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New Fiat Chrysler CEO picks management team to tackle industry in flux

MILAN/DETROIT — Fiat Chrysler's new boss unveiled his management team on Monday, seeking to revive the automaker in Europe, forge ahead in North America and keep the group in contention in the industry's race to develop self-driving and electric cars. Mike Manley took over in July after long-time chief Sergio Marchionne fell ill and later died after succumbing to complications from surgery. British-born Manley has since pledged to carry through a strategy Marchionne outlined in June to keep FCA "strong and independent." "The next five years will continue to be extremely challenging for our industry, with tougher regulations, intense competition and probably slower industry growth around the world," Manley said in a letter to employees on Monday. "Nevertheless, with a laser focus on execution and a continued flexibility that allows us to adjust as circumstances change ... we have a clear line of sight to achieving our five-year ambitions." Manley appointed Pietro Gorlier, thus far chief operating officer of FCA's components business, as FCA's next European chief to tackle a region where profitability is below that of peers, many workers are stuck in furloughs and various plants run at below capacity. The carmaker's previous European chief Alfredo Altavilla left after FCA appointed Manley as Marchionne's successor. As head of the components unit, Gorlier has also led Magneti Marelli, the parts unit that FCA may either spin off or sell. He will be succeeded at Magneti Marelli by the parts maker's lighting division head Ermanno Ferrari. Japan's Calsonic Kansei has been in talks with FCA about buying the unit, sources familiar with the matter have said, but no binding agreement has been reached and the deal could still fall apart. Choosing an Italian as head of Europe might soothe some fears in Italy that FCA could weaken its link to Fiat's roots. In his last strategy unveiled in June, Marchionne vowed to convert Italian plants to churn out Alfa Romeos, Jeeps and Maseratis instead of less profitable mass market vehicles to preserve jobs and boost margins. Europe will also become a big part of the company's electrification drive. FCA will copy in Europe what worked in the United States, where it retooled plants to build pricier SUVs and trucks in a move since emulated by bigger rivals Ford and GM. Manley also named new managers to succeed him at Jeep and RAM, the two brands which have been driving profits in recent years and remain at the core of growth plans.

Fiat Chrysler CEO says final merger talks with Peugeot going well

BRUSSELS — Fiat Chrysler's chief executive Michael Manley said on Wednesday that merger talks with Peugeot owner PSA  to create the world's No. 4 carmaker are progressing well and he hopes to have a deal within 12-14 months. Speaking to Reuters on the sidelines of an industry meeting, he said he doesn't expect any major obstacles that could delay a final agreement. "Talks are progressing really well," Manley said about negotiations with the French carmaker ahead of a briefing by the European automotive association (ACEA), of which he is president. His comments come a month after the two carmakers agreed to a binding deal worth about $50 billion to combine forces in response to a slowdown in global demand and mounting costs of making cleaner vehicles amid tighter emissions regulations. Manley's timeline for completing the deal by early 2021 is in line with a forecast made by the companies in December. Fiat and Peugeot are now getting into the details of how the merger will work, including choosing which vehicle platforms — the technological underpinnings of a vehicle — will fit which products in a combined company. Because customers in different locations still prefer vastly different cars, there is room for multiple platforms in a combined group, Manley said. "That global platform is an elusive beast," he added. "This concept of a massive global platform in my mind is almost a myth, but that doesnÂ’t mean to say weÂ’re not going to recruit significant volume." Related Video:    

All hail the Hellephant, Mopar's 1,000-horsepower crate engine

It's shocking to say this, but the all-powerful Dodge Demon looks weak now that Mopar has unleashed the Hellephant. This crate motor makes 1,000 horsepower and 950 pound-feet of torque, and its name is a combination of the nickname for the old 426-cubic-inch Hemi V8 and, obviously, the Hellcat. This monster is a 426-cubic-inch version of the current third-generation Hemi V8 topped by a supercharger similar to what the Hellcat line packs. Everything is cranked up to — or perhaps, past — 11. The engine block is made of aluminum and weighs 100 pounds less than the equivalent iron block. All of the internals are forged. The stroke and bore have been increased. The supercharger produces 15 pounds of boost and displaces 3 liters; more than the 2.7-liter blower on the Demon and the 2.4-liter blower on the Hellcat. And as big and powerful as it is, it will still rev to 7,000 rpm. It's a thoroughly monstrous motor, but shockingly, it won't be that difficult to live with. For one thing, Mopar will offer a complete kit to get the engine up and running, including an engine computer, wiring harness and drive-by-wire throttle. It also runs on 93-octane pump gas. That's especially amazing considering the Demon engine "only" makes 840 horsepower, and that's on race gas with 100+ octane fuel. It also has us wondering what the Hellephant could make on racing fuel. The Mopar folks did say that there's room to add more power. Pricing wasn't announced for the Hellephant engine. The Hellcat crate engine retails at $19,350 directly from Mopar, so it's safe to assume that the Hellephant will go for more. The installation kit with the computer and harness will be an extra charge of likely over $2,000, based on the Hellcat kit. The engine and the kit will be available in the first quarter of 2019. Related Video: Featured Gallery Hellephant Crate Engine SEMA Show Chrysler Dodge Jeep RAM Performance dodge demon hellephant