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PSA reportedly ditching its two tiny gasoline city cars ahead of merger

The Peugeot 108.   PARIS — PSA is ending the production of Peugeot and Citroen small city cars, three sources told Reuters, withdrawing from an increasingly unprofitable market as its starts a strategic review ahead of its planned merger with Fiat Chrysler. While PSA had already agreed to sell its stake in its Czech joint venture with Toyota where the Peugeot 108 and Citroen C1 models are made, the decision to stop selling the gasoline cars altogether has just been taken, the sources said. Carmakers are reviewing the production of vehicles with combustion engines as they need to fit costly exhaust filtering systems to meet tighter emissions laws. That's pushing up the cost of some so-called entry-level A segment cars to the point where they are hard to justify economically. "PSA is getting out of both the factory and the A segment business, as it is offered today, and on which manufacturers have arguably lost the most money in Europe," one of the sources familiar with the matter said. PSA declined to comment on the future of the two small cars. It said it was reviewing which products would best meet customer expectations in the A segment and cope with European carbon emissions targets. "This means a reflection with fresh and disruptive ideas," a spokesman for the French carmaker said. The European Commission is planning to tighten its emissions limits for cars under new proposals designed to cut the bloc's greenhouse gas output further by 2030. PSA's merger project with FCA has also increased the options available, two of the sources said, as the Italian-U.S. company has no intention of abandoning its small best-selling Panda and 500 models. Both already have hybrid versions and the 500 is also available in full electric mode. "Current projects could be replaced by new ones made possible by the merger with FCA", another source said. "The merger is turning all the cards around, especially when you consider that the A segment, from the very first 500 to the Panda, is inseparable from Fiat history". FCA declined to comment. PSA and FCA aim to finalize their merger in the first quarter next year to create a new company called Stellantis, which will be the fourth-biggest automaker in the world. Market contraction The European market for frugal city cars has been shrinking for several years.

Chrysler recalls 1.2 million Ram pickup trucks

Chrysler has announced that it will issue three separate recalls that will cover as many as 1.2 million Ram pickup trucks for "steering-system tie rods that may have been misaligned during assembly or steering-system service." The vast majority of these trucks were sold in the United States, though some trucks in Mexico, Canada or overseas will be called in, as well.
The largest of the three recalls covers an estimated 842,400 model-year 2003-2008 Ram 2500 and 3500 trucks. Two smaller campaigns will bring 294,000 model-year 2008-2012 Ram 2500 and 3500 pickups, chassis cabs and 2008 Ram 1500 4x4 Mega Cabs; plus 43,500 model-year 2008-2012 Ram 4500 and 5500 4x4 chassis cabs into the dealer to be checked and repaired if necessary.
This is a very large recall, and Chrysler says it is "casting the net wider than necessary to identify those vehicles that require repair." The automaker estimates that "as many as 726,000 may not need repair."

FCA's large, LX-based RWD cars will stick around until 2020

Fiat Chrysler Automobiles plans to stick with the Dodge Challenger, Dodge Charger, and Chrysler 300 until at least 2020, reports Automotive News. The information comes from two unnamed sources and was loosely confirmed by details in the automaker's new labor contract with Unifor, Canada's auto union. The plan, according to two anonymous sources, is to lightly refresh the Challenger, Charger, and 300 until the vehicles make the switch to FCA's new Giorgio platform. The refresh, as Automotive News points out, will happen in 2018. The Giorgio platform currently underpins the Alfa Romeo Giulia and is expected to find its way to two of the three large American vehicles for the 2021 model year. At that time, FCA will discontinue either the Charger or the 300, claim AN's unnamed sources. If one of the vehicles were to go, it would most likely be the 300. The 300's LX platform would be approximately 15 years old in 2020 and the vehicle doesn't draw in as many sales as the Challenger or the Charger. The Charger made the switch from the LX platform in 2010 with the current model utilizing the mildly updated LD platform, while the Challenger recently moved from the LC platform to the LA platform last year. All of those rear-wheel-drive platforms are closely related. Automotive News points out that FCA CEO Sergio Marchionne stated that the new platform could be utilized across various applications in a conference call with analysts last month. The plan, according to the report, is to stretch and widen the Giorgio platform for the next-gen Challenger and Charger. The new platform is also rigid enough to allow the automaker to add a convertible to its lineup, which could lend further credence to rumors of an upcoming Barracuda. Hopefully, the move to the new Giorgio platform doesn't delay the all-wheel-drive Challenger GT AWD or the wide-body, Hellcat-powered Challenger ADR. We'll just have to wait and see. Related Video: News Source: Automotive News - sub. req. Chrysler Dodge Coupe Performance Sedan FCA fiat chrysler automobiles