Old Dealers Indignant Over FCA's Plan to Expand Network by 380 Stores

Fiat Chrysler Automobiles wants to grow its dealer network by 380 new stores in a bid to improve its dwindling market share. The plan isn’t going over so well with the company’s existing dealers, however. As the strategy could potentially threaten their present businesses, some of those dealerships are putting up a fight over the issue.

The choice to expand comes at a difficult time. Sales locations aren’t doing the best and suffering through a diluted and unpopular product lineup while the automaker shifts its focus away from cars to the more-popular SUVS and trucks. FCA sales have been on the decline for almost six months and the company’s slice of the U.S. market fell to 12 percent in the fourth quarter of 2016, compared to 13.6 percent in the same period of 2015. The expansion decision also goes against the advice of FCA’s dealership location consultant, Urban Science.

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FCA's Rapidly Rising Chrysler Group Sales Are Back At Pre-Bankruptcy Levels

At Fiat Chrysler Automobiles, this much we know: 72 consecutive months of year-over-year U.S. growth, a market share increase in the United States from 9.4 percent to 12.8 percent between 2010 and 2015, routine record-setting U.S. sales performances at Jeep, and an overarching “light truck” division that now produces more than four out of every five U.S. sales for the automaker.

Chapter 11 reorganization was undoubtedly a painful process — bankruptcy isn’t supposed to tickle. And because of reliability woes, frequent Alfa Romeo delays, and poor passenger car demand, there are serious doubts about the automaker’s long-term plans.

Yet only a few quick glances at an FCA U.S. monthly sales report are necessary for observers to replace concerns with applause, at least in the here and now. The rate of growth is staggering. The U.S. auto industry grew its volume by 37 percent between 2011 and 2015, a period during which FCA — and formerly the Chrysler Group — grew 64 percent.

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Chart Of The Day: Fiat Chrysler Automobiles US Is Very Much An SUV-Oriented Automaker

Not surprisingly, one of only a couple automakers with an SUV-only auto brand is enjoying record sales at that SUV brand in an era of booming utility vehicle sales.

At this stage in 2013, Fiat Chrysler Automobiles/Chrysler Group was selling more cars in the United States than SUVs and crossovers. Those figures flipped one year later and became even more disparate in the first-quarter of 2015.

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Truck Sales: What Does "58 Consecutive Months Of Growth" Mean For The Ram P/U?
“Sales of the Ram pickup truck were up 7 percent in February; its 58th consecutive month of year-over-year sales gains.” – FCA US LLC press release, March 3, 2015.

What do 58 consecutive months of year-over-year U.S. sales improvement look like? The accompanying chart is one way of looking at it. Ever since May 2010, Ram P/U sales have been on the rise. Most recently, this translated to a 24% year-over-year increase in calendar year 2014, a 14% jump in January 2015, and a 7% improvement last month.

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Dodge Dart Sales Are Actually On The Upswing

Often criticized for its poor performance in North American markets, the Dodge Dart has performed significantly better over the last five months, a period in which its midsize sibling, Dodge’s Avenger, gradually disappeared.

After generating nearly 50,000 U.S. sales in the first three-quarters of 2014, the discontinued Avenger dried up at the end of the year, generating only 2342 sales in the fourth-quarter and 461 in the first two months of 2015. The clear-out of deeply discounted, V6-engined, midsize cars from the Dodge portfolio opened up an opportunity for the Dart.

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US Treasury: Over $9B Lost In Auto Industry Bailout

The final tally is in: American taxpayers lost $9.26 billion from the Bush II/Obama-led rescue of the U.S. auto industry.

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Chrysler Group Now FCA US LLC

Fiat Chrysler Automobile’s Chrysler Group is dead; long live FCA US LLC.

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Two-Tier Wage System Targeted For 2015 UAW Negotiations

2015 is only 15 days away, which means new contract negotiations between the Detroit Three and the United Auto Workers are coming, the main focus being the elimination the two-tier wage system implemented in 2007.

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November 2014 Was The Dodge Dart's Best Month Ever

The Chrysler Group reported the Dodge Dart’s best-ever sales month in November 2014 as year-over-year volume jumped 39% to 9012 units.

This was the first time Dart volume climbed beyond 9000 units in a single month. The previous top month for this modern incarnation of the Dart was May of this year, when 8644 were sold.

Yet at best, a best-ever month from the Dart still represents nothing more than a mid-pack performance.

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Chrysler Group Introduces PUG Plan For Pentastar V6 Family

Fiat Chrysler Automobiles’ Chrysler Group has big plans for its venerable Pentastar engine family, all in the name of improved fuel efficiency and power.

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Cherokee Is Jeep's Best Seller Three Months Running

In each of the last three months, the Cherokee has been the best-selling model at America’s fastest-growing volume brand. Jeep sales are up 44% in the United States through the first eleven months of 2014, an improvement of 191,895 units.

Excluding the Cherokee, which wasn’t on sale until the fourth-quarter of 2013, Jeep sales are still up 10% in 2014 and 15% in November. Those Cherokee-less increases still far outpace the auto industry as a whole, which is up a little more than 5% this year; a little less than 5% in November.

Yet even before Jeep once again broadens its lineup with the subcompact Renegade, the Cherokee helped power the brand to new heights. The Jeep brand last topped the 500,000 mark in calendar year 1999. Jeep sold 629,074 utility vehicles during the first eleven months of 2014.

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Grand Cherokee, Durango Going Grayscale Until February 2015

Were you hoping to have a red Jeep Grand Cherokee SRT or Dodge Durango Ron Burgundy Edition in your driveway in time for Christmas? You may have to try your luck on the lot, as new orders will be painted black, white, gray and silver all over for the next few months.

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Canada Auto Sales Recap: October 2014

In October 2014, for the first time since March of this year, the Chrysler Group outsold all other automobile manufacturers in Canada.

The margins were slim: only 259 units separated Chrysler Group’s five brands from the Ford Motor Compan y; only 301 stood between the Chrysler Group and General Motors. But these are celebratory moments for an automaker which owns 15.6% of the Canadian market. Chrysler Group’s market share in its “home” U.S. market stands at 12.6% through the first ten months of 2014.

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FCA CEO Ordered To Give Deposition In Jeep-Related Lawsuit

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.

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Best-Selling Midsize Car: Chrysler 200, In Canada, In October

Canada’s best-selling midsize car? The Chrysler 200.

At least, that was the case in October 2014, a month in which sales of the 200 jumped 120% to 1800 units. Even with the near-disappearance of the Dodge Avenger, the fraternal twin of the new 200’s predecessor, Chrysler Canada midsize car sales grew 64% last month.

Odd as this may sound for U.S. observers, it’s not completely out of the blue in Canada. Nor did we arrive at this point without an explanation.

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  • Lorenzo I shop for all-season tires that have good wet and dry pavement grip and use them year-round. Nothing works on black ice, and I stopped driving in snow long ago - I'll wait until the streets and highways are plowed, when all-seasons are good enough. After all, I don't live in Canada or deep in the snow zone.
  • FormerFF I’m in Atlanta. The summers go on in April and come off in October. I have a Cayman that stays on summer tires year round and gets driven on winter days when the temperature gets above 45 F and it’s dry, which is usually at least once a week.
  • Kwik_Shift_Pro4X I've never driven anything that would justify having summer tires.
  • Scotes So I’ll bite on a real world example… 2020 BMW M340i. Michelin Pilot Sport 4S. At 40k now and I replaced them at about 20k. Note this is the staggered setup on rwd. They stick like glue when they are new and when they are warm. Usually the second winter when temps drop below 50/60 in the mornings they definitely feel like they are not awake and up to the task and noise really becomes an issue as the wear sets in. As I’ve made it through this rainy season here in LA will ride them out for the summer but thinking to go Continental DWS before the next cold/rainy season. Thoughts? Discuss.
  • Merc190 The best looking Passat in my opinion. Even more so if this were brown. And cloth seats. And um well you know the best rest and it doesn't involve any electronics...