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Marchionne says no offers are on the table for Fiat Chrysler

MONZA, Italy (Reuters) - Fiat Chrysler (FCA) has not received any offer for the company nor is the world's seventh-largest carmaker working on any "big deal", Chief Executive Sergio Marchionne said on Saturday. Speaking on the sidelines of the Italian Formula One Grand Prix, Marchionne said the focus remained on executing the company's business plan to 2018. Asked whether FCA had been approached by someone or whether there was an offer on the table, he simply said: "No." The company's share price jumped to record highs last month after reports of interest for the group or some of its brands from China. China's Great Wall Motor Co Ltd openly said it was interested in FCA, but had not held talks or signed a deal with executives at the Italian-American automaker. The stock move was also helped by expectations that the company might separate from some of its units. Marchionne reiterated on Saturday that FCA was working on a plan to "purify" its portfolio and that units, such as the components businesses, would be separated from the group. He hopes to complete that process by the end of 2018. "There are activities within the group that do not belong to a car manufacturer, for example the components businesses. The group needs to be cleared of those things," he told journalists. Asked whether an announcement could come this year, Marchionne said it was up to the board to decide and that it would next meet at the end of September. He said the time was not right for a spin-off of luxury brand Maserati and premium Alfa Romeo and the two brands needed to become self-sustainable entities first and "have the muscle to stand on their feet, make sufficient cash". "The way we see it now, it's almost impossible, if not impossible, to see a spin-off of Alfa Romeo/Maserati, these are two entities that are immature and in a development phase," he said. "It's the wrong moment, we are not in a condition to do it." He said the concept of separating the two brands from FCA's mass market business made sense and did not rule out this happening in future, but not under his tenure, which lasts until April 2019. "If there is an opportunity in future, it would certainly happen after I'm gone. It won't happen while Marchionne is around," he said.

2014 Jeep Grand Cherokee probed by NHTSA for brake problems

Remember how Toyota got in all kinds of trouble over unintended acceleration? Well, the National Highway Traffic Safety Administration is investigating Jeep over unintended braking. NHTSA has announced a probe of 20,000 Grand Cherokee SUVs from model year 2014. Nine complaints have been received, with owners alleging that their Jeeps have issued brake warnings or gone ahead and applied the brakes when no threat was presented. Each complaint alleges that the vehicles have exhibited this behavior repeatedly, leading to a "sudden reduction in vehicle speed in traffic." So basically, a system designed to prevent accidents could actually increase the odds of a collision happening. Speaking to the Associated Press, Jeep spokesperson Eric Mayne said owners whose vehicles are exhibiting this behavior should report to dealers, while adding that the automatic braking/adaptive cruise control systems can be deactivated. Related Video: Scroll down for the official bulletin on the investigation from NHTSA. Date Investigation Opened: JUN 01, 2015 Date Investigation Closed: Open NHTSA Action Number: PE15021 Component(s): FORWARD COLLISION AVOIDANCE Manufacturer: Chrysler (FCA US LLC) SUMMARY: The Office of Defects Investigation (ODI) has received nine complaints alleging inappropriate activations of the autonomous braking system in model year (MY) 2014 Jeep Grand Cherokee vehicles. All nine reports alleged unexpected braking incidents preceded by collision imminent brake warnings and resulting in sudden reduction in vehicle speed in traffic. Two complaints reported autonomous braking incidents with no objects on the road resulting in rapid increase in brake force and anti-lock braking system (ABS) activations. The complaints alleged experiencing multiple events at different locations and road conditions. A Preliminary Evaluation has been opened to assess the frequency, scope and consequences of the alleged defect. The following VOQ numbers are associated with the issues discussed in this resume: 10543837, 10713629, 10690650, 10663320, 10630362, 10596913, 10533622, 10533524, 10651269.

2014 Jeep Cherokee facing production delay

Jeep's bold-faced new direction spearheaded by the 2014 Cherokee is facing some teething issues. According to a report by the Detroit Free Press, production start-up of the controversial new utility vehicle at its Toledo North facility is running about a month behind schedule "due to a wide range of issues." That's according to Mark Chernoby, senior vice president of engineering at Chrysler.
Chernoby maintains that the issues being encountered aren't unusual for the launch of a new vehicle - particularly one with a new powertrain - and he downplayed the delay, telling Jeep dealers that they "will have ample inventory of the midsize SUV by fall." Among the kinks being worked out? Calibrating the Cherokee's cutting-edge ZF nine-speed automatic transmission and refining assembly line tasks to make the process more efficient.
Chrysler expects to start building retail-ready versions of the Cherokee around mid-June, with official sales slated to start in September.