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How Fiat explains its disastrous J.D. Power quality scores

Back in the '60s and '70s, Fiat didn't exactly have an enviable reputation for quality. Of course, lack of quality and a tarnished brand reputation eventually saw the Italian automaker flee the market, only to return with the 500 and the larger 500L in the last few years. However, if J.D. Power's Initial Quality Survey for 2014 is to be believed, modern Fiat products haven't improved quite as much as we might have hoped. Fiat thinks that there is a very simple explanation for its poor performance on the annual list, though.
J.D. Power's IQS looks at flaws among autos in the first 90 days that customers own their new vehicles. In 2014, Fiat wasn't only dead last, it was at the back of the pack by a significant margin. The company's cars tallied 206 problems per 100 vehicles (PP100) compared to a national average of 116 PP100. Even Jeep, the survey's second-to-last finisher, had 146 PP100. Fiat's performance was pitiful.
However, it can all be explained, at least according to US Fiat boss, Jason Stoicevich, who spoke with Ward's Auto. He qualifies the results by stating that the survey came at a particularly bad time for the brand. It produced very few 2014 500 models to allow extra time to introduce the updated 2015 version. That meant that about 91 percent of its vehicles surveyed were examples of the 500L, "which is a new car where there are always quirks to work through," said Stoicevich to Ward's. With only one model providing data, it skewed the results. Of course, that's all well and good, but it suggests that the larger 500L is even more problematic than the overall brand's 206 problems per 100 vehicles.

Fiat seeking $10B in financing to buy Chrysler

As Fiat looks to become the full owner of Chrysler, all it has standing in its way is the retiree trust of the United Auto Workers, which currently holds the remaining 41.5 percent of the company as the result of the Pentastar's bankruptcy deal. The Detroit News is reporting that that Fiat is currently talking to numerous banks in an attempt to raise around $10 billion to fund the purchase of Chrysler's remaining stake with enough left over to refinance the debt of both companies. We've known that Fiat has been working to obtain the capital to buy out Chrysler for some time now, but this is the first time we've seen Fiat tip its hand about how much cash it thinks it will need to close the deal.
The first order of business is a legal dispute over the value of the UAW's stake in Chrysler, which the report indicates could cost Fiat around $3.5 billion. The acquisition of remaining shares could happen by this summer, but it sounds like CEO Sergio Marchionne (above) might not be ready for a full merger until next year.

Marchionne impressed by 'that kid' Elon Musk

FCA boss Sergio Marchionne has a reputation as an incredibly canny businessman. Some examples of his acumen include finishing Fiat's takeover of Chrysler from a beachside home and winning a challenge with Luca di Montezemolo for the reins of Ferrari. The Italian exec recently took a trip to California and lavished praise on Elon Musk after a meeting with the Tesla CEO. Although, the compliment did come off as a little patronizing. "I'm incredibly impressed with what that kid has done," Marchionne said to Reuters about his conversation with Musk. Unfortunately, the FCA exec didn't go into detail about what he and Tesla boss discussed. Although, calling the 43-year-old billionaire a "kid" does seem a little rude, especially given Musk's success with Paypal, in the auto industry and at SpaceX. While in the Golden State, Marchionne also had a talk with Apple CEO Tim Cook. Although, he was similarly cagey about what the men discussed. "He's interested in Apple's intervention in the car, that's his role," Marchionne said to Reuters about the conversation without divulging more. The two companies already have some small links thanks to Ferrari's use of the tech giant's products. As one additional highlight for Marchionne's California trip, he took a ride in the Google autonomous car. News Source: ReutersImage Credit: Paul Sancya / AP Photo Green Chrysler Fiat Tesla Green Culture Technology Emerging Technologies Autonomous Vehicles Electric Sergio Marchionne FCA