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Marchionne says no offers are on the table for Fiat Chrysler

MONZA, Italy (Reuters) - Fiat Chrysler (FCA) has not received any offer for the company nor is the world's seventh-largest carmaker working on any "big deal", Chief Executive Sergio Marchionne said on Saturday. Speaking on the sidelines of the Italian Formula One Grand Prix, Marchionne said the focus remained on executing the company's business plan to 2018. Asked whether FCA had been approached by someone or whether there was an offer on the table, he simply said: "No." The company's share price jumped to record highs last month after reports of interest for the group or some of its brands from China. China's Great Wall Motor Co Ltd openly said it was interested in FCA, but had not held talks or signed a deal with executives at the Italian-American automaker. The stock move was also helped by expectations that the company might separate from some of its units. Marchionne reiterated on Saturday that FCA was working on a plan to "purify" its portfolio and that units, such as the components businesses, would be separated from the group. He hopes to complete that process by the end of 2018. "There are activities within the group that do not belong to a car manufacturer, for example the components businesses. The group needs to be cleared of those things," he told journalists. Asked whether an announcement could come this year, Marchionne said it was up to the board to decide and that it would next meet at the end of September. He said the time was not right for a spin-off of luxury brand Maserati and premium Alfa Romeo and the two brands needed to become self-sustainable entities first and "have the muscle to stand on their feet, make sufficient cash". "The way we see it now, it's almost impossible, if not impossible, to see a spin-off of Alfa Romeo/Maserati, these are two entities that are immature and in a development phase," he said. "It's the wrong moment, we are not in a condition to do it." He said the concept of separating the two brands from FCA's mass market business made sense and did not rule out this happening in future, but not under his tenure, which lasts until April 2019. "If there is an opportunity in future, it would certainly happen after I'm gone. It won't happen while Marchionne is around," he said.

FCA cuts powertrain warranties to 60k miles

FCA US is cutting back the mileage of its powertrain warranty on some 2016 model year vehicles. Rather than the current five years/100,000 miles of coverage, the new amount is five years/60,000 miles for gasoline-fueled models from Chrysler, Jeep, Dodge and Ram. In March 2015, General Motors made a similar switch to five-years/60,000-miles of coverage for Chevrolet and GMC, and FCA US seems to be citing this as part of the reason for the shift. "Following changes already made by competitors, FCA US is adjusting powertrain warranty coverage for 2016 model year vehicles to be more consistent with industry practices," the automaker said in a portion of its statement. The bumper-to-bumper warranty for these vehicles is unchanged at three years/36,000 miles. According to Automotive News, Fiat's warranty is remaining at four years/50,000 miles. When it changed the mileage limit, GM also halved the number of free service visits for Chevy, GMC, and Buick to two from the previous four. The automaker claimed that the reason for the adjustments to its coverage was that a long warranty was seldom a reason for customers to buy a vehicle. Related Video: Response to Query: 2016MY Powertrain Warranty Adjustment Following changes already made by competitors, FCA US is adjusting powertrain warranty coverage for 2016 model year vehicles to be more consistent with industry practices. For 2016MY, Chrysler, Jeep®, Dodge and Ram Truck vehicles with gasoline engines will be covered by a 5 year/60,000 mile powertrain warranty. The basic coverage, also known as "bumper to bumper," remains at 3 years/36,000 miles. # # # News Source: FCA US, Automotive News - sub. req.Image Credit: Mark Ralston / AFP / Getty Images Chrysler Dodge Jeep RAM Car Buying Maintenance Ownership FCA warranty fca us powertrain

Dodge recalls 121,603 examples of Dart for loss of brake assist

Dodge will recall 121,603 worldwide examples of the 2013-2014 Dart with the 2.0- and 2.4-liter engines because of possible loss of power brake assistance. The company reports two minor injuries and seven accidents potentially related to this problem. The affected models have build dates before Jan. 24, 2014. There are 105,458 of these vehicles in the US; 11,996 in Canada; 3,705 in Mexico; and 444 outside of NAFTA. This campaign doesn't affect Darts with the 1.4-liter engine. These vehicles' brake-booster vacuum tube routing can potentially allow oil to access and eventually to degrade the brake booster diaphragm. If this happens, then the vehicles could lose braking assist. The brakes themselves would continue to work, but the driver would experience longer stopping distances. A pop or similar sound of a vacuum leak sometimes precedes the problem, according to the automaker. Dealers will inspect the components and replace the vacuum tube. If technicians find oil in the tube, they'll also swap out the vacuum pump, brake booster, and master cylinder. Affected owners will receive notice from the company within the next 60 days. Statement: Vacuum-tube Assembly December 3, 2015 , Auburn Hills, Mich. - FCA US LLC is voluntarily recalling an estimated 105,458 compact sedans in the U.S. to inspect and replace vacuum-tube assemblies and certain other components, as required. Some of the affected vehicles may be subject to oil migration that could affect their brake systems' power-assist feature. Foundation brake function is unaffected. However, if this condition occurs, the driver may notice hard pedal-feel on brake application, and longer distances may be required to stop the vehicle in emergency situations. An FCA US investigation identified certain model-year 2013-14 vehicles equipped with 2.0-liter and 2.4-liter engines, may have brake-booster vacuum-tube routing that inadvertently allows oil to reach the brake booster diaphragm, if ever the vacuum-pump check valve fails. Oil may degrade the diaphragm and lead to a loss of brake-assist – a feature that helps reduce stopping distances. FCA US is aware of two minor injuries and seven accidents that are or may be related to this condition. The recall is limited to model-year 2013-14 Dodge Dart sedans produced before Jan. 24, 2014. It also affects an estimated 11,996 cars in Canada; 3,705 in Mexico and 444 outside the NAFTA region. Vehicles equipped with 1.4-liter engines are excluded.