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FCA's U.S. sales chief sues company for wrongful retaliation

Some fresh controversy is brewing at Fiat Chrysler Automobiles as The Detroit News reports that the head of U.S. sales has filed a federal whistleblower lawsuit against the company.. Reid Bigland, who's also in charge of the Ram truck brand, alleges that FCA made him a scapegoat for wrongful sales inflation practices and fixing vehicle sales statistics, which are currently under investigation by federal agents. Bigland claims that FCA executives punished him for cooperating with the federal investigators in the case by cutting his pay by more than 90 percent, according to the lawsuit he filed. The plan apparently was to use the money saved to pay for fines following any settlements made with the Securities and Exchange Commission. So far, the lawsuit alleges that FCA cost Bigland over $1.8 million in income. "They had the largest growth in retail sales in 17 years last year and refuses to pay him," Deborah Gordon, Bigland's lawyer in the case, said to The Detroit News. "Why is that? Because he participated in the SEC investigation and they don't like what he said." Bigland claims he just cooperated with the SEC investigation by testifying about FCA's sales reporting, from the time he took the position to the period prior to being appointed the company's U.S. sales chief. "In late 2018, presumably as a way to wrap up their investigation with some result, the SEC suggested to plaintiff that he admit to some wrongdoing as to defendants' monthly sales reporting," Gordon further said in a statement as part of the lawsuit. "The SEC also suggested a resolution involving some penalty to FCA. Because (Bigland) had not engaged in any wrongdoing, and there was no wrongdoing, he declined to do so." However, exacerbating the issue is the fact that Bigland reportedly sold his shares in the company last year, prompting FCA to act against him even more. FCA came under fire recently by federal agents in at least two separate investigations, potentially exposing conspiracy and corruption between company executives and private entities. The investigations are being led independently by the U.S. Attorney's Office and the FBI. So far, eight convictions were reportedly secured, with one including former Fiat Chrysler Automobiles Vice President Alphons Iacobelli, as one of the defendants. Iacobelli was one of the former top labor-relations executives for the automaker.

The Chrysler brand could be axed under Stellantis management

MILAN — While running NissanÂ’s North American operations from 2009 to 2011, Carlos Tavares had a reputation for closely watching costs with little tolerance for vehicles or ventures that didnÂ’t make money. Experts say that means Tavares, currently the head of PSA Group, is likely to follow that blueprint when he becomes leader of a merged PSA and Fiat Chrysler Automobiles. The low-performing Chrysler brand might get the axe as could slow-selling cars, SUVs or trucks that lack potential. Already the companies are talking about consolidating vehicle platforms — the underpinnings and powertrains — to save billions in engineering and manufacturing costs. That could mean job losses in Italy, Germany and Michigan as PSA Peugeot technology is integrated into North American and Italian vehicles. “You canÂ’t be cost efficient if you keep the entire scale of both companies,” said Karl Brauer, executive analyst for the iSeeCars.com auto website. “WeÂ’ve seen this show before, and weÂ’re going to see it again where they economize these platforms across continents, across multiple markets.” Shareholders of both companies are to meet Monday to vote on the merger to form the worldÂ’s fourth-largest automaker, to be called Stellantis. The deal received EU regulatory approval just before Christmas. Tavares, who for years has wanted to sell PSA vehicles in the U.S., wonÂ’t take full control of the merged companies until the end of January at the earliest. He likely will target Europe for consolidation first, because thatÂ’s where Fiat vehicles overlap extensively with PSAÂ’s, said IHS Markit Principal Auto Analyst Stephanie Brinley. Europe has been a money-loser for FCA, and factories in Italy are operating way below capacity — a concern for unions, given FiatÂ’s role as the largest private sector employer in the country. “We are at a crossroads,Â’Â’ said Michele De Palma of the FIOM CGIL metalworkersÂ’ union. “Either there is a relaunch, or there is a slow agonizing closure of industry, in particular the auto industry, in Italy.” ItalyÂ’s hopes lie with the luxury Maserati and sporty Alfa Romeo brands, but De Palma said investments are needed to bring hybrid and electric technology up to speed. FiatÂ’s Italian capacity stands at 1.5 million vehicles, but only a few hundred thousand are being produced each year. Most factories were on rolling short-term layoffs due to lack of demand, even before the pandemic.

Junkyard Gem: 1994 Dodge Spirit

Under Lee Iacocca's watch, Chrysler began selling the first of the modern new K-Cars for the 1982 model year, and American sales of Ks and K-derived cars and minivans continued all the way through 1995. While these vehicles saved Chrysler from near-certain doom after the agony of a government bailout in 1979, the platform had become pretty outdated by the middle 1990s (though GM didn't hesitate to sell its similar-vintage J-Cars well into our current century). The Spirit replaced its aging Aries cousin starting in 1989, and has become very tough to find today. Here's a late Spirit with the optional Mitsubishi V6 engine, found in a Denver self-service yard recently. For the 1991 and 1992 model years, the Spirit R/T was the fastest new four-door car you could buy in the United States. With 224 horsepower from a very nervous turbocharged 2.2-liter engine, the Spirit R/T could run the quarter-mile in 14.5 seconds and hit a top speed of 141 mph. Today's Junkyard Gem isn't one of those cars, unfortunately. The base engine in the 1994 Spirit was a 2.5-liter Chrysler straight-four rated at 100 horsepower, but this car has the optional 142-horse Mitsubishi 6G72 V6 engine. The 6G7 family of engines remains in production to this day, 35 years after the first one went into a Galant, and members of this engine family have powered everything from the Diamante to the Sonata. On Chrysler vehicles of all-Mitsubishi design from this era, the engines tended to have big Mitsubishi emblems prominently displayed. For a Chrysler-designed car, though, it made more sense to badge the engine as a Chrysler. Note the British spelling of the unit of displacement here; GM and Ford started that trend back in the 1960s, with the "6.5 litre" Pontiac GTO and "7.0 litre" big Fords. With the big engine plus power windows, decklid luggage rack, and other luxurious (for a Spirit) options, I'm pretty sure this car didn't start life in a fleet. It drove more than 175,000 miles during its time on the road. The resale value of a 26-year-old Detroit sedan with high miles can't be much, even if the interior still looks nice enough, so any mechanical problem (or just a trade-in) spells doom for cars such as this one. The gold insets in the aluminum wheels look very stylish. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. 117 out of 200 Americans preferred the Spirit to the Honda Accord! This content is hosted by a third party.