1968 Chrysler Newport Convertible on 2040-cars

Auto blog

Fiat board makes Chrysler merger official, approves $5.4B bond sale

Fiat's board of directors has officially approved the merger plan that will see the conglomerate's automotive operations merged with Chrysler into the new Fiat Chrysler Automobiles.
The plan essentially provides a road map for the structure of the new company. It includes provisions for Fiat shareholders - one Fiat share will translate to one share of FCA common stock. The new company will also include a loyalty voting structure, which will provide for shareholders of Fiat stock or those that have held FCA stock for at least three years. According to the plan, these shareholders would see their voting power double, with two votes for every share of FCA's common stock. The overall merger plan still needs to be approved by the company's shareholders.
In other Fiat-related news, the company's board has announced a bond issuance of four billion euro ($5.4 billion). The new bonds should provide the company with a degree of flexibility in refinancing debts associated with the merger plan.

CEO Sergio Marchionne curses FCA spokesman for emissions cheating denial

WASHINGTON — Fiat Chrysler Chief Executive Officer Sergio Marchionne reprimanded the company's top U.S. spokesman for issuing press releases about Fiat's vehicle emissions practices days after Volkswagen's disclosure in September 2015 that the German automaker had used illegal software to evade emissions tests, documents released Monday show. Lawyers suing Fiat Chrysler Automobiles in a securities case filed excerpts of an email from Marchionne to Gualberto Ranieri, then the company's U.S. spokesman, in a filing in federal court in New York criticizing him for saying that the company does not use defeat devices. "Are you out of your goddam mind?" Marchionne wrote in an email on Sept. 22, 2015, adding that Ranieri should be fired and calling his actions "utterly stupid and unconscionable." The company said in a statement on Monday it was "understandable that our CEO would have a forceful response to any employee who would opine on such a significant and complex matter, without the matter having been fully reviewed through its appropriate channels." The statement added that Ranieri's comments came just days after VW's emissions issue became public "and before a comprehensive internal review and discussions with component suppliers was possible." Fiat Chrysler was sued in 2015 along with Marchionne and other executives over claims it defrauded shareholders by overstating its ability to comply with vehicle safety laws. An amended version of the complaint filed in 2017 added claims about its compliance with emissions laws. The shareholders accused the defendants of inflating Fiat Chrysler's share price by hundreds of millions of dollars from October 2014 to October 2015 by downplaying safety concerns. They said the shortcomings materialized in 2015 when the automaker was fined $175 million by the National Highway Traffic Safety Administration, and took a roughly $670 million charge for recalls. Plaintiffs filed the excerpts seeking approval to take up to 40 additional depositions, including Marchionne's. The U.S. Justice Department sued Fiat Chrysler in May 2017, accusing it of illegally using software to bypass emission controls in 104,000 diesel vehicles sold since 2014. Fiat Chrysler has held numerous rounds of settlement talks with the Justice Department and California Air Resources Board to settle the civil suit, including talks as recently as earlier this month. It faces a separate criminal probe into the matter.

2017 Chrysler Pacifica Hybrid electrifies the family hauler

The 2017 Chrysler Pacifica Hybrid is the first-ever hybrid minivan – why didn't anyone think of this before? The extra jolt of electric propulsion lets Chrysler estimate this hauler can get a very green 80 miles per gallon equivalent, with 30 miles of full electric range. To make those amazing numbers possible, the Pacifica Hybrid uses a version of the 3.6-liter Pentastar V6 that runs on the Atkinson cycle for improved efficiency, matched with an electric motor. A 16-kWh lithium-ion battery sits underneath the second-row floor to supply the energy. The PHEV doesn't launch until the latter half of 2016, but Chrysler currently estimates the powertrain's output at 248 horsepower, versus 287 hp from the non-hybrid Pacifica. Charging the system to full takes just two hours from a 240-volt outlet. Other than the charging port just head of the driver's door and different wheel designs, the Pacifica Hybrid looks the same as the other model. The nearly identical styling isn't a bad thing because this is one of the most attractive minivans ever. The aesthetics are similar inside, too, but the battery removes the ability to stow the second row of seats. However, the third row can still fold flat. First hybrid powertrain in minivan segment "Due to its large footprint and multiple daily trip patterns, the minivan is ideally suited for electrification technology," said Bob Lee, Vice President and Head of Engine, Powertrain and Electrified Propulsion Systems Engineering, FCA – North America. "The all-new 2017 Chrysler Pacifica lives up to this promise and then some, with efficiency, power and refinement." Launching in second half of 2016, the Pacifica Hybrid is the industry's first electrified minivan. With an estimated 248 horsepower, the vehicle will deliver an estimated range of 30 miles solely on zero-emissions electric power from a 16-kWh lithium-ion (Li-ion) battery. In city driving, it is expected to achieve an efficiency rating of 80 miles per gallon equivalent (MPGe), based on U.S. Environmental Protection Agency standards. When the battery's energy is depleted to a certain threshold, the Pacifica Hybrid becomes a part-time electric vehicle, like a conventional hybrid. Power to the wheels is supplied by the electric drive system or supplemented by a specially adapted new version of the award-winning FCA US Pentastar 3.6-liter V-6 engine.