"Existential threat" to FCA - Jeep Garage - Jeep Forum

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  #1  
Old 02-23-2016, 06:00 PM
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"Existential threat" to FCA

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FCA must improve [its fleet's average emissions] faster than bigger and richer rivals who also are straining to cut emissions. Failing that, it might be forced to stop building some of the light-duty trucks Bloomberg Intelligence analyst Kevin Tynan says deliver 90 percent of its profit. Or, to keep making them, it could be forced into a merger.

“FCA doesn’t have the resources to fulfill the emissions requirements,” said Maryann Keller, an independent auto-industry consultant in Stamford, Connecticut. “It’s not a company that can survive in its present form.”

Another European Automaker Has U.S. Emissions Problem of Its Own | Bloomberg Business
By "doesn't have the resources" I'm guessing they're referring to FCA having around $5 billion in debt. On top of that they're dealing with quality issues, some of which they incurred to try to improve emissions:
Quote:
Last year, NHTSA fined the company a then-record $105 million for dragging its feet on safety recalls. The company’s quality reputation is suffering, too. It ranked last in the 2015 J.D. Power & Associates survey on quality after 90 days of ownership, partly because of complaints about nine-speed transmissions it installed to reduce CO2 emissions.
If you're FCA, what do you do about all this that doesn't alienate the Jeep fans who are delivering so much of your profit? Sell your trucks lightweight and weak off the lot, but make them more modular so it's relatively easy to beef them up with after-market engines and such?

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  #2  
Old 02-24-2016, 11:41 AM
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Re: "Existential threat" to FCA

sell a ton of plug-in Pacificas to rental-car companies?
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Old 03-01-2016, 12:23 PM
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Re: "Existential threat" to FCA

Why did they need a 9-Speed, why not keep it simple and reliable with a CVT like everyone else?
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Old 03-01-2016, 12:49 PM
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Re: "Existential threat" to FCA

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Originally Posted by JohnnyT100 View Post
Why did they need a 9-Speed, why not keep it simple and reliable with a CVT like everyone else?
I have yet to drive a CVT that IMHO isn't puke-worthy.

YMMV.
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Old 03-07-2016, 04:14 PM
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Re: "Existential threat" to FCA

Seems I understated Fiat's net debt: 6 billion euros, or $6.6 billion.

One of the things they did to cut down on their debt was sell off Ferrari for almost a billion dollars. Maybe the best thing for all involved would be for Fiat to spin off the Jeep unit too. If they must think short-term, better if they don't drag down the Jeep brand along the way:
  • FCA gets the cash they need to get out from under their debt.
  • FCA instantly cuts their highest-in-the-industry fleet emissions without having to completely retool. They can still sell plenty of Dodge Rams.
  • The Jeep brand doesn't get watered down by gobs of soccer-mom vehicles.
  • Jeep gets out from under Fiat's poor reputation for quality.
If you're concerned about Fiat's ownership of Jeep, please consider signing this petition and sharing it.
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Old 01-24-2017, 03:29 PM
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Re: "Existential threat" to FCA

Jeep is the cash cow that keeps thing going.

Maybe you're right though, the longer Jeep stays with FCA they will just produce "Jeeps" that are actually Italian designs.

If they go TU they can still sell the Jeep brand to either GM or Ford. Which might not be a bad thing for Jeep actually. I think Jeep would flourish under the GM banner. I was actually hoping for that back in 09.
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Old 01-24-2017, 04:16 PM
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Re: "Existential threat" to FCA

Yes, Perhaps GM.....y'know Sergio has been shopping FCA around for a "partner".
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Old 01-24-2017, 05:07 PM
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Re: "Existential threat" to FCA

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Originally Posted by NerfHerder View Post
Seems I understated Fiat's net debt: 6 billion euros, or $6.6 billion.

One of the things they did to cut down on their debt was sell off Ferrari for almost a billion dollars. Maybe the best thing for all involved would be for Fiat to spin off the Jeep unit too. If they must think short-term, better if they don't drag down the Jeep brand along the way:
  • FCA gets the cash they need to get out from under their debt.
  • FCA instantly cuts their highest-in-the-industry fleet emissions without having to completely retool. They can still sell plenty of Dodge Rams.
  • The Jeep brand doesn't get watered down by gobs of soccer-mom vehicles.
  • Jeep gets out from under Fiat's poor reputation for quality.
If you're concerned about Fiat's ownership of Jeep, please consider signing this petition and sharing it.

Anyone who bought the Jeep brand would continue to make soccer-mom vehicles. They would do so for one reason --- they sell gobs of them. Any company that buys Jeep will be looking for a cash cow, not an image. As the vehicle has transformed in recent years it has been selling in record numbers.

Go back late 2012, early 2013, and read all the posts from folks who said Jeep went too soft with the new design of the Grand Cherokee. When the new Cherokee was introduced, its demise was forecasted here before the first one hit the road.

It could be that Jeep enthusiasts might not be over joyed about the changes, but the rest of the world seems pretty happy.

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Old 01-24-2017, 05:53 PM
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Re: "Existential threat" to FCA

^^^X2!! Soccer mom mobiles are what sell. Period. Look at the 4Runner, hanging on by a thread. And hence, why the Explorer and Pathfinder are now mall crawlers. Does Nissan even make the XTerra anymore?

Just throw in the Pacifica's plug in powertrain to like everything else. Problem solved.
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