Fiat Chrysler Automobiles: Sales, Marketing, and Financial News
05-06-2014, 11:17 AM
#641
Azine Jabroni
Considering how bad most Dodge cars have been as of late, this could be a good thing.
05-06-2014, 11:23 AM
#642
Fahrvergnügen'd
I think this makes sense. It's rather interesting to see how much better Fiat has been at integrating the two companies than Daimler was ... Marchionne is a much better CEO than Dieter Zetsche. Though Zetsche has done a pretty good job of late with Mercedes. I just don't think he understands American culture.
05-06-2014, 11:31 AM
#643
Senior Moderator
05-06-2014, 12:16 PM
#644
The Third Ball
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I think this makes sense. It's rather interesting to see how much better Fiat has been at integrating the two companies than Daimler was ... Marchionne is a much better CEO than Dieter Zetsche. Though Zetsche has done a pretty good job of late with Mercedes. I just don't think he understands American culture.
Its smart to kill the avenger and let the all new 200 hopefully succeed. We all knew they were going to kill either the caravan or the T&C, and with a new T&C concept appearing at one of the shows last year it was a good sign it was going to be the Caravan.
Its about fucking time for confirmation of a SRT Dart.
I think we all know the Durango is going to be phased out as well, and Jeep will get the long rumored Grand Wagoneer version.
Its interesting to see dodge become the performance variant, and I know mopar fanboys will be happy to see SRT being merged back into the brand...but I hope that it doesnt mean they will kill the SRT 300 and Jeep.
SRT Journey? Interesting...not a big fan of it, its not terrible but I felt cramped in the cockpit...maybe after a nice redesign.
The Charger and Challenger speak for themselves. And I still think the Dart has best in class interior design, but according to reviews needs a little more love in other departments.
We'll see how this plays out, but I hope its a good thing.
05-06-2014, 12:43 PM
#645
Your Friendly Canadian
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I don't expect Dodge to last very long. Losing its two biggest sellers, the Ram and the Caravan over the span of a few years doesn't leave much else. The Journey, Dart, even the Charger don't have as much recognition as those two models IMO.
Why not make Dodge the mainstream/sport brand, and Chrysler the pseudo-luxury brand?
Sounds like Dodge is becoming the new Pontiac. And that story didn't end well.
If executed right though, the Dart SRT sounds like it'd be a hoot.
If SRT goes under Dodge, does this mean Jeep/Chrysler won't get SRT models?
Why not make Dodge the mainstream/sport brand, and Chrysler the pseudo-luxury brand?
Sounds like Dodge is becoming the new Pontiac. And that story didn't end well.
If executed right though, the Dart SRT sounds like it'd be a hoot.
If SRT goes under Dodge, does this mean Jeep/Chrysler won't get SRT models?
05-06-2014, 02:04 PM
#646
Fahrvergnügen'd
I don't expect Dodge to last very long. Losing its two biggest sellers, the Ram and the Caravan over the span of a few years doesn't leave much else. The Journey, Dart, even the Charger don't have as much recognition as those two models IMO.
Why not make Dodge the mainstream/sport brand, and Chrysler the pseudo-luxury brand?
Sounds like Dodge is becoming the new Pontiac. And that story didn't end well.
If executed right though, the Dart SRT sounds like it'd be a hoot.
If SRT goes under Dodge, does this mean Jeep/Chrysler won't get SRT models?
Why not make Dodge the mainstream/sport brand, and Chrysler the pseudo-luxury brand?
Sounds like Dodge is becoming the new Pontiac. And that story didn't end well.
If executed right though, the Dart SRT sounds like it'd be a hoot.
If SRT goes under Dodge, does this mean Jeep/Chrysler won't get SRT models?
Dodge will have a Challenger/Viper/Dart/Charger/CUV lineup that Chrysler won't.
My guess is that Chrysler feels that they will have a better time competing against Ford/Honda/Toyota with upscale cars in that price range rather than trying to elbow their way into a market that they would not compete well in due to perception.
I like the new styling direction and certainly the execution of these new Dodges. I think the choice makes sense. Though I wonder if Fiat can justify separating out Jeep, Dodge, Ram, and Chrysler. Though if they're all sold at the same dealers then it's probably irrelevant.
Last edited by charliemike; 05-06-2014 at 02:10 PM.
05-06-2014, 02:42 PM
#647
The Third Ball
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I like the new styling direction and certainly the execution of these new Dodges. I think the choice makes sense. Though I wonder if Fiat can justify separating out Jeep, Dodge, Ram, and Chrysler. Though if they're all sold at the same dealers then it's probably irrelevant.
Also. Look how many v6 chargers and challengers are on the roads. Dodge is doing just fine right now.
The dart needs to do soemthing with its suspension and powertrains to get competitive. That car should be selling like hotcakes. The jeep Cherokee certainly is.
05-06-2014, 04:48 PM
#648
The sizzle in the Steak
^^ Dart exterior is not memorable. It's not bad, but it's not going to make your head turn.
Dart needs an exterior design that is as good as the work they did on the interior.
Dart needs an exterior design that is as good as the work they did on the interior.
05-06-2014, 06:17 PM
#649
agree with this new path that they're putting Dodge in.In today's automotive landscape, it's not enough to just rebadge cars, slap on a different fascia, put different tail lights, change a few interior trim pieces, then say it's a different model.
As the parent company, that was what it was looking like with Chrysler... not good.
It's slow but steady progress for Chrysler. At this point I feel like their outlook isn't as bright as Ford's, but they still have a higher ceiling than GM. GM still looks like they have a giant parts bin for interior design.
05-06-2014, 06:52 PM
#650
The Third Ball
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They tried to match more Euro/Japan style to move units...maybe they should go mini-muscle and really try and carve own their name.
05-06-2014, 06:57 PM
#651
The sizzle in the Steak
^^ I think it looks a bit too "Neon-ish"
I agree......it needs an original design...more in line with Dodge.
I agree......it needs an original design...more in line with Dodge.
10-29-2014, 09:15 AM
#652
99 TL, 06 E350
Fiat Chrysler To Spin Off Ferrari
I assume Ferrari is doing so well that they don't require a parent company? or that FIAT is losing a bunch of money with Chrysler?
Fiat Chrysler To Spin Off Ferrari - US News
Fiat Chrysler To Spin Off Ferrari - US News
MILAN (AP) — Fiat Chrysler Automobiles said Wednesday it will spin off sports car maker Ferrari into a separate company.
The company said in a statement that spinning off Ferrari was part of a plan to raise capital to support the new merged carmakers' future growth.
Fiat Chrysler CEO Sergio Marchionne said in a statement that it was "proper that we pursue separate paths for FCA and Ferrari" following the completion of the merger of Chrysler and Fiat with a listing on the New York Stock Exchange earlier this month.
A Ferrari spinoff has long been speculated as a way to unlock value in Ferrari. The move comes about two months after an awkward management transition at Ferrari that saw the longtime chairman Luca di Montezemolo resign after a public spat with Marchionne.
Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
The company said in a statement that spinning off Ferrari was part of a plan to raise capital to support the new merged carmakers' future growth.
Fiat Chrysler CEO Sergio Marchionne said in a statement that it was "proper that we pursue separate paths for FCA and Ferrari" following the completion of the merger of Chrysler and Fiat with a listing on the New York Stock Exchange earlier this month.
A Ferrari spinoff has long been speculated as a way to unlock value in Ferrari. The move comes about two months after an awkward management transition at Ferrari that saw the longtime chairman Luca di Montezemolo resign after a public spat with Marchionne.
Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
10-29-2014, 10:55 AM
#654
Senior Moderator
Merged. I'll also link to the post from the Ferrari Sales/Marketing/Financial thread.
10-29-2014, 11:19 AM
#655
AZ Community Team
Ferrari to be spun out of Fiat, and the race for control is on
https://autos.yahoo.com/blogs/motora...150601883.html
few more details.
The F1 team costs a small fortune to operate so it's not a slam dunk Ferrari is a cash cow.
few more details.
The F1 team costs a small fortune to operate so it's not a slam dunk Ferrari is a cash cow.
11-02-2014, 08:52 PM
#656
Azine Jabroni
https://autos.yahoo.com/blogs/motora...150601883.html
few more details.
The F1 team costs a small fortune to operate so it's not a slam dunk Ferrari is a cash cow.
few more details.
The F1 team costs a small fortune to operate so it's not a slam dunk Ferrari is a cash cow.
12-16-2014, 02:35 PM
#657
Senior Moderator
Chrysler Group Re-Branded to "FCA US"
From here: Chrysler Group Renamed FCA US
The American arm of Fiat Chrysler Automobiles [NYSE:FCAU], the Chrysler Group, which represents brands such as Chrysler, Dodge, Jeep and Ram, has been renamed FCA US. The change doesn’t have any major effects, with the company’s headquarters in Auburn Hills, Michigan as well as the existing management team all set to remain.
FCA US employs more than 77,000 people worldwide, with most of them—96 percent—located in North America. FCA US is also responsible for 36 manufacturing facilities, including 23 in the U.S., seven in Mexico and six in Canada.
The Italian arm of Fiat Chrysler Automobiles, the Fiat Group, has also had its name changed. It will now be known as FCA Italy and will continue to be run from its existing headquarters in Turin.
As for the parent company Fiat Chrysler Automobiles, it continues to be headquartered in the city of London, but registered in the Netherlands for taxation reasons.
In related news, Fiat Chrysler Automobiles started meeting with investors last week to help raise around $2.5 billion via a convertible bond issue and share sale, with the new funds to be used for the development of future models. To help spur the sale of the bonds, Fiat Chrysler Automobiles is expected to offer more shares in Ferrari to those existing shareholders of Fiat Chrysler Automobiles that buy the bonds.
As announced in October, Fiat Chrysler Automobiles is spinning off Ferrari, with most of the new shares in the Italian sports car brand to be divided up among Fiat Chrysler Automobiles’ existing shareholders. A small portion of shares in Ferrari will also be sold to the public via a public offering on an American exchange sometime next year.
The American arm of Fiat Chrysler Automobiles [NYSE:FCAU], the Chrysler Group, which represents brands such as Chrysler, Dodge, Jeep and Ram, has been renamed FCA US. The change doesn’t have any major effects, with the company’s headquarters in Auburn Hills, Michigan as well as the existing management team all set to remain.
FCA US employs more than 77,000 people worldwide, with most of them—96 percent—located in North America. FCA US is also responsible for 36 manufacturing facilities, including 23 in the U.S., seven in Mexico and six in Canada.
The Italian arm of Fiat Chrysler Automobiles, the Fiat Group, has also had its name changed. It will now be known as FCA Italy and will continue to be run from its existing headquarters in Turin.
As for the parent company Fiat Chrysler Automobiles, it continues to be headquartered in the city of London, but registered in the Netherlands for taxation reasons.
In related news, Fiat Chrysler Automobiles started meeting with investors last week to help raise around $2.5 billion via a convertible bond issue and share sale, with the new funds to be used for the development of future models. To help spur the sale of the bonds, Fiat Chrysler Automobiles is expected to offer more shares in Ferrari to those existing shareholders of Fiat Chrysler Automobiles that buy the bonds.
As announced in October, Fiat Chrysler Automobiles is spinning off Ferrari, with most of the new shares in the Italian sports car brand to be divided up among Fiat Chrysler Automobiles’ existing shareholders. A small portion of shares in Ferrari will also be sold to the public via a public offering on an American exchange sometime next year.
07-18-2016, 11:51 PM
#658
Fiat Chrysler Investigated by Regulators Over Sales Reports - WSJ
Fiat Chrysler Investigated by Regulators Over Sales Reports
Dealer had accused Fiat Chrysler of rewarding stores that manipulated sales reports
July 18, 2016
Federal authorities are investigating whether Fiat Chrysler Automobiles NV inflated sales reports, adding to mounting pressure on the Italian-U.S. auto maker and sharpening scrutiny of the way that car companies report their monthly volumes.
The U.S. Justice Department and Securities and Exchange Commission are investigating allegations raised earlier this year by an Illinois car dealer who claimed the company manipulated monthly sales data, said people familiar with the matter. The dealer sued Fiat Chrysler in January, alleging the auto maker financially rewarded retailers for falsifying sales. Fiat Chrysler in March called the dealer suit “baseless.”
Federal Bureau of Investigation agents visited the homes of nine Fiat Chrysler regional managers on July 11, a lawyer for several of the auto maker’s dealerships said. Some of those managers also were mentioned in the Illinois dealer’s lawsuit, though they aren’t defendants in the case, said the lawyer, Steve Berman.
Fiat Chrysler said on Monday it is cooperating with the investigations, adding that its annual and quarterly financial results are tied to shipments to dealers, not on sales to end customers.
In the suit, Illinois dealer Edward Napleton alleges Fiat Chrysler’s recent sales growth was achieved by “strong arm” tactics to get dealers to falsify month reports, creating “the appearance that [Fiat Chrysler’s] performance is better than, in reality, it actually is.”
Mr. Napleton alleged his company was offered $20,000 to falsely report sales of 40 Fiat Chrysler vehicles. His suit said he rejected the offer and told Fiat Chrysler’s business center workers to refrain from such practice. He claimed Fiat Chrysler moved on to other dealers who would participate in the arrangement.
Probes into Fiat Chrysler’s practices ratchet up scrutiny over how auto makers count sales. In the U.S., auto makers report the prior month’s sales based on their own counts at the start of each month. Sales in many other regions of the world are based on vehicle registrations several days after the month’s books close.
Some auto makers say dealers are allowed to purchase cars for their own use to meet month-end sales goals. Auto executives have defended the practice as commonplace in the industry and a way to supply dealers with extra cars for driver-testing and service-department loans.
That practice, which dealers say is allowed by auto makers, doesn’t lead to inflated sales results. But reporting large numbers of sales kept for a dealer’s use can paint an overly rosy portrait of the health of a company’s U.S. operations, potentially affecting investor sentiment, say critics.
It is unclear if authorities are looking at Fiat Chrysler dealers’ booking of their own purchases as retail sales.
The Fiat Chrysler investigations cast a shadow over the company’s 75-month-long streak of year-over-year sales increases aided in part by sales incentives and strong demand for its Jeep sport-utility vehicles.
A New York dealer operating a Maserati dealership last year filed a similar suit, claiming he was pressured to pad sales. Fiat Chrysler, which owns the Maserati brand, called has called the suit baseless and without merit.
Fiat Chrysler until recently aggressively promoted its monthly sales winning streak, which dates back to shortly after the company emerged from a government-brokered bankruptcy restructuring. Some dealers say the company is pressuring them to keep the streak going even as new-car demand cools.
Fiat Chrysler’s U.S. sales have outpaced those of other auto makers that are struggling to replicate a clip that led to a record 17.5 million cars, pickup trucks and SUVs sold in 2015.
The Italian-U.S. car maker’s U.S. sales are up 7% through the first half of the year, compared with 1.5% for the broader industry. The industry’s annual selling pace fell in June.
Dealer had accused Fiat Chrysler of rewarding stores that manipulated sales reports
July 18, 2016
Federal authorities are investigating whether Fiat Chrysler Automobiles NV inflated sales reports, adding to mounting pressure on the Italian-U.S. auto maker and sharpening scrutiny of the way that car companies report their monthly volumes.
The U.S. Justice Department and Securities and Exchange Commission are investigating allegations raised earlier this year by an Illinois car dealer who claimed the company manipulated monthly sales data, said people familiar with the matter. The dealer sued Fiat Chrysler in January, alleging the auto maker financially rewarded retailers for falsifying sales. Fiat Chrysler in March called the dealer suit “baseless.”
Federal Bureau of Investigation agents visited the homes of nine Fiat Chrysler regional managers on July 11, a lawyer for several of the auto maker’s dealerships said. Some of those managers also were mentioned in the Illinois dealer’s lawsuit, though they aren’t defendants in the case, said the lawyer, Steve Berman.
Fiat Chrysler said on Monday it is cooperating with the investigations, adding that its annual and quarterly financial results are tied to shipments to dealers, not on sales to end customers.
In the suit, Illinois dealer Edward Napleton alleges Fiat Chrysler’s recent sales growth was achieved by “strong arm” tactics to get dealers to falsify month reports, creating “the appearance that [Fiat Chrysler’s] performance is better than, in reality, it actually is.”
Mr. Napleton alleged his company was offered $20,000 to falsely report sales of 40 Fiat Chrysler vehicles. His suit said he rejected the offer and told Fiat Chrysler’s business center workers to refrain from such practice. He claimed Fiat Chrysler moved on to other dealers who would participate in the arrangement.
Probes into Fiat Chrysler’s practices ratchet up scrutiny over how auto makers count sales. In the U.S., auto makers report the prior month’s sales based on their own counts at the start of each month. Sales in many other regions of the world are based on vehicle registrations several days after the month’s books close.
Some auto makers say dealers are allowed to purchase cars for their own use to meet month-end sales goals. Auto executives have defended the practice as commonplace in the industry and a way to supply dealers with extra cars for driver-testing and service-department loans.
That practice, which dealers say is allowed by auto makers, doesn’t lead to inflated sales results. But reporting large numbers of sales kept for a dealer’s use can paint an overly rosy portrait of the health of a company’s U.S. operations, potentially affecting investor sentiment, say critics.
It is unclear if authorities are looking at Fiat Chrysler dealers’ booking of their own purchases as retail sales.
The Fiat Chrysler investigations cast a shadow over the company’s 75-month-long streak of year-over-year sales increases aided in part by sales incentives and strong demand for its Jeep sport-utility vehicles.
A New York dealer operating a Maserati dealership last year filed a similar suit, claiming he was pressured to pad sales. Fiat Chrysler, which owns the Maserati brand, called has called the suit baseless and without merit.
Fiat Chrysler until recently aggressively promoted its monthly sales winning streak, which dates back to shortly after the company emerged from a government-brokered bankruptcy restructuring. Some dealers say the company is pressuring them to keep the streak going even as new-car demand cools.
Fiat Chrysler’s U.S. sales have outpaced those of other auto makers that are struggling to replicate a clip that led to a record 17.5 million cars, pickup trucks and SUVs sold in 2015.
The Italian-U.S. car maker’s U.S. sales are up 7% through the first half of the year, compared with 1.5% for the broader industry. The industry’s annual selling pace fell in June.
07-19-2016, 03:14 PM
#659
Moderator
That's not likely to go well for FCA.
07-26-2016, 12:46 AM
#660
Whoops!
http://www.autonews.com/article/2016...-were-inflated
http://www.autonews.com/article/2016...-were-inflated
FCA found sales were inflated
Pressure to keep streak alive cited
July 25, 2016
DETROIT -- An internal review ordered in mid-2015 by top Fiat Chrysler executives uncovered thousands of vehicle sales reported by FCA brands for which there were no actual buyers, according to two company sources.
The insiders told Automotive News that following the inquiry, U.S. sales head Reid Bigland put a stop to the practice, which had resulted in FCA US reporting more sales than it actually made.
The sources did not specify the precise time period covered by the review but said it revealed that 5,000 to 6,000 vehicles had been reported as sold by dealers and then "unwound."
They said the sales numbers were inflated in part under pressure to preserve FCA's streak of U.S. monthly year-over-year sales increases, which now stands at 75 months. One source cited dealer complaints about the practice that reached CEO Sergio Marchionne before Bigland sought to end it. But he added that overstating of sales has crept back into play this year as competitive pressures on FCA's field staff have increased.
Meanwhile, the other company insider said the employee turnover rate among sales staff in the company's nine business centers around the country is four times higher than in the rest of the company because of pressure applied from above to meet aggressive sales targets.
FCA has declined to comment.
The revelations come as investigators from the Securities and Exchange Commission and the Department of Justice look into FCA's sales practices. One of the company sources said investigators visited all nine regional business centers beginning July 11 and spoke with current and former employees. Investigators also visited FCA field employees and past employees at their homes, the source said.
In January, FCA was accused by dealerships owned by Napleton Automotive Group, a Chicago-area dealership group, of civil racketeering in a lawsuit that alleged the automaker paid dealers to improperly inflate sales. FCA called the allegations "baseless" and sought dismissal of the suit. The lawsuit appeared to spur the federal investigation.
Bloomberg reported Monday, July 18, that the federal probe into FCA is in an early stage. The agencies would not comment on the scope or subject of their investigation.
FCA said it was "cooperating with an SEC investigation into the reporting of vehicle unit sales to end customers in the U.S." The company said that "inquiries into similar issues were recently made by the U.S. Department of Justice."
Both agencies and FCA declined to comment on whether warrants had been issued as part of the investigation.
The streak
The FCA insiders say the company's streak has driven sales reporting abuses. The current run of 75 consecutive months of year-over-year sales increases in the U.S. is the longest such active streak of any automaker and has been a source of pride as the company rebounded after its 2009 exit from bankruptcy.
Earlier this year, Marchionne said FCA's sales streak "has happened not because of the fact that I've discounted vehicles because the margins in our operations have improved, but it's happened because of the fact that, you know, there's brand equity and there's value in what we're selling to the customer base."
The streak also has become harder to extend the longer it has gone on.
Indeed, after the streak reached six full years in March, the automaker stopped mentioning it in its monthly press releases reporting U.S. sales. It was last cited by the company in its March sales release on April 1, when FCA began to include a lengthy disclaimer as to how it reported its monthly sales.
The disclaimer describing FCA US' "method for determining monthly sales" said, in part: "FCA US reported vehicle sales represent sales of its vehicles to retail and fleet customers, as well as limited deliveries of vehicles to its officers, directors, employees and retirees. Sales from dealers to customers are reported to FCA US by dealers as sales are made on an ongoing basis through a new vehicle delivery reporting system that then compiles the reported data as of the end of each month.
"Sales through dealers do not necessarily correspond to reported revenues, which are based on the sale and delivery of vehicles to the dealers. In certain limited circumstances where sales are made directly by FCA US, such sales are reported through its management reporting system."
A possible defense
In its statement acknowledging the federal investigation, FCA differentiated between quarterly corporate financial reporting and its monthly reports of sales to retail and fleet buyers. The company noted that in its "annual and quarterly financial statements, it records revenues based on shipments to dealers and customers and not on reported vehicle unit sales to end customers."
Peter Henning, a former SEC lawyer and a professor at Wayne State University Law School in Detroit, speculated that FCA is distinguishing the two methods of reporting sales as a possible defense.
But Henning said the SEC's investigation appears to be a "bread and butter" accounting investigation and that attempting to differentiate the two was unlikely to be effective. He said he believes the feds are looking into monthly sales numbers, not revenue figures.
"What the SEC focuses on is disclosure to investors and to the market, so they're not going to buy a claim that "We don't technically engage in sales. The dealers do.' This is all of a piece, which is: How do you measure how any auto company is doing? Sales. That's the bottom line, and that's what the SEC is going to be looking at," Henning said.
Henning said the involvement of the Justice Department is another clue about the investigation.
"Typically, the Justice Department will steer clear of a case until it gets indications of wrongdoing," he said. "Normally, it will defer to the SEC. Just the disclosure that they're on the scene means that there's at least smoke, and maybe a fire."
Pressure to keep streak alive cited
July 25, 2016
DETROIT -- An internal review ordered in mid-2015 by top Fiat Chrysler executives uncovered thousands of vehicle sales reported by FCA brands for which there were no actual buyers, according to two company sources.
The insiders told Automotive News that following the inquiry, U.S. sales head Reid Bigland put a stop to the practice, which had resulted in FCA US reporting more sales than it actually made.
The sources did not specify the precise time period covered by the review but said it revealed that 5,000 to 6,000 vehicles had been reported as sold by dealers and then "unwound."
They said the sales numbers were inflated in part under pressure to preserve FCA's streak of U.S. monthly year-over-year sales increases, which now stands at 75 months. One source cited dealer complaints about the practice that reached CEO Sergio Marchionne before Bigland sought to end it. But he added that overstating of sales has crept back into play this year as competitive pressures on FCA's field staff have increased.
Meanwhile, the other company insider said the employee turnover rate among sales staff in the company's nine business centers around the country is four times higher than in the rest of the company because of pressure applied from above to meet aggressive sales targets.
FCA has declined to comment.
The revelations come as investigators from the Securities and Exchange Commission and the Department of Justice look into FCA's sales practices. One of the company sources said investigators visited all nine regional business centers beginning July 11 and spoke with current and former employees. Investigators also visited FCA field employees and past employees at their homes, the source said.
In January, FCA was accused by dealerships owned by Napleton Automotive Group, a Chicago-area dealership group, of civil racketeering in a lawsuit that alleged the automaker paid dealers to improperly inflate sales. FCA called the allegations "baseless" and sought dismissal of the suit. The lawsuit appeared to spur the federal investigation.
Bloomberg reported Monday, July 18, that the federal probe into FCA is in an early stage. The agencies would not comment on the scope or subject of their investigation.
FCA said it was "cooperating with an SEC investigation into the reporting of vehicle unit sales to end customers in the U.S." The company said that "inquiries into similar issues were recently made by the U.S. Department of Justice."
Both agencies and FCA declined to comment on whether warrants had been issued as part of the investigation.
The streak
The FCA insiders say the company's streak has driven sales reporting abuses. The current run of 75 consecutive months of year-over-year sales increases in the U.S. is the longest such active streak of any automaker and has been a source of pride as the company rebounded after its 2009 exit from bankruptcy.
Earlier this year, Marchionne said FCA's sales streak "has happened not because of the fact that I've discounted vehicles because the margins in our operations have improved, but it's happened because of the fact that, you know, there's brand equity and there's value in what we're selling to the customer base."
The streak also has become harder to extend the longer it has gone on.
Indeed, after the streak reached six full years in March, the automaker stopped mentioning it in its monthly press releases reporting U.S. sales. It was last cited by the company in its March sales release on April 1, when FCA began to include a lengthy disclaimer as to how it reported its monthly sales.
The disclaimer describing FCA US' "method for determining monthly sales" said, in part: "FCA US reported vehicle sales represent sales of its vehicles to retail and fleet customers, as well as limited deliveries of vehicles to its officers, directors, employees and retirees. Sales from dealers to customers are reported to FCA US by dealers as sales are made on an ongoing basis through a new vehicle delivery reporting system that then compiles the reported data as of the end of each month.
"Sales through dealers do not necessarily correspond to reported revenues, which are based on the sale and delivery of vehicles to the dealers. In certain limited circumstances where sales are made directly by FCA US, such sales are reported through its management reporting system."
A possible defense
In its statement acknowledging the federal investigation, FCA differentiated between quarterly corporate financial reporting and its monthly reports of sales to retail and fleet buyers. The company noted that in its "annual and quarterly financial statements, it records revenues based on shipments to dealers and customers and not on reported vehicle unit sales to end customers."
Peter Henning, a former SEC lawyer and a professor at Wayne State University Law School in Detroit, speculated that FCA is distinguishing the two methods of reporting sales as a possible defense.
But Henning said the SEC's investigation appears to be a "bread and butter" accounting investigation and that attempting to differentiate the two was unlikely to be effective. He said he believes the feds are looking into monthly sales numbers, not revenue figures.
"What the SEC focuses on is disclosure to investors and to the market, so they're not going to buy a claim that "We don't technically engage in sales. The dealers do.' This is all of a piece, which is: How do you measure how any auto company is doing? Sales. That's the bottom line, and that's what the SEC is going to be looking at," Henning said.
Henning said the involvement of the Justice Department is another clue about the investigation.
"Typically, the Justice Department will steer clear of a case until it gets indications of wrongdoing," he said. "Normally, it will defer to the SEC. Just the disclosure that they're on the scene means that there's at least smoke, and maybe a fire."
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01-12-2017, 09:53 AM
#661
FCAU: $9.50 : -$1.59 (-14.34%)
https://finance.yahoo.com/news/exclu...154301275.html
https://finance.yahoo.com/news/exclu...154301275.html
EPA to accuse Fiat Chrysler of excess diesel emissions - sources
January 12, 2017
The U.S. Environmental Protection Agency on Thursday will accuse Fiat Chrysler Automobiles NV of using software that allowed excess diesel emissions in just over 100,000 U.S. trucks and SUVs sold since 2014, two sources briefed on the matter said.
The EPA told the automaker it believes its undeclared emissions control software allowed vehicles to generate excess pollution in violation of the law. Fiat Chrysler declined to comment.
Its U.S.-listed shares were down 9 percent.
The EPA will announce the findings at an 11 a.m. conference call. It comes amid rising scrutiny by EPA of automaker emissions after Volkswagen AG admitted to cheating diesel emissions tests in 580,000 U.S. vehicles.
The EPA has for months declined to certify Fiat Chrysler's 2017 diesel vehicles for sale in the United States.
January 12, 2017
The U.S. Environmental Protection Agency on Thursday will accuse Fiat Chrysler Automobiles NV of using software that allowed excess diesel emissions in just over 100,000 U.S. trucks and SUVs sold since 2014, two sources briefed on the matter said.
The EPA told the automaker it believes its undeclared emissions control software allowed vehicles to generate excess pollution in violation of the law. Fiat Chrysler declined to comment.
Its U.S.-listed shares were down 9 percent.
The EPA will announce the findings at an 11 a.m. conference call. It comes amid rising scrutiny by EPA of automaker emissions after Volkswagen AG admitted to cheating diesel emissions tests in 580,000 U.S. vehicles.
The EPA has for months declined to certify Fiat Chrysler's 2017 diesel vehicles for sale in the United States.
01-12-2017, 12:50 PM
#662
EPA: Fiat Chrysler Used Emissions-Cheating Software - WSJ
EPA: Fiat Chrysler Used Emissions-Cheating Software
Auto maker allegedly used software on recent diesel-powered Jeep Grand Cherokee and Ram trucks allowing illegal emissions, EPA says
Jan. 12, 2017 11:55 a.m. ET
U.S. environmental regulators accused Fiat Chrysler Automobiles NV of using software that allowed illegal emissions in diesel-powered vehicles, the latest broadside in an unprecedented government crackdown on auto makers for alleged pollution transgressions.
The Environmental Protection Agency, days before the end of the Obama administration, delivered a violation notice to Fiat Chrysler accusing the auto maker of using illegal software that allowed 104,000 recent diesel-powered Jeep Grand Cherokee sport utilities and Ram pickup trucks to spew toxic emissions beyond legal limits. The affected vehicles have model years ranging between 2014 and 2016.
The EPA’s move came a day after six current and former Volkswagen AG executives were criminally charged in the German auto giant’s long-running emissions cheating on nearly 600,000 diesel-powered vehicles in the U.S. Volkswagen separately pleaded guilty to criminal wrongdoing and agreed to pay $4.3 billion in penalties stemming from the long-running deception, which involved installing so-called defeat-device software on cars that allowed them to pollute less during government emissions tests than on the road. That was on top of up to $17.5 billion Volkswagen agreed to pay in previous civil settlements.
Officials stopped short of calling Fiat Chrysler’s software defeat devices, saying they were continuing to investigate. But they nevertheless accused Fiat Chrysler of illegal activity and said it could cost the company $4.63 billion, based on a $44,539 penalty for each affected vehicle.
“This is a clear and serious violation of the Clean Air Act,” said EPA Assistant Administrator Cynthia Giles, adding Fiat Chrysler failed to disclose eight so-called auxiliary emission control devices on the vehicles when getting them certified. “AECDs that are not disclosed are illegal.”
Fiat Chrysler “is disappointed that the EPA has chosen to issue a notice of violation,” the auto maker said in a statement. The company “intends to work with the incoming administration to present its case and resolve this matter fairly and equitable and to assure the EPA and FCA US customers that the company’s diesel-powered vehicles meet all applicable regulatory requirements.”
Auto maker allegedly used software on recent diesel-powered Jeep Grand Cherokee and Ram trucks allowing illegal emissions, EPA says
Jan. 12, 2017 11:55 a.m. ET
U.S. environmental regulators accused Fiat Chrysler Automobiles NV of using software that allowed illegal emissions in diesel-powered vehicles, the latest broadside in an unprecedented government crackdown on auto makers for alleged pollution transgressions.
The Environmental Protection Agency, days before the end of the Obama administration, delivered a violation notice to Fiat Chrysler accusing the auto maker of using illegal software that allowed 104,000 recent diesel-powered Jeep Grand Cherokee sport utilities and Ram pickup trucks to spew toxic emissions beyond legal limits. The affected vehicles have model years ranging between 2014 and 2016.
The EPA’s move came a day after six current and former Volkswagen AG executives were criminally charged in the German auto giant’s long-running emissions cheating on nearly 600,000 diesel-powered vehicles in the U.S. Volkswagen separately pleaded guilty to criminal wrongdoing and agreed to pay $4.3 billion in penalties stemming from the long-running deception, which involved installing so-called defeat-device software on cars that allowed them to pollute less during government emissions tests than on the road. That was on top of up to $17.5 billion Volkswagen agreed to pay in previous civil settlements.
Officials stopped short of calling Fiat Chrysler’s software defeat devices, saying they were continuing to investigate. But they nevertheless accused Fiat Chrysler of illegal activity and said it could cost the company $4.63 billion, based on a $44,539 penalty for each affected vehicle.
“This is a clear and serious violation of the Clean Air Act,” said EPA Assistant Administrator Cynthia Giles, adding Fiat Chrysler failed to disclose eight so-called auxiliary emission control devices on the vehicles when getting them certified. “AECDs that are not disclosed are illegal.”
Fiat Chrysler “is disappointed that the EPA has chosen to issue a notice of violation,” the auto maker said in a statement. The company “intends to work with the incoming administration to present its case and resolve this matter fairly and equitable and to assure the EPA and FCA US customers that the company’s diesel-powered vehicles meet all applicable regulatory requirements.”
01-12-2017, 02:00 PM
#663
Azine Jabroni
I get the feeling that if this is true, any manufacturer of diesel cars is going to face unprecedented levels of scrutiny. Makes me wonder if this is just the beginning.
01-12-2017, 05:29 PM
#664
Team Owner
I wonder if this really matters when EPA finishes its "Overhaul" in a few months.
01-13-2017, 01:49 PM
#665
Azine Jabroni
05-17-2017, 08:54 PM
#666
U.S. preparing to sue Fiat Chrysler over excess diesel emissions | Reuters
https://www.wsj.com/articles/italy-f...ons-1495030164
U.S. preparing to sue Fiat Chrysler over excess diesel emissions
Wed May 17, 2017 8:48pm EDT
The U.S. Justice Department plans to file a civil lawsuit against Fiat Chrysler Automobiles NV over excess diesel emissions as early as this week if no agreement is reached with the Italian-American automaker, two sources briefed on the matter said on Wednesday.
The U.S. Environmental Protection Agency in January accused FCA of illegally using undisclosed software to allow excess diesel emissions in about 104,000 cars and SUVs, the result of a probe that stemmed from regulators' investigation of rival Volkswagen AG.
The EPA and California Air Resources Board have been in talks with FCA about the excess emissions and whether the agencies would approve the sale of 2017 FCA diesel models.
A federal judge in California has set a May 24 hearing on a series of lawsuits filed by owners of vehicles against Fiat Chrysler and the Justice Department is expected to file its action by then if no agreement is reached.
FCA said on Wednesday it believed that any litigation would be "counterproductive" to ongoing discussions with the EPA and California Air Resources Board.
The company added that "in the case of any litigation, FCA US will defend itself vigorously, particularly against any claims that the company deliberately installed defeat devices to cheat U.S. emissions tests."
The Justice Department took the same procedural step in early 2016 against Volkswagen, nearly four months after the German company admitted using software to emit excess diesel emissions in nearly 500,000 vehicles.
The Justice Department has had an ongoing criminal investigation into FCA's conduct since last year, Reuters reported in January. The probe has turned up internal emails written in Italian and other documents about engine development and emissions issues, sources briefed on the probe said.
U.S. regulators said FCA failed to disclose engine management software in 104,000 U.S. 2014-2016 Jeep Grand Cherokees and Dodge Ram 1500 trucks with 3.0-liter diesel engines.
The European Commission has launched legal action against Italy for failing to respond to allegations of emission-test cheating by Fiat Chrysler in a procedure that could lead to the country being taken to court.
The EPA has said the maximum possible fine against FCA could be $4.6 billion.
In February, FCA said it had received requests for information and subpoenas from U.S. federal and state authorities, including the Securities and Exchange Commission, for diesel issues.
In total, VW has agreed to spend up to $25 billion to address U.S. claims from owners, environmental regulators, states and dealers and offered to buyback polluting U.S. vehicles.
Wed May 17, 2017 8:48pm EDT
The U.S. Justice Department plans to file a civil lawsuit against Fiat Chrysler Automobiles NV over excess diesel emissions as early as this week if no agreement is reached with the Italian-American automaker, two sources briefed on the matter said on Wednesday.
The U.S. Environmental Protection Agency in January accused FCA of illegally using undisclosed software to allow excess diesel emissions in about 104,000 cars and SUVs, the result of a probe that stemmed from regulators' investigation of rival Volkswagen AG.
The EPA and California Air Resources Board have been in talks with FCA about the excess emissions and whether the agencies would approve the sale of 2017 FCA diesel models.
A federal judge in California has set a May 24 hearing on a series of lawsuits filed by owners of vehicles against Fiat Chrysler and the Justice Department is expected to file its action by then if no agreement is reached.
FCA said on Wednesday it believed that any litigation would be "counterproductive" to ongoing discussions with the EPA and California Air Resources Board.
The company added that "in the case of any litigation, FCA US will defend itself vigorously, particularly against any claims that the company deliberately installed defeat devices to cheat U.S. emissions tests."
The Justice Department took the same procedural step in early 2016 against Volkswagen, nearly four months after the German company admitted using software to emit excess diesel emissions in nearly 500,000 vehicles.
The Justice Department has had an ongoing criminal investigation into FCA's conduct since last year, Reuters reported in January. The probe has turned up internal emails written in Italian and other documents about engine development and emissions issues, sources briefed on the probe said.
U.S. regulators said FCA failed to disclose engine management software in 104,000 U.S. 2014-2016 Jeep Grand Cherokees and Dodge Ram 1500 trucks with 3.0-liter diesel engines.
The European Commission has launched legal action against Italy for failing to respond to allegations of emission-test cheating by Fiat Chrysler in a procedure that could lead to the country being taken to court.
The EPA has said the maximum possible fine against FCA could be $4.6 billion.
In February, FCA said it had received requests for information and subpoenas from U.S. federal and state authorities, including the Securities and Exchange Commission, for diesel issues.
In total, VW has agreed to spend up to $25 billion to address U.S. claims from owners, environmental regulators, states and dealers and offered to buyback polluting U.S. vehicles.
https://www.wsj.com/articles/italy-f...ons-1495030164
Italy Faces EU Legal Action Over Fiat Chrysler Diesel Emissions
Italy has two months to respond to Brussels’ request for information
May 17, 2017
The European Commission took a first legal step against the Italian government on Wednesday, demanding a response to concerns that Rome has failed to effectively police diesel emissions of Fiat Chrysler Automobiles vehicles.
The commission said it had formally demanded more information from the Italian authorities on how they enforced rules demanding that manufacturers justify the use of so-called auxiliary engine control devices, which can be used to circumvent emission standards.
The commission also asked Italy to clarify why it had not imposed corrective measures on Fiat or slapped penalties on the manufacturer.
Italy has two months to respond to the commission’s request, which triggers a legal process that could end with Italy being taken to European Union courts and fined. The move comes after months of talks intended to clarify the steps Italian authorities had taken.
Wednesday’s move is the latest development in a European emissions scandal which erupted after Volkswagen AG admitted in 2015 using defeat devices to understate the level of carbon-dioxide emissions it declared to U.S. regulators. That has resulted in multibillion-dollar U.S. fines on the German company.
Under EU rules, manufacturers can choose in which EU country to certify their vehicles. Most manufacturers choose their home country and the commission and environmental experts have long alleged that national regulators may be too lenient.
In September, Germany urged the commission to investigate Fiat Chrysler after its motor-vehicle authority found evidence suggesting the Italian-based firm used software to manipulate emissions. Italy rejected the allegations.
Italian Transport Minister Graziano Delrio said in a statement on Wednesday he had asked the commission to postpone any steps to begin legal action. He said Italian authorities have from the start ruled out the presence of illegal devices on Fiat models and had provided all the information the commission had requested.
Defeat devices have long been banned under EU law, though there are exemptions if manufacturers can demonstrate they are needed to protect the engine against damage or accident or to ensure safe operation of the vehicle.
As the emissions scandal has widened, EU authorities have sought to improve policing of the industry and prevent national authorities soft-pedaling their oversight of manufacturers.
The commission is pushing legislation which would allow more independent vehicle testing and increase the checks on cars in circulation. It would also boost the EU’s supervisory powers over national authorities, test centers and car makers.
Last December, the EU started legal cases against seven EU member states, including Germany, whose authorities approved Volkswagen vehicles but didn’t apply national rules allowing penalties to be imposed.
Italy has two months to respond to Brussels’ request for information
May 17, 2017
The European Commission took a first legal step against the Italian government on Wednesday, demanding a response to concerns that Rome has failed to effectively police diesel emissions of Fiat Chrysler Automobiles vehicles.
The commission said it had formally demanded more information from the Italian authorities on how they enforced rules demanding that manufacturers justify the use of so-called auxiliary engine control devices, which can be used to circumvent emission standards.
The commission also asked Italy to clarify why it had not imposed corrective measures on Fiat or slapped penalties on the manufacturer.
Italy has two months to respond to the commission’s request, which triggers a legal process that could end with Italy being taken to European Union courts and fined. The move comes after months of talks intended to clarify the steps Italian authorities had taken.
Wednesday’s move is the latest development in a European emissions scandal which erupted after Volkswagen AG admitted in 2015 using defeat devices to understate the level of carbon-dioxide emissions it declared to U.S. regulators. That has resulted in multibillion-dollar U.S. fines on the German company.
Under EU rules, manufacturers can choose in which EU country to certify their vehicles. Most manufacturers choose their home country and the commission and environmental experts have long alleged that national regulators may be too lenient.
In September, Germany urged the commission to investigate Fiat Chrysler after its motor-vehicle authority found evidence suggesting the Italian-based firm used software to manipulate emissions. Italy rejected the allegations.
Italian Transport Minister Graziano Delrio said in a statement on Wednesday he had asked the commission to postpone any steps to begin legal action. He said Italian authorities have from the start ruled out the presence of illegal devices on Fiat models and had provided all the information the commission had requested.
Defeat devices have long been banned under EU law, though there are exemptions if manufacturers can demonstrate they are needed to protect the engine against damage or accident or to ensure safe operation of the vehicle.
As the emissions scandal has widened, EU authorities have sought to improve policing of the industry and prevent national authorities soft-pedaling their oversight of manufacturers.
The commission is pushing legislation which would allow more independent vehicle testing and increase the checks on cars in circulation. It would also boost the EU’s supervisory powers over national authorities, test centers and car makers.
Last December, the EU started legal cases against seven EU member states, including Germany, whose authorities approved Volkswagen vehicles but didn’t apply national rules allowing penalties to be imposed.
05-23-2017, 11:51 PM
#667
https://www.wsj.com/articles/u-s-nea...ons-1495553346
U.S. Sues Fiat Chrysler Over Diesel Emissions
May 23, 2017
The U.S. Justice Department sued Fiat Chrysler Automobiles FCAU -4.09% NV and alleged it used illegal software to cheat on government emissions tests, escalating a battle over the company’s diesel engines.
In a civil lawsuit filed Tuesday in a Detroit federal court, U.S. prosecutors said the Italian-American auto maker used defeat-device software that allowed nearly 104,000 2014-2016 model-year Jeep Grand Cherokee sport-utility vehicles and Ram pickup trucks with diesel engines to pass government emissions tests and then pollute far beyond legal limits on the road.
The suit accuses Fiat Chrysler of violating the federal Clean Air Act and seeks injunctive relief and civil penalties. The suit also named as a defendant VM Motori SpA, a company owned by Fiat Chrysler that designed the diesel engines.
Fiat Chrysler said it was “disappointed” the Justice Department filed the lawsuit and “intends to defend itself vigorously, particularly against any claims that the company engaged in any deliberate scheme to install defeat devices to cheat U.S. emissions tests.”
A U.S. district judge is scheduled to hold a hearing on Wednesday to consider widespread consumer lawsuits against Fiat Chrysler alleging emissions transgressions. They are consolidated in a San Francisco federal court as part of a so-called multidistrict litigation case. The Justice Department plans to request its lawsuit be transferred to the California court so it can join those proceedings as a plaintiff alongside owners of Fiat Chrysler vehicles.
The Justice Department suit alleges Fiat Chrysler’s undisclosed software allowed vehicles to meet emissions standards in the laboratory and during standard EPA testing while emitting nitrogen oxides above allowable limits during certain normal on-road driving. When seeking certification of the vehicles, Fiat Chrysler failed to disclose a least eight auxiliary emission-control devices that individually or in combination with one another had the “principal effect of bypassing, defeating or rendering inoperative” pollution-control systems, the suit said.
The EPA and California Air Resources Board remain in discussions with Fiat Chrysler to make the vehicles compliant with federal and state pollution laws. The EPA said the “nature and timing of any resolution of this issue are uncertain.”
The Justice Department sued Fiat Chrysler despite the auto maker’s recent efforts to update its software and settle allegations with environmental regulators.
Fiat Chrysler on Friday said it had asked environmental regulators to certify 2017 model-year Jeep Grand Cherokees and Ram pickup trucks with diesel engines that featured updated software. The request came after months of discussions with the EPA and California regulators, and included extensive testing of the vehicles, the auto maker said. The vehicles, while continuing to roll off production lines, have been held in storage awaiting regulatory approval to be sold.
Fiat Chrysler said it intended to install similar modified emissions software in the 2014-2016 models currently under government suspicion once receiving permission from regulators. The auto maker predicted the moves would lead to a “prompt resolution to ongoing discussions” with the Justice Department and other agencies.
Fiat Chrysler “believes these updated software calibrations fully address EPA’s and [California regulators’] concerns and can be installed in the [vehicles’] engine control module through a simple software reflash,” the company’s lawyers wrote last week in a filing in the San Francisco federal court.
May 23, 2017
The U.S. Justice Department sued Fiat Chrysler Automobiles FCAU -4.09% NV and alleged it used illegal software to cheat on government emissions tests, escalating a battle over the company’s diesel engines.
In a civil lawsuit filed Tuesday in a Detroit federal court, U.S. prosecutors said the Italian-American auto maker used defeat-device software that allowed nearly 104,000 2014-2016 model-year Jeep Grand Cherokee sport-utility vehicles and Ram pickup trucks with diesel engines to pass government emissions tests and then pollute far beyond legal limits on the road.
The suit accuses Fiat Chrysler of violating the federal Clean Air Act and seeks injunctive relief and civil penalties. The suit also named as a defendant VM Motori SpA, a company owned by Fiat Chrysler that designed the diesel engines.
Fiat Chrysler said it was “disappointed” the Justice Department filed the lawsuit and “intends to defend itself vigorously, particularly against any claims that the company engaged in any deliberate scheme to install defeat devices to cheat U.S. emissions tests.”
A U.S. district judge is scheduled to hold a hearing on Wednesday to consider widespread consumer lawsuits against Fiat Chrysler alleging emissions transgressions. They are consolidated in a San Francisco federal court as part of a so-called multidistrict litigation case. The Justice Department plans to request its lawsuit be transferred to the California court so it can join those proceedings as a plaintiff alongside owners of Fiat Chrysler vehicles.
The Justice Department suit alleges Fiat Chrysler’s undisclosed software allowed vehicles to meet emissions standards in the laboratory and during standard EPA testing while emitting nitrogen oxides above allowable limits during certain normal on-road driving. When seeking certification of the vehicles, Fiat Chrysler failed to disclose a least eight auxiliary emission-control devices that individually or in combination with one another had the “principal effect of bypassing, defeating or rendering inoperative” pollution-control systems, the suit said.
The EPA and California Air Resources Board remain in discussions with Fiat Chrysler to make the vehicles compliant with federal and state pollution laws. The EPA said the “nature and timing of any resolution of this issue are uncertain.”
The Justice Department sued Fiat Chrysler despite the auto maker’s recent efforts to update its software and settle allegations with environmental regulators.
Fiat Chrysler on Friday said it had asked environmental regulators to certify 2017 model-year Jeep Grand Cherokees and Ram pickup trucks with diesel engines that featured updated software. The request came after months of discussions with the EPA and California regulators, and included extensive testing of the vehicles, the auto maker said. The vehicles, while continuing to roll off production lines, have been held in storage awaiting regulatory approval to be sold.
Fiat Chrysler said it intended to install similar modified emissions software in the 2014-2016 models currently under government suspicion once receiving permission from regulators. The auto maker predicted the moves would lead to a “prompt resolution to ongoing discussions” with the Justice Department and other agencies.
Fiat Chrysler “believes these updated software calibrations fully address EPA’s and [California regulators’] concerns and can be installed in the [vehicles’] engine control module through a simple software reflash,” the company’s lawyers wrote last week in a filing in the San Francisco federal court.
05-24-2017, 07:57 AM
#668
Azine Jabroni
Makes you wonder if everyone is/was doing this. I would think after the VW thing everyone would have stopped this.
Is this the end of Marchionne?
Is this the end of Marchionne?
05-24-2017, 09:23 AM
#669
The Third Ball
Join Date: Sep 2002
Location: Los Angeles, Ca
Age: 45
Posts: 49,122
Received 4,824 Likes
on
2,571 Posts
The question is...whose next?
05-24-2017, 09:32 AM
#670
Azine Jabroni
Toyota and Honda come out winners here. Their limited diesel footprint seems to reinforce the idea that they simply could not meet regulations without cheating. Either that or they simply didn't try.
The following users liked this post:
Sarlacc (05-24-2017)
08-14-2017, 01:47 PM
#671
Race Director
For more than two years, FCA has been FSBO — that’s For Sale By Owner — with no serious offers.
Not anymore.
Representatives of a well-known Chinese automaker made at least one offer this month to buy Fiat Chrysler Automobiles at a small premium over its market value, Automotive News has learned. The offer was rejected for not being enough, a source said.
Meanwhile, other sources independently identified executives from other large Chinese automakers conducting their own due diligence on a potential purchase of FCA, including meeting last week with representatives of U.S. retail groups about a potential acquisition. A source said FCA executives have traveled to China to meet with Great Wall Motor Co. And Chinese delegations were seen last week at FCA’s headquarters in Auburn Hills, Mich.
Chinese companies are under government pressure to expand outside China by acquiring foreign companies. FCA may be a perfect target, given that CEO Sergio Marchionne has focused on streamlining the automaker’s operations to make it enticing to a buyer, making bold moves such as exiting small cars and sedans and revamping the company’s manufacturing footprint.
It’s unclear which Chinese automaker or automakers are pursuing FCA. Different sources have pointed to involvement by different ones — Dongfeng Motor Corp., Great Wall, Zhejiang Geely Holding Group or FCA’s current joint venture partner in China, Guangzhou Automobile Group. But it is also unclear which company or companies are likely to follow through or succeed.
Unsurprisingly, FCA isn’t talking, nor are any of the four Chinese automakers. But if a sale proceeds, the quintessentially American Jeep brand — once owned by the Germans and most recently by the Italians/Dutch — may soon be owned by the Chinese.
According to one source, any sale likely would involve FCA’s highly profitable Jeep and Ram brands, as well as Chrysler, Dodge and Fiat, but would exclude Maserati and Alfa Romeo. Those two brands would be spun off, as was Ferrari, to maximize returns for Exor, the holding company controlled by the Agnelli family, which owns a controlling interest in FCA, the source said, speaking on condition of anonymity.
Why, after two years on the block, is FCA apparently drawing interest from at least one potential Chinese buyer now?
The answer: FCA’s global network and product — specifically Jeep and Ram — fit the requirements the Chinese government has set for attractive acquisitions.
Chinese automakers have openly dreamed of cracking lucrative North America for a decade, spending millions to display their vehicles at high-profile U.S. auto shows. Early efforts showed that Chinese automakers had a long way to go before they were ready to compete here.
But in more recent years — through knowledge and expertise gained via joint ventures with the world’s largest and most successful automakers — Chinese companies have closed the quality gap.
And the automakers feel like they finally have closed that gap enough to start selling their products in the U.S., said Michael Dunne, president of Dunne Automotive, a Hong Kong investment advisory company and an expert on the Chinese auto industry.
They also are under pressure from the government to expand beyond China, Dunne said.
A government directive dubbed China Outbound pushes Chinese businesses to acquire international assets from their industries and operate them “to make their mark,” much as Geely has done since acquiring Volvo in 2010. Bloomberg reported last week that Chinese companies plan to spend $1.5 trillion acquiring overseas companies over the next decade — a 70 percent increase from current levels.“Right now, Chinese automakers enjoy the full support of the leadership in Beijing to go and make it happen,” Dunne said. “That’s something brand new, and it’s really picked up since 2015.”
Along with Volvo, Dunne pointed to Italian tire maker Pirelli and German robotics giant Kuka as Chinese acquisitions supported by the China Outbound policy.
Interest has been growing for some time. In May 2016, FCA hosted a high-level delegation from China at its North American headquarters, which included Hu Chunhua, a member of the Communist Party’s Politburo and secretary of the party’s Guangdong Provincial Committee. Also in attendance were Cui Tiankai, China’s ambassador to the U.S., and Zhang Fangyou, chairman of Guangzhou Automobile Group.
“The interest is real, no question,” Dunne said. “The complications are on the political side: What would this mean for a Chinese company to acquire an American automaker, no matter where its corporate headquarters is based?”
For a Chinese automaker that dreams of making a splash in North America, Europe and Latin America, FCA presents as close to a turnkey operation as exists.
Globally, FCA has 162 manufacturing operations — assembly, component, stamping and machining plants — and another 87 r&d centers. In North America, FCA has a network of about 2,600 U.S. dealerships, as well as extensive distribution networks in Canada and Mexico.
And unlike other, larger publicly owned automakers with similar global footprints, Marchionne and his bosses at Exor have made one thing clear: Write a big enough check, and the keys to FCA are yours.
When it became apparent in late 2015 that FCA’s attempts to merge with General Motors had been rejected and any effort to tie up with Volkswagen was shut down because of that automaker’s then-blooming diesel emissions scandal, Marchionne began focusing attention inward, looking at why his company had not been more attractive to potential partners. In early 2016, he began implementing radical changes to make FCA more appealing, especially to an Asian automaker, but also to Volkswagen.
First, FCA shocked the industry by ending production of its compact and midsize sedans in the U.S., the Dodge Dart and Chrysler 200. The cars had been among the first fruits of bankrupt Chrysler’s 2009 shotgun marriage to Fiat S.p.A., but both had disappointing sales.
At the same time, Marchionne expanded development for his two cash cows, Jeep and Ram. He retooled plants from unibody construction back to body-on-frame to expand production of the Ram 1500 and Jeep Wrangler, and he announced that, after years of consumer clamoring, Jeep would again build a pickup and would soon build big luxury Jeeps to compete with Land Rover.
Product development plans laid out in 2014 — to vastly expand the Chrysler lineup, for example — were scrapped. FCA’s North American product line would go where the money was: pickups, SUVs and the minivan.
Stretch goals
The transformation, which will be largely complete by 2018, will mean FCA showrooms will resemble those of a decade ago when gasoline prices spiked: full of SUVs, crossovers, minivans and pickups and devoid of anything smaller or more fuel-efficient. The transformation has helped FCA’s quarterly financials, and Marchionne says the automaker is on track to achieve in 2018 what had been widely considered pie-in-the-sky goals laid out in 2014.FCA has also looked hard at shedding holdings not directly related to automaking as a way to free trapped value for shareholders. That could include separation from parts maker Magneti Marelli, casting specialist Teksid and automation provider Comau.
On a conference call with analysts last month, Marchionne laid out the strategy.
“In order to be fair to our shareholders, we need to make sure that we deliver as much value out of this venture as we can,” he said.
The prospect of selling FCA to a Chinese automaker has been on Marchionne’s mind awhile. In August 2015, months after he began his quest to merge or partner with another global automaker with his “Confessions of a Capital Junkie” presentation, and while he was launching his soon-to-be-rebuffed bid to merge with GM, the FCA CEO told Automotive News that he had closely studied potential tie-ups with numerous Asian automakers.
His conclusion: None of the Asian automakers was looking for partners.
He was asked: Anyone in Asia?
“I don’t think Asia is partnerable,” he said. “No, you can be acquired by the Asians. I think China will buy you.”
Read more: Fiat Chrysler could be sold to a Chinese car company: FCA looking to be bought
Not anymore.
Representatives of a well-known Chinese automaker made at least one offer this month to buy Fiat Chrysler Automobiles at a small premium over its market value, Automotive News has learned. The offer was rejected for not being enough, a source said.
Meanwhile, other sources independently identified executives from other large Chinese automakers conducting their own due diligence on a potential purchase of FCA, including meeting last week with representatives of U.S. retail groups about a potential acquisition. A source said FCA executives have traveled to China to meet with Great Wall Motor Co. And Chinese delegations were seen last week at FCA’s headquarters in Auburn Hills, Mich.
FCA shares rose on the news, trading up 7.4 percent to $12.47 in New York as of 10:28 a.m. ET.
Chinese companies are under government pressure to expand outside China by acquiring foreign companies. FCA may be a perfect target, given that CEO Sergio Marchionne has focused on streamlining the automaker’s operations to make it enticing to a buyer, making bold moves such as exiting small cars and sedans and revamping the company’s manufacturing footprint.
It’s unclear which Chinese automaker or automakers are pursuing FCA. Different sources have pointed to involvement by different ones — Dongfeng Motor Corp., Great Wall, Zhejiang Geely Holding Group or FCA’s current joint venture partner in China, Guangzhou Automobile Group. But it is also unclear which company or companies are likely to follow through or succeed.
Unsurprisingly, FCA isn’t talking, nor are any of the four Chinese automakers. But if a sale proceeds, the quintessentially American Jeep brand — once owned by the Germans and most recently by the Italians/Dutch — may soon be owned by the Chinese.
According to one source, any sale likely would involve FCA’s highly profitable Jeep and Ram brands, as well as Chrysler, Dodge and Fiat, but would exclude Maserati and Alfa Romeo. Those two brands would be spun off, as was Ferrari, to maximize returns for Exor, the holding company controlled by the Agnelli family, which owns a controlling interest in FCA, the source said, speaking on condition of anonymity.
Why, after two years on the block, is FCA apparently drawing interest from at least one potential Chinese buyer now?
The answer: FCA’s global network and product — specifically Jeep and Ram — fit the requirements the Chinese government has set for attractive acquisitions.
Quality gap
Chinese automakers have openly dreamed of cracking lucrative North America for a decade, spending millions to display their vehicles at high-profile U.S. auto shows. Early efforts showed that Chinese automakers had a long way to go before they were ready to compete here.
But in more recent years — through knowledge and expertise gained via joint ventures with the world’s largest and most successful automakers — Chinese companies have closed the quality gap.
And the automakers feel like they finally have closed that gap enough to start selling their products in the U.S., said Michael Dunne, president of Dunne Automotive, a Hong Kong investment advisory company and an expert on the Chinese auto industry.
They also are under pressure from the government to expand beyond China, Dunne said.
A government directive dubbed China Outbound pushes Chinese businesses to acquire international assets from their industries and operate them “to make their mark,” much as Geely has done since acquiring Volvo in 2010. Bloomberg reported last week that Chinese companies plan to spend $1.5 trillion acquiring overseas companies over the next decade — a 70 percent increase from current levels.“Right now, Chinese automakers enjoy the full support of the leadership in Beijing to go and make it happen,” Dunne said. “That’s something brand new, and it’s really picked up since 2015.”
Along with Volvo, Dunne pointed to Italian tire maker Pirelli and German robotics giant Kuka as Chinese acquisitions supported by the China Outbound policy.
Interest has been growing for some time. In May 2016, FCA hosted a high-level delegation from China at its North American headquarters, which included Hu Chunhua, a member of the Communist Party’s Politburo and secretary of the party’s Guangdong Provincial Committee. Also in attendance were Cui Tiankai, China’s ambassador to the U.S., and Zhang Fangyou, chairman of Guangzhou Automobile Group.
“The interest is real, no question,” Dunne said. “The complications are on the political side: What would this mean for a Chinese company to acquire an American automaker, no matter where its corporate headquarters is based?”
Turnkey operation
For a Chinese automaker that dreams of making a splash in North America, Europe and Latin America, FCA presents as close to a turnkey operation as exists.
Globally, FCA has 162 manufacturing operations — assembly, component, stamping and machining plants — and another 87 r&d centers. In North America, FCA has a network of about 2,600 U.S. dealerships, as well as extensive distribution networks in Canada and Mexico.
And unlike other, larger publicly owned automakers with similar global footprints, Marchionne and his bosses at Exor have made one thing clear: Write a big enough check, and the keys to FCA are yours.
When it became apparent in late 2015 that FCA’s attempts to merge with General Motors had been rejected and any effort to tie up with Volkswagen was shut down because of that automaker’s then-blooming diesel emissions scandal, Marchionne began focusing attention inward, looking at why his company had not been more attractive to potential partners. In early 2016, he began implementing radical changes to make FCA more appealing, especially to an Asian automaker, but also to Volkswagen.
First, FCA shocked the industry by ending production of its compact and midsize sedans in the U.S., the Dodge Dart and Chrysler 200. The cars had been among the first fruits of bankrupt Chrysler’s 2009 shotgun marriage to Fiat S.p.A., but both had disappointing sales.
At the same time, Marchionne expanded development for his two cash cows, Jeep and Ram. He retooled plants from unibody construction back to body-on-frame to expand production of the Ram 1500 and Jeep Wrangler, and he announced that, after years of consumer clamoring, Jeep would again build a pickup and would soon build big luxury Jeeps to compete with Land Rover.
Product development plans laid out in 2014 — to vastly expand the Chrysler lineup, for example — were scrapped. FCA’s North American product line would go where the money was: pickups, SUVs and the minivan.
Stretch goals
The transformation, which will be largely complete by 2018, will mean FCA showrooms will resemble those of a decade ago when gasoline prices spiked: full of SUVs, crossovers, minivans and pickups and devoid of anything smaller or more fuel-efficient. The transformation has helped FCA’s quarterly financials, and Marchionne says the automaker is on track to achieve in 2018 what had been widely considered pie-in-the-sky goals laid out in 2014.FCA has also looked hard at shedding holdings not directly related to automaking as a way to free trapped value for shareholders. That could include separation from parts maker Magneti Marelli, casting specialist Teksid and automation provider Comau.
On a conference call with analysts last month, Marchionne laid out the strategy.
“In order to be fair to our shareholders, we need to make sure that we deliver as much value out of this venture as we can,” he said.
The prospect of selling FCA to a Chinese automaker has been on Marchionne’s mind awhile. In August 2015, months after he began his quest to merge or partner with another global automaker with his “Confessions of a Capital Junkie” presentation, and while he was launching his soon-to-be-rebuffed bid to merge with GM, the FCA CEO told Automotive News that he had closely studied potential tie-ups with numerous Asian automakers.
His conclusion: None of the Asian automakers was looking for partners.
He was asked: Anyone in Asia?
“I don’t think Asia is partnerable,” he said. “No, you can be acquired by the Asians. I think China will buy you.”
Read more: Fiat Chrysler could be sold to a Chinese car company: FCA looking to be bought
08-14-2017, 10:10 PM
#672
The Third Ball
Join Date: Sep 2002
Location: Los Angeles, Ca
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I was reading about this earlier today.
I want to jump up and say, this is terrible news, etc etc etc.
But look at what Volvo has done under Geely's ownership. Maybe it wouldn't be a horrible thing.
I want to jump up and say, this is terrible news, etc etc etc.
But look at what Volvo has done under Geely's ownership. Maybe it wouldn't be a horrible thing.
08-14-2017, 10:18 PM
#673
Azine Jabroni
Yeah, I wouldn't be too worried about it. The company is struggling as is. Marchionne needs to go. FCA needs some fresh blood at the top.
08-14-2017, 10:42 PM
#674
The Third Ball
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Its hard to figure. I think its because of Marichonne that FCA was allowed to make the Hellcat, Demon, Trackhawk, intensive SRT line, etc. I would think more conservative CEOs would be way too chickenshit to amp up the performance lines the way they have in the past few years. But, I could be wrong.
08-15-2017, 09:01 PM
#675
Its hard to figure. I think its because of Marichonne that FCA was allowed to make the Hellcat, Demon, Trackhawk, intensive SRT line, etc. I would think more conservative CEOs would be way too chickenshit to amp up the performance lines the way they have in the past few years. But, I could be wrong.
On the flip side the Jeep brand specifically needs some streamlining. The GC for example uses a German suspension, German transmission, Italian and American ownership, American engines, italian engines.....it's a bit crazy that it even works lol.
08-22-2017, 09:22 AM
#676
https://www.wsj.com/articles/chinas-...ler-1503403957
China’s Great Wall Says it Is ‘Paying Close Attention’ to Fiat Chrysler
Company confirms possible acquisition plan a day after spokesman says it wants to buy Jeep
Aug. 22, 2017 8:12 a.m. ET
SHANGHAI—Great Wall Motor Co. is “paying close attention” to Fiat Chrysler Automobiles , the company said in a statement Tuesday, a day after a Great Wall spokeswoman said the Chinese car manufacturer was aiming to buy Jeep, the U.S. sport-utility vehicle brand.
But the while the company confirmed it was evaluating a possible acquisition, it said it hasn’t contacted Fiat Chrysler about such a move or signed any documents related to it.
Great Wall’s shares were suspended in Hong Kong earlier in the day amid speculation about the Chinese auto maker’s intentions regarding the Italian-U.S. firm, prompting Great Wall to issue the statement to clarify its position.
Great Wall said it was responding to a variety of media reports, including those saying “that the company intends to acquire Jeep and has contacted FCA to see whether an agreement can be reached; and that company president Wang [Fengying] told the media the company is preparing to buy Jeep and is in contact with FCA to negotiate the acquisition.”
Great Wall said its efforts “had not made any progress so far” and that it hasn’t yet approached the Fiat Chrysler board or any other company representative. It also said it hasn’t signed documents relating to a potential purchase.
Fiat Chrysler said in a statement Monday that it had not been approached by any potential buyers either for all or part of the company.
Company confirms possible acquisition plan a day after spokesman says it wants to buy Jeep
Aug. 22, 2017 8:12 a.m. ET
SHANGHAI—Great Wall Motor Co. is “paying close attention” to Fiat Chrysler Automobiles , the company said in a statement Tuesday, a day after a Great Wall spokeswoman said the Chinese car manufacturer was aiming to buy Jeep, the U.S. sport-utility vehicle brand.
But the while the company confirmed it was evaluating a possible acquisition, it said it hasn’t contacted Fiat Chrysler about such a move or signed any documents related to it.
Great Wall’s shares were suspended in Hong Kong earlier in the day amid speculation about the Chinese auto maker’s intentions regarding the Italian-U.S. firm, prompting Great Wall to issue the statement to clarify its position.
Great Wall said it was responding to a variety of media reports, including those saying “that the company intends to acquire Jeep and has contacted FCA to see whether an agreement can be reached; and that company president Wang [Fengying] told the media the company is preparing to buy Jeep and is in contact with FCA to negotiate the acquisition.”
Great Wall said its efforts “had not made any progress so far” and that it hasn’t yet approached the Fiat Chrysler board or any other company representative. It also said it hasn’t signed documents relating to a potential purchase.
Fiat Chrysler said in a statement Monday that it had not been approached by any potential buyers either for all or part of the company.
04-11-2018, 08:39 AM
#677
https://www.reuters.com/article/us-f...-idUSKBN1HH3KR
Fiat Chrysler, U.S. Justice Department in diesel emissions settlement talks
April 10, 2018
(Reuters) - Fiat Chrysler Automobiles NV is in advanced settlement talks with the U.S. Justice Department and California Air Resources Board over accusations that the company illegally used software that led to excess emissions in 104,000 U.S. diesel vehicles sold since 2014, a court-appointed adviser said at a hearing on Tuesday.
The adviser, Ken Feinberg, disclosed at a federal court hearing in San Francisco that government lawyers and Fiat Chrysler had exchanged and “redlined” documents after lengthy talks that were moving “at a rather swift pace.”
A lawyer for Fiat Chrysler, Robert Giuffra, said the company and government lawyers were exchanging drafts of settlement documents. He said he expected a settlement would be reached “probably sometime during the summer.”
The Justice Department sent Fiat Chrysler lawyers a Jan. 27 settlement offer that would require the company to offset excess pollution and take steps to prevent future excess emissions, Reuters reported in February. The letter included language that a settlement must include very substantial civil penalties.
Lawyers in court did not disclose the potential amount of any fine state and federal governments would want Fiat Chrysler to pay as part of any settlement or if the sides had agreed on that issue. California Air Resources Board chair Mary Nichols on Monday declined to discuss the amount of any potential civil penalty.
The sides have engaged in lengthy settlement talks and have three more rounds of talks planned for later in April and May. Lawyers said a settlement could be reached this summer.
Fiat Chrysler and the Justice Department have discussed some consumer-related provisions that could be part of a settlement including warranty and recall provisions.
Last July, Fiat Chrysler won approval from federal and California regulators to sell 2017 model year diesel vehicles after it was sued by the Justice Department in May 2017 for excess emissions.
To resolve the pollution issue, the company is confident it can use updated emissions software in the 2017 vehicles as the basis of a fix to address agencies’ concerns over 2014-2016 diesel vehicles. The company hopes to complete testing the proposed fix by the end of June.
Regulators have said Fiat Chrysler diesel vehicles had undisclosed emissions controls that allowed vehicles to emit excess pollution during normal driving.
April 10, 2018
(Reuters) - Fiat Chrysler Automobiles NV is in advanced settlement talks with the U.S. Justice Department and California Air Resources Board over accusations that the company illegally used software that led to excess emissions in 104,000 U.S. diesel vehicles sold since 2014, a court-appointed adviser said at a hearing on Tuesday.
The adviser, Ken Feinberg, disclosed at a federal court hearing in San Francisco that government lawyers and Fiat Chrysler had exchanged and “redlined” documents after lengthy talks that were moving “at a rather swift pace.”
A lawyer for Fiat Chrysler, Robert Giuffra, said the company and government lawyers were exchanging drafts of settlement documents. He said he expected a settlement would be reached “probably sometime during the summer.”
The Justice Department sent Fiat Chrysler lawyers a Jan. 27 settlement offer that would require the company to offset excess pollution and take steps to prevent future excess emissions, Reuters reported in February. The letter included language that a settlement must include very substantial civil penalties.
Lawyers in court did not disclose the potential amount of any fine state and federal governments would want Fiat Chrysler to pay as part of any settlement or if the sides had agreed on that issue. California Air Resources Board chair Mary Nichols on Monday declined to discuss the amount of any potential civil penalty.
The sides have engaged in lengthy settlement talks and have three more rounds of talks planned for later in April and May. Lawyers said a settlement could be reached this summer.
Fiat Chrysler and the Justice Department have discussed some consumer-related provisions that could be part of a settlement including warranty and recall provisions.
Last July, Fiat Chrysler won approval from federal and California regulators to sell 2017 model year diesel vehicles after it was sued by the Justice Department in May 2017 for excess emissions.
To resolve the pollution issue, the company is confident it can use updated emissions software in the 2017 vehicles as the basis of a fix to address agencies’ concerns over 2014-2016 diesel vehicles. The company hopes to complete testing the proposed fix by the end of June.
Regulators have said Fiat Chrysler diesel vehicles had undisclosed emissions controls that allowed vehicles to emit excess pollution during normal driving.
07-21-2018, 06:59 PM
#678
Race Director
TURIN -- Fiat Chrysler Automobiles on Saturday appointed Mike Manley to replace the seriously ill Sergio Marchionne as its CEO.
Manley, 54, a native of England, has headed Jeep since 2009 and the Ram brand since 2015.
"Fiat Chrysler Automobiles communicates with profound sorrow that during the course of this week unexpected complications arose while Mr. Marchionne was recovering from surgery and that these have worsened significantly in recent hours," the company said in a statement. "As a consequence, Mr. Marchionne will be unable to return to work.
"The Board of Directors of FCA, meeting today, firstly expressed its closeness to Sergio Marchionne and his family and underlined the extraordinary contribution, both human and professional, that he has made to the Company in these years.
"The Board resolved to accelerate the CEO transition process that has been proceeding over the past months and named Mike Manley as CEO."
An emergency meeting of the FCA board of directors to appoint a replacement was chaired in Turin by John Elkann, the FCA chairman and controlling shareholder of Ferrari, FCA and construction equipment maker CNH Industrial.
"Mr. Manley and his management team will proceed with the implementation of the 2018–2022 Business Plan as presented on June 1 of this year, a plan that will further assure FCA’s strong and independent future," the FCA statement said.
Marchionne, 66, had surgery on his right shoulder and needs a short period of convalescence, an FCA spokesman told Italian business website Lettera 43 on July 5. He has not been seen in public since June 26, when he delivered a Jeep Wrangler to the Carabinieri police in Rome.
http://www.autonews.com/article/2018...o-named-elkann
Manley, 54, a native of England, has headed Jeep since 2009 and the Ram brand since 2015.
"Fiat Chrysler Automobiles communicates with profound sorrow that during the course of this week unexpected complications arose while Mr. Marchionne was recovering from surgery and that these have worsened significantly in recent hours," the company said in a statement. "As a consequence, Mr. Marchionne will be unable to return to work.
"The Board of Directors of FCA, meeting today, firstly expressed its closeness to Sergio Marchionne and his family and underlined the extraordinary contribution, both human and professional, that he has made to the Company in these years.
"The Board resolved to accelerate the CEO transition process that has been proceeding over the past months and named Mike Manley as CEO."
An emergency meeting of the FCA board of directors to appoint a replacement was chaired in Turin by John Elkann, the FCA chairman and controlling shareholder of Ferrari, FCA and construction equipment maker CNH Industrial.
"Mr. Manley and his management team will proceed with the implementation of the 2018–2022 Business Plan as presented on June 1 of this year, a plan that will further assure FCA’s strong and independent future," the FCA statement said.
Marchionne, 66, had surgery on his right shoulder and needs a short period of convalescence, an FCA spokesman told Italian business website Lettera 43 on July 5. He has not been seen in public since June 26, when he delivered a Jeep Wrangler to the Carabinieri police in Rome.
http://www.autonews.com/article/2018...o-named-elkann
07-25-2018, 07:31 AM
#679
Race Director
Sergio Marchionne, the former chief executive officer of Fiat Chrysler and architect of the automaker’s dramatic turnaround, has died. He was 66.
His death was confirmed Wednesday by Exor NV, the holding company of Fiat’s founding Agnelli family, just days after Marchionne was replaced as CEO. His health had declined suddenly following complications from a shoulder operation at a Zurich hospital, according to people familiar with the situation. The company wasn’t specific about the cause of his death.
"Sergio Marchionne, man and friend, is gone,” Fiat Chairman John Elkann said in a statement. "My family and I will be forever grateful for what he has done,” said Elkann, who also is chairman and CEO of Exor.Selected as CEO of Fiat SpA in June 2004, Marchionne took the Italian manufacturer from the brink of bankruptcy to the New York Stock Exchange, where he rang the bell on Oct. 13, 2014, to mark the debut of Fiat Chrysler Automobiles NV, the London company created when Fiat bought the Detroit carmaker.
Marchionne, who described himself as a corporate fixer, was Fiat’s fifth CEO in less than two years when he took over. He replaced Giuseppe Morchio, who quit after the billionaire Agnelli family refused to give him the joint title of chairman and CEO when then-Chairman Umberto Agnelli died of cancer.
In 2009, U.S. President Barack Obama’s administration announced that Fiat would take control of Chrysler LLC, rescuing the American company from bankruptcy.
“I don’t care what a tough guy he was to work for, he saved our company,” said Cass Burch, a Chrysler and Jeep dealer in Georgia. “He deserves a bronze statue.”
His office on the fourth floor of Fiat’s Turin headquarters was adorned with a black-and-white poster of the word “competition” and a Picasso print bearing the motto, “Every act of creation is first of all an act of destruction.”
During his tenure at Fiat, Marchionne boosted the company’s value more than 10-fold by restructuring the auto business and separating assets. Among the biggest spinoffs was the 2015 listing of supercar-maker Ferrari NV, where Marchionne also served as CEO and chairman.Marchionne’s direct manner and frumpy demeanor -- he was rarely seen wearing anything but jeans and a black pullover sweater -- made him stand out in buttoned-down Italy. He knew how to move fast and enjoyed driving his half-dozen Ferraris. “When you’re pissed off, there’s nothing better than this,” he said, stomping on the accelerator of his black Enzo at the company’s test track in 2014 and pushing the car from a comfortable 120 miles per hour to something over 200.
He also knew speed can be dangerous. In 2007, he wrecked a $350,000 Ferrari on a highway in Switzerland. “In the car business, sometimes you crash,” he said. Yet even as he garnered criticism from politicians and unions for slashing jobs and cutting costs, Marchionne argued that moving slowly could be even more risky. When he took over both Fiat and Chrysler, he always maintained, the companies needed radical change in order to survive.
“Sergio Marchionne was one of the most respected leaders in the industry whose creativity and bold determination helped to restore Chrysler to financial health and grow Fiat Chrysler into a profitable global automaker,” Ford Motor Co. Chairman Bill Ford said in a statement. “His extraordinary leadership, candor and passion for the industry will be missed by everyone who knew him.”
Marchionne had planned to leave Fiat in 2019, but with his health deteriorating, on July 21 he was replaced as CEO of Fiat Chrysler by Mike Manley, head of the Jeep and Ram brands. Louis C. Camilleri took over at Ferrari, and Suzanne Heywood succeeded Marchionne as chairman of truck and farm-equipment maker CNH Industrial NV.
A chartered accountant and attorney with dual Canadian and Italian citizenship, Marchionne began his career in Canada at Deloitte & Touche, then moved on to packaging producer Lawson Group. In 1994, Marchionne joined Alusuisse Lonza Group Ltd. after the Swiss chemical and pharmaceutical company acquired Lawson.
Three years later, as Alusuisse CEO, he spun off the drug business to create Lonza Group AG, where he tripled profit in three years. He later consolidated his reputation as a turnaround specialist at SGS SA, a Geneva-based product-testing company at the time controlled by the Agnelli family.
Marchionne and his estranged wife, Orlandina, had two children, Alessio and Tyler. His partner, Manuela Battezzato, works in Fiat Chrysler’s press office.
His death was confirmed Wednesday by Exor NV, the holding company of Fiat’s founding Agnelli family, just days after Marchionne was replaced as CEO. His health had declined suddenly following complications from a shoulder operation at a Zurich hospital, according to people familiar with the situation. The company wasn’t specific about the cause of his death.
"Sergio Marchionne, man and friend, is gone,” Fiat Chairman John Elkann said in a statement. "My family and I will be forever grateful for what he has done,” said Elkann, who also is chairman and CEO of Exor.Selected as CEO of Fiat SpA in June 2004, Marchionne took the Italian manufacturer from the brink of bankruptcy to the New York Stock Exchange, where he rang the bell on Oct. 13, 2014, to mark the debut of Fiat Chrysler Automobiles NV, the London company created when Fiat bought the Detroit carmaker.
Marchionne, who described himself as a corporate fixer, was Fiat’s fifth CEO in less than two years when he took over. He replaced Giuseppe Morchio, who quit after the billionaire Agnelli family refused to give him the joint title of chairman and CEO when then-Chairman Umberto Agnelli died of cancer.
Fiat Rebounds
Marchionne was handed an automaker that lost more than 6 billion euros ($7 billion) in 2003. By 2005, he had returned the company to a profit by wringing some $2 billion from an alliance with General Motors Co., laying off thousands of workers, introducing new models, and slashing the time it took to get a new car to market to just 18 months, from four years.In 2009, U.S. President Barack Obama’s administration announced that Fiat would take control of Chrysler LLC, rescuing the American company from bankruptcy.
“I don’t care what a tough guy he was to work for, he saved our company,” said Cass Burch, a Chrysler and Jeep dealer in Georgia. “He deserves a bronze statue.”
His office on the fourth floor of Fiat’s Turin headquarters was adorned with a black-and-white poster of the word “competition” and a Picasso print bearing the motto, “Every act of creation is first of all an act of destruction.”
During his tenure at Fiat, Marchionne boosted the company’s value more than 10-fold by restructuring the auto business and separating assets. Among the biggest spinoffs was the 2015 listing of supercar-maker Ferrari NV, where Marchionne also served as CEO and chairman.Marchionne’s direct manner and frumpy demeanor -- he was rarely seen wearing anything but jeans and a black pullover sweater -- made him stand out in buttoned-down Italy. He knew how to move fast and enjoyed driving his half-dozen Ferraris. “When you’re pissed off, there’s nothing better than this,” he said, stomping on the accelerator of his black Enzo at the company’s test track in 2014 and pushing the car from a comfortable 120 miles per hour to something over 200.
He also knew speed can be dangerous. In 2007, he wrecked a $350,000 Ferrari on a highway in Switzerland. “In the car business, sometimes you crash,” he said. Yet even as he garnered criticism from politicians and unions for slashing jobs and cutting costs, Marchionne argued that moving slowly could be even more risky. When he took over both Fiat and Chrysler, he always maintained, the companies needed radical change in order to survive.
Consolidation Push
The Chrysler deal was part of a long-standing campaign Marchionne had waged to spur consolidation in the auto industry, which he claimed had far too much capacity for all players to survive. To that end, he publicly campaigned for a merger with General Motors Co. in 2015 but was rebuffed by the U.S. carmaker.“Sergio Marchionne was one of the most respected leaders in the industry whose creativity and bold determination helped to restore Chrysler to financial health and grow Fiat Chrysler into a profitable global automaker,” Ford Motor Co. Chairman Bill Ford said in a statement. “His extraordinary leadership, candor and passion for the industry will be missed by everyone who knew him.”
Marchionne had planned to leave Fiat in 2019, but with his health deteriorating, on July 21 he was replaced as CEO of Fiat Chrysler by Mike Manley, head of the Jeep and Ram brands. Louis C. Camilleri took over at Ferrari, and Suzanne Heywood succeeded Marchionne as chairman of truck and farm-equipment maker CNH Industrial NV.
A chartered accountant and attorney with dual Canadian and Italian citizenship, Marchionne began his career in Canada at Deloitte & Touche, then moved on to packaging producer Lawson Group. In 1994, Marchionne joined Alusuisse Lonza Group Ltd. after the Swiss chemical and pharmaceutical company acquired Lawson.
Three years later, as Alusuisse CEO, he spun off the drug business to create Lonza Group AG, where he tripled profit in three years. He later consolidated his reputation as a turnaround specialist at SGS SA, a Geneva-based product-testing company at the time controlled by the Agnelli family.
Marchionne and his estranged wife, Orlandina, had two children, Alessio and Tyler. His partner, Manuela Battezzato, works in Fiat Chrysler’s press office.
07-25-2018, 07:43 AM
#680
Race Director
Mike Manley, Fiat Chrysler Automobiles' new CEO, has enough on his plate as he begins leading the company this week. But I hope Manley's long-term plan includes making electrical engineering a top priority.
Last week, the country commemorated the 49th anniversary of the July 20, 1969, moon landing. The United States likely would not have made it to the moon less than seven years after President John F. Kennedy's famous 1962 speech were it not for Chrysler engineers.
Chrysler's now-defunct missile and rocket division had been part of the U.S. space program since the early 1950s. The company built the first stage of the Saturn 1 and 1B rocket boosters used in the Apollo program, the rockets that reached the moon. It also designed and manufactured much of the computerized electronic equipment that made the Apollo program a success. After Apollo ended, Chrysler used its aerospace expertise for automotive systems, pioneering electronic ignitions, trip computers, exhaust gas analyzers and other advanced features that became industry standards and improved all vehicles.
Today, electronics are driving the evolution of light vehicles, changing everything from the way fluids move through the engine to the compression ratio (computers and electronics manage the advanced variable compression ratio system on Nissan's new VC-Turbo engine). And, of course, there will be no self-driving vehicles without the kind of powerful computers that are used in aerospace.
While the old Chrysler Corp. exited the electronics business more than 20 years ago, the company's engineering legacy will always be closely tied to its pioneering aerospace work. Now the time is right for FCA to revive a strong in-house electronics division charged with quickly making up ground it lost as former CEO Sergio Marchionne worked to strengthen the company's balance sheet.
And in what would be a perfect homage to Marchionne, Manley could ensure the electrical engineering division doesn't become a "capital junkie." He could do that by establishing partnerships and joint ventures -- not unlike Delphi Technologies' arrangement with companies such as Tula Technology -- to develop proprietary components and systems. Delphi, working with Tula, has created a digital cylinder deactivation system that continually adjusts the number of engine cylinders that fire.
We're in an era in which automotive technology is going to be all about electrified and self-driving vehicles. With electrified vehicles, at least, FCA retains immense capacity for advanced engineering. The Chrysler Pacifica Hybrid is proof of that. But FCA has largely avoided investing in self-driving vehicle technologies. And I don't fault Marchionne for that.
As far as I know, no one has developed a business plan that shows car buyers will pay immense premiums for the technology. And, even if they would, it will be many years before a vehicle can safely drive itself on a public street beyond a geofenced area.
The trick for Manley will be to transform FCA into a competitor in autonomous vehicles without duplicating much of the engineering work happening at other companies -- work that falls under Marchionne's definition of a capital junkie.
Last week, the country commemorated the 49th anniversary of the July 20, 1969, moon landing. The United States likely would not have made it to the moon less than seven years after President John F. Kennedy's famous 1962 speech were it not for Chrysler engineers.
Chrysler's now-defunct missile and rocket division had been part of the U.S. space program since the early 1950s. The company built the first stage of the Saturn 1 and 1B rocket boosters used in the Apollo program, the rockets that reached the moon. It also designed and manufactured much of the computerized electronic equipment that made the Apollo program a success. After Apollo ended, Chrysler used its aerospace expertise for automotive systems, pioneering electronic ignitions, trip computers, exhaust gas analyzers and other advanced features that became industry standards and improved all vehicles.
Today, electronics are driving the evolution of light vehicles, changing everything from the way fluids move through the engine to the compression ratio (computers and electronics manage the advanced variable compression ratio system on Nissan's new VC-Turbo engine). And, of course, there will be no self-driving vehicles without the kind of powerful computers that are used in aerospace.
While the old Chrysler Corp. exited the electronics business more than 20 years ago, the company's engineering legacy will always be closely tied to its pioneering aerospace work. Now the time is right for FCA to revive a strong in-house electronics division charged with quickly making up ground it lost as former CEO Sergio Marchionne worked to strengthen the company's balance sheet.
And in what would be a perfect homage to Marchionne, Manley could ensure the electrical engineering division doesn't become a "capital junkie." He could do that by establishing partnerships and joint ventures -- not unlike Delphi Technologies' arrangement with companies such as Tula Technology -- to develop proprietary components and systems. Delphi, working with Tula, has created a digital cylinder deactivation system that continually adjusts the number of engine cylinders that fire.
We're in an era in which automotive technology is going to be all about electrified and self-driving vehicles. With electrified vehicles, at least, FCA retains immense capacity for advanced engineering. The Chrysler Pacifica Hybrid is proof of that. But FCA has largely avoided investing in self-driving vehicle technologies. And I don't fault Marchionne for that.
As far as I know, no one has developed a business plan that shows car buyers will pay immense premiums for the technology. And, even if they would, it will be many years before a vehicle can safely drive itself on a public street beyond a geofenced area.
The trick for Manley will be to transform FCA into a competitor in autonomous vehicles without duplicating much of the engineering work happening at other companies -- work that falls under Marchionne's definition of a capital junkie.
