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For his last act, Marchionne will outline an EV/hybrid roadmap this week

MILAN/LONDON — Fiat Chrysler (FCA) boss Sergio Marchionne is expected to outline new plans for electric and hybrid cars in a strategy presentation on Friday, aiming to ensure the world's seventh-largest carmaker remains in the race in the absence of a merger. The 65-year-old will present FCA's strategy to 2022, his final contribution to the company he turned around and multiplied in value through 14 years of canny dealmaking. After failing to secure a tie-up he said was necessary to manage the costs of producing cleaner vehicles, Marchionne needs to show the group can keep churning out profits on its own, even as emissions rules tighten, SUV competition intensifies and worries around his succession abound. Marchionne had long refused to jump on the electrification bandwagon, saying he would only do so if selling battery-powered cars could be done at a profit. He even urged customers not to buy FCA's Fiat 500e, its only battery-powered model, because he was losing money on each sold. But Tesla's success and the need to comply with tougher emissions rules have forced Marchionne to commit to what he calls "most painful" spending. "FCA is way behind rivals in terms of hybrid and electric vehicles and they need to hit the accelerator to convince investors they can close that gap," said Andrea Pastorelli, a fund manager at 8a+ Investimenti. Germany's Volkswagen, Daimler, BMW and U.S. rivals GM and Ford have committed to spending billions of euros each in coming years to try produce profitable cars powered by cleaner fuels. FCA needs to present a clear roadmap, just like Volvo Cars, which ditched diesel from its best-selling XC60 SUV, launched a new electric brand and pledged to shift all brands to hybrid by 2019, a banking source close to FCA said, noting: "The tech divide determines winners and losers in the industry." Marchionne has already said half of the wider FCA fleet will incorporate some elements of electrification by 2022, while luxury marque Maserati will spearhead FCA's electrification drive by making all new models due after 2019 electric. But its plans remain vaguer and less advanced than most big rivals and some investors wonder about the capital required to make vehicles compliant, and what share of spending can go to electrification given FCA's numerous demands.

Chrysler recalls 1.2 million Ram pickup trucks

Chrysler has announced that it will issue three separate recalls that will cover as many as 1.2 million Ram pickup trucks for "steering-system tie rods that may have been misaligned during assembly or steering-system service." The vast majority of these trucks were sold in the United States, though some trucks in Mexico, Canada or overseas will be called in, as well.
The largest of the three recalls covers an estimated 842,400 model-year 2003-2008 Ram 2500 and 3500 trucks. Two smaller campaigns will bring 294,000 model-year 2008-2012 Ram 2500 and 3500 pickups, chassis cabs and 2008 Ram 1500 4x4 Mega Cabs; plus 43,500 model-year 2008-2012 Ram 4500 and 5500 4x4 chassis cabs into the dealer to be checked and repaired if necessary.
This is a very large recall, and Chrysler says it is "casting the net wider than necessary to identify those vehicles that require repair." The automaker estimates that "as many as 726,000 may not need repair."

FCA UConnect fiasco could set over-the-air updates back years

Since cars have become more software dependent, most major automakers have been inching toward enabling over-the-air updates to keep vehicle electronics, ranging from infotainment systems to safety features, current. But there are only two car companies — Fiat Chrysler and Ford —± currently doing OTA updates, and on a limited basis. GM CEO Mary Barra announced last summer that the automaker will launch a new EV architecture and infotainment system capable of over-the-air updates "before 2020." The one exception, per usual, is Tesla. Since the release of the Model S almost six years ago, the maverick EV automaker has made routine OTA software updates a core part of its vehicle platforms and value proposition, and has sent out updates for everything from adjusting ride height to enabling Autopilot, largely without incident. When I've asked automakers why they can't do the same thing, I've heard reasons ranging from running afoul of their dealers (and archiac regulation) to security concerns. Automakers like Ford and General Motors say they want to act like tech companies, which routinely send out OTA updates for a wide range of devices, but overall the car industry still moves at a very cautious snail's pace. And when automakers do try to move faster and take more risks — unlike with a smartphone update, which people bitch about but live with — the consequences can be significant when things go wrong. That's the case with Fiat Chrysler America and its recent public-relations nightmare when an OTA update went awry. The update went out at the end of last week for the Uconnect system in late-model vehicles, and it made head units go into a near continuous reboot, which caused owners to not only lose access to entertainment features, but also critical functions like emergency assistance. Almost immediately, owners took to Twitter to express outrage, and FCA was caught flatfooted. A tweet went out on Monday on the UconnectCares Twitter account that read, "Certain 2017 & 2018 Uconnect systems may experience a reboot every 45-60 seconds. Our Engineering teams are investigating the cause and working towards a resolution.