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Fiat Chrysler CEO says final merger talks with Peugeot going well

BRUSSELS — Fiat Chrysler's chief executive Michael Manley said on Wednesday that merger talks with Peugeot owner PSA  to create the world's No. 4 carmaker are progressing well and he hopes to have a deal within 12-14 months. Speaking to Reuters on the sidelines of an industry meeting, he said he doesn't expect any major obstacles that could delay a final agreement. "Talks are progressing really well," Manley said about negotiations with the French carmaker ahead of a briefing by the European automotive association (ACEA), of which he is president. His comments come a month after the two carmakers agreed to a binding deal worth about $50 billion to combine forces in response to a slowdown in global demand and mounting costs of making cleaner vehicles amid tighter emissions regulations. Manley's timeline for completing the deal by early 2021 is in line with a forecast made by the companies in December. Fiat and Peugeot are now getting into the details of how the merger will work, including choosing which vehicle platforms — the technological underpinnings of a vehicle — will fit which products in a combined company. Because customers in different locations still prefer vastly different cars, there is room for multiple platforms in a combined group, Manley said. "That global platform is an elusive beast," he added. "This concept of a massive global platform in my mind is almost a myth, but that doesnÂ’t mean to say weÂ’re not going to recruit significant volume." Related Video:    

Stellantis will give its brands 10 years to prove they deserve to live

Formed by the merger of PSA Peugeot-Citroen and Fiat-Chrysler Automobiles, Stellantis has 14 brands under its roof, a number that makes it one of the largest groups in the industry. Rumors claimed not every brand would survive, with Chrysler often earmarked to get axed, but the firm said it will give them all a chance to shine. "We're giving each (brand) a chance, giving each a time window of 10 years and giving funding for 10 years to do a core model strategy. The CEOs need to be clear in brand promise, customers, targets, and brand communications," announced Stellantis boss Carlos Tavares during the Financial Times' Future of the Car event. His comments confirm Chrysler fans and dealers don't need to worry about the future — at least not yet. And, against all odds, Lancia enthusiasts can breathe a sigh of relief, too. Former FCA head Sergio Marchionne warned of the brand's demise on several occasions. Alfa Romeo is safe for now, too, as is Vauxhall, which are basically just Opels sold in the United Kingdom with a different badge. The engagement made by Tavares also means Stellantis won't divest any of its brands to raise capital until at least 2031. It's now up to each executive team to make a case for the brand they run, an unusual survival-of-the-fittest strategy in an era when cutting costs is more common than spending cash. Diving into the vast Stellantis parts bin should help even the most troubled brands turn their fortunes around on a relatively tight budget. It seems likely that survive Chrysler will need to look beyond the 300 and the Pacifica/Voyager, the only models in its range, and completely reinvent its image, which is currently nebulous at best. Lancia, once the champion of luxury, performance, and innovation, faces the same challenge. It's not starting quite from scratch, it's relatively popular in its home country of Italy, but it will need to think globally and expand outside of the city car segment to survive. Featured Gallery 2020 Chrysler 300 View 24 Photos Chrysler Dodge Fiat Jeep RAM Citroen Lancia Opel Peugeot Vauxhall

FCA UConnect fiasco could set over-the-air updates back years

Since cars have become more software dependent, most major automakers have been inching toward enabling over-the-air updates to keep vehicle electronics, ranging from infotainment systems to safety features, current. But there are only two car companies — Fiat Chrysler and Ford —± currently doing OTA updates, and on a limited basis. GM CEO Mary Barra announced last summer that the automaker will launch a new EV architecture and infotainment system capable of over-the-air updates "before 2020." The one exception, per usual, is Tesla. Since the release of the Model S almost six years ago, the maverick EV automaker has made routine OTA software updates a core part of its vehicle platforms and value proposition, and has sent out updates for everything from adjusting ride height to enabling Autopilot, largely without incident. When I've asked automakers why they can't do the same thing, I've heard reasons ranging from running afoul of their dealers (and archiac regulation) to security concerns. Automakers like Ford and General Motors say they want to act like tech companies, which routinely send out OTA updates for a wide range of devices, but overall the car industry still moves at a very cautious snail's pace. And when automakers do try to move faster and take more risks — unlike with a smartphone update, which people bitch about but live with — the consequences can be significant when things go wrong. That's the case with Fiat Chrysler America and its recent public-relations nightmare when an OTA update went awry. The update went out at the end of last week for the Uconnect system in late-model vehicles, and it made head units go into a near continuous reboot, which caused owners to not only lose access to entertainment features, but also critical functions like emergency assistance. Almost immediately, owners took to Twitter to express outrage, and FCA was caught flatfooted. A tweet went out on Monday on the UconnectCares Twitter account that read, "Certain 2017 & 2018 Uconnect systems may experience a reboot every 45-60 seconds. Our Engineering teams are investigating the cause and working towards a resolution.