The Truth About Cars » sergio marchionne http://www.thetruthaboutcars.com The Truth About Cars is dedicated to providing candid, unbiased automobile reviews and the latest in auto industry news. Fri, 31 Jul 2015 20:00:13 +0000 en-US hourly 1 http://wordpress.org/?v=4.2.2 The Truth About Cars is dedicated to providing candid, unbiased automobile reviews and the latest in auto industry news. The Truth About Cars no The Truth About Cars editors@ttac.com editors@ttac.com (The Truth About Cars) 2006-2009 The Truth About Cars The Truth About Cars » sergio marchionne http://www.thetruthaboutcars.com/wp-content/themes/ttac-theme/images/logo.gif http://www.thetruthaboutcars.com Jeep Posts Biggest Ever Quarterly Sales Total in US http://www.thetruthaboutcars.com/2015/07/jeep-posts-biggest-ever-quarter-us/ http://www.thetruthaboutcars.com/2015/07/jeep-posts-biggest-ever-quarter-us/#comments Thu, 30 Jul 2015 18:00:42 +0000 http://www.thetruthaboutcars.com/?p=1129401 Fiat Chrysler Automobiles said strong North American sales and brisk worldwide Jeep sales propelled the company to a $364 million profit in the second quarter of 2015, despite record fines from the federal government. Overall, the company earned a pre-tax profit of $1.4 billion, which is double the $650 million it made in the same quarter […]

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Jeep Wrangler American flag

Fiat Chrysler Automobiles said strong North American sales and brisk worldwide Jeep sales propelled the company to a $364 million profit in the second quarter of 2015, despite record fines from the federal government.

Overall, the company earned a pre-tax profit of $1.4 billion, which is double the $650 million it made in the same quarter last year, the Detroit Free Press reported.

The earnings beat expectations for the company, whose profit margins are still below the other domestic automakers. FCA reports its margin was 7.7 percent in the second quarter, up from 4.9 percent last year, but well behind the double-digit margins of Ford and General Motors.

FCA chief Sergio Marchionne delivered the results in London on Thursday. Wall Street responded at 11:30 a.m. ET by boosting the automaker’s shares by nearly 5 percent.

Executives said the Jeep brand was up 19 percent in the U.S. over the quarter, buoyed by record sales of the Wrangler and other models, which was the brand’s best-ever showing, according to Business Insider.

In Europe, FCA posted a $62 million profit, compared to no profit from the same time a year ago. The global automaker said it expects to ship 4.8 million cars by the end of the year.

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Car Building in Ontario Could Die, and They Probably Can’t Save It http://www.thetruthaboutcars.com/2015/07/car-building-ontario-die-probably-cant-save/ http://www.thetruthaboutcars.com/2015/07/car-building-ontario-die-probably-cant-save/#comments Mon, 27 Jul 2015 21:00:15 +0000 http://www.thetruthaboutcars.com/?p=1125985 Ontario’s debt is swelling and as home to eight manufacturing plants — the largest complex in North America — automakers may have a tough time keeping plants open in Canada’s most-populous province. According to a story by the Financial Post, Ontario is moving forward with an ambitious plan to revamp roads and mass transit systems despite its debt being downgraded […]

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Chrysler Brampton Assembly Plant

Ontario’s debt is swelling and as home to eight manufacturing plants — the largest complex in North America — automakers may have a tough time keeping plants open in Canada’s most-populous province.

According to a story by the Financial Post, Ontario is moving forward with an ambitious plan to revamp roads and mass transit systems despite its debt being downgraded by Standard & Poor’s bond index. The broad public spending plan also extends to other sectors, despite high unemployment numbers and slumping manufacturing jobs.

Automakers such as Fiat Chrysler Automobiles have called on the provincial government to cut back on public programs and reduce costs on utilities in an effort to keep car building in the province profitable. This year, Chevrolet will shift production of its Camaro to Michigan. On the whole, Oshawa GM production has a dark cloud lingering overhead until the company decides what to do with the facility in 2016.

Ontario’s debt is twice that of California’s with only half the population, the Financial Post reported.

Last month the province reported that 5,200 manufacturing jobs left the region, which prompted local business leaders to sign a petition asking the government to reconsider its proposed pension plan that FCA CEO Sergio Marchionne said this month could hamper growth.

“We’re fully aware of the fact that this proposal on pensions and cap and trade and all this stuff … these are all things that add cost to the running of operations, they don’t come for free,” Marchionne said, according to the Toronto Sun.

Already, automakers such as Volvo and Land Rover have turned down Ontario in favor of operations in the United States and it’s unclear if swelling debt and rising costs of operation will cost the province more jobs in the future.

Other automakers that already have facilities in Ontario are making changes. Honda and Ford are both positioning their plants to manufacture vehicles for export markets. Toyota, on the other hand, will end Corolla production in Ontario in favor of Mexico. The company stated it will “switch from producing Corollas to mid-sized, higher-value vehicles” at their Canadian plant. The replacement product has not yet been announced.

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Fiat Chrysler Files IPO to Spin-off Ferrari http://www.thetruthaboutcars.com/2015/07/fiat-chrysler-files-ipo-spin-off-ferrari/ http://www.thetruthaboutcars.com/2015/07/fiat-chrysler-files-ipo-spin-off-ferrari/#comments Thu, 23 Jul 2015 19:00:47 +0000 http://www.thetruthaboutcars.com/?p=1124177 Fiat Chrysler Automobiles formally filed its initial public offering on Thursday to spin off Ferrari into its own separate company. The filing doesn’t specify price or number of shares to be offered when the shares are publicly available sometime after Oct. 13. Roughly 10 percent of the company will be publicly traded, with the rest of the […]

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Fiat Chrysler Automobiles formally filed its initial public offering on Thursday to spin off Ferrari into its own separate company.

The filing doesn’t specify price or number of shares to be offered when the shares are publicly available sometime after Oct. 13.

Roughly 10 percent of the company will be publicly traded, with the rest of the company remaining under control of existing FCA shareholders and Piero Lardi Ferrari, Enzo Ferrari’s son and current vice chairman.

The IPO documents offers an exhaustive glimpse at the supercar maker’s finances and income. The Maranello-based manufacturer said they made €2.7 billion ($2.96 billion) in revenue in 2014 with profits of €265 million ($295 million). About 70 percent of the company’s revenues came from cars they produced, 11 percent came from engine sales to Maserati and the rest came from sponsorships and commercial revenue.

Sergio Marchionne, who is CEO of FCA, will stay on as chairman of the new company to be based in the Netherlands. The company will keep its Maranello factory and Formula One team based in Italy.

Ferrari’s F1 team and consumer-facing business — aside from cars — figures heavily into the future company’s success. In the IPO, the company mentions that its F1 program and sponsorships would factor into the viability of the future business. The company also mentions that its low-volume production strategy would remain, keeping its cars exclusive to well-heeled buyers.

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Former Oshawa Mayor: Boycott GM if Jobs are Lost http://www.thetruthaboutcars.com/2015/07/former-oshawa-mayor-boycott-gm-if-jobs-are-lost/ http://www.thetruthaboutcars.com/2015/07/former-oshawa-mayor-boycott-gm-if-jobs-are-lost/#comments Thu, 16 Jul 2015 22:00:25 +0000 http://www.thetruthaboutcars.com/?p=1118185 The former mayor of Oshawa, John Gray, is telling Canadians to boycott General Motors if the automotive giant pulls the plug on the Camaro at its plant north of the border, the Toronto Sun is reporting. “That’s the type of pressure that is applied so that GM comes to its senses and maintains production in Oshawa […]

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2011 Chevrolet Camaro Convertible at the Oshawa Assembly Plant

The former mayor of Oshawa, John Gray, is telling Canadians to boycott General Motors if the automotive giant pulls the plug on the Camaro at its plant north of the border, the Toronto Sun is reporting.

“That’s the type of pressure that is applied so that GM comes to its senses and maintains production in Oshawa after next year,” Gray told the newspaper this week.

General Motors said it would end production of the Chevrolet Camaro at the Oshawa Car Assembly plant and move production to Michigan on Nov. 20. Gray said the move would end about 1,000 jobs at the plant, and dim the prospects of an already bleak future for the plant.

Increasing energy costs and other factors are driving automakers out of the area, Fiat Chrysler Automobiles chief executive Sergio Marchionne told Toronto reporters last week.

Local workers say the move would devastate the local economy.

“It doesn’t just affect General Motors, it affects the entire community. For every job inside, it affects seven jobs outside,” Chris Black, a worker at the Oshawa plant, told CTV.

Gray said GM is indebted to Canadians after the auto bailouts.

“Canadian taxpayers bailed out GM Canada, allowing it to survive. Recently, the federal and provincial governments have sold their shares in the company … Now they have no say over the company.

“Canadian taxpayers lost $3 billion on the sales of the shares. And now GM doesn’t plan on having a presence here. That’s a pretty compelling story.”

GM Canada announced in late April that the company would hire 100 software and control engineers for future connected vehicle endeavors. However, it won’t be until next year that GM will announce its plans for the assembly facilities.

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Marchionne Undecided on Toledo Wrangler Plant’s Future http://www.thetruthaboutcars.com/2015/07/marchionne-undecided-wrangler-toledo-plants-future/ http://www.thetruthaboutcars.com/2015/07/marchionne-undecided-wrangler-toledo-plants-future/#comments Wed, 15 Jul 2015 17:00:42 +0000 http://www.thetruthaboutcars.com/?p=1116481 Fiat Chrysler Automobiles’ top executive says he’s still not sure if Jeep’s Toledo plant will build the next-generation Wrangler, The Detroit Bureau is reporting. In a move that may or may not be union-negotiations related, FCA CEO Sergio Marchionne said he expects to make a decision on where to build the new Wrangler by the […]

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A golf clap, please, for Mr Marchionne's moment of truth

Fiat Chrysler Automobiles’ top executive says he’s still not sure if Jeep’s Toledo plant will build the next-generation Wrangler, The Detroit Bureau is reporting.

In a move that may or may not be union-negotiations related, FCA CEO Sergio Marchionne said he expects to make a decision on where to build the new Wrangler by the end of the summer — or about the time negotiations wrap up.

At issue is the cost associated with shutting down and retooling the Toledo plant to build the new Wrangler, which will have significantly more aluminum, according to Marchionne. Jeep is selling more Wranglers now than they ever have and need the plant to build more cars.

“If I shut it down for 60 days, I’d lose more money than I’d make in a year,” Marchionne said.

In May, Marchionne specified that the Wrangler would not be wholly made with the alloy, opting instead to use aluminum for specific parts to cut down on weight and increase fuel economy.

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Can Maserati Replace Ferrari? (Or at Least Ferrari’s Profits) http://www.thetruthaboutcars.com/2015/07/can-maserati-replace-ferrari-least-ferraris-profits/ http://www.thetruthaboutcars.com/2015/07/can-maserati-replace-ferrari-least-ferraris-profits/#comments Wed, 08 Jul 2015 18:00:51 +0000 http://www.thetruthaboutcars.com/?p=1110425 With the imminent spin-off of Ferrari, Fiat Chrysler Automobiles boss Sergio Marchionne may be looking for a cash cow to help keep lagging brands at FCA afloat. A story by Automotive News on Wednesday wonders aloud if Maserati will replace Ferrari as FCA’s marquee brand with double-digit profit margins. Behind Marchionne’s plan to sell the world on […]

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With the imminent spin-off of Ferrari, Fiat Chrysler Automobiles boss Sergio Marchionne may be looking for a cash cow to help keep lagging brands at FCA afloat.

A story by Automotive News on Wednesday wonders aloud if Maserati will replace Ferrari as FCA’s marquee brand with double-digit profit margins. Behind Marchionne’s plan to sell the world on Jeep and Alfa Romeo, he would need to sell the world on the idea that Maserati is an exclusive, luxury brand, the article says.

Of course, that may be tough to do considering Maserati has always had a reputation for being Ferrari’s nerdy suburban cousin.

At issue isn’t the Trident brand’s identity, but rather its bottom line. When Ferrari leaves the FCA family later this year, it’ll likely be taking some debt but also a lot of cash. Ferrari turns a profit each year, upwards of $500 million, for parent-company FCA. Money like that is hard to replace.

Maserati comes close, according to the story. Despite starting at $69,800 for an entry Ghibli, Maserati manages 10 percent margin on its cars compared to Ferrari’s 13 percent. Maserati’s volume production is also roughly 6 times that of Ferrari’s, but refining Maserati’s image from famously fussy to drop-dead desirable could be a tall task.

According to Autodata Corp., sales of the Ghibli have slid considerably since its introduction in 2013 and dealers have offered more than $9,500 in incentives for the mid-sized luxury car.

Still, Maserati is boosting its dealership presence in the U.S. by around 20 percent this year to 125 dealers and their luxury Levante SUV should be unveiled at Detroit’s North American International Auto Show.

“They’ve got a hell of a lot to build on,” Joe Phillippi, president of AutoTrends Inc., a consulting firm in Andover, N.J., told Automotive News. “But it’s incredibly expensive to play the game. Marchionne can’t afford to stumble. With the volume numbers he’s trying to generate, he’d better not miss.”

Maserati has grown considerably in the U.S. thanks to a larger portfolio and growing dealership network.

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With New Honda CEO, Possible FCA Partnership? http://www.thetruthaboutcars.com/2015/07/new-honda-ceo-possible-fca-partnership/ http://www.thetruthaboutcars.com/2015/07/new-honda-ceo-possible-fca-partnership/#comments Tue, 07 Jul 2015 17:00:39 +0000 http://www.thetruthaboutcars.com/?p=1109249 New Honda CEO Takahiro Hachigo told media Monday that the automaker wouldn’t aim for a specific global sales figure to drive growth and would be open to partnerships with other automakers, Automotive News reported. The speech also emphasized sharing global manufacturing resources within Honda’s six regional divisions and to create “challenging products.” (Which may or may […]

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Photo courtesy Honda

New Honda CEO Takahiro Hachigo told media Monday that the automaker wouldn’t aim for a specific global sales figure to drive growth and would be open to partnerships with other automakers, Automotive News reported.

The speech also emphasized sharing global manufacturing resources within Honda’s six regional divisions and to create “challenging products.” (Which may or may not — probably not — mean “Challenger.”)

The speech was Hachigo’s first public address since taking the reins of Honda last month. In a sustainability report released in June, Hachigo signaled that the Japanese automaker would adopt English as its official language by 2020.

The news yesterday is particularly interesting as speculation ramps up around FCA and Sergio Marchionne’s plan for consolidation with General Motors. Any alliance with Honda could help FCA gain a sales foothold in Japan and could revitalize FCA’s hybrid program. In turn, Honda could capitalize on FCA’s European market share and network.

In the speech, Hachigo outlined several different initiatives Honda will undertake in the next few years, which include building a smaller, turbocharged Civic and other production efficiencies. For example, the CR-V, which is produced in Canada, will be exported worldwide. Civics produced in England will be shipped to Japan, and Japanese-built Fits will be sent to the U.S. In addition to those announcements, Hachigo said Honda will begin building Accords in Nigeria for African markets. More than 80 percent of Honda’s car building is outside Japan.

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Ferrari Worth Over $11 Billion, Says FCA Boss Sergio Marchionne http://www.thetruthaboutcars.com/2015/07/ferrari-worth-11-billion-says-fca-boss-sergio-marchionne/ http://www.thetruthaboutcars.com/2015/07/ferrari-worth-11-billion-says-fca-boss-sergio-marchionne/#comments Mon, 06 Jul 2015 16:00:50 +0000 http://www.thetruthaboutcars.com/?p=1108185 Speaking at an unrelated Fiat 500 reveal last week, Fiat-Chrysler chief Sergio Marchionne said Ferrari is worth about $11 billion and he expects the prancing horse’s IPO to garner about $1.1 billion went it goes up for sale in October. “There are clear expectations from ourselves as Ferrari brand is unique,” Marchionne said, according to […]

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Picture courtesy blogs.reuters.com

Speaking at an unrelated Fiat 500 reveal last week, Fiat-Chrysler chief Sergio Marchionne said Ferrari is worth about $11 billion and he expects the prancing horse’s IPO to garner about $1.1 billion went it goes up for sale in October.

“There are clear expectations from ourselves as Ferrari brand is unique,” Marchionne said, according to Bloomberg News. “There is also a scarcity value as we are just selling a 10 percent stake.”

Marchionne’s estimate is roughly double what brokers said the Maranello-based manufacturer could be worth almost a year ago.

The $11 billion valuation before its October IPO may be ambitious, but so is Marchionne’s overall plan for FCA. He announced the move to spin off Ferrari last year as part of a larger plan to invest $61 billion back into FCA. The sale is made up of a 10-percent offer of Ferrari on the NYSE and a redistribution of FCA’s remaining 80-percent share to the Agnelli family, who also own about 30 percent of Fiat. The non-FCA owned 10 percent of Ferrari will stay with Enzo Ferrari’s son, current Ferrari vice chairman Piero Lardi Ferrari.

When it goes to sale in October, the IPO may raise about $1.1 billion for Ferrari. The company has said it won’t build any more than 7,000 cars per year, wouldn’t change its current business model nor would it be likely that anyone could takeover controlling interest.

That doesn’t mean it’s a bad investment. As a company, Ferrari is wildly profitable and will still sell you a $50 T-shirt if you can’t afford a share in October.

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Jeep Points to Map of India, Says Let’s Print More Money Here http://www.thetruthaboutcars.com/2015/07/jeep-points-to-map-of-india-says-lets-print-more-money-here/ http://www.thetruthaboutcars.com/2015/07/jeep-points-to-map-of-india-says-lets-print-more-money-here/#comments Wed, 01 Jul 2015 19:00:11 +0000 http://www.thetruthaboutcars.com/?p=1104881 More and more automakers are looking at exotic locales to produce their wares (us Canadians can consider Mexico exotic thanks to its ice-free beaches) as they expand their brands and explore in-roads to untapped markets. For Jeep, that means investing in a shared money-printing press with an unlikely partner: Tata, the parent company of Land Rover. FCA […]

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2015 Jeep Renegade

More and more automakers are looking at exotic locales to produce their wares (us Canadians can consider Mexico exotic thanks to its ice-free beaches) as they expand their brands and explore in-roads to untapped markets.

For Jeep, that means investing in a shared money-printing press with an unlikely partner: Tata, the parent company of Land Rover. FCA will put $280 million USD into joint venture Fiat India Automobiles Private Limited which, since 2007, has solely produced Fiat models.

The investment will “support the production of a new Jeep vehicle and is expected to begin production in the second quarter of 2017,” according to statement released today by FCA. Jeep did not give further details on the new model.

With Sergio Marchionne’s hunger for consolidation, this could be seen as a sign of interest in a more formal arrangement between FCA and India’s Tata, especially when you consider the FCA executive’s desire for a Range Rover-esque model.

“We are pleased that this investment will strengthen FCA presence in India and are confident in the ability of the joint venture to produce world class products like those carrying the legendary Jeep nameplate,” Marchionne said.

This announcement is part of a wider expansion by Jeep into new markets. From The Detroit News:

FCA plans to produce 1.9 million Jeeps by 2018 at 10 plants in six countries: the U.S., Italy, China, Brazil, India and one other yet-to-be-announced country. Two years ago, only 798,000 rolled out of four plants in the United States.

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Is Jeep Carrying The Rest of FCA? http://www.thetruthaboutcars.com/2015/06/is-jeep-carrying-the-rest-of-fca/ http://www.thetruthaboutcars.com/2015/06/is-jeep-carrying-the-rest-of-fca/#comments Mon, 29 Jun 2015 19:41:59 +0000 http://www.thetruthaboutcars.com/?p=1102393 Jeep is looking at global growth upwards of 20 percent this year to 1.2 million units and that’s before the brand truly ramps up in China. Could it be possible Jeep’s success is hiding what ails other brands at the newly-formed Fiat Chrysler Automobiles? Jeep is on track to record a best ever year in 2015 […]

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2014 Jeep Grand Cherokee SRT

Jeep is looking at global growth upwards of 20 percent this year to 1.2 million units and that’s before the brand truly ramps up in China.

Could it be possible Jeep’s success is hiding what ails other brands at the newly-formed Fiat Chrysler Automobiles?

Jeep is on track to record a best ever year in 2015 in terms of unit sales with many of the brand’s models returning higher profit margins than those at other marques under the FCA umbrella. However, there are still problems reports The Detroit Bureau, like the struggles with where to build Jeep’s next generation Wrangler.

“It’s a very important and very sensitive decision,” stated Michael Manley, president of the Jeep brand.

The utility-lifestyle brand is also running at or near capacity at their plants, just keeping up with demand, all the while being leveraged in order to prop up other brands financially. Money once meant to redesign the Grand Cherokee has been earmarked for Alfa Romeo. This seems to be true for other models at Jeep as well. On top of it all, Sergio Marchionne wants a Range Rover rivaling Jeep to conquest even greater transaction prices. If such a model existed, FCA could use even more cash to fuel development of new and redesigned models at other brands, but it seems Marchionne might be counting his chickens before they hatch as he drives Wrangler-loads of cash to Italy before such a Range Rover-ish model can come to fruition.

At some point, FCA’s Jeep gravy train is going to come to a halt, and dumping money into brands that look to only stroke the ego of FCA executives – instead of just dumping the brands themselves – will result in what Marchionne has been saying is the cardinal sin of the automotive industry: wasted capital.

Maybe the best way to save money, Mr. Marchionne, is the reduce the number of brands emblazoned on those dealer signs.

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Marchionne Not Yet Ready For GM, Fields Not Interested In Any Merger http://www.thetruthaboutcars.com/2015/06/marchionne-not-yet-ready-for-gm-fields-not-interested-in-any-merger/ http://www.thetruthaboutcars.com/2015/06/marchionne-not-yet-ready-for-gm-fields-not-interested-in-any-merger/#comments Fri, 26 Jun 2015 20:00:09 +0000 http://www.thetruthaboutcars.com/?p=1100777 FCA CEO Sergio Marchionne says he’s not ready to court General Motors’ shareholders for a merger, while Ford’s Mark Fields prefers no mergers at all. Though Marchionne was said to be gathering allies in the finance field to help persuade GM’s investors to consider consolidation — having been rebuffed already by CEO Mary Barra — […]

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Fiat 500 At Tuscany Wedding Circa April 2014

FCA CEO Sergio Marchionne says he’s not ready to court General Motors’ shareholders for a merger, while Ford’s Mark Fields prefers no mergers at all.

Though Marchionne was said to be gathering allies in the finance field to help persuade GM’s investors to consider consolidation — having been rebuffed already by CEO Mary BarraReuters says he stated the following while on the sidelines at Wednesday’s unveiling of the Alfa Romeo Guilia:

We are very far removed from any of those scenarios today. None of my staff has spoken to them, I haven’t spoken to them, nobody is under instruction to speak to them.

When asked about the possibility of going hostile in his ongoing need for industry consolidation, Marchionne’s reply was to proclaim those who “kept wasting capital” were the ones meting out the hostility.

One such individual would likely be Fields. Per The Detroit Bureau, the Ford CEO told reporters attending the annual Further With Ford conference mergers with any automaker, let alone FCA, were out of the question:

We have no interest or plan other than accelerating the One Ford Plan; delivering product excellence and driving innovation in every part of our business. We are never going to take our eye off of being a great developer of cars, trucks and utility vehicles.

Fields added he would consider ways to improve his company’s overall business model, stating it was important for Ford “to open up that lens” in order to lead the industry towards betterment.

(Photo credit: Monica Arellano-Ongpin/Flickr/CC BY 2.0)

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Renault-Nissan’s Carlos Ghosn Banks $16M In 2014 http://www.thetruthaboutcars.com/2015/06/renault-nissans-carlos-ghosn-banks-16m-in-2014/ http://www.thetruthaboutcars.com/2015/06/renault-nissans-carlos-ghosn-banks-16m-in-2014/#comments Tue, 23 Jun 2015 16:00:52 +0000 http://www.thetruthaboutcars.com/?p=1097801 Renault-Nissan CEO Carlos Ghosn did well for himself in 2014, banking around $16 million in compensation compared to the salaries of other automotive CEOs. Breaking down the numbers, Nissan paid Ghosn ¥1.035 billion ($8.39 million USD) during 2014, Reuters says, up 4 percent from what he made in 2013. On the Renault side, Ghosn took […]

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Carlos Ghosn

Renault-Nissan CEO Carlos Ghosn did well for himself in 2014, banking around $16 million in compensation compared to the salaries of other automotive CEOs.

Breaking down the numbers, Nissan paid Ghosn ¥1.035 billion ($8.39 million USD) during 2014, Reuters says, up 4 percent from what he made in 2013. On the Renault side, Ghosn took home €7.2 million ($8.17 million), bringing total compensation to $16.56 million.

Ghosn’s combined paycheck is in line with compensation paid to two of the Detroit Three’s CEOs, where both Ford CEO Mark Fields and General Motors CEO Mary Barra made $16.8 million and $16.2 million respectively at the end of their first year helming their companies. Meanwhile, FCA CEO Sergio Marchionne’s compensation paints a complex portrait, with figures ranging between $8 million and $72 million depending on the source.

Among the rest of the ToHoSan Zaibatsu, Toyota’s Akio Toyoda made ¥229 million ($1.84 million) in 2014, while Honda’s Takanobu Ito brought home ¥150 million ($1.21 million).

In Germany, the Teutonic Trinity’s CEOs took home €6.57 million ($7.35 million – Audi’s Rupert Stadler), €7.25 million ($8.11 million – BMW’s Norbert Reithofer) and €9.35 ($10.5 million – Mercedes’ Dieter Zetsche).

Finally, under the remaining stripes of the Tricolore Français, PSA Peugeot Citroën CEO Carlos Tavares received €2.75 million ($3.07 million).

(Photo credit: Nissan)

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Toyota, Ford Show No Interest In Heading Down The Aisle With FCA http://www.thetruthaboutcars.com/2015/06/toyota-ford-show-no-interest-in-heading-down-the-aisle-with-fca/ http://www.thetruthaboutcars.com/2015/06/toyota-ford-show-no-interest-in-heading-down-the-aisle-with-fca/#comments Fri, 12 Jun 2015 16:00:51 +0000 http://www.thetruthaboutcars.com/?p=1091505 When General Motors ultimately rebuffs FCA’s attempts to put a ring on it, Toyota or Ford could be the one true love, right? Not so fast. Toyota North America CEO Jim Lentz told those attending a groundbreaking ceremony at the Toyota Technical Center in York Township, Mich. his employer had not been contacted by FCA […]

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Toyota North America Groundbreaking Ceremony

When General Motors ultimately rebuffs FCA’s attempts to put a ring on it, Toyota or Ford could be the one true love, right? Not so fast.

Toyota North America CEO Jim Lentz told those attending a groundbreaking ceremony at the Toyota Technical Center in York Township, Mich. his employer had not been contacted by FCA CEO Sergio Marchionne about consolidation between the two, The Detroit News reports.

Had the suggestion been made, however, Lentz says it wouldn’t happen, as there would be “no advantage” for Toyota to consider such a move, citing Ford’s decision to avoid bankruptcy by selling off brands like Volvo and Land Rover to focus on a simpler portfolio:

To me, a large OEM today taking on Chrysler is contrary to what was very successful for Ford. FCA has a very strong Jeep brand, and especially today with fuel prices, it’s a great brand to have… but it really isn’t a fit for what we need at Toyota.

Speaking of Ford, CFO Bob Shanks said consolidation could occur at the supplier level, as well as partnerships with other automakers to share powertrain and transmission technology. As for Ford marrying FCA, however:

We’re not a suitor for FCA. We don’t see that type of opportunity as one that applies to us.

We have a lot of experience with mergers… We’re not babes in the woods. Based on that experience, for us that doesn’t seem to be where we’d want to go. We want to have a more forward-looking perspective in terms of what’s happening in the industry… It doesn’t seem to be that it would be doubling down on the past.

Kelley Blue Book senior analyst Karl Brauer had some encouraging news for Marchionne, stating FCA would its true love eventually, just not among the larger automakers, whom Brauer believes already have enough on their minds as it is without seeing a Ram 1500 in the parking lot blasting “Every Breath You Take” and “Wrapped Around Your Finger” from its custom bed with embedded nine-speaker audio system:

Poor Sergio; always a bridesmaid, never a bride.

[Photo credit: Toyota]

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Marchionne Planning Shotgun Wedding For FCA With General Motors http://www.thetruthaboutcars.com/2015/06/marchionne-planning-shotgun-wedding-for-fca-with-general-motors/ http://www.thetruthaboutcars.com/2015/06/marchionne-planning-shotgun-wedding-for-fca-with-general-motors/#comments Tue, 09 Jun 2015 18:00:22 +0000 http://www.thetruthaboutcars.com/?p=1088273 How desperate has FCA CEO Sergio Marchionne become about marrying off his company? He’s asking activist investors to prod General Motors to the chapel. Marchionne recently began reaching out to hedge funds and other activist investors to help bring FCA and GM (or a European automaker) together to consolidate resources, Wall Street Journal reports. The […]

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Fiat Coupe Getting Ready To Be Married

How desperate has FCA CEO Sergio Marchionne become about marrying off his company? He’s asking activist investors to prod General Motors to the chapel.

Marchionne recently began reaching out to hedge funds and other activist investors to help bring FCA and GM (or a European automaker) together to consolidate resources, Wall Street Journal reports.

The search, which is coming up blank thus far, is the latest in the CEO’s attempt to find a happy ending for his increasingly desperate romantic tragicomedy film, fearing excess production and duplicate costs in engineering, R&D et al threaten future profitability of the overall industry.

For now, though, FCA’s low profit margins do not make for a good partner with stronger players, while Marchionne’s dealings with GM leave much to be desired. In 2005, he convinced the Detroit automaker to pay $2 billion to not buy Fiat — in hospice care by then — a move which also dissolved a five-year-old partnership to produce engines and transmissions together.

More recently, Marchionne attempted to woo GM back with an email to CEO Mary Barra suggesting as much. The automaker is transitioning its lineup to global architectures and can build said lineup on a broader scale than FCA. GM is also undergoing an internal consolidation to further boost profits, a plan Barra and others in management won’t allow to be derailed by outside distractions like Marchionne holding up a boombox in front of the RenCen playing Peter Gabriel, hoping GM will say anything but no.

However, Barra’s recent dealings with activist investors over a share buyback of $8 billion — resulting in a $5 billion buyback with no further issues regarding board seats — has given Marchionne hope for his own cause, which could become more aggressive with every breath GM takes.

[Photo credit: hamster!/Flickr/CC BY-ND 2.0]

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While You Were Sleeping: BMW M3 Touring Render, Ferrari Dino Returning and Takata’s Quality Chief Gets More Power http://www.thetruthaboutcars.com/2015/06/while-you-were-sleeping-bmw-m3-touring-render-ferrari-dino-returning-and-takatas-quality-chief-gets-more-power/ http://www.thetruthaboutcars.com/2015/06/while-you-were-sleeping-bmw-m3-touring-render-ferrari-dino-returning-and-takatas-quality-chief-gets-more-power/#comments Fri, 05 Jun 2015 13:00:08 +0000 http://www.thetruthaboutcars.com/?p=1085281 As rumors swirl about the eventual release of the BMW M3 Touring, Theophilus Chin has put a couple of renders together of Bavaria’s hot D-pillared automobile. Here’s what happened overnight (and stories we’ve missed over the last few days). BMW M3 Touring (Theophilus Chin) Knowng Theophilus’ wonderful insight, it wouldn’t surprise me if the M3 Touring […]

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BMW M3 Touring Render

As rumors swirl about the eventual release of the BMW M3 Touring, Theophilus Chin has put a couple of renders together of Bavaria’s hot D-pillared automobile.

Here’s what happened overnight (and stories we’ve missed over the last few days).

BMW M3 Touring RenderBMW M3 Touring (Theophilus Chin)
Knowng Theophilus’ wonderful insight, it wouldn’t surprise me if the M3 Touring looks exactly like this when the sheet is pulled off in Frankfurt.

Ferrari DinoFerrari might bring back the Dino, says Sergio (AutoBlog)
…but it likely won’t be marketed as a Ferrari. Instead, Sergio is keen to build a sub-brand around the idea of a resurrected Dino. So far, that’s worked in Sergio’s favor.

1Takata will give quality chief more authority with board role (Automotive News)
Takata will put their quality chief on the board of directors, effectively giving him a louder voice within the company. It only took them seven years.

pst1002-100k-1_23394248Motor Mouth: Why no one drives like a saint all the time (Driving.ca)
“There’s a good reason nobody drives like a saint all-year round: it’s not practical.”

1282948112939395876You Probably Want To Watch Chris Harris Drive The Ferrari 488 GTB (Jalopnik)
I think the 488 GTB is an ugly ducking that grew up to be an ugly duck. But whatever. Here’s Chris Harris getting it sideways.

15TDI_StarlinkKiosk002-300x204Subaru Starlink services priced, packaged (Technology Tell)
It’s kind of like OnStar, but for people who have a higher chance of driving off a cliff near Kings Canyon.

Speedhunters_Keith_Charvonia_Hilux-2Minitruckin’ All Grown Up (Speedhunters)
This is not your grandfather’s Hilux. Actually, this is your grandfather’s Hilux.

Lotus-Elise-frontJaguar Designer Planning Super Lotus Elise (GTspirit)
Jaaaaaag designer Julian Thomson, responsible for the Series 1 Elise, wants to build this “Super” Elise.

car-wash-girls-china-1a-660x546Underdressed Chinese Girls open a Car Wash in Urumqi (CarNewsChina)
Chinese auto show models have resorted to washing cars to make a living, maybe.

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Elkann: Marchionne Emailed Barra, Others About Consolidation http://www.thetruthaboutcars.com/2015/05/elkann-marchionne-emailed-barra-others-about-consolidation/ http://www.thetruthaboutcars.com/2015/05/elkann-marchionne-emailed-barra-others-about-consolidation/#comments Fri, 29 May 2015 18:00:25 +0000 http://www.thetruthaboutcars.com/?p=1078122 FCA Chairman John Elkann confirmed CEO Sergio Marchionne did email General Motors CEO Mary Barra about consolidation, though GM wasn’t the only one. Elkann informed reporters the email wasn’t the only one sent by Marchionne, though the chairman didn’t specify who else Marchionne contacted about marriage, Reuters reports. He adds FCA could consider a hostile […]

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Fiat 500 Backside Badging

FCA Chairman John Elkann confirmed CEO Sergio Marchionne did email General Motors CEO Mary Barra about consolidation, though GM wasn’t the only one.

Elkann informed reporters the email wasn’t the only one sent by Marchionne, though the chairman didn’t specify who else Marchionne contacted about marriage, Reuters reports. He adds FCA could consider a hostile bid for GM or another automaker “if there are the prerequisites to do something that makes sense,” again opting to remain vague on details.

As far as marriage in general is concerned, Elkann supports Marchionne’s campaign for overall industry consolidation, hoping the action would spark debate. He also believes consolidation will happen, but declined to say who he thought would make the ideal partner to take FCA’s hand, adding his company had “very good prospects” for the future.

[Source: Fiat]

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Marchionne Hearing Wedding Bells By 2018, No Marriage With Opel http://www.thetruthaboutcars.com/2015/05/marchionne-hearing-wedding-bells-by-2018-no-marriage-with-opel/ http://www.thetruthaboutcars.com/2015/05/marchionne-hearing-wedding-bells-by-2018-no-marriage-with-opel/#comments Thu, 28 May 2015 16:00:31 +0000 http://www.thetruthaboutcars.com/?p=1077282 FCA CEO Sergio Marchionne believes consolidation will occur as early as 2018. Meanwhile, Opel won’t be taking FCA’s hand in marriage. Opel CEO Karl-Thomas Neumann stated a merger between his company and FCA was not going to happen, though he agreed with Marchionne in principle regarding such mergers, Reuters reports, especially in regards to volume, […]

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Fiat Cinquecento Ready For The Wedding Circa July 2011

FCA CEO Sergio Marchionne believes consolidation will occur as early as 2018. Meanwhile, Opel won’t be taking FCA’s hand in marriage.

Opel CEO Karl-Thomas Neumann stated a merger between his company and FCA was not going to happen, though he agreed with Marchionne in principle regarding such mergers, Reuters reports, especially in regards to volume, scale and utilisation.

Opel’s decision to remain within the General Motors family follows a similar rebuff by GM CEO Mary Barra, who received an email from Marchionne in March suggesting the two combine forces. When asked about the email on a recent visit to FCA’s factory in Melfi, Italy, Marchionne said he writes “lots of emails,” adding he doesn’t talk about such major decisions as consolidation via email.

Meanwhile, Marchionne is holding onto the idea of consolidation overall, believing the industry will see the first occurrence as early as 2018. He didn’t specify his company would be the one heading down the aisle in said consolidation, however.

[Source: neekoh.fl/Flickr/CC BY 2.0]

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2018 Jeep Wrangler Not Going Fully Aluminum After All http://www.thetruthaboutcars.com/2015/05/2018-jeep-wrangler-not-going-fully-aluminum-after-all/ http://www.thetruthaboutcars.com/2015/05/2018-jeep-wrangler-not-going-fully-aluminum-after-all/#comments Wed, 20 May 2015 16:00:27 +0000 http://www.thetruthaboutcars.com/?p=1071514 The 2018 Jeep Wrangler will add diesel and an eight-speed automatic to the mix, but a fully aluminum body is no longer on the agenda. FCA CEO Sergio Marchionne said the upcoming Wrangler would not go the same route as the new Ford F-150, opting instead for specific components — hood, tailgate, doors et al […]

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2015 Jeep Wrangler Unlimited Sahara rear side yellow

The 2018 Jeep Wrangler will add diesel and an eight-speed automatic to the mix, but a fully aluminum body is no longer on the agenda.

FCA CEO Sergio Marchionne said the upcoming Wrangler would not go the same route as the new Ford F-150, opting instead for specific components — hood, tailgate, doors et al — to be made from the alloy, Automotive News reports. Marchionne said the decision to move away from a fully aluminum model came down to comparison costs, and ease of production:

There will be a large portion of that vehicle that will be aluminum. It will not be all aluminum. We’ve run the numbers and we’ve simulated mileage and the impact. Because of the difference in cost — not just of the material but the actual assembly process — I think we can do almost as well without doing it all-aluminum. I think we can get very close.

Were the 2018 Wrangler to have stayed the course, the Jeep facility in Toledo, Ohio would have needed a complete overhaul to manufacture and assemble the vehicle, following a similar action by Ford with the F-150 at its Dearborn Truck Plant in Dearborn, Mich. The Blue Oval invested $843 million to retool the plant and nearby operations, a process taking 10 weeks to undergo; FCA’s new plan would eliminate the need for such action.

[Photo credit: Kamil Kaluski/The Truth About Cars]

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Marchionne May Marry FCA To Apple, Google If No Automaker Will http://www.thetruthaboutcars.com/2015/04/marchionne-may-marry-fca-apple-google-no-automaker-will/ http://www.thetruthaboutcars.com/2015/04/marchionne-may-marry-fca-apple-google-no-automaker-will/#comments Thu, 30 Apr 2015 16:00:11 +0000 http://www.thetruthaboutcars.com/?p=1056962 FCA CEO Sergio Marchionne’s search for a consolidation partner may take him to Silicon Valley if the automakers won’t give him the time of day. While making his pitch for consolidation during Wednesday’s Q1 2015 earnings call, Marchionne said dialogue about a possible partnership with Apple or Google if he couldn’t pair FCA off with […]

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Apple Logo Circa 2005

FCA CEO Sergio Marchionne’s search for a consolidation partner may take him to Silicon Valley if the automakers won’t give him the time of day.

While making his pitch for consolidation during Wednesday’s Q1 2015 earnings call, Marchionne said dialogue about a possible partnership with Apple or Google if he couldn’t pair FCA off with another automaker should be encouraged, Bloomberg reports.

His reasoning?

I’ve always been intrigued by the notion of having technology disruptors show up in the marketplace and change the paradigm. If they show up and they are truly successful, with their cash piles and know-how, they could fundamentally hurt this industry.

At present, FCA already has an established relationship with Apple, with the tech giant’s Internet software and services boss Eddy Cue having a seat on Ferrari’s board, and CFO Luca Maestri having several years of experience in the automotive industry, including helming General Motors’ relationship with Fiat between 2000 and 2005.

On the other end, Apple is hard at work on an EV, with production set for 2020 unless the execs aren’t happy with progress. The company’s shareholders also would like Apple to pair-off with Tesla — the most recent urging occurring last month — though CEO Tim Cook only stated that the Californian automaker would use his company’s CarPlay connected-vehicle system.

As far as FCA and Apple heading down to the chapel is concerned, no one at the latter offered any comment to Marchionne’s proposal. With the company having just purchased Beats for $3 billion last year and divesting itself of in-house production of its physical offerings, a deal between it and any automaker, let alone FCA, isn’t likely at this time.

[Photo credit: Christopher Aloi/Flickr/CC BY-SA 2.0]

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Marchionne Makes Case For Consolidation With 25-Page PowerPoint http://www.thetruthaboutcars.com/2015/04/marchionne-makes-case-consolidation-powerpoint-presentation/ http://www.thetruthaboutcars.com/2015/04/marchionne-makes-case-consolidation-powerpoint-presentation/#comments Wed, 29 Apr 2015 17:00:31 +0000 http://www.thetruthaboutcars.com/?p=1056346 Not one to give up on corporate marriage, FCA CEO Sergio Marchionne posted a merger thesis on his company’s website prior to FCA’s Q1 2015 earnings call. The 25-page PowerPoint presentation – titled “Confessions of a capital junkie” – makes the case for consolidation by outlining several key issues all automakers are facing, and the savings that […]

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Sergio Marchionne at the Italian Embassy in DC Circa February 2012

Not one to give up on corporate marriage, FCA CEO Sergio Marchionne posted a merger thesis on his company’s website prior to FCA’s Q1 2015 earnings call.

The 25-page PowerPoint presentation – titled “Confessions of a capital junkie” – makes the case for consolidation by outlining several key issues all automakers are facing, and the savings that could be garnered only through consolidation, Detroit Free Press reports.

Despite being blown off by General Motors, Ford, Peugeot and a handful of others over the past few weeks, Marchionne states the presentation doesn’t let his company off the hook as far as its current position “in the automotive food chain” goes, nor is it an attempt to sell FCA, a revision of his five-year plan, or his “final big deal.” Instead, he goes into the need to consolidate companies to better handle increasing capital investment costs as far as rapid technological development, climbing regulatory costs, and tightening emissions standards go.

According to Marchionne, consolidation would not only reduce the aforementioned costs, but better optimization of industrial allocations and “an exceptional value creation opportunity for shareholders” while leaving jobs, distribution and brands untouched.

[Photo credit: Italian Embassy/Flickr/CC BY-ND 2.0]

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Marchionne Isn’t Finding Any Potential Dates For Marriage http://www.thetruthaboutcars.com/2015/04/marchionne-isnt-finding-potential-dates-marriage/ http://www.thetruthaboutcars.com/2015/04/marchionne-isnt-finding-potential-dates-marriage/#comments Thu, 23 Apr 2015 19:09:57 +0000 http://www.thetruthaboutcars.com/?p=1052385 Though FCA CEO Sergio Marchionne is still looking to merge his company with another automaker, no one is all that willing to tie the knot. Despite Marchionne’s quest to consolidate the industry by leading by example, he’s managed to strike out in some way with Ford, General Motors, Peugeot, Renault-Nissan and Volkswagen. Regarding GM, CEO Mary […]

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2016 Fiat 500X Trekking Plus

Though FCA CEO Sergio Marchionne is still looking to merge his company with another automaker, no one is all that willing to tie the knot.

Despite Marchionne’s quest to consolidate the industry by leading by example, he’s managed to strike out in some way with Ford, General Motors, Peugeot, Renault-Nissan and Volkswagen.

Regarding GM, CEO Mary Barra stated Thursday that her company already had plans of its own and that it wasn’t interested in consolidation with another automaker, according to Detroit Free Press:

We laid out a comprehensive plan that takes us through the early part of next decade. We’re already in that top tier. We have a well-articulated plan and we are not going to entertain anything that would distract us from achieving that plan.

Meanwhile, a proposed tie-up with Volkswagen came to naught, though Marchionne stated such a thing was never in the cards in the first place, despite claims by VW Group chairman Ferdinand Piëch of having met with FCA officials to discuss buying a part or all of FCA.

Though there are still other smaller automakers Marchionne could pursue in the spirit of consolidation, like Mazda and Tata, there’s the issue of his own company’s performance as of late. Already stuck with large debts, Forbes states profitability is a major issue among shareholders regarding the automaker. In the U.S. alone, the issue stems from its pursuit of sales volume over profit via aggressive incentivizing. As a result, margins remain at 4 percent and pre-tax earnings have climbed a mere $2.7 billion, even with revenues doubling by $40 billion since the start of the new decade. Thus, no company would likely consider consolidating with FCA.

As for why Marchionne is banging the drum of consolidation, especially as far as his company is concerned, it comes down to survival in the face of competition from outsiders like Google and Apple. The arrival of non-traditional companies like the two tech giants could force automakers to keep up with the pace of change such companies would set the further the latter group digs into the former.

For now, though, the FCA CEO laments the difficulty in finding a partner, going as far as to provide Bloomberg with a metaphor about the search earlier this month:

One of the most difficult things to do is to get the turkey to invite himself to Thanksgiving dinner.

[Photo credit: FCA]

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Marchionne: Fiat Will Never Again Be ‘A General Brand’ In Europe http://www.thetruthaboutcars.com/2015/03/marchionne-fiat-will-never-general-brand-europe/ http://www.thetruthaboutcars.com/2015/03/marchionne-fiat-will-never-general-brand-europe/#comments Thu, 05 Mar 2015 14:00:01 +0000 http://www.thetruthaboutcars.com/?p=1015962 Once a mass-market player in Europe, FCA CEO Sergio Marchionne says Fiat will never again be as such. According to Automotive News Europe, Marchionne made the proclamation during this year’s Geneva Auto Show: In terms of the scope of a mass producer of vehicles, Fiat (brand) no longer offers — and it never intends to […]

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Fiat-500X-2

Once a mass-market player in Europe, FCA CEO Sergio Marchionne says Fiat will never again be as such.

According to Automotive News Europe, Marchionne made the proclamation during this year’s Geneva Auto Show:

In terms of the scope of a mass producer of vehicles, Fiat (brand) no longer offers — and it never intends to have — a full range of product of the kind mass brands have. Fiat will lose its appeal as a general brand and it will focus on what it does best.

He adds that “the economics are not there” to keep Fiat in the mass-market arena as far as investments are concerned, and has no plans to claw back lost market share in Europe. As such, Marchionne has refocused the brand’s European lineup toward smaller cars like the 500 range, the Panda, and upcoming replacements for the Bravo and Punto.

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FCA CEO Ordered To Give Deposition In Jeep-Related Lawsuit http://www.thetruthaboutcars.com/2014/11/fca-ceo-ordered-give-deposition-jeep-related-lawsuit/ http://www.thetruthaboutcars.com/2014/11/fca-ceo-ordered-give-deposition-jeep-related-lawsuit/#comments Mon, 17 Nov 2014 13:00:18 +0000 http://www.thetruthaboutcars.com/?p=946210 Fiat Chrysler Automobiles CEO Sergio Marchionne has been ordered by a Georgia judge to give a deposition as part of a lawsuit made against his company by a family whose son was killed in a rear-end crash involving a Jeep. Bloomberg reports the Walden family is suing FCA, stating the fiery accident that took the […]

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sergio-marchionne

Fiat Chrysler Automobiles CEO Sergio Marchionne has been ordered by a Georgia judge to give a deposition as part of a lawsuit made against his company by a family whose son was killed in a rear-end crash involving a Jeep.

Bloomberg reports the Walden family is suing FCA, stating the fiery accident that took the life of their four-year-old son, Remington Cole, was the result of a safety hazard involving the placement of the fuel tank in their 1999 Jeep Grand Cherokee. The judge asked the automaker to make its CEO available for a videotape deposition at a time agreed upon by both involved parties, per a decision on the case made last month.

FCA’s Chrysler Group stated said Jeep wasn’t defective, and that it met or exceeded safety standards that were in place when the vehicle left the assembly line. The automaker did offer its sympathy to the family, however:

Chrysler Group expresses its most profound sympathy to those affected by this tragedy, which resulted from a collision with a pickup truck driven in a manner police described as “erratic, reckless, careless (and) negligent.”

The statement follows a similar response made to the National Highway Traffic Safety Administration in June 2013, when the agency requested the automaker recall 2.7 million Grand Cherokees and Libertys over the vehicles’ fuel tanks, which posed a fire risk due to their location between the rear bumper and axle. FCA later applied a fix for 1.56 million affected units — the installation or repair of a trailer hitch to help minimize the effects of a low-speed crash — but not for the 1999 Grand Cherokee like the one cited in the lawsuit.

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Ferrari To Pay $2.8B For Its Freedom From FCA http://www.thetruthaboutcars.com/2014/11/ferrari-pay-2-8b-freedom-fca/ http://www.thetruthaboutcars.com/2014/11/ferrari-pay-2-8b-freedom-fca/#comments Fri, 14 Nov 2014 14:00:08 +0000 http://www.thetruthaboutcars.com/?p=945081 Set to be its own master within a year’s time, Ferrari must first pay its dues before freedom calls, all to the tune of €2.25 billion ($2.8 billion USD). Automotive News Europe reports the payment will come from a sorting of affairs between the brand and parent company Fiat Chrysler Automobiles, consisting of “distributions and […]

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Set to be its own master within a year’s time, Ferrari must first pay its dues before freedom calls, all to the tune of €2.25 billion ($2.8 billion USD).

Automotive News Europe reports the payment will come from a sorting of affairs between the brand and parent company Fiat Chrysler Automobiles, consisting of “distributions and transfers of cash from Ferrari” among other transactions prior to the October 2015 separation.

CEO and Ferrari chairman Sergio Marchionne says 10 percent of the sports car brand will be made to the public between Q2 and Q3 of 2015, while 80 percent will be given to FCA’s investors; brand vice chairman Piero Ferrari will hold onto the remaining 10 percent.

The spinoff is part of an overall capital raising plan, which includes a $2.5 billion convertible bond set to mature in 2016, and underwritten by JPMorgan Chase, Goldman Sachs, Barclays and UBS. The plan will net FCA approximately €4 billion ($5 billion).

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UAW, Political Leaders Uniting To Keep Wrangler In Ohio http://www.thetruthaboutcars.com/2014/10/uaw-political-leaders-uniting-keep-wrangler-ohio/ http://www.thetruthaboutcars.com/2014/10/uaw-political-leaders-uniting-keep-wrangler-ohio/#comments Mon, 20 Oct 2014 14:00:55 +0000 http://www.thetruthaboutcars.com/?p=933842 With the possibility of an aluminum Jeep Wrangler being built elsewhere, the United Auto Workers and political leaders are coming together to convince Fiat Chrysler Automobiles to keep the icon in Toledo, Ohio. Automotive News reports the gathering will occur Monday at the UAW Local 12, with U.S. Senator Sherrod Brown, U.S. Representative Marcy Kaptur, […]

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With the possibility of an aluminum Jeep Wrangler being built elsewhere, the United Auto Workers and political leaders are coming together to convince Fiat Chrysler Automobiles to keep the icon in Toledo, Ohio.

Automotive News reports the gathering will occur Monday at the UAW Local 12, with U.S. Senator Sherrod Brown, U.S. Representative Marcy Kaptur, and Toledo mayor D. Michael Collins joining the group of workers, local leaders and members of the community to launch a campaign to keep the Wrangler at the Chrysler Assembly Plant, where 1,700 (out of a total of over 6,000) help assemble the icon with the help of 800 employed by neighborhood suppliers.

The campaign is set to begin as FCA CEO Sergio Marchionne warned that should the next-generation Wrangler be based upon an aluminum unibody, it would be built elsewhere:

If the solution is aluminum, then I think unfortunately that Toledo is the wrong place, the wrong setup to try and build a Wrangler, because it requires a complete reconfiguring of the assets that would be cost-prohibitive. It would be so outrageously expensive that it would be impossible to try and work out of that facility.

UAW Local 12 president Bruce Baumhower invited 40 elected officials and local businessmen to the gathering, with the intent of establishing a task force set to address the issues that would take the Wrangler out of Toledo.

The post UAW, Political Leaders Uniting To Keep Wrangler In Ohio appeared first on The Truth About Cars.

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