1986 Jeep Grand Wagoneer on 2040-cars

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For his last act, Marchionne will outline an EV/hybrid roadmap this week

MILAN/LONDON — Fiat Chrysler (FCA) boss Sergio Marchionne is expected to outline new plans for electric and hybrid cars in a strategy presentation on Friday, aiming to ensure the world's seventh-largest carmaker remains in the race in the absence of a merger. The 65-year-old will present FCA's strategy to 2022, his final contribution to the company he turned around and multiplied in value through 14 years of canny dealmaking. After failing to secure a tie-up he said was necessary to manage the costs of producing cleaner vehicles, Marchionne needs to show the group can keep churning out profits on its own, even as emissions rules tighten, SUV competition intensifies and worries around his succession abound. Marchionne had long refused to jump on the electrification bandwagon, saying he would only do so if selling battery-powered cars could be done at a profit. He even urged customers not to buy FCA's Fiat 500e, its only battery-powered model, because he was losing money on each sold. But Tesla's success and the need to comply with tougher emissions rules have forced Marchionne to commit to what he calls "most painful" spending. "FCA is way behind rivals in terms of hybrid and electric vehicles and they need to hit the accelerator to convince investors they can close that gap," said Andrea Pastorelli, a fund manager at 8a+ Investimenti. Germany's Volkswagen, Daimler, BMW and U.S. rivals GM and Ford have committed to spending billions of euros each in coming years to try produce profitable cars powered by cleaner fuels. FCA needs to present a clear roadmap, just like Volvo Cars, which ditched diesel from its best-selling XC60 SUV, launched a new electric brand and pledged to shift all brands to hybrid by 2019, a banking source close to FCA said, noting: "The tech divide determines winners and losers in the industry." Marchionne has already said half of the wider FCA fleet will incorporate some elements of electrification by 2022, while luxury marque Maserati will spearhead FCA's electrification drive by making all new models due after 2019 electric. But its plans remain vaguer and less advanced than most big rivals and some investors wonder about the capital required to make vehicles compliant, and what share of spending can go to electrification given FCA's numerous demands.

NHTSA boss Strickland weighs in on Jeep recall fracas

Adding yet another chapter to the ongoing Jeep recall story, the National Highway Traffic Safety Administration (NHTSA) head David Strickland has gone on record to defend the government's request that Chrysler recall 2.7 million out-of-production Jeep Grand Cherokee and Jeep Liberty vehicles after the agency investigated fiery rear-end collisions that have reportedly killed at least 51 people over the years. In statements made to The Detroit News, Strickland said, "We felt very strongly that the process that we undertook and the findings that we made and ... we made the decision to issue a recall request. We do not take that very lightly." The top US auto safety regulator stopped short of telling owners to park their cars until the automaker takes action. "They can make their own risk assessment and their own choices," he said.
Chrysler does not intend to recall the models, insisting the "vehicles met and exceeded all applicable requirements of the Federal Motor Vehicle Safety Standards, including FMVSS 301, pertaining to fuel-system integrity" when they were manufactured and sold. "The company does not agree with NHTSA's conclusions and does not intend to recall the vehicles cited in the investigation. The subject vehicles are safe and are not defective," Chrysler announced last week in a statement. "We believe NHTSA's initial conclusions are based on an incomplete analysis of the underlying data, and we are committed to continue working with the agency to resolve this disagreement."
Legally, Chrysler has until June 18 to formally respond to NHTSA's request. If the automaker does not take action, NHTSA is expected to issue a formal finding and seek a recall.

Fiat Chrysler Automobiles: The next five years

Unless you've been living under a rock for the past 24 hours, you've no doubt read about all of the big future product news coming out of Fiat Chrysler Automobiles today. We had individual brand reports from Chrysler, Dodge, Jeep, Ram, Alfa Romeo, Fiat, Maserati and even Ferrari, but in the interest of simplifying and summarizing, we're going to list out the hard facts once more. Of course, with all of this still off in the future, there's still the possibility that a few changes will be made. But as of what we know right now, here's what's coming, and what's going away.
Chrysler
2014: Refreshed 300/300C, debuting at Los Angeles Auto Show