2002 Chrysler Pt Cruiser Limited Wagon 4-door 2.4l on 2040-cars

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Vans aren't glamorous, but they're key to EU blessing FCA-PSA merger

MILAN/PARIS — Their silhouettes don't stir dreams of adventure like a sports car or trendy SUV, but vans are a rare source of profit for European carmakers, which is why EU regulators are focused on them as they decide whether to back an industry mega-merger. European competition regulators are worried that Fiat Chrysler and Peugeot maker PSA's proposed merger may harm competition in small vans. With a total of 755,000 vans sold last year in Europe, the combined Fiat Chrysler (FCA) and PSA would get a market share of around 34%, based on industry data, more than double that of Renault and Ford, with shares around 16% each. Volkswagen and Daimler follow with market shares of 12% and 10% respectively. "Commercial vans are important for individuals, SMEs and large companies when it comes to delivering goods or providing services to customers," European Union competition chief Margrethe Vestager said in a statement, announcing an in-depth investigation into the proposed merger. "They are a growing market and increasingly important in a digital economy where private consumers rely more than ever on delivery services." Dario Duse, a managing director at consultancy firm AlixPartners, said demand for vans was not based on people's disposable income, as for cars, but rather on GDP and industrial trends, and in particular the logistics industry, where big players such as Amazon or DHL operate. "Logistics is a business segment which is having a significant growth, for several reasons including e-commerce, where you need efficient and agile vans for interurban and city deliveries," he said. "LCVs (light commercial vehicles) may recover faster than passengers cars in the post-COVID-19 phase." Sales of vans up to 3.5 tonnes in Europe amounted to 2.2 millions vehicles last year, compared to 15.8 million for passenger cars, according to data provided by the European Auto Industry Association (ACEA). The light commercial vehicles (LCVs) market may be secondary in terms of volumes, but it remains highly profitable in an industry where margins are constantly under pressure. Margins are generally higher than on passenger cars, up to 5-10 additional percentage points, AlixPartners says. "With LCVs you don't have to fulfill a series of consumer expectations that drive additional complexity and costs, such as for interiors. LCV customers are more rational and business driven," Duse said. And while electrification in heavy trucks is complicated, it might come sooner for LCVs.

Ford and Chrysler reducing summer plant shutdowns

Most domestic automaker assembly plants traditionally take a couple of weeks off during the summer. The shutdowns give each plant time for much needed repairs and maintenance, and in some cases, help better align production with demand. Not this year, though, as demand for many models is outstripping what Ford, Chrysler and General Motors plants can produce.
Ford has announced that it will shorten its annual summer shutdown for most North American plants from two weeks to one. The shorter shutdown will increase the carmaker's annual North American production by 40,000 units on top of the 200,000 extra units that it was already planning to produce this year versus last. Automotive News reports that Ford produced 2.8 million vehicles on this continent in 2012, and that output this year has already increased 13 percent through April.
Chrysler, meanwhile, is also operating at full tilt and plans to run some plants through the summer with no shutdown at all. Those not getting a break include Jefferson North where the Jeep Grand Cherokee and Dodge Durango are assembled, Toledo North that will assemble the new Cherokee, and Conner Avenue, home of SRT Viper production. Other assembly plants will be down for a single week, while all of Chrysler's engine and transmission plants except one in Indiana will continue operating with no shutdown this summer.

Chrysler de Mexico to sell rebadged Mitsubishi model in shades of Colt deal

Chrysler and Mitsubishi have had a close relationship since the early '70s. Back then, they partnered up to sell the Japanese brand's models under American names as captive imports in the US. Vehicles like the Dodge Colt, Eagle Summit, and eventually the 3000GT/Stealth twins and lots of other cars and trucks became the fruits of that alliance. In fact, the two companies still maintain a good rapport, as evidenced by reports of a new deal to sell the Mitsubishi Attrage, also known the Mirage G4, in Mexico starting in November.
The Attrage is a small, four-door sedan that borrows many of the mechanical bits from the Mitsubishi Mirage hatchback. According to Automotive News, the deal allows Chrysler to sell the model in Mexico for the next five years. The deal could be a win-win for both companies. Mitsubishi gets to use more capacity at its Laem Chabang, Thailand factory where the car is made, and Chrysler gets a new vehicle for a growing market with almost zero development costs. At this time, there's no indication of the new model's name in Mexico, though.
There's also still a chance the Attrage might make it to the US market as well. The automaker showed off the sedan as the Mirage G4 at the 2014 Montreal Motor Show ahead of promised sales in small-car-friendly Canada. The Mirage hatchback was introduced to the US in a similar way, debuting in Canada first and then crossing the border. While reviews for the Mirage have been pretty atrocious, it would still be interesting to see Mitsubishi further expanding its lineup in North America.