Tag: Fiat

Fiat Chrysler Proposes Merger with France’s Renault

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  Fiat Chrysler proposed a 50-50 percent merger Monday with Renault, a union that would create the world’s third biggest automaker. The merger, if it happens, would vault the new company, with annual sales of 8.7 million vehicles, into a position ahead of General Motors and behind only Volkswagen and Toyota, both of which sell about 10.6 million. The merger could give the combined companies a better chance in the battle among auto manufacturers to build new electric and autonomous vehicles. Investors in both companies showed their initial approval of the announcement, with Renault’s shares jumping 15 percent in afternoon trading in Paris and Fiat Chrysler stock up more than 10 percent in Milan. The proposal calls for shareholders to split ownership of the new company. Fiat Chrysler said the deal would save the combined companies $5.6 billion annually with shared payments for research, purchasing and other expenses. The deal does not call for closure of any manufacturing plants but the companies did not say whether any employees would lose their jobs. The deal would give Fiat access to Renault’s electric car technologies, allowing it to meet the strict carbon dioxide emission standards the European Commission is enacting. For its…

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Fiat Chrysler seeks up to $160 million in tax incentives from Michigan

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by Tyler Arnold   Fiat Chrysler Automobiles (FCA) is applying for up to $160 million in tax incentives from the state of Michigan to help offset some of the costs of the company’s planned investment in Detroit. “We are excited to make a multi-billion-dollar investment that will create thousands of good-paying, union jobs, both in the construction of the new plant and, of course, in its operation for many years to come,” Kevin Frazier, corporate communications manager for Fiat, said in an email. “We know, and generations of Detroiters know, that an automotive assembly plant has the potential to make the city and its neighborhoods more vibrant places for families and individuals to live and work,” he said. Under the plan, Fiat says it will invest $2.5 billion in the Detroit area, which the company expects will create about 5,000 jobs. Fiat has requested the tax incentives to assist with the two largest investments – modernizing existing plants to build Jeeps and the Dodge Durango. The company will spend $1.6 billion on converting the two Mack Avenue Engine Complex plants into assembly plants for the next generation Jeep Grand Cherokee and the Jeep SUV as well as plug-in hybrid models.…

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Fiat Chrysler Names Jeep Boss to Replace CEO Stricken with Illness

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Mike Manley

Reuters   Fiat Chrysler named on Saturday its Jeep division boss, Mike Manley, to take over immediately for Chief Executive Sergio Marchionne, who is seriously ill after suffering major complications following surgery. The carmaker said British-born Manley, who also takes responsibility for the North America region, will push ahead with the midterm strategy outlined last month by Marchionne, who had been due to step down next April. Marchionne, 66, was credited with rescuing Fiat and Chrysler from bankruptcy after taking the Italian carmaker’s wheel in 2004. On Saturday, he was also replaced as chairman and CEO of Ferrari and chairman of tractor maker CNH Industrial — both spun off from Fiat Chrysler Automobiles in recent years. “FCA communicates with profound sorrow that during the course of this week unexpected complications arose while Mr. Marchionne was recovering from surgery and that these have worsened significantly in recent hours,” the statement said. FCA disclosed earlier this month that Marchionne, a renowned dealmaker and workaholic, was recovering from a shoulder operation. But his condition deteriorated sharply in recent days when he suffered massive complications that were not divulged. Ferrari named FCA Chairman and Agnelli family scion John Elkann as new chairman, while board…

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Nearly a Half-Million Dodge Ram 2500 Trucks Recalled Over Fire Risk

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Fiat Chrysler Automobiles initiated a voluntary recall of 494,417 Dodge Ram 2500 trucks worldwide after a potential of fire due to a malfunctioning water pump was discovered. “Affected are model-year 2013-17 Ram 2500 and 3500 pickups; and 3500, 4500 and 5500 chassis cabs,” the company said in a statement, released Tuesday. The recall, limited to trucks with 6.7-liter engines, applies to some 443,000 trucks in the United States. Another 50,000 trucks in Canada and across the world may also be effected. “Customer feedback prompted an FCA US investigation that discovered certain trucks are equipped with a water-pump bearing that, after exposure to certain conditions, may overheat and potentially cause an engine-compartment fire,” the company stated. “Compromised water-pump function may activate a warning light in an affected vehicle’s instrument cluster. Customers are urged to consult their dealers whenever they observe warning lights.” Fiat Chrysler said that customers affected by the recall would be advised when service is available. The water pumps will be inspected and replaced if necessary. The potentially faulty water pumps are no longer being installed in trucks,” the company said. “As always, FCA US urges customers to heed information on all recall notices; those who have questions or concerns may…

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