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The Chrysler brand could be axed under Stellantis management

MILAN — While running NissanÂ’s North American operations from 2009 to 2011, Carlos Tavares had a reputation for closely watching costs with little tolerance for vehicles or ventures that didnÂ’t make money. Experts say that means Tavares, currently the head of PSA Group, is likely to follow that blueprint when he becomes leader of a merged PSA and Fiat Chrysler Automobiles. The low-performing Chrysler brand might get the axe as could slow-selling cars, SUVs or trucks that lack potential. Already the companies are talking about consolidating vehicle platforms — the underpinnings and powertrains — to save billions in engineering and manufacturing costs. That could mean job losses in Italy, Germany and Michigan as PSA Peugeot technology is integrated into North American and Italian vehicles. “You canÂ’t be cost efficient if you keep the entire scale of both companies,” said Karl Brauer, executive analyst for the iSeeCars.com auto website. “WeÂ’ve seen this show before, and weÂ’re going to see it again where they economize these platforms across continents, across multiple markets.” Shareholders of both companies are to meet Monday to vote on the merger to form the worldÂ’s fourth-largest automaker, to be called Stellantis. The deal received EU regulatory approval just before Christmas. Tavares, who for years has wanted to sell PSA vehicles in the U.S., wonÂ’t take full control of the merged companies until the end of January at the earliest. He likely will target Europe for consolidation first, because thatÂ’s where Fiat vehicles overlap extensively with PSAÂ’s, said IHS Markit Principal Auto Analyst Stephanie Brinley. Europe has been a money-loser for FCA, and factories in Italy are operating way below capacity — a concern for unions, given FiatÂ’s role as the largest private sector employer in the country. “We are at a crossroads,Â’Â’ said Michele De Palma of the FIOM CGIL metalworkersÂ’ union. “Either there is a relaunch, or there is a slow agonizing closure of industry, in particular the auto industry, in Italy.” ItalyÂ’s hopes lie with the luxury Maserati and sporty Alfa Romeo brands, but De Palma said investments are needed to bring hybrid and electric technology up to speed. FiatÂ’s Italian capacity stands at 1.5 million vehicles, but only a few hundred thousand are being produced each year. Most factories were on rolling short-term layoffs due to lack of demand, even before the pandemic.

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FCA recalls 894k total vehicles worldwide in two campaigns

FCA is recalling a total of 893,698 vehicles worldwide in two campaigns to fix problems with inadvertent airbag deployment, failure of the anti-lock brakes, and stability control systems in the Jeep Grand Cherokee, Liberty, Dodge Journey, and Fiat Freemont. 559,703 of these vehicles are in the US. The larger recall affects 284,089 examples of the 2003 Jeep Liberty and 2004 Jeep Grand Cherokee, and there are also 13,411 of them in Canada, 6,277 in Mexico, and 48,212 outside the NAFTA region. Because of "electrical noise beyond the tolerance of the airbag electronic control module", part of that component can fail, according to the National Highway Traffic Safety Administration. This can cause the front and side airbags to deploy and the seatbelt pre-tensioners to activate inadvertently. FCA US has seven reports of alleged injuries from this problem. To fix the situation, the Jeeps need their Occupant Restraint Control modules replaced, as well as the front- and side-impact sensors. According to the NHTSA, the replacement parts won't be available until early 2016. Still, FCA US will advise owners about the problem in a letter by the end of December and will send a second notification when the components are ready. The second campaign affects 275,614 examples of the 2012-2015 Dodge Journey in the US; plus 78,148 of them in Canada, 36,471 in Mexico, and 151,476 left-hand drive units outside of NAFTA where it's sold as the Fiat Freemont. On these vehicles, water intrusion can disable the anti-lock brakes and electronic stability control, although a warning light often illuminates when this issue occurs, and the problem doesn't affect regular braking. There are also no reports of injuries or accidents. To fix the issue, dealers will seal the ABS wiring harness and will replace any already affected components as necessary, like the ABS module or the headlamp and dashboard wiring harness. Statement: Occupant Restraint Control Modules October 30, 2015 , Auburn Hills, Mich. - FCA US LLC is voluntarily recalling an estimated 284,089 older-model SUVs in the U.S. to replace their Occupant Restraint Control (ORC) modules and front and/or side-impact sensors, as required. Within this vehicle population, FCA US became aware of seven injuries caused by inadvertent air-bag deployments and advised NHTSA accordingly. The affected vehicles are not equipped with Takata Corp. air-bags. The Company is unaware of any related accidents.