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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.

Fires, deaths continue after Jeep fuel tank recall

As Kayla White slowed her SUV behind two other cars to exit a suburban Detroit freeway on Veterans Day, it was rammed from behind by a Cadillac STS. Her red 2003 Jeep Liberty bounced off a Nissan in front of it, rolled onto its side and exploded in flames. Other drivers ran to help but were forced back by the heat. Firefighters arrived in just three minutes but were too late. White, a 23-year-old restaurant hostess who was eight months pregnant, died of burns and smoke inhalation. White is one of more than 70 people killed in fires involving older Jeeps with plastic fuel tanks mounted behind the rear axle. Fiat Chrysler, which makes Jeeps, recalled 1.56 million of them in June 2013 under pressure from US safety regulators. But only 12 percent of the SUVs have been repaired in the 18 months since the recall, a much slower pace than usual. And White's Jeep was not among those fixed. Last week, prosecutors charged the Cadillac driver with committing a moving violation that caused a death. But safety advocates and the lawyer for White's family say the blame belongs as much, if not more, on Chrysler and an auto-industry safety system that moves too slowly to prevent tragedy. The rear-mounted tanks have little structure to protect them if struck from behind, making them susceptible to punctures and fires. Moving the gas tank in front of the axle would be expensive and difficult. So Chrysler's remedy involved installing trailer hitches on the rear of the Jeeps as an extra layer of protection. Government testing showed the hitches protected the tanks in crashes up to 40 mph when stationary Jeeps were hit from behind. But at higher speeds, they wouldn't help. White tried to get the repair done a few weeks before her death but was told by a Jeep dealer that parts weren't available, according to Gerald Thurswell, her family's lawyer. He wouldn't identify the dealership, and his contention could not be independently verified by The Associated Press. Thurswell contends the gas tank ruptured, spilling fuel that touched off the fire. A Chrysler spokesman expressed sympathy to White's family but said the company had no written proof that she asked a dealer about the recall. Two crash reconstruction experts interviewed by the AP say gas wouldn't have spilled from White's Jeep if the tank had been mounted in front of the rear axle. Both say a hitch might have prevented the tank from being damaged, but because both vehicles were in motion, neither expert could say for sure.

Toledo gets proactive in fight to keep Jeep Wrangler

Let's make this very plain - the city of Toledo, OH loves its Jeeps. It loves them so fervently that the very rumor of the Jeep Wrangler moving out of its traditional home prompted the city's mayor, D. Michael Collins, and Ohio Gov. John Kasich to hold a weekend conference call with Chrysler CEO Sergio Marchionne.
"The purpose of this call was for the mayor and governor to gain clarity on Mr. Marchionne's comments last week regarding the possibility of the next generation of Jeep Wrangler being built at a location other than the Toledo North Assembly Plant," a spokesman for the mayor's office told The Toledo Blade.
While no further commitments were made by any party, Collins and Kasich's statement was quite unequivocal about keeping Toledo's unwillingness to let the Wrangler go, saying "the city and its partners will again rise to the occasion to ensure that the new Wrangler is made in Toledo." According to the newspaper, the next step is for face-to-face meetings between officials from Ohio and FCA.