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Marchionne says no offers are on the table for Fiat Chrysler

MONZA, Italy (Reuters) - Fiat Chrysler (FCA) has not received any offer for the company nor is the world's seventh-largest carmaker working on any "big deal", Chief Executive Sergio Marchionne said on Saturday. Speaking on the sidelines of the Italian Formula One Grand Prix, Marchionne said the focus remained on executing the company's business plan to 2018. Asked whether FCA had been approached by someone or whether there was an offer on the table, he simply said: "No." The company's share price jumped to record highs last month after reports of interest for the group or some of its brands from China. China's Great Wall Motor Co Ltd openly said it was interested in FCA, but had not held talks or signed a deal with executives at the Italian-American automaker. The stock move was also helped by expectations that the company might separate from some of its units. Marchionne reiterated on Saturday that FCA was working on a plan to "purify" its portfolio and that units, such as the components businesses, would be separated from the group. He hopes to complete that process by the end of 2018. "There are activities within the group that do not belong to a car manufacturer, for example the components businesses. The group needs to be cleared of those things," he told journalists. Asked whether an announcement could come this year, Marchionne said it was up to the board to decide and that it would next meet at the end of September. He said the time was not right for a spin-off of luxury brand Maserati and premium Alfa Romeo and the two brands needed to become self-sustainable entities first and "have the muscle to stand on their feet, make sufficient cash". "The way we see it now, it's almost impossible, if not impossible, to see a spin-off of Alfa Romeo/Maserati, these are two entities that are immature and in a development phase," he said. "It's the wrong moment, we are not in a condition to do it." He said the concept of separating the two brands from FCA's mass market business made sense and did not rule out this happening in future, but not under his tenure, which lasts until April 2019. "If there is an opportunity in future, it would certainly happen after I'm gone. It won't happen while Marchionne is around," he said.

Chrysler recalls 350k vehicles over ignition switches

Chrysler has announced a recall covering 349,442 vehicles due to ignition switches that can either become stuck or move without warning. All of the affected vehicles are from the 2008 model year, and were built before May 12, 2008.
The automaker has learned that ignition keys on some vehicles "may not fully return to the 'ON' position after rotation to the 'START' position during engine-startup," the company said in a statement. Additionally, "an ignition key may not fully return to the 'ON' position after rotation to the 'START' position and may inadvertently move through the 'ON' position to 'ACCESSORY' or 'OFF.'"
Chrysler says it is unaware of any related injuries, and notes that while reduced braking, engine or steering power is possible in such instances, the airbags are not affected. The later stands in contrast to General Motors' recent rash of high-profile recalls, and it's an important distinction that Chrysler (understandably) felt necessary to call out in bold print in its press release.

Jeep Wrangler JK's exit interview: brilliant, flaws and all

The engineers at Fiat Chrysler Automobiles, Jeep's current steward (and there have been many), have to be sweating bullets as they ready the forthcoming, long-overdue replacement for the Wrangler. It's the brand's icon, its most recognizable vehicle, and the reason Jeep enjoys such success today. Most brands use their flagships to lure shoppers who will then take home a more practical, pedestrian model. Think about the relationship between Corvettes and Malibus in the Chevy showroom. For Jeep, however, the Wrangler is a business unto itself: Nearly one in four Jeeps sold new last year was a Wrangler. That's a lot of pressure as Jeep gears up to replace the current model, codenamed JK, which has been on the road since 2007. I took a Wrangler into the woods to ponder it all. The Wrangler lineup starts around $26,000 but climbs rapidly from there. At the upper end of the spectrum sits the Rubicon Hard Rock, which builds on the already capable Rubicon's locking differentials and electronic front sway bar disconnect with a host of styling goodies. At $43,325 as tested, the Hard Rock is no cheap trail toy. Wranglers have gotten more comfortable and capable over the years, but driving one is still an exercise in compromises. Luxury here means durable leather upholstery and a lot of bass from the stereo. The driving experience is of the "well, it's better than it used to be" variety on pavement. The rational buy in this segment is the Toyota 4Runner Trail, which goes off-road almost as well as the Jeep and does everything else way better. But nobody takes home a Wrangler because it makes sense. It's a middle finger extended in the direction of conformity while fording the river of beige Corollas between home and office. You don't need a Wrangler, but you probably want one. That's why Jeep sold more than twice as many Wranglers as Toyota did 4Runners last year – and the 4Runner sells well. Wrangler sales aren't slipping, but increasingly stringent emissions and safety standards are signs of the inevitable forward march of progress – and so Wrangler must change with the times. Simple ways to improve the Wrangler are obvious: An updated interior with a modern infotainment system, user-selectable traction control modes tailored to specific terrain conditions, an eight-speed automatic, better aerodynamics, and a lot of weight-saving aluminum are inevitable.