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Fiat Chrysler will invest up to $1.5 billion to build EVs in Windsor

Fiat Chrysler Automobiles will invest between $1.35 billion and $1.5 billion in its Windsor assembly plant in Canada to build electric vehicles as part of a tentative deal with Canadian autoworkers, Unifor National President Jerry Dias said on Thursday. The auto union said FCA would invest in a state-of-the-art vehicle platform that will enable the assembly of plug-in hybrid and battery electric vehicles, with at least one new model in 2025. The announcement comes less than a month after Unifor said Ford would invest $1.46 billion in its Oakville and Windsor plants. "Not only is Fiat-Chrysler maintaining the current portfolio but they will be investing three derivatives to enhance the current portfolio," Dias said. Unifor also said it expects to extend the life of the Chrysler 300, a rear-wheel-drive luxury car and introduce multiple derivatives of the Dodge Charger and Challenger. The union said as many as 2,000 jobs would be added in 2024 at the Windsor plant. Market forecasting firm LMC Automotive on Thursday said it would take until 2024 for U.S. vehicle sales to recover from the coronavirus downturn and get close to the 17 million vehicles sold in 2019. Ratification meetings for the FCA deal will happen over the weekend, and members will vote on whether to accept the agreement on Sunday. The union is expected to begin negotiations with General Motors's Canadian unit next week. Related Video: Green Hirings/Firings/Layoffs Plants/Manufacturing UAW/Unions Chrysler Dodge Fiat Jeep RAM Coupe Electric Sedan windsor

Marchionne recruiting activist investors to prompt GM merger

Sergio Marchionne may have been rebuffed in his previous advances at General Motors, but he's not about to give up that easily. According to The Wall Street Journal, the Fiat Chrysler chief is now turning to activist investors to help coax GM into joining forces. Marchionne has been a staunch and ceaseless advocate of the need for consolidation, arguing that the industry needs to amalgamate into larger groups that will share resources and reduce overhead. Under his leadership, the Fiat group consolidated its own operations, and officially merged with Chrysler last year. But he's also been pursuing additional mergers with the likes of Volkswagen, Peugeot, Ford, and Opel (to name just a few). Now he's pursuing a merger with GM, which has not shown much enthusiasm towards the idea. For one thing, GM is a much larger company, and probably doesn't need FCA as much as FCA needs it. For another, it has a troubled past with Marchionne, who in 2005 dissolved an agreed merger (of sorts) with GM, yet still managed to get the General to pay Fiat some $2 billion in the process. However, Marchionne is evidently hoping that the intervention of activist investors could compel GM CEO Mary Barra and company to proceed with a merger anyway. For precedent, he's looking at the recent negotiation between GM and some of its stakeholders that prompted the company to buy back $5 billion of its own shares, demonstrating Barra's willingness to deal with investors. The more compelling precedent, however, may have been set in 2006, when activist investor Kirk Kerkorian locked arms with Carlos Ghosn to get GM to consider joining the alliance between Renault and Nissan. GM ultimately declined, and Ghosn turned instead of Daimler (which of course has its own history of having merged with Chrysler). Only time will tell if this initiative will prove more successful, but one thing's for sure, and that's that Marchionne isn't about to relent in his pursuit of a major merger partner.

Mahindra fights FCA's Jeep infringement claims

The Indian manufacturer Mahindra is fighting tooth and nail to keep building its Roxor off-road vehicle to sell in the United States. In early August, Jeep mother company FCA filed a complaint with the U.S. International Trade Commission to stop Roxor sales in the U.S. FCA claims the Roxor design is an intellectual property infringement on Jeep design, meant to undercut FCA's own Jeep products on the market. Now Mahindra has released a statement to the commission saying that FCA's complaint is without merit. While FCA stated in its claim that the Roxor is "an imported low-quality knock-off kit car," Mahindra points out that the vehicle took several years to develop and is manufactured in Michigan. Mahindra intends the Roxor to be an off-road vehicle only, and says it does not compete with Jeeps. The Roxor isn't road legal, only comes with a diesel engine and reaches a top speed of only 45 mph. However, it has to be said that the uncomplicated Roxor is far closer to the original ethos of WWII-era Jeeps than the Jeeps FCA currently manufactures. Mahindra also states that FCA agreed in 2009 not to bring about infringement claims as long as Mahindra used a grille design that FCA approved — going with a grille design that clearly differs from the classic Jeep trademark grille. The matter might partially muddled by the fact that the grille agreement was made with 2009's Chrysler instead of today's FCA. Looking back several decades, the entire Mahindra Roxor appearance is at its core based on a 1940s license agreement made with Willys, the original Jeep manufacturer. Mahindra's statement addresses FCA as "Fiat," and it should not be forgotten that Fiat itself manufactured a Jeep lookalike, the Campagnola, from 1951 to 1973 — also with a different grille. Fiat Industrial subsidiary Iveco's history page says the 1951 Campagnola was constructed "according to the Willys mould". Mahindra claims that FCA is using the complaint to create negative publicity to damage Mahindra's reputation. The Indian manufacturer reminds us that it is the first automotive OEM to set up a new manufacturing operation in southeast Michigan in over 25 years — in Auburn Hills, not far from FCA's U.S. headquarters. Related Video: Featured Gallery Mahindra Roxor Image Credit: Mahindra Design/Style Government/Legal Fiat Jeep Automotive History SUV Diesel Vehicles Off-Road Vehicles FCA mahindra