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FCA chairman confirms Marchionne email to Barra

FCA CEO Sergio Marchionne is apparently backing up his talk about the need for consolidation in the auto industry with quite a bit of action. One recent report claimed that he even emailed General Motors CEO Mary Barra to make a deal. FCA chairman John Elkann has now confirmed that the correspondence actually happened, and that it wasn't a one-off occurrence. "It was not the only email, it was not the only conversation," Elkann (pictured above with Marchionne) said, according to Reuters. He is a member of the Agnelli family that has a controlling stake in FCA's stock and is supporting the idea of a merger. The automaker is willing to "act with determination if there are the prerequisites to do something that makes sense," Elkann said. Marchionne has been pushing for industry consolidation for months. While GM has been the main target of late, Ford was also rumored as a partner under consideration. In the past, there have also been reports of FCA negotiating with Volkswagen Group and PSA Peugeot Citroen for mergers, as well. According to Reuters, part of the reason for all of this effort might be as a way for Marchionne to ensure his legacy, though he's denied that. He's reportedly considering retiring after 2018. In his opinion, consolidation is needed because automakers are investing too much money to achieve the same goals. The situation would be better after mergers, and he predicts something to happen before 2018. Related Video: News Source: ReutersImage Credit: Massimo Pinca / AP Photo Earnings/Financials Chrysler Fiat Sergio Marchionne FCA merger John Elkann

Certain Chrysler owners eligible for buyback program

Certain car owners whose Chrysler vehicles contain dangerous defects will soon have a way to get rid of their lemons without losing money. As part of an agreement with federal regulators, Fiat Chrysler Automobiles has agreed to buy back more than 500,000 vehicles susceptible to veering out of control without warning at above market-value prices. The deal mainly covers certain models of RAM trucks, the Dodge Dakota pickup and Dodge Durango SUV. Further, owners of more than 1.5 million Jeep Liberty and Grand Cherokees at heightened risk for lethal fires are eligible to trade in their vehicles at above market value or, alternately, get a gift certificate if they prefer to have repairs made. Chrysler has "a heavy responsibility to make sure the products they make are safe for the traveling public," said Mark Rosekind, administrator of the National Highway Traffic Safety Administration. "... Here, we are sending an unambiguous signal to industry that if you skirt the laws or violate the law, or don't live up to the responsibility that consumers expect, we are going to penalize you." The buy-back and trade-in options for motorists come as part of an unprecedented penalty NHTSA slapped against Chrysler for violating federal motor-vehicle safety laws. Chrysler will pay a $105 million fine, the highest ever levied by the regulatory agency. In addition to the buy-backs, Chrysler also agreed to an independent monitor for three years. Investigators had outlined problems in the company's conduct in 23 recalls that affected more than 11 million defect vehicles. As part of a consent-order agreement, Chrysler acknowledged it did not notify vehicle owners of recalls in an effective manner and did not notify NHTSA of safety problems. Though those recalls affected millions of drivers, the buy-back and trade-in options are only for a small portion of the vehicles involved. Because Chrysler struggled to fix the problem and no repair was apparent, Rosekind said the buy-backs are reserved "for customers who didn't have a remedy." Buy-backs are for trucks and SUVs affected by three recalls that occurred in 2013 (recalls 13V-038, 13V-527 and 13V-529), that addressed a rear-axle pinion nut that could come loose and cause a loss of vehicle control. Those recalls covered 579,228 vehicles, including 2009-2012 Ram 1500, 2500, 3500, 4500 and 5500 trucks, 2009-2012 Dodge Dakotas, 2009 Chrysler Aspen and the 2009 Dodge Durango.

Fiat 500L gets a much needed update for 2018

The Fiat 500L is one of those love-it or hate-it vehicles. Fiat's largest US vehicle has been knocked for questionable styling, poor build quality, and reliability concerns. That's why the new mid-cycle refresh is so important, as the Fiat says 40-percent of the components on the 500L are all new. Styling is much more aggressive, and a new trim level promises some semblance of off-road readiness. The 500L still keeps the general not-quite-a crossover shape, but the front and rear fascias have been redone. The front is more upright, losing that slack-jawed look of the current model. The lower air intake and foglight surrounds are big and wide, with contrasting chrome and black plastic. The lighting is similar to the current model but has been updated with LED accents. Of course, the requisite Fiat badge and mustache are in place. It's a similar story out back. The 500L retains the same general shape, but it's a little more masculine and angular. There are new chrome accents on the bottom of the bumper along with new reverse and rear foglights (for Europe). There are 10 colors available for the 500L, with three options for the roof: body color, gloss black or white, or matte black. All in, Fiat says there are 37 color combinations. Like the exterior, changes to the interior are more refreshed than all-new. Up front, the biggest changes are to the steering wheel, instrument cluster and infotainment system. A speedometer and tachometer flank a 3.5-inch color display. Like the Fiat 500X, the 500L will have a multitude of menus and options to flip through. The infotainment has been updated with the latest version of FCA's excellent UConnect system. That means standard Apple CarPlay and Android Auto. For Europe, there are three basic configurations: the five-passenger Cross, and optional seven-passenger Wagon, and Urban. There are various trim levels within each configuration, though the long-wheelbase seven-passenger versions are unlikely to make it to the US market. The big news is the Cross, which gets a 25mm lift, skid plates, unique front and rear bumpers, and new wheels and tires. While there are new drive modes, Fiat doesn't make any mention of all-wheel drive. Customers with the need can step up to the smaller but more traditional 500X. The 500L has been a slow seller here in the US. It's unclear when the new model will go on sale, but it's good to see Fiat breathing some life into a slim product line.