• Tag Archives Pickups
  • Ford Recalls Nearly 185K F-150s

    Ford announced it’s recalling almost 185,000 F-150 full-size pickups. The 2021 and 2022 model-year trucks are experiencing driveshaft problems that could cause it to fracture.

    All-new F-150
    Ford is recalling nearly 185,000 F-150 pickups from the 2021 and 2022 model years.

    The issue only affects certain F-150 Crew Cab 4×4 pickups, according to the filing with the National Highway Traffic Safety Administration. The company’s began examining the issue since July.

    The truck’s underbody thermal/acoustic insulators can loosen over time. If they come in contact with the truck’s aluminum driveshaft, they can cause scoring or marks. If this goes on long enough, the heat generated each time can eventually crack the driveshaft.

    Potential results if the issue is not repaired

    “A fractured driveshaft may result in loss of motive power,” the report states, “unintended vehicle movement while the vehicle is in park if the parking brake is not applied, and may result in secondary damage to surrounding components.”

    Additionally, once fractured, the driveshaft could break loose and touch the ground, causing the driver to lose control of the pickup, potentially resulting in a crash. The company is unaware of any accidents or injuries caused by the problem.

    2021 Ford F-150 - at work site
    Some Ford F-150 pickups are facing issues with the aluminum driveshaft on the truck.

    Owners are advised to look for a “loose underbody insulator.” They should also listen for a rattling, clicking or clunking noise due to the loose insulator coming in contact with the driveshaft. The scoring or marking on the driveshaft described earlier may also be visible.

    Next steps

    Ford’s taken steps to resolve the problem during production by swapping the underbody thermal acoustic insulator for an under-carpet thermal patch at the two plants — Dearborn (MI) Truck and Kansas City (KS) Assembly — already.

    Dealers received the notice Tuesday, and owners will begin receiving notices in the mail shortly. They will be instructed to make an appointment with their dealer to have “positive attachment features adde to the underbody insulators.”

    They’ll also inspect the driveshaft for scoring or marks that may have already occurred. This will be done at no expense to the truck owner.

    As of Dec. 7, Ford received 27 reports of fractured aluminum driveshafts possibly related to sagging underbody insulators on the F-150s, the automaker said in an Automotive News report.


  • NHTSA Investigating Ram’s Diesel Pickups

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    Ram

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    The National Highway Traffic Safety Administration has opened an investigation into nearly 605,000 heavy-duty Ram trucks. A report from the regulator’s Office of Defects Investigation has tabulated 22 complaints from the 2019 and 2020 model years, all of which use 6.7-liter Cummins turbo diesel engines, spurring the NHTSA to launch a formal investigation. Complaints revolve around loss of motive power, with most incidents occurring above 25 mph and resulting in the “permanent disablement of the vehicle.”

    While the public was not made aware of the investigation until Monday, the agency launched its probe last Thursday on October 14th. The goal will be to establish how widespread the presumed defect is, what exactly caused it, and any potential safety hazards relating to the issue. Some headway has already been made, however. 

    Back in 2019, Fiat Chrysler Automobiles (now Stellantis) issued Warranty Bulletin D-19-02 to dealers. The memo requested stores participate in a campaign to “collect, monitor and correct quality issues” on certain MY 2018-2020 Ram trucks equipped with the 6.7-liter Cummins. The NHTSA’s action summary states that this resulted in FCA and an unnamed supplier collecting and inspecting high-pressure fuel pumps.

    Vehicles under suspicion include all Ram 2500, 3500, 4500, and 5500 HD pickups from the 2019-2020 MY. The NHTSA plans on looking into the trucks to determine whether or not it needs to press Stellantis to launch a recall. That means asking the manufacturer to give its take on the situation while it compiles warranty claims, injury reports, and whatever FCA previously had on those suspect fuel pumps.

    Regulators have been incredibly hard on diesel vehicles ever since Volkswagen’s emissions scandal upended the industry in 2015. While a part of me wants to believe the NHTSA just has it out for Ram’s HD lineup (since a few have asked), it seems far more plausible that this was a standard, shrug-your-shoulders defect. Selective environmental regulations have made diesels cost more as they’ve gradually amassed a bevy of pollutant controlling hardware while also complicating powertrains to a point that has lessened their overall effectiveness. But the impact this has had on their reliability is less obvious and may have nothing to do with a bunch of subpar fuel pumps.

    Let’s face it, U.S. regulators haven’t been shy about hitting manufacturers with emissions-focused recalls backed by the Environmental Protection Agency and/or California Air Resources Board in the past. If they wanted to chide Cummins or FCA/Stellantis over pollution, they could have done so overtly.

    Stellantis has said it plans on cooperating with the NHTSA fully, launching an investigation of its own for good measure. So we should have some answers soon, including the name of the supplier. In the meantime, you might want to keep a closer eye on how your HD Ram is running if it falls under the purview of the investigation.

    [Image: Stellantis]

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  • “Zoom Zombies” Are the Driving Dead

    Zoom call

    Too many of these could turn you into a zombie if you have to climb behind the wheel afterward.

    If you’re one of the millions of Americans who have been working from home and spending hours a day in video meetings you might notice it can become difficult pulling your thoughts back together at the end of the day. And if you then have to climb behind the wheel that could prove deadly.

    A new study raises concerns about “Zoom Zombies,” motorists who can’t fully focus on the road ahead after a day of videoconferencing. This may be one of the reasons why in 2020 U.S. highway deaths posted their biggest year-over-year increase in nearly a century.

    “COVID-19 fundamentally changed the way we interact with our vehicles,” said David Timm, founder and CEO of Root Insurance, which raised concerns about Zoom Zombies in its annual Distracted Driving Awareness Survey. “As many abruptly shifted to a virtual environment, Americans’ reliance on technology dramatically increased along with their screen time, causing a majority of drivers to carry this distracted behavior into their vehicles.”

    Covid-19 and the distracted driving pandemic

    rollover crash

    NHTSA estimates that more than 10% of highway deaths stem from distracted driving.

    Distracted driving has become an increasingly serious problem as more and more motorists interact with smartphones and other technology while behind the wheel. Even before the COVID pandemic, the National Highway Traffic Safety Administration estimated that more than 10% of highway fatalities involved distracted driving. Preliminary analysis suggests that has gone up since last year’s lockdowns began.

    The Roots study found 64% of the U.S. motorists it surveyed acknowledging they check their phones while driving. That’s up 2% from last year, and 6% from the 2019 Distracted Driving Awareness Survey. Meanwhile, 53% of the respondents said they check their phones within the first 15 minutes behind the wheel — a 9% jump from 2019 — when they should be trying to shift focus to driving.

    Add the fact that drivers are downplaying the risks. The study found three in 10 drivers don’t see the risk of driving while using a mobile phone. That’s up from 24% just a year ago.

    But the study raised another concern: even when motorists aren’t texting or chatting on their phones, they still might not be paying full attention to the job of driving.

    Lexus Driving Disrupted distracted drivers

    Younger drivers are more likely to have trouble concentrating on the road after engaging in some sort of video conference call.

    The younger the driver, the worse the problem

    Root reports that 54% of the 1,819 adult motorists it surveyed have had trouble concentrating on the road after making videoconference calls with Zoom, Microsoft Meet or some other software platform. The younger the driver, the worse the problem. For Gen Z motorists, 65% reported losing focus while driving, while it was 61% for millennials and 48% for Gen-Xers.

    “The problem with distraction is huge and it’s not just checking e-mail or texting,” said Russ Rader, an executive with the Insurance Institute for Highway Safety. “There’s the risk of cognitive distraction, looking at the road while your thoughts are elsewhere. That zoning out may mean you don’t notice a dangerous situation soon enough to react.”

    Whether you call them “Zoom Zombies” or “Zoombies,” the problem has gained widespread attention, and concern — especially when it comes to driving.

    If it appears drivers has seemingly forgotten how to drive as pandemic-related restrictions eased, it’s because, well, they have.

    “I think computer use, in general, can overload you,” especially after a series of videoconference meetings, said Joan Claybrook, a former NHTSA administrator and longtime auto safety advocate. “After you get into your car you may be operating on auto pilot.”

    Driving skills have atrophied

    That’s all the worse as we emerge from the pandemic, experts told TheDetroitBureau.com. During the last 12 months, most Americans have been driving less and even as roadways begin to look more crowded, “driving skills have atrophied for many people,” warns Sam Abuelsamid, principal auto analyst with Guidehouse Insights.

    “It’s become harder to drive safely because you’re going to forget some of the skills you learned over time,” added Abuelsamid. “It’s not as easy as just jumping back on a bike.”

    While he believes Zoom fatigue is “likely a contributor to the increase in highway fatalities,” how much it contributes is uncertain. What’s clear is that highway fatalities soared in 2020, even as motorists slashed the number of miles they drove.

    Record surge in fatalities

    Preliminary data indicated as many as 42,060 Americans were killed in motor vehicle crashes last year, the National Safety Council reported last month. That was an 8% increase from 2019. That surge occurred even though Americans drove a total of 2.83 trillion miles in 2020. That was a 13.2% decrease from the year before, marking the lowest level of driving by American motorists in two decades, reported the U.S. Federal Highway Authority.

    Traffic fatalities rose in 2020, rising 8%, but the death rate, the number of deaths per miles driven, jumped 24% compared with 2019.

    So, on a per mile basis, the death rate surged by 24% in 2020, the biggest year-over-year increase since 1924.

    Why does “Zooming” take so much out of people? It’s not like sitting around a table for an in-person meeting. Key visual cues are absent, such as body language, while others can overwhelm, according to psychologist Sharon Parker, director of the Centre for Transformative Work Design.

    They tend to be sharply focused, without the normal chit-chat and other interactions that come before — sometimes during — and after in-person meetings, Parker wrote. One result: participants come away struggling to interpret what actually happened rather than transferring attention to what comes next.

    And that may extend beyond the work day to when you’re behind the wheel and should be focusing on the road ahead.

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  • GM Grows Board of Directors’ Diversity with New Whitman, Tatum

    Meg Whitman, a technology leader and former head of Hewlett Packard Enterprise, will join the General Motors Board of Directors.

    What was already the most diverse board of directors in the automotive industry just go a little more so, General Motors Co. expanding its board, adding Meg Whitman and Mark Tatum to fill the spots.

    The move grows GM’s board from 12 to 13 members. Adding Whitman, a former Republican gubernatorial candidate in California and CEO of Quibi Holdings LLC, a media startup, results in women filling seven of the posts on the board. It makes GM the only automaker where women comprise a majority of the board.

    Tatum, who is of Asian and African-American heritage, is the National Basketball Association’s deputy commissioner and chief operating officer. Diversity within the company has been a priority for Chairman and CEO Mary Barra since her appointment in 2013.

    Diversity is a strength

    GM quickly pointed out that the diversity of the company’s newly expanded board isn’t just limited to gender or ethnic background.

    Diversity has been a theme during Mary Barra’s tenure as GM’s Chairman and CEO.

    The company’s 12 independent directors have senior leadership and board experience in information technology, digital commerce, retail, higher education, investment management, international affairs, defense, transportation, cybersecurity, and pharmaceuticals, among others.

    “Our diverse Board of Directors is a competitive advantage for GM as we work to deliver a better, safer and more sustainable world,” said GM Chairman and CEO Mary Barra. “Mark and Meg will bring unique experiences to the Board, especially in technology, brand building and customer experience that will help us drive value for shareholders and other GM stakeholders now and into the future.”

    Diversity is a focus in the company’s executive ranks as well. Barra’s overseen a significant shift of women into higher level roles at the company during her tenure. Some of those include Dhivya Suryadevara as Chief Financial Officer, the first-ever woman to hold the job, and Alicia Bolder Davis as the Head of Global Manufacturing.

    Others include Ann Cathcart Chaplin, corporate secretary and deputy general counsel; Margaret Curry, vice president, Tax and chief tax officer; Julia Steyn, head of urban mobility and Maven; Kimberly Brycz as senior vice president, Global Human Resources; and Pamela Fletcher, vice president, Global Electric Vehicle Programs. Both Boler Davis and Suryadevara left the company for other opportunities in the last 18 months.

    Results are showing

    Mark Tatum, deputy commissioner and chief operating officer of the National Basketball Association, will join the General Motors Board of Directors.

    The push to diversify, at least by gender, is beginning to get noticed. GM was the top ranked company in the U.S. on the Gender Equality Global Report & Ranking for 2021. It was No. 5 globally, with a score of 71%, up from No. 11 and a score of 68% last year. GM was the only automaker in the Top 100.

    Researchers noted GM achieved gender balance at the board level (at the time the report was issued, there were six women on GM’s board). Additionally, women represent 20% of the executive team, 32.2% of senior management and 21.8% of the workforce.

    “They offer a living wage and flexible work arrangements to their employees. General Motors is the only company in the U.S. and globally that publishes a mean, unadjusted gender pay gap of less than 3% in all pay bands, and they have a strategy to close the gender pay gap. General Motors also publishes all eight of Equileap’s recommended policies that promote gender equality,” the report noted.

    It is compiled by Equileap, a data research firm, which researched 3,702 companies based on 19 gender equality criteria, including gender balance from the board to the workforce, as well as the pay gap and policies relating to parental leave and sexual harassment. The average score for the Top 100 companies globally was 64 percent, an increase of 2 percentage points from last year.

    Other automakers making moves

    Alexandra Ford English has been nominated for the Ford Motor Co. board of directors.

    GM’s top domestic rival, Ford Motor Co., currently has three women on its board of directors and nominated a fourth, Alexandra Ford English, daughter of current Executive Chairman Bill Ford Jr., who is virtually assured of election to the board later this year.

    Ford English, 33, recently accepted another board position that elevated her profile. She took on the role as Ford Motor Co.’s representative to the Rivian board of directors. Ford Motor owns an equity stake in the EV maker. She’s held roles in corporate strategy at companies like Tory Burch and Gap Inc. as well as the automaker, which she joined in 2017.

    The company’s global workforce is 28% female and 20% of its leadership comprises women. Some of it is top officers include Joy Falotico, president, The Lincoln Motor Co.; Lisa Drake, chief operating officer, North America; Suzy Deering, chief marketing officer; Dianne Craig, president, International Markets Group; Elena Ford, chief customer experience officer; Cathy O’Callaghan, vice president, Controller; and Kiersten Robinson, chief people and employee experiences officer.

    Falotico, Drake and Deering have all moved into their roles in the last 12 months with the first two moving from other jobs within the company. Deering arrived at the automaker in January from eBay, where she was global chief marketing officer. She actually took over for Falotico, who now focuses solely on running Lincoln.

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  • GM Inks New Deal with Innovative EV Battery Maker

    GM’s next-gen lithium metal batteries, the expected energy density increase may mean higher range in a similarly sized pack or comparable range in a smaller pack.

    General Motors continued its charge to develop better batteries, announcing its partnership with lithium metal battery startup SolidEnergy Systems.

    The company, also known as SES, is working on technology that would reduce the size of EV batteries while increasing driving range of the vehicle they’re used in. GM officials have long discussed the need to reduce battery costs, another factor in the production of electrified vehicles is weight.

    Batteries are heavy and developing and using a smaller battery equates to weight savings, helping to further expand the improved range afforded by the batteries SES and GM are working to create.

    Lighter, farther, cheaper

    GM says its lithium metal battery with a protected anode offers the Big Three of EVs: affordability, high performance and energy density. The initial prototype batteries have already completed 150,000 simulated test miles at research and development labs at GM’s Global Technical Center in Warren, Michigan, demonstrating real-world potential, the company revealed.

    GM announced a joint development agreement with lithium metal battery innovator SolidEnergy Systems.

    The automaker isn’t just working with SES to bring lithium-metal batteries to fruition, but several other companies as well. However, it does have a history with SES, investing in the company six years ago through its GM Ventures arm.

    This new deal is the next step in that collaboration, and as part of that progression, GM and SES plan to build a manufacturing prototyping line in Woburn, Massachusetts, for a high-capacity, pre-production battery by 2023.

    Results mean EVs for all

    “Affordability and range are two major barriers to mass EV adoption,” said GM President Mark Reuss.

    GM’s prototype lithium metal batteries were developed at the company’s research and development labs in Warren, Michigan.

    “With this next-generation Ultium chemistry, we believe we’re on the cusp of a once-in-a-generation improvement in energy density and cost. There’s even more room to improve in both categories, and we intend to innovate faster than any other company in this space.”

    The goal is to incorporate these smaller, more powerful and less expensive batteries as part of the Ultium Platform that will be the basis for a slew of new EVs coming from the auto company. The first of those, the GMC Hummer hits the road this year.

    GM is working to complete its $2.3 billion plant to build the Ultium batteries in partnership with South Korea’s LG Chem. The pair is setting up shop in Lordstown, Ohio. Officials recently revealed two more plants could be in the works. The first would be near GM’s plant in Spring Hill, Tennessee.

    The company is investing $2 billion at that facility to prepare it to produce Cadillac’s first-ever all-electric model, the Lyriq. GM is investing $27 billion in electric and autonomous vehicles with plans to have 30 EV models available around the world by the end of 2025. The company declared it would end production of gas- and diesel-powered vehicles by 2035.

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  • New Vehicle Buyers Want Financing Info Before Shopping, Study Shows

    buying online

    New car buyers want to know what kind of financing they qualify for before they head out to the dealer.

    As new vehicle sales rebound from the impact of the COVID-19 pandemic, it appears that more and more potential buyers want to have more certainty about their financing before hitting the dealership sales floor.

    A new study from CarGurus.com, the global online automotive marketplace, shows that shoppers prefer to have some idea about what their financing options are before they head out the door to look at a vehicle.

    In fact, 93% felt that being pre-qualified for a loan would be helpful as they looked to get a good deal on a new ride. The study also showed that buyers aren’t as well as informed about their options as they could be. Although better than nine out of 10 wanted to be prequalified, a third didn’t realize they could do just that, and only half actually did get tentative approval for financing beforehand.

    Improving the shopping experience

    “Our research found that consumers are eager to purchase a vehicle in a similar fashion to buying a home, and they want know more about financing for this major purchase in advance instead of treating it as an afterthought,” said Madison Gross, director of Customer Insights at CarGurus.

    People want more information about financing, and are missing out on helpful tips when it comes to the purchase of a new vehicle.

    Pre-qualifying for auto financing gives shoppers more confidence, with 68% of believing that doing so would help them feel more confident and prepared to talk to dealers about financing, and 66% found value in pre-qualification because they wanted to complete more of the shopping process before visiting the dealership.

    Other findings included:

    • 46% of shoppers are concerned that their pre-qualification rates would not be final;
    • 41% are concerned that they would have to repeat the financing process at the dealership; and
    • 42% of shoppers wished they could see their monthly payment estimates while shopping for a car online before visiting a dealership.

    In addition to asking car shoppers about pre-qualification in advance of visiting the dealership, the study also aimed to learn more about their overall automotive financing knowledge.

    Potential buyers lack education

    The study also discovered that buyers weren’t entirely certain about the processes — and profits — of an auto dealership and how it may impact their experience. For example, shoppers believe that a vehicle’s price drives the most profit for dealerships (45%), while 30% think that auto loans do.

    Additionally, buyers consider different factors when it comes to the loan on their vehicle. For 37%, the monthly

    Buyers securing financing beforehand feel more confident in the buying process.

    payment and interest rate equally mattered most. However, the total price paid over loan life ranked at the top of 18% of buyers’ lists. In 7% of cases, the length of the loan drove their thinking.

    When presented with an imaginary car shopping scenario involving a 5-year loan with 5% APR for a $25,000 vehicle and $5,000 down payment, shoppers believed the following would have the greatest impact on monthly payments:

    • 46% – whether the interest rate increased from 5% to 8%
    • 29% – if the length of the loan increased from 5 to 6 years
    • 24% – if there were no down payment

    “According to the study, there is also a lot of room to educate consumers on the general ideas around automotive finance, which should ultimately provide a better shopping experience for both consumers and dealerships,” Gross said.

    In addition, the study delved into a wide array of similar automotive finance topics, some of which regards ways to improve shoppers’ experiences when purchasing a vehicle.

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  • Ford Loses $2.8B in Q4 as Restructuring, Pandemic Hit Bottom Line

    Ford CEO Jim Farley expects the company’s restructuring will begin to produce positive results.

    Ford Motor Co. ended 2020 posting a loss for the final quarter of the year as well as for the full year as the pandemic wreaked havoc on the company’s already difficult financial position.

    The automaker reported a net loss of $2.8 billion, or 70 cents per share, on revenue of $36 billion during the fourth quarter, pulling the full year’s results down to a net loss $1.3 billion, or 32 cents per share, on revenue of $127.1 billion.

    In the midst of a corporate-wide restructuring process to improve its profitability, the company was also hit hard — like most automakers — by the COVID-19 pandemic. While the numbers weren’t great, it’s a means to an end.

    “We are profoundly changing the trajectory of our earnings power,” said John Lawler Ford’s chief financial officer, “unlocking the tremendous value Ford can create for customers, shareholders and other stakeholders.”

    Sticking to the plan

    Ford CFO John Lawler said the automaker could lose 10% to 20% of its Q1 production due chip shortages.

    That earnings power is focused on securing an 8% adjusted EBIT margin, specifically 10% in the U.S. and 6% in Europe with the rest of the company’s regional operations turning a profit too. Lawler said the company’s third and fourth quarter results “provided evidence of progress” in the company’s effort to improve profitability.

    Despite the losses, Ford did improve its overall liquidity, finishing 2020 with $31 billion in cash and a total liquidity of almost $47 billion.

    On an adjusted basis, the company’s EBIT of $1.7 billion, up from $485 million during the year-ago period. The automotive EBIT margin was 3.8%. The company noted that the gains were “broad-based and largely resulted from improved pricing and lower structural costs, as well as the overlap with UAW contract-ratification costs in 2019.”

    Company officials acknowledged the year wasn’t what they hoped and were optimistic about 2021. Ford’s Lawler said the company was on course to earn $8 billion to $9 billion in adjusted EBIT – including a $900 million non-cash gain on its investment in Rivian – and generate $3.5 billion to $4.5 billion in adjusted free cash flow in 2021.

    Semiconductor shortage may hit bottom line

    This optimism comes despite an ongoing issue with semiconductor availability. Lawler said the company was diligently monitoring the situation, but it is “so liquid” that it’s tough to determine what the impact on the bottom line will be.

    He did estimate the company could lose as much as 20% of its first quarter production as plants are forced to shut down temporarily, and that those losses could continue throughout the first half of the year. It’s possible to make up some of that in the second half, he noted, but it was too early to tell.

    The shortages could lower Ford’s 2021 adjusted EBIT by $1 billion to $2.5 billion, he said. He added the company expects full-year cash and EBIT effects to be about equal – with quarterly cash implications more volatile, given the mechanics of company working capital.


  • Chrysler is No More as Stellantis Comes to Life

    Is this the last logo that will use the Chrysler name?

    Chrysler is dead.

    Perhaps a bit dramatic, but nevertheless, the merger between Fiat Chrysler Automobiles N.V. and Peugeot S.A. became effective today, resulting in Stellantis N.V. Shares of the newly formed Stellantis begin trading on exchanges in France, Italy and the U.S. starting Monday. All will use the ticker symbol STLA.

    The deal has been going through extensive regulatory approvals, twin shareholder votes and the necessary dottings of i’s and crossings of t’s for more than a year.

    As of today, that means that for the first time since June 6, 1925, when it was founded by Walter P. Chrysler, the Chrysler name will no longer exist as a corporate entity.

    (FCA CEO Manley gets new assignment following Stellantis merger.)

    Stellantis is alive! The company’s stock begins trading on three exchanges Monday.

    In many ways, the Chrysler name was a survivor. The company’s been through a variety of mergers, potential mergers and bankruptcies. It escaped the “merger of equals,” DaimlerChrysler from the late 1990s.

    It was essentially spared its life when the late Sergio Marchionne swooped in and offered to keep it going if the U.S. government would help it through bankruptcy in 2009. The final deal got done with Chrysler Group LLC becoming part of FCA US LLC to follow

    the naming convention of Fiat Chrysler Automobiles N.V. on Dec. 16, 2014.

    Chrysler Corp. fought its way through several near misses when it came to mergers as potential deals with Japanese automaker Mitsubishi, China’s GAC and most recently an effort to merge with Peugeot’s French rival, Renault S.A., a deal that was reportedly scuttled after demands by the French government, which holds an ownership stake in Renault, were too much for then FCA CEO Mike Manley to accept.

    (Fiat, PSA set to get EU go-ahead to complete Stellantis merger.)

    Then there was the effort by the aforementioned Marchionne to find a partner for FCA, seemingly almost any partner would do. He approached General Motors and was promptly rebuffed. He reportedly got the same treatment from Volkswagen. There was even a rumored dalliance with EV behemoth Tesla, which would have bolstered FCA’s basically non-existent electric vehicle program.

    The arrival of Stellantis means for the first time in 95 years the Chrysler name won’t be on a corporate marquee.

    It also survived a previous bankruptcy in the late 1970s, paying off the loans early with its charismatic CEO Lee Iacocca, who came over from Ford, helping to lead the company’s charge back to prosperity. Chrysler did enjoy one major merger success when it acquired American Motors in 1987, including – and especially – the Jeep brand.

    In fact, no one seems certain what the future holds for the Chrysler name period. Early in the process, officials said that all brands would be retained, but time and economics often change the equation and currently, the Chrysler brand offers just two products: the Chrysler Pacifica minivan and 300 sedan. Neither are in segments that are seeing sales gains.

    To be fair, there’s been some speculation about the survival of the Fiat name in the same vein. Fiat’s been around even longer, founded in Turin, Italy in 1899. In the U.S., it’s only offering the 500X in 2021.

    (Fiat Chrysler and PSA not exactly a “merger of equals.”)

    The Chrysler name isn’t the only vestige of FCA seemingly taking a step back as its CEO Mike Manley is no longer in charge, that duty going to PSA’s Carlos Tavares nor will he be on the board of directors as John Elkann, FCA’s chairman, will take that spot as the chairman of the new Stellantis. Manley, 56, is now Head of the Americas.


  • Automakers Join Broader U.S. Business Community in Curbing or Suspending Political Donations

    In light of the attack of the U.S. Capitol Building by rioters last week, GM officials are weighing the company’s options when it comes to PAC donations.

    A number of automakers have joined the growing push by U.S. businesses to suspend or entirely eliminate political spending in the wake of last week’s attempted insurrection by supporters of President Donald Trump.

    Scores of major corporations, from Hallmark to Dow, have reacted to the political violence that saw rioters break into the U.S. Capitol. In some instances, businesses have said they will suspend all political contributions. In other cases, companies are specifically targeting politicians and political groups that backed false claims that the election was rigged.

    Hallmark, for example, said it not only was ending financial support for Kansas Sen. Josh Hawley but was demanding he return previous campaign donations. The archconservative Republican has been seen as a leader in the “Stop-the-Steal” effort, caught on camera encouraging rioters as they approached the Capitol last Wednesday and then voting to reject the results of the election won by now President-elect Joe Biden.

    (Automakers, manufacturing trade group react in horror to Washington insurrection.)

    Ford executives said the automaker has suspended its PAC contributions “for now.”

    By and large, automakers have announced less aggressive responses to the what happened in Washington last week, though many did speak out against the violence, including Ford Chairman Bill Ford and CEO Jim Farley, as well as General Motors Chairman and CEO Mary Barra.

    Barra last week tweeted that, “The peaceful transition of power is a cornerstone of American democracy, and regardless of politics the violence at the U.S. Capitol does not reflect who we are as a nation. It’s imperative that we come together as a country and reinforce the values and ideals that unite us.”

    Asked Monday whether GM would also halt some or all political donations, a source said on background that the company is “weighing its options.”

    (Trump attacks GM, demands it move Chinese manufacturing operations “back to America.”)

    The company’s official response noted that, “While we have not determined our 2021 PAC spending at this time, GM PAC is committed to supporting and building relationships in a bipartisan manner, funds are contributed by GM employees and are distributed to support the election of U.S. federal and state candidates who foster sound business policies and understand the importance of a robust auto industry.”

    Fiat Chrysler was not donating to politicians prior to the events of recent weeks.

    For its part, Ford is taking more immediate action. “As we have said, events over the past year have underscored the need for a broader, ongoing discussion about other relevant considerations when it comes to our employee PAC. In order to give these important discussions the time and reflection they deserve, the Ford PAC will be suspending new contributions for now,” the company said in a statement.

    Toyota, meanwhile, sent a statement to TheDetroitBureau.com saying that, “Given recent events and the horrific attack on the U.S. Capitol, we are assessing our future PAC criteria.”

    (Trump attacks Ford after it agrees to a clean car deal with California.)

    A number of other automakers told TheDetroitBureau.com that they were not giving political donations even before the events of recent weeks. That includes Fiat Chrysler Automobiles, Nissan and Hyundai. Several other companies have yet to respond to requests for comment.


  • FCA CEO Manley Gets New Assignment Following Stellantis Merger

    FCA CEO Mike Manley apparently will settle into a new role after the merger with PSA is complete: Head of the Americas.

    Mike Manley, the CEO of Fiat Chrysler Automobiles and one of the architects of FCA’s merger with PSA Group, will take a new role as Head of the Americas once the deal is completed.

    There have been numerous questions about what, if any, role the 56-year-old Manley would play after the creation of Stellantis as John Elkann, currently the chairman of FCA, will retain that post at Stellantis while PSA chief executive officer Carlos Tavares will become the new organization’s CEO. Senior officials at both of the carmakers had indicated Manley would get a new role, undefined until today.

    Crediting Manley for “having led the profound transformational and exceptional development” of both the Jeep and Ram brands, while guiding FCA through “the rough terrain of the past couple of years,” Elkann announced Friday in a letter to employees that “Mike will be asked to take up the role of Head of Americas” once the merger is completed.

    (FCA CEO Manley won’t be on the board after merger with PSA is completed.)

    Carlos Tavares, PSA (left) and Manley shake hands following the signing of the merger agreement. Manley now has a position in the new company.

    The deal, which now has cleared a number of critical hurdles, including a regulatory probe by the European Union, is expected to close sometime during the first quarter of 2021.The merger will create the world’s fourth-largest automaker by sales volume.

    The British-born Manley started his career as a trainee at UK car financing firm Swan National. He subsequently spent time working on the retail side of the business at Renault and Peugeot dealerships before joining what was then DaimlerChrysler in 2000. Three years later, he was transferred to the United States.

    Following the breakup of DaimlerChrysler and Chrysler’s subsequent push through bankruptcy, Manley found himself one of the key players in the tight-knit group of executives surrounding Sergio Marchionne, the architect of the automaker’s merger with Fiat.

    It was as the new head of the Jeep division that Manley came into the spotlight, however. The brand’s name often was used as a synonym for SUV but, despite the surging demand for utility vehicles overall, Jeep sales remained relatively stagnant. Under Manley, the brand saw demand nearly quadruple, from around 323,000 in 2009 to 1.2 million in 2015 – the numbers reaching 1.5 million last year. Manley also was given the leadership role for truck brand Ram which has seen a surge in sales of its own.

    Manley was clearly positioned as Marchionne’s top lieutenant when the two led a presentation of a new five-year plan in June 2018. But, barely a month later, Manley was elevated to the CEO spot following Marchionne’s unexpected death during surgery.

    (Fiat, PSA set to get EU go-ahead to complete Stellantis merger.)

    Manley headed up Jeep after holding several posts within the company.

    If anything, the British native continued to follow the playbook laid out by his predecessor – which included a goal of finding a new merger partner. Marchionne had, during his tenure, approached an assortment of competitors, including both Volkswagen and General Motors, repeatedly being turned down.

    FCA and PSA had already established ties by the time Manley was named CEO, jointly working on several projects. And there were rumors early in 2019 that something more substantial might be in the works. Instead, that spring Fiat Chrysler announced plans to merge with PSA’s French archrival Renault. The deal was scuttled at the last minute by the French government which worried it might cause the collapse of the Renault-Nissan-Mitsubishi Alliance.

    Months later, Manley confirmed that FCA was talking with its old ally PSA, whose list of brands include Peugeot and Citroen. The deal was completed in November 2019 but subsequent announcements raised questions about what, if any, role Manley would play in the soon-to-emerge company called Stellantis.

    Elkann, heir to Fiat’s founding Agnelli family, was to retain his position as chairman while the CEO post would go to Tavares, a former top executive at Nissan who came in to turn struggling PSA around in 2014.

    FCA Chairman John Elkann selected Manley to succeed former CEO Sergio Marchionne.

    In his role heading the Stellantis unit in North, South and Central America, Manley will have a major responsibility. That will include not only steering the enterprise’s efforts to recover from the COVID-19 pandemic but also overseeing plans to bring the Peugeot brand back to the United States. It has been out of the market for nearly three decades but laid out a multi-tiered revival plan several years ago starting with its operation of a ride-sharing service based in Los Angeles.

    Manley, who was set to directly address FCA employees on Friday, will not retain his current seat on the board once the Stellantis merger is completed. Elkann and Tavares will be the only executive members.

    (Fiat Chrysler and PSA not exactly a “merger of equals.”)

    Based on combined 2019 sales, Stellantis will immediately become the world’s fourth-largest automaker by sales volume, behind only Volkswagen, Toyota and the Renault-Nissan-Mitsubishi Alliance – but ahead of General Motors which dropped down the list after closing numerous overseas operations and selling its European Opel/Vauxhall subsidiary to PSA.