 15.8 million for passenger cars, according to data provided by the European Auto Industry Association (ACEA). The light commercial vehicles (LCVs) market may be secondary in terms of volumes, but it remains highly profitable in an industry where margins are constantly under pressure. Margins are generally higher than on passenger cars, up to 5-10 additional percentage points, AlixPartners says. "With LCVs you don't have to fulfill a series of consumer expectations that drive additional complexity and costs, such as for interiors. LCV customers are more rational and business driven," Duse said. And while electrification in heavy trucks is complicated, it might come sooner for LCVs.