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Marchionne defends FCA recalls, says Wrangler won't be all-aluminum

FCA CEO Sergio Marchionne recently received the 2015 Industry Leadership Award from the SAE Foundation. While speaking with the press after the event, the boss discussed his thoughts about some key issues regarding the company's future. One of the big regulatory issues facing FCA at the moment is the upcoming public hearing by the National Highway Traffic Safety into the automaker's handling of 20 recalls. Marchionne has no intention of testifying there, according to The Detroit News. The CEO also thinks that the government regulator is becoming much more aggressive in how it handles safety campaigns, but the Feds aren't necessarily doing a very good job of communicating that. "We need to work with the agency in a very cooperative and open way to make sure that we can meet their requirements for their new stance," he said, according to the newspaper. "We have no option but to comply with their requirements and we will. I have nothing to hide in this process. I just want clear rules." Marchionne also dropped the news that the company has changed its mind about making the next Jeep Wrangler totally from aluminum. "Because of the difference in cost, not just the new material but the actual assembly process, I think we can do almost as well without doing it all-aluminum," he said to The Detroit News. This seemingly opens the door for the model to remain in production in Toledo, OH, but only just a crack. Marchionne says that the new Wrangler would still use a large amount of aluminum, and there are "at least" two sites in contention for the assembly. The company doesn't have too long to make a decision because the model reportedly launches in 2017.

Marchionne now considering 'Plan B' partners for FCA merger

Okay Sergio, just stop. With the sting of rejection from General Motors CEO Mary Barra still fresh, Fiat Chrysler Automobiles CEO Sergio Marchionne is moving on and trying to find another automaker to merge with. FCA may not be giving up hope on a merger with GM, but that doesn't mean it isn't at least considering alternatives. Sergio's so-called "Plan Bs" include the Volkswagen Group, as well as smaller Asian outfits, like Mazda, Honda, Suzuki, and Hyundai. Bloomberg reports that France's beleaguered PSA Peugeot Citroen could as a sort of "fallback" option due to its relative lack of volume, an unidentified source claimed. There are, of course, problems with each option. According to Bloomberg, Volkswagen expects complete control of a company, but the Agnelli family, which holds a large portion of FCA stock, is loathe to relinquish its stake in the company. On top of that, VAG just isn't looking to make a deal right now. Mazda, meanwhile, is enjoying a new partnership with Toyota and Suzuki is partially owned by VW. Honda and Hyundai have never expressed any interest in a partnership with a western automaker. That kind of just leaves the French then, but even that remains a long shot. As Bloomberg tells it, PSA boss Carlos Tavares is still working on a turn-around plan, and would want at least another six months to execute before even considering a deal with FCA. And even then, Tavares hasn't given any indication that he's considering a pairing. News Source: BloombergImage Credit: Paul Sancya / AP Chrysler Fiat GM Honda Hyundai Mazda Suzuki Citroen Peugeot Sergio Marchionne FCA Mary Barra psa peugeot citroen

FCA goes natural with CNG fleet

FCA Transport, the fleet of tractor trailers owned by FCA US that hauls parts from suppliers and to assembly plants, is going green. By converting its 179 trucks from diesel to compressed natural gas, CO2 emissions will drop by 16,000 tons per year based on the cumulative 16 million miles the fleet covers annually. That is roughly equivalent to the yearly energy use of 1,500 homes, the same as not burning more than 17 million pounds of coal. FCA says rolling out the largest CNG-powered truck fleet in Michigan took two years to execute and a $40-million investment, including $5 million to build the largest private CNG station on the continent. It also required the assistance of Cummins, Allison Transmission, and Agility Fuel Systems. There is an upside for FCA Transport in all of this: the company estimates fuel savings of 35 percent from not having to buy 2.6 million gallons of diesel every year. It's probably no coincidence that this announcement comes as world leaders tackle the same problems at the Paris Climate Change Conference. The press release below has more. FCA US Launches Largest Private Fleet of Natural Gas-Powered Semitrucks in the State of Michigan- Company announces $40 million investment in Detroit to convert 179 parts-hauling trucks to compressed natural gas (CNG)- Investment includes facility and infrastructure upgrades and the installation of the largest private CNG fueling station in North America- Fleet's transition to CNG will reduce CO2 emissions by more than 16,000 tons per yearDecember 4, 2015 , Detroit - FCA US LLC announced today that it has invested $40 million in FCA Transport, the FCA US-owned truck fleet, to convert its 179 Detroit-based parts-haulers to run on compressed natural gas (CNG) rather than traditional diesel. The move gives FCA the largest private fleet of CNG-powered heavy-duty vehicles in the state of Michigan."Our transition to CNG reflects the way FCA US attempts to balance our search for profitability with social responsibility and community development, including environmental stewardship," said Steve Beahm, Senior Vice President – Supply Chain Management, FCA – North America. "This project was a win-win-win – it offered a solid business case, clear environmental benefits and an opportunity to invest in our Detroit facility and workforce."FCA Transport, built in 1965, is located on Lynch Road in Detroit, just across from the Detroit City Airport.