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FCA CEO Mike Manley will take undefined new role after PSA merger

MILAN — Fiat Chrysler Chief Executive Mike Manley will remain with the new group set to result from a planned merger with French rival PSA-Peugeot, Chairman John Elkann said on Wednesday. In a letter to Fiat Chrysler (FCA) employees on the day the two companies announced a binding agreement for a $50 billion tie-up to create the world's fourth-largest carmaker, Elkann said he was "delighted" that the combined group would be led by current PSA CEO Carlos Tavares. "And Mike Manley, who has led FCA with huge energy, commitment and success over the past year, will be there alongside him," he said. He did not say what position Manley would hold. Elkann — who will chair the new group — said there was still much to be done to complete the merger. "Over the coming months we must work tirelessly and determinedly to fulfill all the approval requirements needed to finalize the commitment we have signed," he said. Related Video:     Hirings/Firings/Layoffs Chrysler Dodge Fiat Jeep RAM Citroen Peugeot FCA PSA merger Mike Manley carlos tavares

Fiat-based baby Jeep spotted testing in US and Europe

Details remain scarce, but our spy photographers have managed to capture the upcoming Jeep B-segment crossover for the first time, testing in both the Alps and in the US. Shown here as a cobbled-together Fiat 500L mule, the new Jeep model is expected to arrive for the 2015 model year and act as a replacement for the current Compass and Patriot models.
According to our shooter, the new "baby Jeep" will share a platform with the Fiat 500X, and both models will be built on the same assembly line in Turin, Italy. We can't tell much from these images, but the added length apparent on this 500L mule would seem to dispel the recent speculation that the new entry-level Jeep model would be sized closer to the Ford Fiesta - since the 500L is already considerably larger than the Fiesta. Powertrain options will likely mirror other Fiat/Chrysler collaborative vehicles like the Dodge Dart, but this Jeep will also try to live up to its off-road roots with an optional all-wheel-drive system.

Chrysler recalls 350k vehicles over ignition switches

Chrysler has announced a recall covering 349,442 vehicles due to ignition switches that can either become stuck or move without warning. All of the affected vehicles are from the 2008 model year, and were built before May 12, 2008.
The automaker has learned that ignition keys on some vehicles "may not fully return to the 'ON' position after rotation to the 'START' position during engine-startup," the company said in a statement. Additionally, "an ignition key may not fully return to the 'ON' position after rotation to the 'START' position and may inadvertently move through the 'ON' position to 'ACCESSORY' or 'OFF.'"
Chrysler says it is unaware of any related injuries, and notes that while reduced braking, engine or steering power is possible in such instances, the airbags are not affected. The later stands in contrast to General Motors' recent rash of high-profile recalls, and it's an important distinction that Chrysler (understandably) felt necessary to call out in bold print in its press release.