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Old 05-23-2017, 11:51 PM
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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.
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Old 05-24-2017, 07:57 AM
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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?
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Old 05-24-2017, 09:23 AM
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Originally Posted by kurtatx View Post
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?
We will have to see if FCA is able to defend itself or if they did in fact break the rules. They don't have nearly has many diesels in the states as VW.

The question is...whose next?
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Old 05-24-2017, 09:32 AM
  #524  
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Originally Posted by Sarlacc View Post
We will have to see if FCA is able to defend itself or if they did in fact break the rules. They don't have nearly has many diesels in the states as VW.

The question is...whose next?
My thoughts as well. Mercedes quietly not making bluetec available for 2017 is somewhat suspicious. GM is trying to fill the diesel void left by VW but I doubt they would try to cheat after seeing what happened to VW.

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.
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Old 08-14-2017, 01:47 PM
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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.

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
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Old 08-14-2017, 10:10 PM
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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.
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Old 08-14-2017, 10:18 PM
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Originally Posted by Sarlacc View Post
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.
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.
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Old 08-14-2017, 10:42 PM
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Originally Posted by kurtatx View Post
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.
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.
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Old 08-15-2017, 09:01 PM
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Originally Posted by Sarlacc View Post
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.
I love and hate what geely has done with volvo. I love that they still allowed Volvo to be Volvo. However they really cut out all the beefy engines. So my main worry would be a GC with nothing but turbo 4 pots and hybrid tech. No more V8's. That's scary to me!

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.
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Old 08-22-2017, 09:22 AM
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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.
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Old 04-11-2018, 08:39 AM
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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.
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Old 07-21-2018, 06:59 PM
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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
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Old 07-25-2018, 07:31 AM
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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.

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.
https://www.bloomberg.com/news/artic...ler-dead-at-66
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Old 07-25-2018, 07:43 AM
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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.
Fiat Chrysler, under Manley, should recharge electronics engineering chops
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Old 07-25-2018, 09:18 AM
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Old 07-25-2018, 09:23 AM
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Damn. From what sounds like a simple operation on the right shoulder to death? What happened?
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Old 07-25-2018, 10:01 AM
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I read it was an embolism & that it was cancer surgery?
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Old 07-25-2018, 11:39 AM
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Originally Posted by 00TL-P3.2 View Post
I read it was an embolism & that it was cancer surgery?
yup. Rip.
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Old 07-25-2018, 12:00 PM
  #539  
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Marchionne, one the boldest auto exec's of all time.
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Old 07-25-2018, 04:32 PM
  #540  
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https://www.wsj.com/articles/fiat-ch...ook-1532523602

Fiat Chrysler Posts Weak Profit, Slashes Outlook

July 25, 2018

DETROIT— Fiat Chrysler Automobiles NV on Wednesday reported a second-quarter profit decline of 35% and cut guidance on a number of targets for the full year, marking a rocky start to the tenure of its new chief executive.

The lower-than-expected earnings sent the company’s stock price sliding and came hours after Fiat Chrysler said former CEO Sergio Marchionne had died of complications from surgery.

CEO Mike Manley, who took over from Mr. Marchionne on Saturday, said the results show the challenges facing the company, but committed to achieving targets Fiat Chrysler set out last month in a new five-year business plan. That strategy was outlined by Mr. Marchionne, who had planned to step down as CEO next year.

“My intention is to deliver the plan as a strong, independent FCA,” Mr. Manley said on a conference call with analysts, indicating the Italian-American company wasn’t looking to merge with another auto maker or sell itself.

Blaming in part a quarterly loss at its Asian business from weak sales in China, Fiat Chrysler said net profit for the quarter ended June 30 was €754 million ($881 million), down from €1.16 billion the same period a year ago.

Adjusted operating profit, which strips out one-time items, fell 11% to €1.66 billion from €1.87 billion a year earlier. That was below a consensus forecast among analysts of €2.1 billion.

The company was hurt most by poor performance in the Asia Pacific region, where it posted an adjusted loss of €98 million on weak demand in China for locally-made sport-utility vehicles and price increases from import duties.

“It’s obvious China is clearly a priority for me in the coming weeks,” Mr. Manley said, adding he has high expectations for a newly launched luxury SUV exclusive to the Chinese market called Jeep Grand Commander.

Fiat Chrysler’s manufacturing problems with a new pickup truck launched earlier this year in the U.S. are “largely behind us,” Mr. Manley said, adding full production volumes would be reached by year’s end. The redesigned Ram 1500 truck is a key product for the company because of the high profit margins it generates.

Problems ramping up the production of the new truck cost the company about €300 million in each of the first two quarters, but those expenses will be “substantially reduced” this quarter and eliminated by year’s end, said Richard Palmer, the company’s chief financial officer.

Mr. Palmer also said he expected prices for commodities such as steel to continue to rise over the next year, but noted that the company had fixed price contracts this year and had built those higher price expectations into its 2019 plan.

Fiat Chrysler confirmed its adjusted net profit target for the full year but lowered its outlook for revenue and adjusted operating profit. The company now forecasts 2018 revenue between €115 billion and €118 billion, compared with about €125 billion previously.

The auto maker cut its guidance for adjusted operating profit to between €7.5 billion and €8 billion, against a previous forecast of at least €8.7 billion.

Fiat Chrysler said it met a key target of swinging to net industrial cash of €456 million as of the end of June, compared with net debt of €1.31 billion at the end of March. Revenue increased 6% to €29 billion.
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Old 01-10-2019, 11:57 AM
  #541  
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https://www.wsj.com/articles/fiat-ch...se-11547137242

Fiat Chrysler Warns of $800 Million in Costs Related to Emissions Settlement

Jan. 10, 2019

Fiat Chrysler Automobiles NV will spend up to $800 million to settle allegations that it used so-called defeat devices to pass emissions tests.

The auto maker said Thursday it agreed to pay around $400 million to federal regulators and states, and expects payments to customers, future warranty costs and mitigation efforts may cost an additional $400 million to fix an estimated 100,000 vehicles.

The company said it didn’t admit to any environmental violations under the settlement and said there was no “deliberate scheme to install defeat devices to cheat emissions tests.”

“We acknowledge that this has created uncertainty for our customers, and we believe this resolution will maintain their trust in us,” said Mark Chernoby, Fiat’s head of North American safety and regulatory compliance.

The Justice Department sued Fiat Chrysler in 2017, claiming illegal software installed on Jeep Grand Cherokee SUVs and Ram pickup trucks from the 2014 to 2016 model years to evade pollution controls. The government claims the company violated the Clean Air Act by allowing the vehicles to pollute more than 20 times beyond the legal limit.

The Justice Department said Thursday that Fiat will pay a $305 million civil penalty.

Fiat Chrysler deceived consumers and the federal government by installing defeat devices on these vehicles that undermined important clean air protections,” said Andrew Wheeler, acting administrator of the Environmental Protection Agency.

The total settlement includes a $6 million civil penalty for illegally importing 1,700 noncompliant vehicles.

The allegations against Fiat Chrysler came in the wake of a scandal involving Volkswagen AG’s use of illegal devices to cheat emissions tests on nearly 600,000 diesel-powered vehicles cars in the U.S. VW in 2017 pleaded guilty to criminal charges and has paid more than $20 billion in legal settlements and fines.
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Old 03-13-2019, 11:57 AM
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https://www.detroitnews.com/story/bu...ns/3149762002/

Fiat Chrysler recalls 862,000 cars for emission violations

March 13, 2019

Washington — Fiat Chrysler Automobiles US LLC is recalling nearly 900,000 vehicles that don't meet U.S. emission standards.

The U.S. Environmental Protection Agency announced Wednesday that Fiat Chrysler is voluntarily recalling 862,520 cars as a result of "in-use emissions investigations" conducted by both the agency and the company. Those investigations, designed to measure the effectiveness of emission control systems in cars after some time on the road, revealed the vehicles were not meeting federal emission standards.

Fiat Chrysler said in a statement the EPA announcement "reflects a new policy for announcing routine emissions recalls."

"This campaign has no safety implications. Nor are there any associated fines," FCA spokesman Eric Mayne said in an email. "This issue was discovered by FCA during routine in-use emissions testing and reported to the agency. "We began contacting affected customers last month to advise them of the needed repairs, which will be provided at no charge."

The recall covers the following vehicles:
.
  • 2011-2016 Dodge Journey (front-wheel drive)
  • 2011-2014 Chrysler 200 / Dodge Avenger (front-wheel drive)
  • 2011-2012 Dodge Caliber (front-wheel drive, CVT transmission)
  • 2011-2016 Jeep Compass/Patriot (front-wheel drive, CVT transmission)

The fix for the recalled cars involves replacing the catalytic converters. FCA said it is planning to recycle precious metals from old converters.

The recall will be conducted in phases, beginning with the 2011 model in the first quarter of 2019. Model-year 2012 vehicles will be recalled in the second quarter, 2013-2014 in the third quarter and 2015-2016 vehicles in the fourth quarter.

“EPA welcomes the action by Fiat Chrysler to voluntarily recall its vehicles that do not meet U.S. emissions standards,” EPA Administrator Andrew Wheeler said in a statement “We will provide assistance to consumers navigating the recall and continue to ensure that auto manufacturers abide by our nation’s laws designed to protect human health and the environment.”

The EPA tests vehicles usually between one and seven years old to investigate the effectiveness of the vehicle’s emissions control systems over a "120,000- to 150,000-mile useful life," at its National Vehicle and Fuel Emissions Laboratory in Ann Arbor. Automakers also conduct additional testing on their own.

The recall follows a recent settlement reached by EPA and Fiat Chrysler to settle allegations from federal regulators that the company used software on about 104,000 diesel-powered pickups and SUVs that is similar to “defeat devices” that were used by Volkswagen AG to cheat U.S. emissions-testing.

hat settlement, which is unrelated to Wednesday's recall of vehicles with gasoline engines, requires Fiat Chrysler to pay $280 million to compensate drivers of Jeep Grand Cherokees and Dodge Ram 1500 pickups from the 2014-2016 model years with 3-liter V-6 diesel engines.

The company also will pay $305 million in civil penalties to the EPA, U.S. Department of Justice and California Air Resources Board and at least $72 million to states whose attorneys general had sued over the alleged cheating.

Drivers of the affected models could receive as much as $2,800 each under the settlement.

FCA was not required to admit any wrongdoing as part of the settlement and the company is not required to buy back any of the affected vehicles.
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