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Weekly Recap: GM scales back as Russian auto market teeters

General Motors' extensive plans to scale back its Russian operations are the latest sign the automotive market in the former superpower is collapsing – and there are few signs of recovery. GM said Wednesday it will stop selling mainstream Chevrolets and shutter the entire Opel brand in Russia. The moves leave GM with a luxury-focused presence consisting of Cadillac and Chevrolet's Corvette, Camaro and Tahoe. The cutbacks will be completed by the end of the year. The automaker will also idle its factory in St. Petersburg and end a contract-assembly agreement with Russian manufacturer GAZ. "We had to take decisive action in Russia to protect our business," Opel Group CEO Karl-Thomas Neumann said in a statement. "We confirm our outlook to return the European business to profitability in 2016 and stick to our long-term goals." GM is the latest automaker to scale back in Russia as the economic conditions, volatile currency and uncertainty over the conflict in the Ukraine all have sandbagged new car sales. Last month, vehicle sales collapsed 38 percent in Russia to 128,298 units, according to the Association of European Business, which records sales. Joerg Schreiber, chairman of the AEB automobile manufacturers committee, didn't even feign optimism in a statement announcing the figures. "The market is entering a very difficult phase now, and February is only the beginning," he said. "Industry sentiment is the next few months will be extremely difficult and the market bottom has yet to be found." The dovetails with industry experts, who predict the Russian auto sector will remain in the doldrums. IHS said earlier this year it expects Russia's sales to slip to just 1.8 million units in 2015, which is a 40-percent drop from 2012. Other News & Notes Chief leads Jeep's Easter Safari stable Jeep is bringing seven attention-getting concepts to Moab for its annual Easter Safari off-roading celebration in Utah, but the Chief is perhaps the standout of the group. It salutes the 1970s Cherokee with a throwback appearance and surfer styling cues. The Chief has a custom modified razor grille made famous by the Wagoneer, and it rolls on 17-inch slotted mag wheels. The surf theme comes in with ocean blue paint, floral cloth and leather seats and a tiki-style shifter handle. Based on the Jeep Wrangler, the Chief has removable sides, a 3.6-liter V6 engine and a six-speed manual gearbox.

Fiat Chrysler CEO says final merger talks with Peugeot going well

BRUSSELS — Fiat Chrysler's chief executive Michael Manley said on Wednesday that merger talks with Peugeot owner PSA  to create the world's No. 4 carmaker are progressing well and he hopes to have a deal within 12-14 months. Speaking to Reuters on the sidelines of an industry meeting, he said he doesn't expect any major obstacles that could delay a final agreement. "Talks are progressing really well," Manley said about negotiations with the French carmaker ahead of a briefing by the European automotive association (ACEA), of which he is president. His comments come a month after the two carmakers agreed to a binding deal worth about $50 billion to combine forces in response to a slowdown in global demand and mounting costs of making cleaner vehicles amid tighter emissions regulations. Manley's timeline for completing the deal by early 2021 is in line with a forecast made by the companies in December. Fiat and Peugeot are now getting into the details of how the merger will work, including choosing which vehicle platforms — the technological underpinnings of a vehicle — will fit which products in a combined company. Because customers in different locations still prefer vastly different cars, there is room for multiple platforms in a combined group, Manley said. "That global platform is an elusive beast," he added. "This concept of a massive global platform in my mind is almost a myth, but that doesnÂ’t mean to say weÂ’re not going to recruit significant volume." Related Video:    

7 months later, Jeep 'trailer hitch' recall still stalled

For the past few years, Chrysler and its CEO, Sergio Marchionne, have gone head-to-head with the National Highway Traffic Safety Administration and its boss, David Strickland, over the government safety agency's request for Chrysler to recall almost three-million Jeep vehicles due to what NHTSA says is a safety issue that has caused at least 51 deaths. After a three-year investigation and Chrysler's initial refusal to issue a recall because it deemed the vehicles safe and built to the day's federal requirements, last summer, the two parties compromised on a "voluntary campaign" to inspect 1.56 million vehicles, those being the 1992 to 1998 Grand Cherokee and 2002 to 2007 Liberty.
Those vehicles were designed with their gas tanks between the rear axle and the bumper, and NHTSA says that in rear-end collisions, damage to the fuel tank has caused fires responsible for those 51 deaths. The compromise reached last summer was that Chrysler would inspect 1.56 million vehicles and, "if necessary, provide an upgrade to the rear structure of the vehicle." Practically speaking, that meant Chrysler would replace aftermarket trailer hitches, but would take no action if a vehicle had a factory-installed hitch or an aftermarket hitch from Mopar.
A report in The Detroit News says the "voluntary campaign" is just now getting under way, with Chrysler saying last week that the design of the replacement part had been finalized and it was tooling up "to deliver the required volume." Seven months later, still in question is whether NHTSA will crash-test the fix engineered by Chrysler, noteworthy because not only did the vehicles in question pass every safety standard necessary to be cleared for sale at the time, there are still questions (to those of us on the outside) as to how the Jeeps at issue fare among their peers in such incidents. Either way, Chrysler and NHTSA apparently still disagree on the efficacy of the remedy itself: the carmaker says it might help in low-speed crashes but not high-speed collisions, a position the NHTSA is at odds with. All of this means the campaign doesn't yet have an end in sight.