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Fiat Chrysler Product Delays Mount

June 30, 2015 by admin Leave a Comment

Product delays will keep several Jeep, Ram, Dodge and Chrysler products from reaching showrooms when originally planned. FCA is pouring its resources into Alfa Romeo, a gambit that might backfire.

Alfa Romeo Guilia — FCA is pinning its hopes on the Alfa Rome Giulia.

Fiat Chrysler Automobiles (FCA) has been in the news a lot lately, mainly due to chief executive Sergio Marchionne’s efforts to find his company a partner. The company itself is a new union of European and North American enterprises, but Marchionne insists that FCA could cut its costs by partnering with another automaker.

For FCA, the automaker is battling two problems: its debt levels are high and profit margins are low, twin threats to a company’s vitality when the economy is good as well as to its viability when the economy takes a downturn. Perhaps seeing that the next downturn is looming, Marchionne has been redoubling his partnership efforts.

Alfa Romeo Guilia

Marchionne is also gambling that Alfa Romeo will make huge inroads as new products come to the market. Last week, Alfa showed the world its midsize Giulia, a luxury sedan that FCA says will lead an eight-car onslaught in a bid to elevate this once moribund marque.

The new model has the looks to be a winner, but executing a flawless introduction is key. Moreover, competitors such as BMW, Jaguar, Cadillac, Lexus, Mercedes-Benz, Lincoln, Infiniti, Audi, and Acura are not about to cede marketshare to Alfa Romeo without putting up a fight.

Pouring billions into propping up Alfa Romeo means that FCA’s other brands will have to make do with less. Or at least wait a bit longer for new products to arrive.

Jeep and Ram Product Postponements

Just last week Automotive News reported that the planned redesign of the Jeep Grand Cherokee for 2017 will be put off until late 2018 or even later. And it isn’t the first product delay noted.

Because of the Grand Cherokee push back, the upcoming Grand Wagoneer flagship will be delayed as well. The new, full size model would essentially complete the product line, giving the brand strong models from top to bottom.

In early June, Reuters reported that FCA’s big profit model, the Ram 1500, would be delayed by several months, missing its mid-2017 debut. Instead, November 2017 has been targeted as a more likely introduction date.

The Jeep Wrangler, initially planned for an early 2017 release, isn’t expected to arrive until July 2017. Two issues may factor in the Wrangler’s delay:

1), a decision to reverse course and stay with a body-on-frame model instead of the earlier proposed unibody design and,

2), FCA hasn’t announced where it will be built. The Wrangler has long been produced in Toledo, Ohio, but production can be moved elsewhere. Likely, it will be part of the UAW’s negotiating strategy when contract talks are held this September.

Additional product delays will likely involve the Chrysler 300.

Additional Product Delays

Delays for higher profit line models follows the postponement of production revamps for several lower cost models, including the compact Dodge Dart sedan and the Dodge Journey crossover. Instead of new models arriving in mid-2016, both vehicles will likely get refreshed and wait an additional three years for revised models.

Other vehicles that may see delays include the Chrysler 300 and Dodge Charger sedans as well as the Dodge Challenger coupe. And the singular replacement model for the Jeep Compass and Patriot due out early next year will be delayed by at least six months.

Saving Money: At What Risk?

The product delays will allow FCA to put off some of its expenditures to later dates, possibly in a bid to see if Alfa Romeo takes off. A promising Alfa Romeo brand could make FCA a more desirable partner, but it comes as a huge gamble, especially if the product delays send customers shopping for newer designs elsewhere.

Meanwhile, FCA’s bid for GM remains in play. Earlier this month the two companies hired financial advisers to assist them. Furthermore, hedge fund Greenlight Capital snapped up more than 9 million shares of GM stock in the first quarter of 2015.

Lastly, John Elkann is chairman of FCA and oversees the Exor fund in Italy. He is the grandson of Gianni Agnelli and has been advising the family on how best to take on GM. His skill as an investment banker included a hostile takeover of a reinsurance company, PartnerRe. USA Today says that Elkhann “has no qualms about becoming an activist investor.”

See Also — Fiat Chrysler Automobiles: No Takers

Give Me a Chevrolet “B” as in Bolt

April 20, 2015 by admin 5 Comments

Naming conventions aside, the Chevrolet Bolt brings a more reasonably priced electric vehicle to the market for the 2017 model year. Gas prices are expected to trend higher, possibly increasing demand for all electric vehicles with it.

General Motors has decided to embrace controversy after all. In January, at the North American International Auto Show in Detroit, the automaker unveiled the Chevrolet Bolt concept. That pure electric vehicle was well received by journalists and show visitors alike. And within just weeks of the show, GM announced that it intends to bring this small EV to market.

What was assumed by some is that GM would throw out the Bolt’s name for the production model, as it sounds too much like the Chevrolet Volt, its established, plug-in hybrid electric vehicle. However, Chevrolet’s marketing boss, Tim Mahoney, confirmed last week that the brand is sticking with the Bolt nomenclature when the diminutive EV is released for the 2017 model year. Mahoney confirmed same at a press event held by the Washington Automotive Press Association on Wed. and in a related interview with USA TODAY.

B as in Bolt

So, that will be “B” as in boy or “V” as in Victor when potential buyers inquire with dealer sales staff about the Chevrolet Bolt or Volt, me thinks. Hopefully, any confusion at the dealership level will be eliminated immediately.

GM surprised everyone with the concept Bolt’s release. This vehicle, with a final price of about $30,000, has a 200-mile electric range. That range more than triples the capacity of some models, such as the Mitsubishi i-MiEV. Extended range is critical to EV acceptance and at present only Tesla Motors offers models that meet the higher threshold.

2017 Chevrolet Bolt

Renewed Electric Vehicle Commitment

That GM is pushing forward with the Chevrolet Bolt comes as it renews its commitment to two other EV models — the Chevrolet Volt and the Cadillac ELR. The Volt hit the market for the 2011 model year and the second generation model will debut this summer. The Cadillac ELR, based on the Volt platform, has its first full year in 2014, barely cracking the 1,000-unit sold mark. Nevertheless, an updated version of that model is scheduled, and its price has been slashed by $10,000.

Low gas prices are not keeping GM from moving forward with its long-range plans. Most analysts believe that the current gas prices, averaging just below $2.50 per gallon as of this writing, will not hold. Indeed, some have forecast $4 per gallon gasoline will return within the next two or three years. Therefore, product timing means vehicles like the Bolt, Volt and ELR may receive additional scrutiny from potential buyers.

The Chevrolet Bolt will be the brand’s second pure electric vehicle. It currently retails the Spark EV, an A-class variant to the gasoline-only model that is itself selling reasonably well. For 2016, GM has reduced the Spark’s price by 6 percent.

Reducing Range Anxiety

The two factors that are inhibiting electric vehicle acceptance — price and range — are being aggressively attacked by the manufacturers. Certainly, the $7,500 tax credit offered for pure EVs continues to help, what will allow GM to sell the Chevrolet Bolt for less. Range anxiety, a huge detriment for many buyers, will shrink. Indeed, the second generation Nissan LEAF may also broach the 200-mile range just as Tesla Motors ups the range of its base Model S to 240 miles.

Manufacturers and suppliers have also been touting quicker recharging alternatives, including 240-volt charging units in the home and DC fast charging stations designed to provide a full charge in fewer than 30 minutes. Thus, if drivers time their trips correctly, they can stop for a break, recharge their vehicles, and continue with their extended journey. The 2017 Chevrolet Bolt would be one such vehicle that will benefit from this service.

The Big Six Automakers Defined

September 7, 2010 by admin 1 Comment

We automotive writers will sometimes use language most everyday folks don’t understand. That’s a problem, because when you’re attempting to explain something in simple language, automotive jargon can creep in and leave the reader wondering what you are talking about.

Big Six

Auto Trends Magazine attempts to keep the language simple in a bid to reach all car-buying consumers with information that interesting and informative. To that end, we’ll be tackling some of the terms you may not be familiar with starting with the “Big Six” automakers.

Simply put, the Big Six automakers are the six car manufacturers who are the leaders in the market in terms of sales. At one time they were referenced as the “Big Three” but that was decades ago when Detroit iron dominated Japan’s market share was minimal.

Today, the Big Six in order of 2009 sales are the General Motors Company, Ford Motor Company, Toyota Motors, American Honda, Chrysler Group, LLC and Nissan Motors.[1]

Contact Information

The following list is the U.S. contact information for each manufacturer and related notes:

General Motors Company
300 Renaissance Center
Detroit, MI 48235
313-556-5000
gm.com

GM Notes: GM’s claim as No. 1 automaker ended in 2008 after a seven decade reign. In 2009, the company filed for bankruptcy and has since closed down or sold four brands: Saturn, Saab, Hummer and Pontiac. Today, the company manages four U.S. brands: Chevrolet, Cadillac, GMC and Buick.

Ford Motor Company
16800 Executive Plaza Drive
Dearborn, MI 48126
313-322-3000
ford.com

Ford Notes: Ford escaped bankruptcy, having hocked its assets to keep its operation going. The company is in the process of shutting down its Mercury brand, leaving it with Lincoln and Ford only.

Toyota Motor Sales USA Inc
19001 South Western Ave.
Torrance, CA 90501-1196
800-331-4331
toyota.com

Toyota Notes: The world’s largest automaker sells Toyota, Lexus and Scion brands. Toyota is the bestselling make in America, outselling both Chevrolet and Ford.

American Honda Motor Company Inc.
1919 Torrance Blvd.
Torrance, CA 90501-2746
310-783-2000
honda.com

Honda Notes: Besides selling Honda and Acura vehicles, this Japanese automaker sells Honda engines, motorcycles, engines and lawn products.

Chrysler Group LLC
1000 Chrysler Drive
Auburn Hills, MI 48326-2766
800-334-9200
chryslerllc.com

Chrysler Notes: Chrysler went through bankruptcy in 2009, less than two years after severing its relationship with Daimler. Today, the company is tied in with Fiat and markets four brands: Dodge, Chrysler, Jeep and Ram.

Nissan Motor Corporation
1410 Fort Negley Blvd.
Nashville, TN 37203-5036
615-259-1536
nissanusa.com

Nissan Notes: Managing the Nissan and Infiniti brands, this Japanese automaker first began to sell its cars in the US as Datsun, switching to Nissan in the early 1980s.

Up Next

Coming up fast on Nissan is Hyundai.[2] Combined with Kia, the Hyundai-Kia juggernaut may change the Big Six listmakers or, perhaps, expand it to become the Big Seven.

References

[1] Automotive Digest: Cost Of Incentives For “Big Six” Automakers – June 2007

[2] USA Today: Hyundai looms as sales threat to Big 6 automakers

What Does It Take To Get A Driver’s License?

October 5, 2009 by admin Leave a Comment

Driving a car is a privilege, not a right, which means you must pass a state-mandated test in order to receive your driver’s license. Actually, two tests is more like it: a written or oral test demonstrating your understanding of various signs, laws, and procedures as well as a road test.

driver Requirements for obtaining a driver’s license vary from state to state, but generally most states require that the following steps be taken.

Eligibility

Most states require you to be a citizen of that state or a legal resident in order to obtain a driver’s license.

You must be of a certain minimum age, have correctable vision, and be responsible enough to handle driving a car.

Learner’s Permit

Some states allow drivers to obtain a learner’s permit before getting their driver’s license. With a permit, young or new drivers can drive a car only with a licensed driver present. Restrictions and requirements vary from state to state, but usually mean that the leaner can only drive during certain times of the day (such as daylight hours) and must have a permit for a specific length of time before being eligible to take their road test.

Permits are often given following a written test; some states shorten the learning time if new drivers complete a certified driver’s education course.

Practice and Study

Drivers are expected to spend ample time practicing their driving skills in advance of taking their road test.

Practicing parallel parking, hand signals, stopping and starting, driving under various road conditions and learning the laws, procedures, alcohol limits and signs as outlined in the driver’s handbook are critical steps to successfully prepare for solo driving.

Road Test

On the day of taking your road test, arrive at the Department of Motor Vehicles (DMV) office with all of the necessary paperwork in hand including your permit, insurance, your adult escort’s driver’s license as well as other required documentation. Be prepared to pay whatever fees are assessed and carefully follow the DMV officer’s instructions as you get behind the wheel to take your road test.

Stay calm, stay focused. Put into practice everything you have learned over the past several months as you drive. Listen, act and obey as your DMV officer instructs you through each part of your examination.

Did you pass? If so, congratulations – you’re now a licensed driver. If you failed your test, cheer up: lots of people need to take their test again. Give yourself some time to pull everything together, returning to the DMV when you’re ready to try again. And don’t be too hard on yourself — a USA Today article outlined had difficult driving tests have become.

Photo Credit: Rita Mezzela