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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.

Proposed deal averts strike between FCA and UAW

With the deadline rapidly approaching for a strike, FCA US and the United Auto Workers were able to hammer out a potential agreement late last night to avoid picket lines, at least for now. While the UAW said in a statement that it "secured significant gains," the actual contents of the deal haven't been published yet. Before going public, the offer still needs the consent of the UAW National Chrysler Committee, and that body has a meeting on 11:00 AM Eastern on Friday, October 9, to make a decision. If the Chrysler committee signs off on the deal, it would then go to the union's 40,000 FCA US workers for a vote, according to The Detroit News. "We have made real gains and I look forward to a full discussion of the terms with our membership," President Dennis Williams said in the UAW's statement. FCA US isn't providing any answers about the proposed contract either. In a release about the negotiations, the automaker said: "FCA US confirms that it has reached a new tentative agreement with the UAW. Because the agreement is subject to UAW member ratification, the Company cannot discuss the specifics of the agreement pending a vote by UAW members." The original tentative contract with FCA US promised raises and the creation of a healthcare co-op. However, 65 percent of union members rejected the deal, The Detroit News reports. Workers didn't like that the offer kept a two-tier wage system between veterans and more recent employees. The details of the health plan also weren't explained well, and there wasn't much info on possible production changes. UAW-FCA NATIONAL BARGAINING COMMITTEE VOTES ON PROPOSED TENTATIVE AGREEMENT Featured / News / October 8, 2015 UAW National Chrysler Council Leaders to Convene for Vote on Friday, Oct. 9 — Terms to be announced following Friday vote Detroit, Mich. – After a lengthy bargaining process, the UAW FCA National Bargaining Committee has secured significant gains in a proposed Tentative Agreement with FCA US announced today. The bargaining committee unanimously voted to send the proposed Tentative Agreement to local union leaders who make up the union's UAW National Chrysler Council. The UAW Chrysler Council will meet in Detroit at 11 am on Friday to discuss and vote on the agreement. "We heard from our members, and went back to FCA to strengthen their contract," said UAW President Dennis Williams.

Stellantis — seriously? Exploring the pros and cons of Chrysler’s new name

I took Wednesday off. I came in Thursday and Chrysler was renamed Stellantis. Aside from lighting Twitter on fire and drawing a lot of snarky responses from car journalists, the name is actually decent. Let’s look at it from a few angles. For starters, Chrysler, the 95-year-old automaker founded in Detroit by Walter P. Chrysler (his name still adorns everything from a major freeway in Michigan to an iconic art deco skyscraper in New York), isnÂ’t actually Chrysler. ItÂ’s FCA, which stands for Fiat Chrysler Automobiles. The name change actually happened in 2014, which you might have easily missed. The American unit, formerly Chrysler, is known as FCA US in some legal matters, but does not operate independently.   The Stellantis name takes effect in 2021. HereÂ’s why itÂ’s needed: Fiat Chrysler is merging with Group PSA. (Peugeot and Citroen) to form a transatlantic alliance that will be larger than even Ford. Stellantis sounds a lot better than FCA-PSA. Or PSA-FCA. You might poke fun at it, but it beats the alternatives. Or at least it could be worse. Stellantis is the name for the corporate entity that will house Chrysler, Fiat, Peugeot, Citroen, and oh by the way, Opel and Vauxhall, which PSA bought in 2017 when GM unloaded its European arm.  Your Jeep will not say Stellantis on the fender. Your Hemi Hellcat wonÂ’t say “powered by Stellantis” under the hood. Your Fiat 500 or Alfa Romeo Giulia will not have a script “Stellantis" crest. Speaking of that, roll call: HereÂ’s all of the brands that will be housed under the Stellantis umbrella: Chrysler, Dodge, Jeep, Fiat, Fiat Professional, Mopar, Alfa Romeo, Maserati, Abarth, Ram, Lancia, Peugeot, Citroen, DS, Opel and Vauxhall. ThereÂ’s also a couple of lesser-known subsidiaries, Comau and Teksid, that sell parts. ThatÂ’s 18 brands. They have origins in Detroit, Paris, Turin, Chalton (England), Russelsheim (Germany) and several other places. All of these carmakers have deep histories. No one was going to agree on using someone elseÂ’s name. You might notice Chrysler is still in there. Chrysler as the brandname for the 300 sedan and Pacifica minivan lives on. Stellantis replaces FCA, which replaced Chrysler, as the name of the parent company. Yes, it's a little confusing. HereÂ’s more perspective. Chrysler was once owned by Cerberus, a three-headed dog that guards the gates of hell, according to mythology.