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Marchionne says Fiat Chrysler can make 6 million cars per year

The combined Fiat Chrysler Automobiles will see its production capacity increase from a projected 4.6 million in 2014 to 6 million units once it completes its integration, according to statements made by FCA CEO Sergio Marchionne.
"With the initiatives we will announce in May, six million is accessible," Marchionne said during a Fiat shareholders' meeting in Turin, according to The Detroit News. Marchionne is aiming to complete the merger between the Turin, Italy-based Fiat and the Auburn Hills, MI-based Chrysler by the end of this year.
Increasing production by 1.4 million units is no small order, particularly when combined Fiat and Chrysler sales have increased only modestly in the past few years - only 4.4 million units were sold in 2013, and while 4.6 million is projected for 2014, 4.5 million is also a distinct possibility. Six million units per year has been Marchionne's self-imposed goal for the combined automaker, according to The News, claiming that FCA would need to crest that point to achieve profitability.

NHTSA closes book on Jeep 'trailer hitch' recall after all

After much debating and hand-wringing, the National Highway Traffic Safety Administration now says it has "no reservations" with Chrysler's plan to recall certain Jeep Liberty and Grand Cherokee models over concerns that their fuel tanks, which are located behind the rear axle, could rupture or leak in the event of a rear impact. The longstanding argument between the two entities saw Chrysler openly defy the Feds after a request to recall 2.7 million units back in June.
Chrysler's "voluntary campaign" will instead see it recall 1.56-million 1993-2004 model year Grand Cherokee SUVs, along with 2002-2007 Liberty models. Affected vehicles will get a trailer hitch installed free of charge, which Chrysler says will provide an additional degree of protection for the fuel tanks in the event of a crash. Jeeps with Mopar-branded hitches or hitches that were installed at the factory aren't affected by this recall.
Chrysler's argument throughout this battle has been that the Jeeps in question are no more susceptible to fires than comparable vehicles from the same time period, a position that NHTSA has seemingly arrived at as well. "Those vehicles performed at a rate similar to their peers. That is the keystone analysis as to whether something poses an unreasonable risk to safety," said outgoing NHTSA boss David Strickland during an interview with the The Associated Press.

Marchionne recruiting activist investors to prompt GM merger

Sergio Marchionne may have been rebuffed in his previous advances at General Motors, but he's not about to give up that easily. According to The Wall Street Journal, the Fiat Chrysler chief is now turning to activist investors to help coax GM into joining forces. Marchionne has been a staunch and ceaseless advocate of the need for consolidation, arguing that the industry needs to amalgamate into larger groups that will share resources and reduce overhead. Under his leadership, the Fiat group consolidated its own operations, and officially merged with Chrysler last year. But he's also been pursuing additional mergers with the likes of Volkswagen, Peugeot, Ford, and Opel (to name just a few). Now he's pursuing a merger with GM, which has not shown much enthusiasm towards the idea. For one thing, GM is a much larger company, and probably doesn't need FCA as much as FCA needs it. For another, it has a troubled past with Marchionne, who in 2005 dissolved an agreed merger (of sorts) with GM, yet still managed to get the General to pay Fiat some $2 billion in the process. However, Marchionne is evidently hoping that the intervention of activist investors could compel GM CEO Mary Barra and company to proceed with a merger anyway. For precedent, he's looking at the recent negotiation between GM and some of its stakeholders that prompted the company to buy back $5 billion of its own shares, demonstrating Barra's willingness to deal with investors. The more compelling precedent, however, may have been set in 2006, when activist investor Kirk Kerkorian locked arms with Carlos Ghosn to get GM to consider joining the alliance between Renault and Nissan. GM ultimately declined, and Ghosn turned instead of Daimler (which of course has its own history of having merged with Chrysler). Only time will tell if this initiative will prove more successful, but one thing's for sure, and that's that Marchionne isn't about to relent in his pursuit of a major merger partner.