CHRYSLER

Stellantis Logo Revealed by Peugeot, Fiat Chrysler Ahead of Spring Merger

November 17, 2020 by admin Leave a Comment

Stellantis unites American, French, and Italian automakers.

“To brighten with stars” is the meaning of the sobriquet chosen by French automaker Peugeot Groupe (PSA) and Italian-American manufacturer Fiat Chrysler Automobiles (FCA) as they plan to merge their companies under the “Stellantis” banner next year. When done, the combined entity will create the world’s fourth-largest automaker, completing an effort that began before the pandemic and could establish a trend for competing businesses to follow.

Mission Stellantis

Stellantis may not roll off the tongue immediately, but the new company hopes that it accomplishes its mission nevertheless. That endeavor unites once competing businesses under a singular umbrella, bringing with it the synergies required. Cost-saving is chief among them as the new company will enable 14 disparate marques to coalesce; share platforms, engineering, and technologies; and give Stellantis greater clout when negotiating with suppliers. Thus, the Stellantis name is reserved exclusively for the enterprise.

Notably, the company’s name will not find its way to a single vehicle. Instead, all 14 brands will operate with their own make/models serving their respective markets. These brands comprise Abarth, Alfa Romeo, Chrysler, Citroën, Dodge, DS, Fiat, Jeep, Lancia, Maserati, Opel, Peugeot, Ram, and Vauxhall. Ferrari is not included as that brand became independent a few years back.

Only one PSA name is not familiar to automotive enthusiasts: DS. The others, including Peugeot and Citroën, were once marketed in North America. Models from Opel and Vauxhall have also appeared stateside, most currently in the Buick Regal sedan, hatchback, and wagon.

Dutch Headquarters

The new company will be headquartered in Amsterdam, the Netherlands. It will continue to operate regional headquarters in Auburn Hills, Michigan; Paris, France; and Milan, Italy. Moreover, Stellantis will trade on three stock market exchanges: New York, Paris, and Milan.

Announced in October 2019, the $50 billion deal uniting PSA and FCA was finalized internally two months later. The understanding then, as it remains to this day, is that the companies must work through a lengthy closing process. Indeed, following its initial review, the companies won the approval of their respective shareholders as well as meeting other antitrust and other regulatory requirements. Some of the later milestones are yet in progress. An end-of-first-quarter 2021 closing is expected.

Peugeot’s USA Initiative

Well before the Stellantis development, the Peugeot brand has been working on returning to the U.S. on its own — without the four other PSA brands. For several years, the company has operated out of its Atlanta headquarters to begin the long work of bringing its vehicles to America. That effort will continue although it may now include some help from Stellantis’ American family.

Nothing has been said of this, but a company bent on consolidating to cut costs may find that Peugeot vehicles sold side-by-side with Chrysler brand products, for instance, is the best approach to advancing its agenda. We’d be surprised if this weren’t so.

Looking Ahead

Uniting disparate companies is often fraught with cultural challenges as evidenced in the earlier DaimlerChrysler debacle. Yet, a few years after that company separated, Fiat joined with Chrysler to form arguably a strong union. The Chrysler side will now have a third opportunity to work with an international automaker.

This time, the Fiat Chrysler team will come into this relationship on a 50:50 basis with the PSA Groupe. The Italian and French automakers are longtime rivals, but under the Stellantis umbrella, the new structure allows all stakeholders to advance two areas where the industry is heading: automation and electrification. Separately, the cost to develop them is nearly prohibitive for some companies who must then consider mergers, acquisitions, or alliances to move forward (GM and Honda, for example). Under Stellantis, the 14 brands will have the opportunity to not just survive but thrive, although further consolidation may cause underperforming brands such as Chrysler and Vauxhall to cease.

Logo courtesy of Fiat Chrysler and PSA Groupe.

Fiat Chrysler Peugeot: Now What?

December 19, 2019 by admin Leave a Comment

Chairman of the Managing Board of Groupe PSA Carlos Tavares and FCA CEO Mike Manley share a congratulatory handshake after concluding the merger agreement between their two companies.

Save for regulatory scrutiny, antitrust review, and shareholder approval, Fiat Chrysler and the PSA Groupe are set to merge. The two automakers agreed on a framework for merging the two companies, which will create the world’s fourth-largest automaker after the Volkswagen Group, Toyota Motors, and the Renault-Nissan-Mitsubishi Alliance.
We’re still about a year away from the merger’s completion. In the meantime, we’ll be waiting for word on the new name for the entity. I like “Global Motors” but I think GM would object.

Capacity, Electrification, & Autonomous Vehicles

No matter what happens over the coming months, a lot of what you’ll be hearing will be speculative especially as the companies have been relatively mum on where things are going. We do know no plants will be closed or jobs lost, but with a build capacity of 14 million units and current annual sales of 8.7 million units, there is ample room for consolidation. And it is doubtful we’ll see a significant increase in sales to narrow that gap, although Jeep and Ram may fuel much of the growth moving forward.

But there are certain trends such as electrification and autonomy that will impact the newly minted automaker. Like it or not, the industry is going through an upheaval, but I will say that full electrification isn’t likely to happen in the short term, if ever. Instead, we’re likely to see some sort of “hybrid” system based largely on hybrid electric vehicles. As for autonomy, large cities are the likely place to roll out the technology, but getting it to the masses will take many years and require an enormous amount of capital.

From the left side of the Atlantic, there are a few things we’re all wondering about and are certain to become the topic discussed at your favorite cars and coffee or other automotive meetups in the coming months. Here’s a sample of key questions we believe are foremost on Mopar fan minds.

Which brands will die?

The current FCA stable includes Fiat, Chrysler, Alfa Romeo, Dodge, Lancia, Jeep, Maserati, Abarth, and Ram. That’s nine brands to manage and will soon climb to 14 with the Peugeot, Citroën, DS, Opel, and Vauxhall brands. It isn’t inconceivable that an automaker would manage so many brands – the Volkswagen Group is comprised of 12 brands. Even so, we could see a few brands dismissed. Dodge and Chrysler are most vulnerable and Vauxhall could simply be folded into Opel.

End of muscle cars?

FCA has done quite well with its muscle car lineup, with the Dodge Challenger firmly in second place behind the Ford Mustang and ahead of the Chevrolet Camaro. Having the four-door Dodge Charger to complement the sport coupe has always been a plus. Yet, these two models are aged and may not have enough life in them to continue for many more years. One way the models survive is if PSA has a platform to support them. That’s not known, although the new company could tap the Alfa Romeo Giulia/Stelvio’s platform for them.

When will Peugeot begin selling its cars here?

Long absent from the US market, Peugeot has fixed its eyes on returning by 2026. These plans were put in place in 2018, with the company establishing new US headquarters in Atlanta. That timeline was moved up by a few years earlier this year, even before the announced merger. No matter what happens going forward (merger or no merger), Peugeot plans to make its return, according to Car and Driver. Likely, they’ll import models built in Europe, foregoing US manufacturing, at least initially. That’s a sensible approach as FCA capacity is nearly full stateside, while European plants for both FCA and PSA are underutilized.

What’s the role of Opel going forward?

GM owned Opel (and Vauxhall) from 1929 to 2017, before selling the brands to PSA. Since then, Buick has continued selling several Opel products under its name including the now-discontinued Cascada convertible and the Regal sedan/hatchback/wagon. That agreement is coming to an end and soon Buick will sell crossovers only. That could leave the door open for Opel to arrive stateside on its own, but we doubt that’ll happen, at least not before Peugeot.

Getting it Done

No doubt, the FCA-PSA deal will get done. There are some issues to settle, including GM’s suit against FCA alleging racketeering over labor negotiations (which allegedly favored FCA at the expense of GM). Some are arguing the suit is GM’s attempt to thwart the merger and nothing else. Regardless, the matter should be settled before the merger is finalized.

With FCA and PSA united, expect other automakers to explore ways to combine synergies through alliances, acquisitions, and mergers. My personal “favorite” alliance is VW-Ford, as the two automakers are currently collaborating on self-driving cars and electric vehicles. That may leave GM as the last “American” automaker standing, besides Tesla, Rivian, Bollinger, and a few other upstarts.

Photo copyright Fiat Chrysler Automobiles.

Introducing the 2020 Chrysler Voyager

October 1, 2019 by admin 1 Comment

Available in three trims, including a fleet-only LXi model, the 2020 Chrysler Voyager targets budget-minded customers.

The Chrysler Voyager is back, a model name first used by the long-defunct Plymouth brand. When Plymouth was discontinued in 2001, the then Plymouth Voyager minivan became a Chrysler model for a few years and was sold alongside the Chrysler Town & Country.

Fast forward to today and few consumers will know anything about the Voyager. Indeed, that’s about to change as we explore how Fiat Chrysler intends to revive the rejuvenated nameplate.

Chrysler Voyager: It’s Back

In 2017, Chrysler introduced the Pacifica, replacing the previous Town & Country minivan or multipurpose vehicle. This all-new vehicle is distinct from the Dodge Grand Caravan, which remains in production. Notably, all Fiat Chrysler minivan models are built at a Canadian manufacturing plant in Windsor, Ontario.

1. Return of the Chrysler Voyager.

The Voyager nameplate returns for 2020, reassigning the low-end Pacifica models offered under the L and LX trims. A third trim, the LXi, rolls out, which is for fleet service only. As for the Pacifica, it will have seven trims, beginning with the Touring. Also, the hybrid variant remains a Pacifica exclusive.

2. Seating for seven or eight.

The 2020 Voyager seats seven in standard form or eight when the second-row captain’s chairs are swapped out for a bench seat. Chrysler’s famous “stow ’n go” seating, which stores the second-row seats in the floor, is included.

3. The same powertrain is offered.

The Chrysler Pacifica comes with a 3.6-liter V6 engine, which creates 287 horsepower and 262 pound-feet of torque. That same engine, along with the Pacifica’s nine-speed automatic transmission, motivates the Voyager. Power is routed to the front wheels.

4. Towing when you want it.

The 2020 Voyager is rated to pull up to 3,600 pounds, which is the same as the Pacifica. That’s slightly better than the 3,500-pound rating of the Kia Sedona, Toyota Sienna, and the Honda Odyssey.

5. Tech features galore.

The 2020 Voyager has a 3.5-inch digital information display and Chrysler’s UConnect 4 system with a 7-inch touch-screen display. A six-speaker sound system, Apple CarPlay and Android Auto smartphone compatibility, and an available single overhead DVD round out the tech offerings.

6. An available safety group package.

Chrysler’s SafetyTec suite of driver-assist technologies is available. This package includes rear park assist with stop, blind-spot monitoring, and rear cross-path detection.

7. About the LXi.

The new LXi trim comes with remote start, a security system, roof rack, imitation leather seats, second-row retractable sunshades, and an automatic dimming rearview mirror. This model is not available to consumers, just fleet buyers.

Arriving Fall 2019

The 2020 Chrysler Voyager arrives in Fall 2019 and will be sold alongside the Pacifica in Chrysler showrooms. Chrysler prices the base model from $26,985, plus a $1,495 destination fee. It comes with standard steel wheels, available alloy wheels, six exterior color choices, and three interior color options.

Chrysler’s strategy for the Voyager may mean that this vehicle will eventually replace the Dodge Grand Caravan, which is this automaker’s best-selling minivan. Further, the Grand Caravan is an aged model based on the same platform underpinning the retired Town & Country and is widely expected to be discontinued.

2020 Chrysler Voyager Specifications

Chrysler	2020 Voyager
Segment	Minivan
Price Range	$31,415 to $47,830
Destination Charge	$1,060
Standard Engine	3.6-liter, V6
Horsepower	287 hp @ 6,400 rpm
Torque (lb.-ft.)	262 lb.-ft. @ 4,000 rpm
Transmission	Nine-speed automatic
Seating	2/2/3 or 2/3/3
Curb Weight (pounds)	4,330
Wheelbase (inches)	121.6
Length (inches)	203.8
Width (inches)	79.6
Height (inches)	69.9
Headroom (f,r…inches)	40.1, 39.6, 38.7
Legroom (f,r…inches)	41.1, 39.0, 36.5
Shoulder room (f,r…inches)	63.8, 63.0, 61.2
Hip room (f,r…inches)	59.0, 64.8, 49.5
Storage (cubic feet)	32.3, 87.5, 140.5
Gross vehicle weight (pounds)	6,055
Towing (pounds)	3,600
Payload (pounds)	NR
Fuel	regular
Fuel Tank (gallons)	19.0
EPA Fuel MPG (city/highway/combined)	NR
Manufacturing Plant	Graz, Austria

Data compiled by Tom Keegan. Specifications supplied by the manufacturer.

***

Photos copyright Fiat Chrysler Automobiles.

Fiat Chrysler Renault Merger Talk Heightens

May 28, 2019 by admin 5 Comments

A blockbuster merger of automotive manufacturers may produce the world’s largest automaker, especially if two outside automakers are also brought in. Fiat Chrysler, itself the result of a 2014 merger between European and North American manufacturers may soon tie in with Renault, the French automaker.

Renault is currently reviewing an offer from Fiat Chrysler to merge the two companies with each taking a 50 percent stake in the other. FCA produced 4.8 million vehicles last year to Renault’s 3.9 million, for a combined 8.7 million units. However, Renault is worth 10 percent more than FCA, which means the latter will supply more cash to even the transaction. Renault is worth more in part because of its investment in an alliance with Nissan and Mitsubishi.

Marchionne, the Capital Junkie

A Fiat Chrysler merger with another automaker is something the late Sergio Marchionne insisted must happen to ensure FCA’s long-term survival. The former CEO and Chairman of FCA died unexpectedly last year, never seeing his dream fulfilled. However, it was Marchionne who outlined in his seminal 2015 report, “Confessions of a Capital Junkie,” industry consolidation.

Specifically, Marchionne explained that consolidation is the key to remedying the destruction of capital. In particular, he noted that both regulatory- and consumer-driven improvements such as tighter emissions controls, new powertrains, safety upgrades, infotainment services, and the push to autonomous drive, are expenses difficult for manufacturers to bear, especially those with a lower sales threshold. Further, Marchionne indicated manufacturers would need to sell at least 6 million vehicles annually to remain profitable, something they could accomplish through either a merger, acquisition or by means of a partnership, such as an alliance.

With a combined 8.7 million annual units (assuming the combined entity could maintain its momentum), Fiat Chrysler Renault would easily pass Marchionne’s threshold. However, it’ll take years for real cost savings to kick in as the new entity gradually merges platforms, shares powertrains, and utilizes technologies across the affected brands.

Jeep is the big prize FCA brings to a Renault merger.

FCA and Renault Brands

For FCA, the automaker brings with it several brands, including Jeep, Ram, Chrysler, and Dodge, serving North America primarily. Fiat, Alfa Romeo, and Maserati are especially strong in Europe. As for Ferrari, the Italian sports car brand is now a separate entity and would not be included in the deal.

As for the French automaker, it brings the Renault, Dacia, and Lada brands to the merger. It also owns the Alpine sports car marque and has an 80-percent stake in Renault Samsung Motors, a Korean manufacturer.

By default, Nissan and Mitsubishi are also included as Renault has a stake in Nissan, which has a stake in Mitsubishi. However, much friction exists between Renault and Nissan over the firing and legal detention of Carlos Ghosn, who was the CEO of all three firms. Renault had been pushing for a full-blown merger with Nissan, but the Japanese automaker has fiercely resisted that move. With FCA onboard, Nissan’s stake in the new entity will be diluted, which might impact the alliance.

So Much Potential

An FCA-Renault merger brings with it much promise, but also many risks. Although FCA is successful, the previous DaimlerChrysler model was not. The new entity faces challenges, including bringing different cultures together. Further, France and Italy have vested interests in the industry, with France holding a stake in Renault. In any case, it appears the French government favors the merger.

FCA’s strongest brand is Jeep, which it is quickly transforming from a regional player to an international powerhouse. Indeed, the automaker will likely press forward with a plan to build a new manufacturing plant in Detroit to produce the Jeep Wagoneer and Grand Wagoneer, upscale models designed to take on Land Rover (Discovery and Range Rover series). Jeep’s growth is phenomenal and doesn’t appear ready to slow any time soon.

The Ram brand brings big profits to FCA with the large pickup truck adding a half-million sales annually. The new entity may find fresh markets for Ram, including perhaps Russia where Lada rules.

As for the Dodge and Chrysler brands, the survival of these two marques may depend largely on just how far the merged company plans to extend its reach. Both have had a place in the American automotive landscape, with a limited reach beyond. And both have lost several models over the past few years as FCA emphasizes utility vehicles and trucks over cars.

See Also — Fiat Chrysler Automobiles: No Takers

These Car Models May Soon Get the Axe

November 7, 2018 by admin 1 Comment

Sharply declining sales may spell the end for several car models.

The U.S. automotive market, indeed the entire global market has seen a shift away from cars to utility vehicles. Cars, while valued for their practicality and reasonable cost are yielding the market to utility vehicles, which offer an excellent combination of passenger space and cargo capacity. They’re also more profitable to automakers.

As such, manufacturers will soon lay the ax to several car models as the market shift continues. Soon, you may walk into a new car dealership and find no more than one or two car models available as utility vehicles, pickup trucks and an assortment of crossover-like conveyances take over.

Here’s our list of threatened models based on year-to-date sales figures through October 2018:

Chevrolet: Sonic and Impala

The bow-tie brand’s weakest models are its subcompact Sonic (hatchback and sedan) and its full-size Impala sedan. The two models were introduced or updated in 2012 and 2014, respectively.

Chevrolet Silverado — Like its top competitor’s Chevrolet’s best-selling vehicle is not a car.

Sonic sales are down 25.7 percent and will struggle to top 22,000 units this year. The Impala numbers aren’t as bad with Chevrolet selling 43,953 units, down 13.38 percent. We think the midsize Malibu sedan (-23.88%) will hang on for a while longer, mostly because it is rather new. The compact Cruze (-26.52%) numbers are way down too, but there is life left. Besides, it shares its platform with the plug-in Volt (-13.72%).

As for the Corvette (-21.23%) and Camaro (-25.87%), both models will soldier on with a mid-engined Corvette waiting in the wings. We can’t see Chevrolet killing the Camaro all over again, although sales now trail both the Mustang and Challenger.

Dodge and Chrysler: A Vulnerable Trio

Dodge and Chrysler are FCA’s two domestic car brands and both are hanging on. Dodge dropped the compact Dart sedan and Chrysler the midsize 200 sedans in recent years. What’s left is a trio of sporty models: The Dodge Challenger (+0.07%), Dodge Charger (-11.98%), and the Chrysler 300 (-12.83%).

Dodge Charger Hellcat — A succession of Hellcat models has kept the Charger and Challenger alive. But for how long?

The Chrysler is the most vulnerable of the three and will likely be replaced by a utility vehicle. We think Dodge will hang on to the Challenger and Charger for a few more years, making updates to keep these dated models fresh. But the tide is changing and we could see the Charger killed off first with the Challenger following a few years later. The Jeep and Ram brands are the big profit centers for FCA, thus every other brand is vulnerable.

Ford: Only the Mustang Remains

Ford has not been coy about its car models. Every single model except for the Mustang (-0.93%) is threatened. Already, the subcompact Fiesta (+1.05%) and compact Focus (-18.46%) are gone or will soon be gone from the U.S. market.

The midsize Fusion (-21.77%) and the full-size Taurus (-2.49%) will be the next to go, although one or more names may be affixed to a future crossover model. Yes, we’ve heard rumors of a four-door Mustang appearing, but all that noise is simply speculation.

2018 Ford Mustang GT — The Mustang “brand” is a blue oval success story.

Honda: Staying the Course

Sales of the compact Civic (-10.32%) and midsize Accord (-14.16%) may be down, but they’re not out. Indeed, Honda may very well sell as many as 250,000 Accords and 300,000 Civics this year. Even if sales continue to slide, both models are safe.

As for the subcompact Fit (-14.59%), sales aren’t likely to top 40,000 units this year. That said, Honda may keep the Fit around and not offer an update for some time. This automaker also seems committed to its Clarity and Insight electrified vehicles, though sales remain modest.

See Also — It’s a Wrap: 2018 in Review

Nissan: Maxima on a Short Leash

Like Honda and Toyota, Nissan will keep its compact Sentra (-0.34%) and midsize Altima (-16.64%) sedans. The Altima is new for 2019 and will offer available all-wheel drive for the first time. Although the Sentra was last updated in 2013, we think a new model will eventually roll out.

Nissan Maxima models — The Maxima is one of Nissan’s strongest names, but it may not have long-term staying power.

What might not survive is the Maxima sedan (-36.18%), although it shares its underpinnings with the Altima. Like other flagship models, the Maxima may no longer have a place in the Nissan product line.

Also threatened is the subcompact Versa (-29.87%), the sporty 370Z (-24.44%) and the high-performance GT-R (-2.49%). The last two will likely sell just 3,000 and 500 copies, respectively. Those aren’t sustainable numbers no matter how you slice it.

Toyota: Several Models Might Get 86’d

Imagine Toyota without the compact Corolla (-11.35%) and its midsize Camry (-6.94%) if you would. That’s hard to fathom, right? Well, both models sell slightly better than their Honda counterparts, so they’ll be around for some time. Indeed, a new Camry arrived in 2018, followed by an all-new Corolla hatchback in 2019 (we’re expecting a new Corolla sedan in 2020).

2019 Toyota Corolla Hatchback — Toyota’s Corolla is hanging around and includes this sporty hatchback model.

The threatened Toyota models include the subcompact Yaris (-37.05%) and the hybrid Toyota Prius c. We doubt the Toyota 86 (-41.71%) will survive for much longer, although the nearly identical Subaru BRZ may soldier on. As for the full-size Avalon (+6.38%), it is also all new and gaining market share in a shrinking segment. We consider the Avalon the safest model in its segment by far.

Volkswagen: A Passe Passat?

Volkswagen has been undergoing intense changes these past few years following its diesel scandal. New or updated crossovers are taking a bigger slice of the sales pie and are driving sales. But models such as the subcompact Golf (-38.08%), compact Jetta (-32.77%), and the midsize Passat (-33.78%) are falling out of favor.

We think the Golf and Jetta will hang on, but the Tennessee-built Passat may give up its assembly line space to one or more new (and electrified) models planned. That transition may take a few years to complete, however.

Hyundai and Kia: Opportunity Lurks

Hyundai and Kia are joined at the hip, although the two Korean automakers largely operate as separate concerns. Hyundai supplies the vehicle platforms, then leaves each brand (plus Genesis) to decide how they will go.

In recent years, we’ve seen Hyundai do away with the Equus, Genesis, and Genesis coupe, along with the Azera sedan. Some of those models were replaced by Genesis brand vehicles when Hyundai rolled out its luxury brand.

Hyundai has also expanded its crossover offerings while bringing the electrified Ioniq (+37.69) to the market. We’re not sure the subcompact Accent (-51.12%) will survive, given that a new model rolled out in 2018. The compact Elantra (+4.06%) is performing well, but the midsize Sonata (-24.83%) has certainly seen better days. The sporty Veloster returned after a one-year hiatus and like the Elantra, it seems safe. Still, we think Hyundai will keep its car line in place as other automakers cut back.

2018 Kia Rio — Kia Rio sales are down despite a new model on hand.

As for the Kia, nearly the same can be said about it as we have said about Hyundai. Further, Kia continues to update even its slow sellers, such as the full-size Cadenza (-11.07%) and the luxury K900 (-26.14%).

A new subcompact Rio (+44.67) is performing well, although the compact Forte (-18.68%) and the midsize Optima (-5.74%) are not. Still, looking at Kia’s track record, we doubt any model will go away in the near future. In all, we think Hyundai and Kia may see opportunity in segments soon to be vacated by its competitors.

Looking Ahead

The shift to crossovers is, indeed, playing a large part in driving each brand’s portfolio. Two other factors, electrification, and autonomous vehicles, will play increasingly significant roles as we move forward.

The question not asked is this one: will manufacturers permanently adjust their portfolios? They may say yes, but market conditions can and do always change.

Witness Ford’s insistence a few years back that the Ranger pickup truck wouldn’t return. Beginning in 2019 we’ll see a new Ranger. And as for the Fiesta and Focus, both models will serve other markets and could at some point return to the U.S. if demand warrants it.

See Also — End of the Road: Ford Taurus

The Rise and Fall of Mitsubishi

April 29, 2016 by admin 1 Comment

Partnerships, recalls, financial problems, and scandals…oh my!

I wrote this article several days before leaving on a business trip, so please forgive me if the Mitsubishi narrative has changed drastically over the past few days. That a change would occur is understandable — after Nissan exposed Mitsubishi for exaggerating the fuel economy figures for several vehicles supplied to it from its junior partner, Mitsubishi has lost nearly half its market value.

And the problem doesn’t seem to have a near end — Mitsubishi later admitted to fudging its fuel economy figures since 1991. That’s a quarter-century of crookedness from a company that has had its share of fiascos.

A Lengthy and Diverse History

Time and space don’t allow me to provide a thorough look at all things Mitsubishi. For one, the privately-owned company is vested in numerous areas, including shipbuilding, financial services, heavy industries, chemicals, steel, and aviation, among others. Its auto industry arm, Mitsubishi Motors, is relatively robust in Japan, where it is the sixth largest automaker. In the US, Mitsubishi is barely a footnote, attempting to scratch out a place among much stronger competition.

Another reason for limiting the Mitsubishi discussion is the company got started in 1870. That’s exactly 100 years before Mitsubishi Motors was launched, although the shipbuilding arm produced the Mitsubishi Model A in 1917, representing the first series-production automobile in Japan.

Chrysler Secures a Stake

In 1971, following Mitsubishi’s launch as a separate arm of the company conglomerate, the automaker approached the Chrysler Corporation to forge a partnership. Chrysler took a 15 percent stake in Mitsubishi and began receiving the Mitsubishi Galant, rebadged as the Dodge Colt.

That partnership quickly expanded with various Dodge and Plymouth badged products sold in North America. At the same time, Mitsubishi began setting the table to sell cars directly in the US under its own name.

In the early 1980s, the first of Mitsubishi’s financial troubles emerged and the company soon found itself selling its Australian operation in a bid to right the ship. In 1982, the Mitsubishi brand was introduced to the US and soon expanded its dealer network.

Diamond-Star Motors

In the late 1980s, Chrysler and Mitsubishi formed Diamond-Star Motors, a 50-50 joint venture based in Normal, Illinois. That plant cranked out various Mitsubishi products for the company as well as select Chrysler, Dodge, and Plymouth models. In 1991, Chrysler sold its share in DSM to Mitsubishi, but continued to source cars from its Japanese partner. The plant was finally shut down in 2015.

In 2009, the newly-formed DaimlerChrysler (DCX) entity purchased a 34 percent stake in Mitsubishi. As a result, a Daimler-Chrysler-Mitsubishi alliance was forged. Later, it was determined that Mitsubishi was hiding a defect and engaging in financial impropriety. At the same time, Mitsubishi’s debt began to overwhelm the company and DCX refused to intervene. Gradually, DCX divested itself of Mitsubishi, selling its last stake near the end of 2005.

A Long, Downward Spiral

DCX’s exit seems to have contributed to a downward spiral that has slowly sucked the life out of Mitsubishi. Besides its divestment, DCX no longer had access to new products it so desperately needed. By 2010, the company ended its performance subsidiary Ralliart, although several of its performance models soldiered on for another five years, including the Lancer Evolution (EVO).

Meanwhile, Mitsubishi’s US sales continued to plummet, falling to 57,790 units in 2012 from a peak of 345,111 in 2002. In the past few years sales have rebounded somewhat, but are still less than 30 percent of the peak rate.

Nissan Fingers Mitsubishi

Mitsubishi’s quest to gain solid footing is now in jeopardy as its competitor and small vehicle recipient, Nissan, discovered the company had been cheating on its fuel figures. Mitsubishi supplies ultra-small “kei” cars to Nissan and the news has only worsened — this week Mitsubishi admitted it had faked those numbers for 25 years!

The current Mitsubishi scandal also brings to mind an earlier shame, manifested in 2000, but dating back many years. That scandal revealed the company had covered over more than 800,000 vehicle defects, including several leading to injuries and deaths. Although none of the cars involved reached the US, news of the crime did.

The current scandal only adds fuel to the fire that for Mitsubishi a final exit from the automotive industry is not just smart, but warranted.

Flagging Fiat Sales: No Easy Answer

October 14, 2015 by admin Leave a Comment

The Fiat brand has this 500X crossover in its portfolio.

It must be tough sitting in a meeting of Fiat Chrysler brand heads, especially if your brand is underperforming. Sixty-eight straight months of year-over-year sales improvements puts an enormous pressure on executives to succeed. Sure, the streak will someday be broken, but the last thing any brand head wants is to be blamed for ending it.

Fiat Chrysler has enjoyed a tremendous rebound over the past six years as two separate and distinctly different companies were merged, Ram was separated from Dodge, and Chrysler was reassigned as a mainstream brand. In addition, the Fiat brand was brought back to the US in 2012 followed two years later by Alfa Romeo. FCA is on a roll and is continuing to gain market share.

Jeep, Ram, and Chrysler are continuing to grow, but Dodge sales are down with most of that loss attributed to a discontinued product, its midsize Avenger sedan. Dodge is right where it is supposed to be as a newly minted performance brand and sales should bottom out by early 2016. As far as the Italian brands go, Alfa Romeo’s gradual roll out will receive a major boost late next year when the gorgeous Giulia compact luxury sedan debuts.

Fiat 500L

Pictured: Fiat 500L.

That leaves one brand we’ve scarcely mentioned, the eponymous Fiat marque.

Certainly, FCA had high hopes for Fiat when the first of its North American 500 models was officially presented at the 2011 North American International Auto Show in Detroit. Many believed that the diminutive vehicle would pull in customers as high fuel prices coupled with Italian enchantment would drive interest in the brand.

Unfortunately, that hasn’t happened even as new models arrived, including the compact 500L followed by the 500X crossover. Under normal market conditions all three models should provide strong sales, however this market is anything but normal as lower gas prices, excellent financing rates, and intense competition has buyers looking elsewhere. Indeed, Fiat brand sales are down 10 percent year-to-date through September and would be off by more than 20 percent without the new-for-2016 500X n the product portfolio.

The Fiat sales drop may not have a tremendous impact on FCA’s overall sales, but it isn’t something that can easily be dismissed. Perhaps that is why the company’s CEO and President Sergio Marchionne decided earlier this month that Fiat brand head Jason Stoicevich should move on.

Indeed, last week, as part of a larger shuffling of brand managers, Stoicevich was reassigned to head of fleet operations and small business sales in the US. However, by the next day Stoicevich resigned and left the company altogether. Notably, no reason has been given for his abrupt departure.

Chrysler brand chief Alistair Gardner also was reassigned, but his sales numbers were sound. Additional management shuffling was also accomplished as Timothy Kuniskis now oversees three brands: Dodge, Chrysler and Fiat.

Alfa Romeo Giulia

Alfa Romeo sales should see a spark turn into a flame when this Giulia sedan
arrives on the market in late 2016.

We might speculate on the reasons why Stoicevich left, but that theorizing would not necessarily be correct. Stoicevich was in charge of Fiat for two years and seven months and may have been disappointed with the reassignment especially with new product on the way. One of those products is the reborn Fiat 124 Spider, a new model that shares its platform with the Mazda MX-5 Miata.

It has been thought by some that the 124 Spider will be shown at an upcoming auto show, with The Detroit Bureau identifying Los Angeles as that venue. The Los Angeles Auto Show kicks off next month just ahead of Thanksgiving and is the first of four important North American shows where automakers roll out new products. Detroit, Chicago and New York follow.

With the 124 Spider in the fold, the Fiat brand should get a fresh look from customers even if its sales are small in number. As for increasing those sales to reach 50,000 units per year, Fiat may need some help in the form of higher fuel prices. Certainly, the 500X and 124 Spider will contribute, but sales of the other two models may continue to decline or at least stabilize at levels far below what FCA management wants, but probably not to the detriment of Kuniskis’ place at the management table.

Fiat photos copyright Auto Trends Magazine; Alfa Romeo photo copyright Fiat Chrysler.

Nip/Tuck Keeps Mitsubishi Lancer Going

October 5, 2015 by admin 4 Comments

Updated: Mitsubishi announced on Oct.5, 2015, that it would produce 1,600 copies of a 2015 Lancer Final Edition model, making 303 horsepower and 305 foot-pounds of torque.

Mitsubishi carries the dubious “honor” of possessing the smallest market share amongst mainstream manufacturers in the ultra-competitive US market. With Suzuki, Isuzu, and Daihatsu unable to make a go of it, this Japanese manufacturer insists that it will stay put.

After bottoming out last year, Mitsubishi has been enjoying a strong rebound this year. Through September, its year-to-date sales are up 25.5 percent. Indeed, the automaker has now seen 19 consecutive months of month-over-month sales gains, including double-digit gains for the past six months. Mitsubishi is outperforming the entire industry at a rate roughly four times the industry average.

Products such as its Outlander SUVs and subcompact Mirage have propelled sales this year. One product that has performed well in the past, but has offered only a token presence in the compact model segment is its Lancer sedan. That model rolled out in 2002; the second generation Mitsubishi Lancer launched in 2008.

Although the Lancer is well nigh due for a generational update, Mitsubishi won’t be supplying one anytime soon. Instead, as the Lancer enters the ninth year of its product cycle, it receives an exterior nip/tuck along with a content update. Sadly, the performance Evo and the beloved Ralliart editions have been retired, to the chagrin of enthusiasts everywhere.

Mitsubishi has priced the 2016 Lancer from $17,595 for the base ES edition. Three other trim levels for this front-wheel drive, five-passenger sedan are also available: SE ($20,995), SEL ($21,995), and GT ($22,495).

The low price point coupled with more standard features was noted by MMNA executive vice president, Don Swearingen, in a press statement. He added, “The new 2016 Lancer builds upon the legacy of challenging what a compact car can be in terms of design, technology and performance, all at an affordable price.”

The Mitsubishi Lancer ES is the only model powered by a 2.0-liter, four-cylinder engine making 148 horsepower and 145 foot-pounds of torque. It comes paired with a 5-speed manual transmission; a continuously variable transmission (CVT) is optional.

All other trim levels are powered by a 2.4-liter, four-cylinder engine making 168 horsepower and 167 foot-pounds of torque. This engine is paired with a CVT except in the GT, which gets the manual standard — the CVT is optional.

The modifications to the Lancer’s exterior include a completely redesigned front fascia with changes to the bumper and the chrome grille styling. New LED daytime running lights as well as fog lights are present and standard across the model line. Two new paint colors have been added and the GT model features new chrome beltline molding along with redesigned 18-inch wheels.

Inside, Mitsubishi updated the cabin to include new seat fabrics found in all ES and SE editions. The SEL and GT editions continue with leather seating.

Shoppers of the base ES model will find that it has more standard equipment, including 16-inch alloy wheels, automatic climate control, a color LCD display, and a FUSE Hands-Free Link System, the latter allows you to access your phone and media players with the sound of your voice. Make calls, play your favorite song, and pinpoint your location on the navigation screen with this feature.

Package shuffling brings the Lancer’s Sun & Sound package to the base model, what adds a sun roof, a rear view camera, and a 710-watt Rockford-Fosgate audio system to the mix.

Mitsubishi Lancer Final Edition Interior

As for safety features, all models come equipped with seven airbags, including a driver’s knee airbag. Electronic brake-force distribution, stability and traction control, and anti-lock brakes are included. The Mitsubishi Lancer has been an Insurance Institute for Highway Safety (IIHS) Top Safety Pick for seven consecutive years through 2015. The company says that it expects to maintain its safety score for 2016.

Offering a product refresh is about all Mitsubishi could do at this point in the product cycle. The company does not have the financial resources to match the competition in updates, thus the Lancer will continue to struggle in a segment dominated by the Toyota Corolla and Honda Civic. The Ford Focus, Chevrolet Cruze, Hyundai Elantra, Nissan Sentra, Dodge Dart, and Kia Forte are competing models. Small car shoppers might also consider the Mazda3 and Volkswagen Golf. Furthermore, every competing model is newer than the Lancer too.

Long term, Mitsubishi needs fresh product and may only be able to attain such by partnering with another manufacturer. Moreover, the company plans to close or sell its lone US manufacturing plant by the year’s end. That means production of the Outlander Sport will shift to Japan.

When the plant opened in 1989, it represented a joint venture between Chrysler and Mitsubishi — Diamond-Star Motors Corps. Mitsubishi bought out Chrysler’s share in 1991 and saw production steadily increase before peaking in 2000. In recent years production has fallen to less than one-third of capacity or about 70,000 units with approximately half those vehicles shipped abroad.

Chrysler 200S: Premium, Mainstream Sedan

September 7, 2015 by admin 10 Comments

The Chrysler 200S supplies premium features to the product line.

2015 Chrysler 200S

Fiat Chrysler CEO Sergio Marchionne did in 2014 to the Chrysler marque something that should have been accomplished decades earlier: he officially reassigned Chrysler to mainstream brand status, moving it away from its previous premium standing as a one-time direct competitor to Buick. In doing so, Chrysler now competes for the same shoppers that might also consider Toyota, Ford, Hyundai, Nissan, Chevrolet, Honda, and other conventional products.

The move came just as the automaker introduced its next-generation Chrysler 200, a model that seems light years ahead of the previous generation vehicle. That earlier model was introduced in 2011 and represented a mid-cycle refresh of the Chrysler Sebring, one of the more forgettable models of the 21st century.

But an odd thing happened to Chrysler along the way — the 200, especially the near top-of-the-line Chrysler 200S —offers flashes of premium features, much in the same way that the Chrysler 300 still does. Notably, this model provides something not common to the midsize segment — all-wheel drive. And in the 200S you get the most powerful V-6 available — a 295-horsepower, 3.6-liter engine. Moreover, it comes paired with a ZF-supplied 9-speed automatic transmission. All this in a segment where 6-speed gearboxes are nearly universal.

2015 Chrysler 200S

A sporty front fascia, alloy wheels, leather surfaces, and the industry’s best center console puts the “extra” in the extraordinary. Care to rethink your mainstream status, Chrysler?

No, the Chrysler 200S is not a perfect vehicle. Nor is it ideal for every midsize sedan shopper. For example, there are 108 inches between the wheels — about two fewer inches than the typical midsize sedan of our day. Those two inches would come in handy for rear seating passengers, a deficiency that has dogged the current generation Chevrolet Malibu.

By the way, the new 2016 Malibu corrects that problem in a bid to help it compete with the segment’s leaders and other models. Besides the Malibu, the Chrysler 200 competes with the Toyota Camry, Honda Accord, Nissan Altima, Ford Fusion, Hyundai Sonata, Subaru Legacy, Mazda 6, Kia Optima, and the Volkswagen Passat.

2015 Chrysler 200S

Another area that Chrysler must address is NVH or noise, vibration and harshness, particularly the first two. This problem became particularly apparent on one trip where the audio system was on a low setting and an unmistakable rattling was heard. It had become so annoying that I mistakenly thought that the front passenger window was loose or the door ajar. After stopping the car twice, I learned that neither was the case. Instead, an overhead sunglasses compartment was rattling up a storm. I resolved the problem by leaving it open.

A second rattling noise was not as vocal, but still apparent. It may have come from the beautiful and smartly designed by Faurecia center console or even from under one of the front seats. Together, the rattling took away from what was otherwise a positive week with Chrysler’s midsize sedan. Fortunately, the noise was not persistent the entire week and I was able to drive in relative solitude.
2015 Chrysler 200S

2015 Chrysler 200S

View manufacturer details and pricing

2015 Chrysler 200S
Chrysler prices the 2015 200 line from $21,995. That’s what you will pay for the standard LX edition. You can also choose the 200 Limited ($23,950), the 200S ($25,170) and the 200C ($26,625). Front-wheel drive and a 2.4-liter, four-cylinder engine making 184 horsepower is standard. You can also select a 3.6-liter, V-6 engine making a segment-leading 295 horsepower. The larger engine is available across the model line, except in the base edition.

Like Ford with the Fusion, Chrysler offers available all-wheel drive. Subaru with the Legacy is the only manufacturer in the segment providing standard all-wheel drive. Beyond these three manufacturers, you have more than 10 competitors that don’t offer all-wheel drive at all. In the Chrysler, all-wheel drive is an option with both the 200S and the 200C.

As tested, my sedan came with all-wheel drive and was priced from $29,370. Fully optioned it cost $35,935. Several option packages pushed up the final price, including navigation ($1,495), premium HID lighting ($795), leather trim ($995), comfort group, including zoned climate control ($895), plus 19-inch wheels and blind spot detection.

Fortunately for Chrysler, the brand was able to lean on the larger Fiat Chrysler network to produce this car. It is based on a modified version of the platform underpinning the compact Dodge Dart, inherited from Fiat and wholly suited for this model. The 200S is marked by a narrow, but sporty horizontal upper grille, a wraparound headlamp assembly with LED daytime lighting treatments, and a large lower grille opening punctuated by parking and fog lights.

2015 Chrysler 200S

On its sides, a rising beltline and sloping hood are evident, conspiring to deliver a sporty profile. Upper and lower character lines, front and rear wheel reflectors and alloy wheels provide this model with elegance. Further, the roof slopes down to the raised rear deck itself marked by a spoiler lip, wraparound tail lamps and a pair of embedded exhaust finishers and rear fog lights.

Inside, the Chrysler 200S is appointed with a tilt and telescopic steering column, push-button start, zoned climate control, and power accessories; an 8-inch color display provides access to the sedan’s telematics system. I used the system extensively for the week, including the navigation feature. New soccer fields and a horseback riding stable were easily found with accurate voice-guided directions offered. I’ve long felt that Chrysler’s UConnect system was one of the better ones on the market — with its available Internet connectivity it is a nice treat too.

The Chrysler 200S provides sport leather seats up front, debossed with “S” scripting just below the headrest. The bucket seats were supportive, offered sufficient bolstering and comfort. To the rear is a 60-40 split-folding bench seat with a pass-through to the trunk. I think any model with a pass through deserves kudos, ideal for holding your skis, lumber or other long objects without losing all three seating positions. In any case, you get a 16 cubic foot trunk too — larger than what some full-size models provide.

2015 Chrysler 200S

The hallmark of the 200S is its center console. That system is located between the front seats and provides two cup holders and a smartphone holder. It also moves back to reveal a deep storage compartment with a USB port, an auxiliary input port and a 12-volt outlet. You can leave your smartphone there or connect the cord through the hole to place it in an open compartment below the floating dashboard.

But that’s not all — the armrest lifts up to reveal the rest of the storage area. Notably, it has a storage cubby large enough to hold your camera or a small purse. This ingenious design was made by the French automotive supplier, Faurecia. Certainly, it is the best layout I’ve seen in any car to date.

Overall, the 200S’ cabin is elegant, with higher end materials used on the door inlays, across the seats and around the center console. Chrysler also uses a rubberized material across the dashboard, but its texture is soft to the touch. In-door storage pockets with drink holders, comfortable seats and an attractive layout are pluses. That there is less room in the rear seat than some competitors may concern some buyers.

2015 Chrysler 200S

On the road, the Chrysler 200S served up optimum power at all times. Quick off the start, an easy mover on the road and a prompt passer, the Chrysler’s V-6 sends out more power than what most people need. All-wheel drive is a bonus and also a must have with this engine. Torque steer can be brutal (as it was in the previous generation model), largely mitigated as power is distributed across four wheels, instead of two. The steering is decent and handling on the twists and turns is accomplished with little body roll. The 200S doesn’t rise to the handling prowess of your typical European rear-wheel-drive sedan or even the Chrysler 300, but it gets the job done.

With a new Town & Country van coming next spring, Chrysler will have three solid products to offer. But that’s still a paucity of models for a mainstream brand — compare Chrysler with Ford and Chevrolet and its current offerings are certainly thin. Fortunately, more products are on the way, including the Chrysler 100, a compact model expected to arrive by fall 2016. Double the line within the next few years and brand Chrysler with its premium touches may become a formidable player in the automotive sphere.

2015 Chrysler 200S

Sticker price from $29,370
Price as tested: $35,935
Seats 5 occupants
3.6-liter gasoline engine
295 horsepower @ 6,350 RPM
262 foot-pounds of torque @ 4,250 RPM
3.78 inches bore by 3.27 inches stroke
Engine compression ratio: 10.2-to-1
9-speed automatic transmission
Wheelbase: 108 inches
Length: 192.3 inches
Width: 73.6 inches
Height: 58.7 inches
Passenger volume: 101.4 cubic feet
Storage volume: 16 cubic feet
Towing capacity: NR
EPA: 18 mpg city, 29 mpg highway
Regular grade gasoline
Fuel tank: 15.8 gallons
Curb weight: From 3,473 pounds
IIHS safety rating: Top Safety Pick+
Limited vehicle warranty: 3 years/36,000 miles
Powertrain warranty: 5 years/100,000 miles
Corrosion warranty: 3 years/unlimited miles
Vehicle assembly: Sterling Heights, Michigan

GM Products Are Comprised of More American Parts Than Any Other Manufacturer

June 9, 2015 by admin 1 Comment

American Made: Chevrolet Corvette Stingray

In the latest Kogod study, the Corvette Stringray slipped by several percentage points.

The General Motors Company has taken its share of lumps, some of it deserved. But in one area it excels, what has everything to do with where many of its vehicles are produced. And that location is important to some American consumers, who hold tightly to “buy American” even as global manufacturing continues to rise.

The Kogod Made in America Auto Index is one of the more cited studies for determining US-made content. it has been fashioned annually for the past three years by Associate Professor Frank DuBois, an authority in global supply chain management at American University’s Kogod School of Business (Washington, DC).

American Made: Six Scoring Factors

The Kogod study was conducted in February 2015 and looked at data procured from the American Automobile Labeling Act (AALA). The study measured six factors to assign a score.

First, the profit margin — where the automaker’s global headquarters is located.

Second, labor costs— where the car is assembled.

Third, research and development.

Fourth, the location of assembly. Specifically, inventory, capital and other expenses.

Fifth, where the engine and transmission are produced.

Sixth, the location of production of the body, chassis, interior, electrical and other components.

The study also takes into consider the National Highway Transportation Safety Administration’s own AALA “domestic content score.” Lastly, the Kogod study looked at 332 vehicles. And because there were countless tie scores, there are only 83 ranked positions.

Toyota Camry

The Toyota Camry is tied for the highest American content for a Japanese model.

GM, Ford Pace the Study

With the Kogod measurement criteria, GM swept the two top positions by virtue of its midsize crossover utility vehicles (i.e., Buick Enclave, GMC Acadia, Chevrolet Traverse) as well as for the Chevrolet Corvette and the Cadillac CTS Coupe. All five models scored 87.5 percent for domestic content.

GM cleaned up second place at 83 percent with its line of midsize trucks (Chevrolet Colorado and GMC Canyon) as well as with its traditional, full-size vans (Chevrolet Express and GMC Savana).

But immediately behind the GM quartet coming in at 82.5 percent were the first Ford vehicles — Expedition, Explorer and the F-Series pickup trucks as well as seven GM vehicles, including the Buick LaCrosse, the Cadillac CTS sedan and the Chevrolet Malibu.

Chrysler, with its US headquarters in Auburn Hills, Michigan, but with its global headquarters in London, likely suffers on account of its foreign ownership. Even so, the Jeep Cherokee Limited and Cherokee Limited 4×4 registered a 79.5 percent US content rating.

2015 Ford Expedition

American made: 2015 Ford Expedition.

Honda and Toyota Shine

A pair of traditional foreign manufacturers still managed to crack the top 10. Indeed, Honda and Toyota, Japanese automakers with a long and deep presence in the North American market, including the United States, fielded several models. Scoring a 78.5 percent content rating was the Honda Odyssey, a minivan designed and built for the US market. That score was also claimed by Toyota with its Camry midsize sedan (the best-selling car in the United States) and the Sienna minivan.

This year’s list reflects some significant changes. Notably, the Ford F-150 and Corvette Stingray no longer occupy the top spot. Both models are all-new.

Matt Blunt Speaks Bluntly

Offering comment about the latest study was Matt Blunt, President of the American Automotive Policy Council. The council represents the traditional “Big Three” US automakers only.

Said Blunt, “We’re proud to see the top thirty-three automobiles in this study are produced by American automakers. Our auto manufacturers are well known for the quality of their products and for the millions of jobs they support across the country. They understand the significance of ‘American made’ and execute most of their research and development right here at home.”

That growth and development leads to economic augmentation, including jobs for Americans. Indeed, whenever a manufacturer sets up shop in the United States, new jobs from manufacturers, suppliers, and local companies follow.

Jeep Grand Cherokee

The Jeep brand has a strong American presence.

The Money Trail

Foreign manufacturers just might take exception to the survey, especially for those companies with a strong presence in the states. Yet, when it comes to following the profit trail, monies that might boost the American economy ultimately travel overseas to headquarters in Japan and Germany primarily, a sticking point for a certain breed of red, white and blue consumers.

See Also — Consumer Car Loans Reach Record Lengths