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FCA US: Sales, Marketing, and Financial News

 
Old 01-21-2014, 03:12 PM
  #481  
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Even after all the sidetracking with the conversation about the market for the 200, it's a pretty good looking car.

I would imagine you'll be able to get a 300S AWD for the low 30s by the end of the first model year.
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Old 01-21-2014, 03:20 PM
  #482  
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Originally Posted by charliemike View Post
I keep coming back to the question of why two brands that sell the same car.
There is no Dodge equivalent of the 200. As for the Charger/300, those are clearly marketed towards different audiences. And no one is going to cross shop a 200 with an A4/3 Series/C Class. Think of Chrysler like Buick...in between regular and luxury.
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Old 01-21-2014, 03:38 PM
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Originally Posted by chill_dog View Post
There is no Dodge equivalent of the 200. As for the Charger/300, those are clearly marketed towards different audiences. And no one is going to cross shop a 200 with an A4/3 Series/C Class. Think of Chrysler like Buick...in between regular and luxury.
The thing though is that if my budget is $35k, I want the best car that I can get for that money. In theory, I don't care who makes it.

Obviously, in reality the badge means something.

The reason why no one shops a $35K AWD 200S and a $35K AWD A3 is because the Audi has been a better marque for a while.

If the Buick Regal GS had been as good as the Vauxhall Insignia OPC (as in 321hp and AWD), I would have gone and driven one with the intent on buying it if it was any good.

As grumpy as my Focus makes me, if I had a choice between a base 328i and a loaded Fusion Titanium AWD, I would definitely give the Fusion a fair shake because Ford actually makes decent cars ... Assembly of mine aside.
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Old 01-21-2014, 03:56 PM
  #484  
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Originally Posted by charliemike View Post
The challenge for Chrysler is that people like me aren't going to buy this one.

We're going to wait for the next one before considering it because I have no interest in buying a $35K car that will be worth less than $10K by the time it's 4 years old.
This is Chrysler's biggest challenge in gaining more consumers long term, their lack of long term durability/reliability and low resale value create a poor perception. I know so few people that own a current Chrysler product these days. May take awhile to dispel their decades long reputation.
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Old 01-21-2014, 04:02 PM
  #485  
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Originally Posted by Legend2TL View Post
This is Chrysler's biggest challenge in gaining more consumers long term, their lack of long term durability/reliability and low resale value create a poor perception. I know so few people that own a current Chrysler product these days. May take awhile to dispel their decades long reputation.
These perceptions appear hard to change. How do they change it?
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Old 01-21-2014, 04:08 PM
  #486  
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Originally Posted by kurtatx View Post
These perceptions appear hard to change. How do they change it?
He essentially answered it in his post. Time.

Hyundai faces a similar obstacle. I know people, hell, in my family that still won't buy a Hyundai no matter how much I compare and boast about a particular model's merits. They'll openly admit it's "because it's a Hyundai" that they won't buy it.

They can only continue to build solid cars, and continue to market well. You'd sound insane if you said "I paid $40k for my Hyundai" 20 years ago. It's improved, but some consumers still will not cross shop a Hyundai when they're looking at BMW/Audi/MB.
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Old 01-21-2014, 04:10 PM
  #487  
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Originally Posted by kurtatx View Post
These perceptions appear hard to change. How do they change it?
See Hyundai & Kia.
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Old 01-21-2014, 04:18 PM
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Brand perception is a huge thing to overcome. It's never easy when there are people out there who will swear off of a brand after buying one shitbox from them. I had an auto tech instructor who exclusively works on his own cars... he swore off all Honda and Acura products after having to deal with a vacuum line snakes nest in his carbureted CVCC. That was how long ago now?
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Old 01-21-2014, 04:24 PM
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Originally Posted by Costco View Post
Brand perception is a huge thing to overcome. It's never easy when there are people out there who will swear off of a brand after buying one shitbox from them. I had an auto tech instructor who exclusively works on his own cars... he swore off all Honda and Acura products after having to deal with a vacuum line snakes nest in his carbureted CVCC. That was how long ago now?
Dunno, how long ago was it?
When did he get rid of his CVCC?
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Old 01-21-2014, 05:51 PM
  #490  
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Originally Posted by Moog-Type-S View Post
Dunno, how long ago was it?
When did he get rid of his CVCC?
Back when it was actually seen on the road?

The point is that one very specific example caused him to never consider a Honda. It's one thing if your tranny exploded, but even careful consumers will do their due diligence. Harder to predict with a new car, is all.
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Old 01-21-2014, 05:55 PM
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I still see CVCC's still on the road....quite a few times a year.

I thought you buddy had one in his possession.
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Old 01-21-2014, 07:13 PM
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Originally Posted by Moog-Type-S View Post
I still see CVCC's still on the road....quite a few times a year.

I thought you buddy had one in his possession.
I should have been more specific. It most likely was when it was essentially the Civic of today... everywhere, seen every day.

He's had more Fords than he can count
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Old 01-22-2014, 10:02 AM
  #493  
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Originally Posted by charliemike View Post
The thing though is that if my budget is $35k, I want the best car that I can get for that money. In theory, I don't care who makes it.

...

The reason why no one shops a $35K AWD 200S and a $35K AWD A3 is because the Audi has been a better marque for a while.
Ah. In reality, very few people look at every car they can get for X price and compare them. Typically, they pick a type (midsize, luxury, hatch, CUV, SUV, etc.) and compare similar examples.

The reason no shops an A3 and a 200 is that they are not the same type of car. You might, but 99.9% of people wouldn't.

I think, for what it is, the 200 appears to be a great car. We'll find out reality once it hits the streets. I don't see why Chrysler can't turn around, in reality and in perception, given some time. They aren't "luxury" as in Cadillac/Mercedes/BMW/Audi/etc., not sure if they want to be, but they do have, in my opinion, a clear target market with most of their vehicles.

And if at any point you don't understand what they're doing, think like the masses instead of logically .
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Old 01-22-2014, 10:25 AM
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Originally Posted by chill_dog View Post
And if at any point you don't understand what they're doing, think like the masses instead of logically .
That's so true
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Old 01-29-2014, 10:47 AM
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Chrysler posts $2.8 billion profit in 2013

Chrysler has reported its fourth-quarter earnings, showing yet another annual profit with net income surpassing $2.8 billion last year. The 2013 haul represents a significant boost from the preceding year, a 65-percent jump from the $1.7 billion profit achieved in 2012.

The company shipped 2.6 million vehicles worldwide, up six percent from 2012 figures. Sales were particularly strong in the US, achieving double-digit growth. The Jeep Grand Cherokee, Jeep Cherokee and Ram pickup trucks were the best-selling vehicles last year.

"The 2013 year-end financial results reflect the commitment Chrysler Group has made to rapidly refresh our product lineup with vehicles that achieve exacting performance standards," said Chrysler Group CEO Sergio Marchionne.

The chief executive recently made public a distribution goal for the Jeep brand, which aims to sell more than a million vehicles in 2015. In contrast, the company sold approximately 731,000 Jeeps in 2013.

The report comes just one day after Ford reported a record profit of $8.6 billion in 2013, representing one of the company's best years.
http://www.leftlanenews.com/chrysler...#ixzz2ro5DSv7E

...and some peeps thought the new Cherokee was DOA.

That's one good looking SUV.
Sure, admittedly, it does not photograph all that well, but in person, it's pretty spectacular.
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Old 01-29-2014, 12:56 PM
  #496  
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Originally Posted by Moog-Type-S View Post
http://www.leftlanenews.com/chrysler...#ixzz2ro5DSv7E

...and some peeps thought the new Cherokee was DOA.

That's one good looking SUV.
Sure, admittedly, it does not photograph all that well, but in person, it's pretty spectacular.
It's certainly not photogenic, but Fiat got their hands on that interior. Absolutely stunning.
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Old 01-29-2014, 02:34 PM
  #497  
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Still trying to push my wife into a cherokee when the highlander lease is up...I've seen two trail hawks in the last two days, and a limited has been parking in our parking lot...I love them.
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Old 01-29-2014, 03:20 PM
  #498  
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I gotta say, dem seats
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Old 05-06-2014, 10:16 AM
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Post Dodge To Become Performance Brand

From here: http://www.motorauthority.com/news/1...-integrate-srt

Fiat Chrysler Automobiles is currently in the process of announcing a new five-year strategy that will see much of its vehicle lineup renewed between now and 2018. There will also be some repositioning of brands, with SRT confirmed to be integrated with Dodge as its in-house tuner and Dodge to become a performance brand.

This will see SRT’s Viper flagship return to being a Dodge, and various SRT models currently found outside the Dodge brand, such as the Chrysler 300 SRT and Jeep Grand Cherokee SRT, likely discontinued. Current Dodge CEO Tim Kuniskis will oversee the integration, with current SRT boss Ralph Gilles to continue as design chief and motorsports supremo.

“I want to thank Ralph for his dedication to the SRT brand,” FCA CEO Sergio Marchionne said today. “Under Ralph’s leadership, the SRT brand expanded its vehicle lineup to include more highly customized models and received numerous automotive awards and distinctions.”

Dodge will lose its place as FCA’s mainstream brand. Instead, that role will be served by Chrysler, with Dodge to be repositioned as a sporty brand filled with muscle carsand performance-oriented crossovers.

Below is a rough outline for Dodge’s future over the next couple of years.

2015: Grand Caravan and Avenger to be phased out. Challenger, Charger and Viper to receive updates (including supercharger for SRT Challenger and Charger). No change to Durango.

2016: Dart to receive update and new SRT variant with all-wheel drive and turbo.

2017: Journey to receive new SRT variant with all-wheel drive and turbo.

2018: New compact hatch to be launched alongside new versions of the Challenger and Charger.
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Old 05-06-2014, 11:17 AM
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Considering how bad most Dodge cars have been as of late, this could be a good thing.
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Old 05-06-2014, 11:23 AM
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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.
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Old 05-06-2014, 11:31 AM
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Originally Posted by kurtatx View Post
Considering how bad most Dodge cars have been as of late, this could be a good thing.
I think the Challenger, Charger are great.
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Old 05-06-2014, 12:16 PM
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Originally Posted by charliemike View Post
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.
I don't think they cared either. They raped Chrysler for what they needed (a lot of their cars use engineering from the chryco end of things to this day because of how long the cycles of planning take) and then left them for dead.

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.
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Old 05-06-2014, 12:43 PM
  #504  
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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?
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Old 05-06-2014, 02:04 PM
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Originally Posted by Aman View Post
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?
I don't think Dodge is becoming Pontiac. GM's horseshit "excitement" division had nothing unique in its lineup. Every car was a rebadged/plasticked Chevy.

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.
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Old 05-06-2014, 02:42 PM
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Originally Posted by charliemike View Post
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.
Ding ding ding.

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.
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Old 05-06-2014, 04:48 PM
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^^ 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.
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Old 05-06-2014, 06:17 PM
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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.
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Old 05-06-2014, 06:52 PM
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Originally Posted by Moog-Type-S View Post
^^ 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.
I would agree.

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.
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Old 05-06-2014, 06:57 PM
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^^ I think it looks a bit too "Neon-ish"

I agree......it needs an original design...more in line with Dodge.
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Old 12-16-2014, 02:35 PM
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Post 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.
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Old 07-18-2016, 11:51 PM
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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.
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Old 07-19-2016, 03:14 PM
  #513  
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That's not likely to go well for FCA.
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Old 07-26-2016, 12:46 AM
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Whoops!

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."
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Old 01-12-2017, 09:53 AM
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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.
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Old 01-12-2017, 12:50 PM
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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.”
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Old 01-12-2017, 02:00 PM
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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.
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I wonder if this really matters when EPA finishes its "Overhaul" in a few months.
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Old 01-13-2017, 01:49 PM
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Originally Posted by oonowindoo View Post


I wonder if this really matters when EPA finishes its "Overhaul" in a few months.
The overhaul might give slack to car companies, but the Fiat cheating is probably not something the EPA can overlook.

I wonder if this is the end for Sergio
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U.S. preparing to sue Fiat Chrysler over excess diesel emissions | Reuters

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.

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.
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