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Fiat Chrysler and Peugeot boards meet to finalize merger

MILAN/PARIS — The boards of Fiat Chrysler Automobiles and Peugeot will meet separately on Tuesday to discuss finalizing an initial agreement for a $50 billion merger to create the world's number four carmaker, sources said. A source close to FCA said the two companies could announce the signing of a binding memorandum early on Wednesday, followed by a conference call to explain further details later in the day. The two mid-sized carmakers announced plans six weeks ago for a tie-up to help them deal with big challenges in the industry, including a global demand downturn and the need to develop costly cleaner cars to meet looming anti-pollution rules. Ahead of the meetings, entities representing the Peugeot family, Etablissements Peugeot Freres (EPF) and FFP, unanimously approved a proposed memorandum of understanding for the planned merger, a source familiar with the situation said. FCA and PSA have said they would seek to finalize a deal by year-end to create a group with 8.7 million in annual vehicle sales. That would put it fourth globally behind Volkswagen, Toyota and the Renault-Nissan alliance. PSA's Carlos Tavares will be chief executive and FCA's John Elkann — the scion of Italy's Agnelli family, which controls FCA through their holding company Exor — chairman of the combined company. The group will include the Fiat, Jeep, Dodge, Ram, Chrysler, Alfa Romeo, Maserati, Peugeot, DS, Opel and Vauxhall brands, allowing it to serve mass and premium passenger car markets as well as those for trucks and light commercial vehicles. Related Video:       Chrysler Dodge Fiat Jeep RAM Citroen Peugeot

Jeep Grand Cherokee, Dodge Durango still catching fire after recall

Automakers issue recalls all the time. It's part of the cost of doing business. We just assume that once the recall has been carried out, the problem in question has been fixed. But that's not always the case, as this latest investigation being undertaken by the National Highway Traffic Safety Administration goes to show. The problem stems back to a recall issued by Chrysler last summer. It revolved rather the sun visor in the SUVs it makes at its Jefferson North Assembly Plant – specifically, the screw affixing the sun visor could end up rubbing against the wiring for the lamp in the vanity mirror, potentially causing an electrical short and even a fire. 62 such short circuits, 38 fires and three injuries reported, prompting Chrysler to recall nearly 900,000 units of the 2011-2014 Jeep Grand Cherokee and Dodge Durango (over 650,000 of them in the United States). The plastic spacers they installed to rectify the problem, however, may not have done the trick. Eight reports (but none involving injuries) have been filed with the NHTSA regarding the same issue recurring, spurring the government agency to open a new investigation into the matter. If deemed necessary, the NHTSA could ask FCA to issue another recall to fix the issue again, which we may necessitate the installation of a fuze to prevent any such the electric short. Related Video: INVESTIGATION Subject : Headliner Fires Date Investigation Opened: MAY 01, 2015 Date Investigation Closed: Open NHTSA Action Number: RQ15003 Component(s): ELECTRICAL SYSTEM , INTERIOR LIGHTING Manufacturer: Chrysler (FCA US LLC) SUMMARY: On July 1st, 2014 Chrysler (FCA US LLC) issued safety recall 14V-391 to remedy a wiring-related fire hazard on the headliner of approximately 661,888 model year (MY) 2011-2014 Jeep Grand Cherokee and Dodge Durango vehicles manufactured between January 5, 2010 and December 11, 2013. The recall was in response to the Office of Defects Investigation (ODI) investigation EA14-001 during which data provided by Chrysler indicates that the fire is caused by an electrical short in the vanity lamp wiring for either one of the sun visors mounted on the vehicle. The sun visors are mounted to the roof of the vehicle through the headliner with three metal screws.

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.