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Jeep Cherokee faces on-sale delay

A report in The Wall Street Journal looks at some of the obstacles to the 2014 Jeep Cherokee that go beyond its mootable yet "very contemporary" looks, almost all of them based on Fiat's financial position. Starting with that sheetmetal, in defense of it SRT president Ralph Gilles and Jeep design head Mark Allen said they wanted to "make sure the design still looks modern five years from now."
The WSJ piece doesn't cite longevity as a factor, instead saying that its features originated in a design for an Alfa Romeo, the transformation into a Jeep design meant allowing Chrysler get it to market more quickly and save "hundreds of millions of dollars" in engineering.
The need for Fiat to save money while it weathers the European situation has cut budgets for development, engineering and the pace of retooling the Toledo, Ohio plant to build the Cherokee. In a familiar case of snowballing at work, among the effects will be pushing back the Cherokee's volume sales date and delaying updates to some of Chrysler's other products.

Why FCA-PSA merger is no quick fix for their China problem

BEIJING — Fiat Chrysler and Peugeot owner PSA's merger is unlikely to provide a quick fix to their problems in China, as both companies have long struggled to find the right products at the right price for the world's top car market, analysts say. The companies said on Thursday they aimed to reach a binding deal in the coming weeks to create the world's fourth-biggest automaker by production volume. But scale alone will not make Italian-American Fiat Chrysler Automobiles (FCA) and France's PSA Group more competitive in a market where they have been slow to adapt to trends and win over consumers, leading their sales to lag far behind foreign rivals such as Volkswagen and General Motors. PSA does not have enough competitive SUV models, and neither company has enough electric and plug-in hybrid vehicles, or enough cars packed with hi-tech features for Chinese tastes, analysts say. In a market where 28 million cars were bought in 2018, FCA sold just 155,215, while PSA sold 257,723, according to consultancy LMC Automotive. At the end of September, FCA had a market share of 0.5% in China's passenger car market, while PSA's was 0.6%. Analysts say they have been squeezed by Japanese and local brands, which have product line-ups better suited to Chinese tastes at cheaper prices. "Both companies are very home-market centred and have failed to adapt to shifts in Chinese market preferences," said Bill Russo, head of Shanghai-based consultancy Automobility Ltd and a former senior Asia-based Chrysler executive. "Neither company has recognized and delivered on the trends of shared, connected and electric vehicles,” Russo said. That makes them ill-prepared to deal with further shifts in the Chinese market, which saw annual sales contract for the first time since the 1990s last year and is expected to see another drop this year. "China's overall market is experiencing a transmission and adjustment period," said Alan Kang, a Shanghai-based senior analyst at LMC Automotive. "It is very hard for these two companies, which do not have enough competitive up-to-date products, to quickly recover with the merger." FCA has a partnership in China with Guangzhou Automobile Group, which said on Thursday it backed the merger. PSA has been trying to reboot its operations in China.

Stellantis could turn the Fiat 500e into a gasser in Europe

How do you solve a problem like electrification? Sometimes the solution is to consider going back to internal combustion. Automotive News Europe, via Italian newspaper Il Corriere della Sera, reports that Stellantis has asked suppliers for quotes on increasing Fiat 500e production by 100,000 units annually, at the Mirafiori, Italy, plant that builds the electric mini car. The twist in the plot is that plant reps told ANE the additional production would be for an ICE-powered 500, not the battery-electric version. See, Fiat has three challenges with the 500. The first is that 500e isn't hitting the production marks the parent company sought, 90,000 units per year; sales the past two years have been in the 77,000-unit range. The second is that the ICE-powered 500, built in Tychy, Poland, and still the 17-year-old mini car that's slightly smaller than the 500e, can only be sold in Europe until June; that 500 will fall afoul of the same cybersecurity regulations that are shuffling the Porsche Cayman, Boxster, and Macan off the European market. The third is national pride: Italy, and Mirafiori plant workers, want to maintain elevated production figures from the country's only mass-market automaker, and no one's sure the 500e will be able to do that.  Hence the exploration into the costs of alternatives. One idea — stress being on the fact that this is only an idea — is to re-engineer the electric-specific 500e platform to accept a mild-hybrid gas engine. The Mirafiori plant would still build the 500e, and it would add 100,000 units or so of a gas-powered 500. In Europe, the gasser 500 still does numbers. Transport industry JATO Dynamics said that including Abarth models, Fiat sold 108,943 units of the ICE-powered 500. If Stellantis saw fit to spend the money, the rumored engine candidate is the 1.0-liter FireFly three-cylinder, used in the sister Panda mini car, making 69 horsepower in that application.  The cost-benefit calculations run up against at least a couple of walls, one being that if Stellantis went ahead with the plan, the resulting car wouldn't hit the market until late 2025 at the earliest, perhaps two years, according to observers. Fiat also hasn't stepped back from its stated goal of being an EV-only maker in Europe by 2030, leaving a new, gas-powered 500 only four years to pay for itself, at most.