2004 Chrysler Sebring on 2040-cars

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Why FCA-PSA merger is no quick fix for their China problem

BEIJING — Fiat Chrysler and Peugeot owner PSA's merger is unlikely to provide a quick fix to their problems in China, as both companies have long struggled to find the right products at the right price for the world's top car market, analysts say. The companies said on Thursday they aimed to reach a binding deal in the coming weeks to create the world's fourth-biggest automaker by production volume. But scale alone will not make Italian-American Fiat Chrysler Automobiles (FCA) and France's PSA Group more competitive in a market where they have been slow to adapt to trends and win over consumers, leading their sales to lag far behind foreign rivals such as Volkswagen and General Motors. PSA does not have enough competitive SUV models, and neither company has enough electric and plug-in hybrid vehicles, or enough cars packed with hi-tech features for Chinese tastes, analysts say. In a market where 28 million cars were bought in 2018, FCA sold just 155,215, while PSA sold 257,723, according to consultancy LMC Automotive. At the end of September, FCA had a market share of 0.5% in China's passenger car market, while PSA's was 0.6%. Analysts say they have been squeezed by Japanese and local brands, which have product line-ups better suited to Chinese tastes at cheaper prices. "Both companies are very home-market centred and have failed to adapt to shifts in Chinese market preferences," said Bill Russo, head of Shanghai-based consultancy Automobility Ltd and a former senior Asia-based Chrysler executive. "Neither company has recognized and delivered on the trends of shared, connected and electric vehicles,” Russo said. That makes them ill-prepared to deal with further shifts in the Chinese market, which saw annual sales contract for the first time since the 1990s last year and is expected to see another drop this year. "China's overall market is experiencing a transmission and adjustment period," said Alan Kang, a Shanghai-based senior analyst at LMC Automotive. "It is very hard for these two companies, which do not have enough competitive up-to-date products, to quickly recover with the merger." FCA has a partnership in China with Guangzhou Automobile Group, which said on Thursday it backed the merger. PSA has been trying to reboot its operations in China.

Chrysler-Fiat quality chief out after another poor Consumer Reports showing

Fiat Chrysler has announced a management change following the company's woeful performance in the latest Consumer Reports Annual Auto Reliability Survey. Of the 28 brands surveyed, FCA's marques occupied the five the seven lowest scores, while Dodge, Ram, Jeep and Fiat were the four lowest scorers.
Doug Betts, FCA's 51-year-old head of quality "left the company to pursue other interests," which, considering the aforementioned paragraph, means he was sacked. According to Automotive News, Betts joined Chrysler in 2007, defecting from Nissan, and, insiders report, had a somewhat tumultuous relationship with new boss Sergio Marchionne.
His replacement is the newly promoted Matthew Lidane (shown at inset), who was formerly VP of systems and components. Lidane has been at Chrysler since 1987 and was previously chief engineer of the Jeep product team as well as the vehicle line boss for the compact US wide platform which (ironically) underpins two of FCA's lowest scoring vehicles, the Dodge Dart and Jeep Cherokee.

Junkyard Gem: 1987 Chrysler LeBaron Coupe

For the 1989 through 1991 model years, Chrysler and Maserati teamed up to create one of the most fascinating machines of the era: the Chrysler TC by Maserati. Built in Milan, the chassis and general body lines of the TC derived from the smooth-looking 1987 Chrysler LeBaron Coupe (just as its Turin/Hamtramck-made Cadillac Allante competitor traced its ancestry to the Eldorado). After writing about a few discarded TCs, I decided that I'd keep my junkyard eye open for an example of its LeBaron Coupe sibling. Here's an '87, customized in proper mid-2000s-style Fast & Furious Mode, found in a self-service yard in northeastern Colorado. The LeBaron name came from a 1930s coachbuilder, ultimately bought by Chrysler, and spent many decades being applied to super-luxe Imperial models. In the late 1970s and early 1980s, Chrysler glued LeBaron badges and lots of bling on the Dodge Diplomat; the famous Iacocca-era K-Car LeBarons followed in the 1982 model year. The original K-based LeBaron Coupe seemed boxy and stodgy, so a slicker design went on a modified K chassis for the 1987 through 1995 model years. This car got some serious interior modifications at some point, including aftermarket seats, purple-and-white paint on the dash, and fiberglass door panels. The original door controls now live in diamond-plate panels. The gauge faces have faded in the harsh Colorado sun, but they appear to be custom-made. The engine is long gone from the yellow-wire-loom-decorated compartment, but the emissions sticker on the hood underside indicates that it was the 2.2-liter turbocharged four, rated at 146 horsepower. That was a big number for a 2,731-pound car in 1987. More LeBarons than you might have expected came with manual transmissions around this time, but this one has the three-speed automatic. The big-bore tailpipe got stuffed with dirt at some point during this car's journey here. The hood scoop must have been so good that a junkyard shopper grabbed it. I hope it stood at least a foot tall. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. James Earl Jones did the narration on these heart-pounding advertisements. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. Even though the earlier LeBarons were very different cars, we need to get Ricardo Montalban in here. Here's Ricardo after being seduced by the '84 LeBaron convertible.