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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

FCA adds 88k Dodge Challengers to Takata inflator recall

The Takata airbag inflator recall from FCA US is growing 88,346 vehicles larger in the US after the company's discovery of the faulty parts in the 2008-2010 Dodge Challenger. The affected examples have production dates between September 19, 2007, and October 29, 2010, and the coupes need the replacement components on the driver's side. According to chronology posted by the National Highway Traffic Safety Administration (as a PDF), the automaker was auditing the models covered under the campaign in July and "identified a population of vehicles that was inadvertently excluded." Initially, FCA believed these cars were using an unrecalled Takata inflator. The audit revealed that the affected cars indeed used a recalled version. As with the rest of the faulty parts, exposure to moisture can cause them to ignite too quickly during an airbag deployment and spray shrapnel at occupants. The problem has been linked to at least eight deaths worldwide and a vehicle fire in Japan. The Challenger wasn't previously part of FCA's 3.3-million unit national campaign or the subsequent expansion. According to FCA US the parts to complete the repairs in these Challengers aren't currently available. However, owners will be notified of the issue by mail starting August 14. They will receive a second notice when the parts become available. Related Video: RECALL Subject : Driver Side Frontal Air Bag Inflator May Rupture Report Receipt Date: JUL 10, 2015 NHTSA Campaign Number: 15V444000 Component(s): AIR BAGS Potential Number of Units Affected: 88,346 All Products Associated with this Recall Vehicle Make Model Model Year(s) DODGE CHALLENGER 2008-2010 Details Manufacturer: Chrysler (FCA US LLC) SUMMARY: Chrysler (FCA US LLC) is recalling certain model year 2008-2010 Dodge Challenger vehicles manufactured September 19, 2007, to October 29, 2010. The affected vehicles are equipped with a dual-stage driver frontal air bag that may be susceptible to moisture intrusion which, over time, could cause the inflator to rupture. CONSEQUENCE: In the event of a crash necessitating deployment of the driver's frontal air bag, the inflator could rupture with metal fragments striking the driver or other occupants resulting in serious injury or death. REMEDY: Chrysler will notify owners, and dealers will replace the driver's frontal air bag inflator, free of charge. Parts to remedy the vehicles are not currently available. Interim notices will be mailed to owners beginning August 14, 2015.

Chrysler Group moves around execs in wake of recent departure

Chrysler is busy shuffling executives around in the wake of Ram head Fred Diaz's departure. The automaker has named Reid Bigland (pictured, right) as Diaz's successor in the role of president and CEO of Ram, though Bigland will continue his duties as the head of US sales and the president and CEO of Chrysler Canada. Bigland first came to Chrysler in 2006 from Freightliner Custom Chassis Corporation, so the guy knows a thing or two about trucks.
Meanwhile, Timothy Kuniskis will take over as president and CEO of Dodge. Previously, he served as the head of Fiat in North America and has been with Chrysler in one capacity or another since 1992. His old title now falls to Jason Stoicevich, who will also continue to work as the director of the automaker's California Business Center. Finally, Bruno Cattori will take over as the president and CEO of Chrysler Mexico.
Diaz left his position to take over as a divisional vice president of sales and marketing with Nissan. You can read the full press release on the Chrysler personnel changes below for more information.