Dominating the news today: GM in more trouble, Fiat/Chrysler’s 5 year plan, Bob Lutz links up with McAuliffe’s EB-5 visa machine
- Exclusive: Congressional probe looks at Barra’s, GM executives’ links to switch – Reuters: Congressional investigators are examining whether General Motors Co Chief Executive Mary Barra and other senior executives were more involved than they have publicly acknowledged as the automaker considered how to deal with a deadly ignition switch issue linked to at least 13 deaths, three sources familiar with the probe say.
- GM Offers New Discount to Owners of Recalled Cars – WSJ: General Motors is offering owners of cars involved in the ignition-switch recall the same deep discounts to buy a new car usually given only to company employees.
- US: GM recalls Saturn Aura for transmission shift cable change – Just-auto: General Motors is recalling 56,214 2007-2008 Saturn Aura vehicles manufactured between 24 April 2006 and 31 October 2007 with four speed automatic transmission because the shift cable may fracture.
- G.M. Talks to Families With Claims Over Defects – NY Times: The number of cases, attributing wrongful death or personal injury to an ignition defect, suggest more victims than the company has acknowledged.
- GM Recalls Saturn Auras – WSJ: General Motors said it is recalling 56,214 Saturn Auras in the U.S. due to a shift cable issue that could lead to rollaways and crashes, and a top executive sent a letter to GM customers saying the company is working to retain their trust over a separate, faulty ignition switch recall affecting other models.
- Congressional probe looks at Barra’s, GM executives’ links to switch, report says – Automotive News: Congressional investigators are examining whether General Motors CEO Mary Barra and other senior executives were more involved than they have publicly acknowledged.
- G.M. Recalls 56,000 Saturn Auras for Gearshift Cable Defect – NY Times: The automaker had resisted a recall, despite having recalled 426,000 other models for a similar problem.
- GM recalling about 60,000 Saturn Aura cars for gear shift problem – DetN: General Motors Co. said Tuesday it is recalling 60,000 2007-2008 Saturn Aura cars that could roll away after drivers park the vehicles.
- US: SRT to be a Dodge nameplate only – Just-auto: Chrysler is consolidating its sporty SRT family of vehicles under the Dodge brand as part of global plans for the Fiat Chrysler Automobile.
- US: Big boost planned for Alfa, Jeep and Chrysler, FCA announces – Just-auto: The Jeep and Chrysler brands plan to more than double sales by 2018 while Dodge will stop making the Grand Caravan minivan, Fiat Chrysler Automobile executives said.
- ITALY: Fiat Group reports EUR319m net loss for first quarter – Just-auto: Fiat Group said first quarter 2014 revenues rose 12% to EUR22.1bn while trading profit, adjusted for currency movements was up 6% to EUR0.6bn. The company lost EUR319m in the first quarter versus a EUR31m profit in Q1 2013.
- Fiat Chrysler’s 5-year plan sets ambitious goals – DetN: Fiat Chrysler Automobiles NV’s ambitious target to become a global powerhouse includes substantial brand realignments and expansion into untapped markets.
- Fiat chairman: ‘Sergio is staying with us’ – DetN: Fiat Chrysler Automobiles Chairman John Elkann accompanied CEO Sergio Marchionne at Tuesday’s five-year plan to investors. He gave his CEO a ringing endorsement while tamping down the inevitable talk of a successor.
- Fiat Chrysler Projects Major Growth Over Next 5-Year Cycle – thedetroitbureau.com: The newly merged Fiat Chrysler Automobiles expects to achieve significantly better growth than the rest of the industry, company officials said as they laid out the carmaker’s five-year global strategy. Perhaps the biggest news being that CEO Sergio Marchionne will be there for the end of the plan.
- Jeep’s 5-year plan: more models, double the sales – KBB: Jeep boss Michael Manly provided an advanced look at the division’s ambitious plans for the next half decade today at the annual Fiat Chrysler Automotive (FCA) Investors Day meeting.
- Fiat Chrysler, Unfazed by Quarterly Loss, Pins Hopes on Jeep – NY Times: The company, which was formed in January, will undertake a major expansion of the product lineup and production volume of Jeep, the big-selling brand that specializes in rugged sport utility vehicles.
- Chrysler: Emissions regulations challenge powertrains – DetN: Chrysler plans significant investments in new powertrain technologies over the next five years as stringent government emissions mandates bite hard.
- Marchionne to lead Fiat Chrysler through 2018 – Automotive News: Sergio Marchionne said he will remain CEO of Fiat Chrysler Automobiles through at least 2018 to oversee the rollout of the combined automaker’s latest five-year business plan. That’s two years longer than indicated earlier.
- Fiat Chrysler plans 2m lift in car sales – FT: Latest five-year forecast will depend heavily on growth in Jeep SUVs, which the carmaker plans to start building in six countries
- Fiat Chrysler to boost investment in research, development – DetN: Fiat Chrysler Automobiles NV won’t pay a dividend or use cash to start captive finance arms for at least the next five years as the company focuses on bolstering its vehicle lineup through hefty research and development spending.
- Marchionne QandA: CEO discusses Alfa, aluminum and UAW wages – Automotive News: Fiat Chrysler CEO Sergio Marchionne has faith in Alfa Romeo and doubts about aluminum-bodied pickup trucks while continuing to oppose the long-term viability of two-tier UAW wages.
- Fiat Posts Weaker-Than-Expected Profit Amid Chrysler Merger – DetN: Fiat SpA reported weaker-than-expected first-quarter earnings Tuesday, as the Italian company invests to focus on higher-priced models and merge with Chrysler.
- Chrysler-palooza: Products galore take stage – DetN: Chrysler and Jeep will carry the load as Fiat Chrysler Automobiles’ mainstream brands in North America, while its Italian-born Alfa Romeo brand is slated to emerge as a luxury competitor for BMW, Lexus and Mercedes.
- Fiat Chrysler targets 850,000 vehicle sales in China in 2018 – Automotive News: Fiat Chrysler Automobiles, a bit player in Asia, plans to boost local production and sales significantly in China and India through 2018. In 2018, the automaker wants to sell about 850,000 vehicles in China, versus 130,000 in 2013.
- Fiat Chrysler projects major boost in U.S. market share – Automotive News: Fiat Chrysler Automobiles today projected that it will have roughly the same 2018 market share in the United States as Ford Motor Co. had last year and that its global sales would grow more than twice as fast as the rest of the industry.
- Fiat chiefs confirm Lancia to only sell cars in Italy – Autocar: Struggling company to be slimmed down as parent company Fiat Chrysler Automobiles focuses on brands with greater global sales potential.
- FCA Reports 12% Increase in Q1 Revenue – thedetroitbureau.com: FCA reported a 12% increase in revenue in the first quarter of 2014 as it reported a trading profit of $800 million on revenue totaling $29.2 billion. The automaker, however, reported a net loss of $400 million after special items, involving the buyout of the UAW VEBA’s stake.
- Fiat Chrysler posts Q1 net loss, trading profit stable – Automotive News: Fiat Chrysler ended the first quarter with a net loss, hit by one-time charges linked to a deal to fully acquire Chrysler and by currency fluctuations.
- FCA Sees Higher Revenue, Margins in 5-Year Plan – Wards: Fiat-Chrysler: What’s Next Total FCA volume is predicted to grow to 7.0 million units in 2018, up from 4.4 million in 2013, largely driven by the Jeep brand. read more
- FCA Outgrows Competition in North America – thedetroitbureau.com: Fiat Chrysler Automobiles has grown faster than its rivals in North America and plans to expand sales by more than 48% during the next five years as its key brands continue to reach more consumers in U.S., Canada and Mexico. FCA expects continuing economic tailwinds will blow FCA to sales of 1 million more vehicles.
- Marchionne Confirms Ferrari Capping Production – thedetroitbureau.com: Fiat Chrysler Automobiles plans to limit production of new Ferraris over the five years even as it brings on new models and despite growing demand in emerging markets. The maker will cap production at 7,000 units annually though it’s capable of 10,000
- Fiat Chrysler Lays Out Broad Growth Plan – thedetroitbureau.com: With a veiled reference to the disastrous alliance that nearly destroyed Chrysler recently, CEO Sergio Marchionne and his management team laid out an ambitious plan for the U.S. maker and its Italian partner, Fiat, that will see the company roll out a flood of new products during the next five years.
- Merger links Lutz’s VL with Virginia governor’s EV venture – Automotive News: VL Automotive, a sports car start-up founded by Detroit 3 veteran Bob Lutz, has merged with EV venture GreenTech Automotive to bring its Fisker Karma-based Destino car to market.
- Tesla Q1 profits expected to drop on fewer government credits – Automotive News: Tesla Motors’ results were dragged down during the first quarter as government pollution credits declined and tight battery supply made it harder to outfit the carmaker’s electric vehicles, analysts said Tuesday.
- China Sets Pace for German Car Makers – WSJ: The rivalry among Audi, BMW and Mercedes-Benz for rights to the top selling premium car maker increasingly rests with sales performance in China as first quarter results prove.
- Peugeot names first woman to lead 95-year-old Citroen division – DetN: PSA Peugeot Citroen, Europe’s second-largest carmaker, named the first woman to lead its 95-year-old Citroen brand, moving toward a more diverse top management as the manufacturer expands outside its home region.
- FRANCE: Mercedes dealers express relief at court refrigerant ruling – Just-auto: Mercedes dealers in France say the decision by the country’s highest court to formally overturn a sales ban last year concerning the automaker’s A, B, CLA and SL models, represents the “end of the story,” domestically.
- Autocar road tests the McLaren P1 – Autocar: We reveal the first independent performance figures for the new 903bhp McLaren P1 hypercar in this week’s 10-page road test.
- Faster McLaren P1 Track version considered – Autocar: Woking supercar manufacturer writes to owners asking for expressions of interest in a faster, circuit-only version of its P1 hypercar.
- New Ariel Atom 3.5R nears launch – Autocar: Limited-edition Atom to cost £80k and feature more power, a paddleshift gearbox and revised suspension.
- BMW M5 30 Years edition revealed – Autocar: New ’30 Jahre’ model gets power hike to 592bhp, revised suspension and steering and mild cosmetic tweaks.
- Wheelies: The i3 Invasion Edition – NY Times: BMW begins delivery of its i3; Nokia invests $100 million into a connected-vehicle technology venture capital fund.
- BMW profits driven up by China demand – FT: German carmaker looking to develop new model niches to capture a greater share of the market as it benefits from gradual European recovery