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Stellantis will give its brands 10 years to prove they deserve to live

Formed by the merger of PSA Peugeot-Citroen and Fiat-Chrysler Automobiles, Stellantis has 14 brands under its roof, a number that makes it one of the largest groups in the industry. Rumors claimed not every brand would survive, with Chrysler often earmarked to get axed, but the firm said it will give them all a chance to shine. "We're giving each (brand) a chance, giving each a time window of 10 years and giving funding for 10 years to do a core model strategy. The CEOs need to be clear in brand promise, customers, targets, and brand communications," announced Stellantis boss Carlos Tavares during the Financial Times' Future of the Car event. His comments confirm Chrysler fans and dealers don't need to worry about the future — at least not yet. And, against all odds, Lancia enthusiasts can breathe a sigh of relief, too. Former FCA head Sergio Marchionne warned of the brand's demise on several occasions. Alfa Romeo is safe for now, too, as is Vauxhall, which are basically just Opels sold in the United Kingdom with a different badge. The engagement made by Tavares also means Stellantis won't divest any of its brands to raise capital until at least 2031. It's now up to each executive team to make a case for the brand they run, an unusual survival-of-the-fittest strategy in an era when cutting costs is more common than spending cash. Diving into the vast Stellantis parts bin should help even the most troubled brands turn their fortunes around on a relatively tight budget. It seems likely that survive Chrysler will need to look beyond the 300 and the Pacifica/Voyager, the only models in its range, and completely reinvent its image, which is currently nebulous at best. Lancia, once the champion of luxury, performance, and innovation, faces the same challenge. It's not starting quite from scratch, it's relatively popular in its home country of Italy, but it will need to think globally and expand outside of the city car segment to survive. Featured Gallery 2020 Chrysler 300 View 24 Photos Chrysler Dodge Fiat Jeep RAM Citroen Lancia Opel Peugeot Vauxhall

Strike looms for FCA workers as soon as Wednesday night

A strike is on the very near horizon for at least some United Auto Workers members at FCA US. On October 6, the union sent a letter to the automaker that officially announced the termination of its agreements with the company as of 11:59 PM on Wednesday, October 7. Assuming that a deal or extension hasn't happened by that time, workers could hit the picket line. While neither side is talking much publicly, it does appear that negotiations are still underway. In a very brief statement, the automaker simply says: "FCA US confirms that it has received strike notification from the UAW. The Company continues to work with the UAW in a constructive manner to reach a new agreement." The UAW seems equally receptive, and it says in a post on Facebook: "Negotiations with FCA continue. Your bargaining team is hard at work and we will continue to post updates when there is more to report." If a strike happens, it could put a serious financial burden on FCA US. Economist Sean McAlinden from the Center for Automotive Research estimates the cost at as much as $40 million per week, according to Reuters. The union hasn't clarified at this time whether all of its workers with the automaker would stop working or if the picket lines would only be at specific plants. The first tentative agreement posted to UAW members working with FCA US utterly failed in voting. Raises and a healthcare co-op would have been among the new benefits. However, the employees were upset that the proposed deal retained a two-tier wage structure, and they also didn't like the lack of details about rumors of major production changes.

How Fiat explains its disastrous J.D. Power quality scores

Back in the '60s and '70s, Fiat didn't exactly have an enviable reputation for quality. Of course, lack of quality and a tarnished brand reputation eventually saw the Italian automaker flee the market, only to return with the 500 and the larger 500L in the last few years. However, if J.D. Power's Initial Quality Survey for 2014 is to be believed, modern Fiat products haven't improved quite as much as we might have hoped. Fiat thinks that there is a very simple explanation for its poor performance on the annual list, though.
J.D. Power's IQS looks at flaws among autos in the first 90 days that customers own their new vehicles. In 2014, Fiat wasn't only dead last, it was at the back of the pack by a significant margin. The company's cars tallied 206 problems per 100 vehicles (PP100) compared to a national average of 116 PP100. Even Jeep, the survey's second-to-last finisher, had 146 PP100. Fiat's performance was pitiful.
However, it can all be explained, at least according to US Fiat boss, Jason Stoicevich, who spoke with Ward's Auto. He qualifies the results by stating that the survey came at a particularly bad time for the brand. It produced very few 2014 500 models to allow extra time to introduce the updated 2015 version. That meant that about 91 percent of its vehicles surveyed were examples of the 500L, "which is a new car where there are always quirks to work through," said Stoicevich to Ward's. With only one model providing data, it skewed the results. Of course, that's all well and good, but it suggests that the larger 500L is even more problematic than the overall brand's 206 problems per 100 vehicles.