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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.

California Highway Patrol powers up with Charger Pursuits

Residents of California, you'll want to adjust your rear-view mirrors and remain vigilant for the menacing maw of the Dodge Charger. The California Highway Patrol (CHP) ordered 580 Dodge Charger Pursuit cars to start replacing the organization's oldest vehicles. According to the CHP's director of communications, Fran Clader, these old cars are patrol versions of the Ford Crown Victoria, Ford Explorer and Dodge Charger. The cars will be delivered over the next two years with the majority equipped with Fiat Chrysler's 3.6-liter V6 engine. The unit makes 292 horsepower in the Charger and is found in everything from the Jeep Wrangler to the Chrysler 200. There will be a handful of Chargers with the 5.7-liter V8 found in the Charger R/T, but Dodge and Clader said they will just be used for training. Bick Pratt, head of FCA US government sales and operations, said the order represents a move back toward four-door police cars. "The CHP is ordering our Charger Pursuit vehicle to reintroduce the sedan into their patrol vehicle fleet," Pratt said. "That's important to us because it reflects a shift back to sedans by a progressive agency like the CHP." Chargers may show up in local law enforcement fleets. Pratt said departments will have the opportunity to also order Charger Pursuits through the CHP's contract. So wherever you are in California, if you see that famous crosshair grille in your rear-view mirror, be ready to pull over. Related video:

Chrysler investing $20M in Toledo plant to support 9-speed auto production

In 2011, Chrysler announced a $72-million investment in its Toledo Machining Plant to modernize production of the eight- and nine-speed torque-converters for automatic transmissions made there. That upgrade work won't be finished until Q3 of this year, but Chrysler has already announced a further $19.6-million investment to increase production capacity for the nine-speeders.
The extra units will be necessary because the nine-speed transmission they'll be mated to is going into three popular models: it will debut on the 2014 Jeep Cherokee, then go into the Chrysler 200 and Dodge Dart. The company predicted that this year alone it would sell 200,000 units equipped with the nine-speed tranny, and it is spending some $374 million in addition to the investment in Toledo to upgrade production capacity for it.
The work attached to this new investment won't begin until Q3 of 2014, and it will be finished by the end of that year. There's a press release below with all the details.