Latest news with #DetroitThree
Yahoo
3 days ago
- Automotive
- Yahoo
Chrysler CEO discusses future of brand as it approaches 100th birthday
Chris Feuell has heard speculation about the future of Chrysler before. The CEO of the brand that is on the edge of its 100th anniversary has been asked about this periodically since she took the helm in 2021. Chrysler, which once stood on its own as a member of the Detroit Three, is one of numerous brands within Stellantis. Feuell's response to that speculation is forward-looking even as it acknowledges a reality. 'The question about Chrysler's future and viability is one that seems to come up in various news articles on a weekly basis,' she said. 'That has not come up once in my conversations with Antonio or others in the leadership team. I understand the curiosity regarding: Can a company really sustain 14 brands? It's lot of mouths to feed, and that is true, but for Chrysler there is a belief in our positioning strategy.' 'Antonio' is Antonio Filosa, the newly named Stellantis CEO, who was still chief operating officer for the Americas and chief quality officer at the company when Feuell spoke to the Free Press on May 23. Chrysler's legacy is real, but the brand name today is limited to minivans, a segment that the company started with the 1984 model year. Feuell, who noted a lack of investment in the brand for two decades, reiterated that Chrysler will launch a crossover vehicle, but that's now set for 2027 (it's expected to be shown in 2026) rather than this year. The Pacifica minivan is also due for a refresh early next year. A vehicle 'inspired by' the futuristic-looking Halcyon concept car, unveiled early last year, is planned, although Feuell didn't offer a date. The vehicle would be an answer to the customers and dealers who want to see a return of the discontinued 300 sedan, but it's not clear that's what the vehicle would be called. 'I believe the car segment is ripe for growth and resurgence,' Feuell said. She described a 'high level of confidence in our road map and ability to launch these products.' Plans for the entire portfolio to go all electric have been scrapped in favor of 'multienergy' options. The crossover will launch as a hybrid with the capability to go electric, she said. But Chrysler's automotive heritage also warrants attention, according to Feuell. In case you missed it: Ford has some pretty famous cars stored in a new fleet. Here's a peek at some 'There are very few brands or companies that have had the strength or horsepower to last 100 years,' she said. In the months ahead, a number of celebrations are planned for the Chrysler 100th, including an event with journalists at Belle Isle that promises to highlight more than 20 historic Chrysler concept and production vehicles. And significantly for Chrysler fans, the Carlisle Chrysler Nationals in Pennsylvania July 11-13 is expected to showcase a narrated parade of Chrysler-related vehicles, memorabilia, including Walter P. Chrysler's toolbox, and meet-and-greets with Frank Rhodes, who is Chrysler's great-grandson, and other automotive notables. Rhodes has long been an advocate for preserving the brand and boosting its profile. He was concerned about its future prior to the merger of Fiat Chrysler Automobiles and Peugeot maker PSA Group that created Stellantis in 2021, and he's remained so. He caused a stir last year with a proposal to save Chrysler and Dodge with U.S. ownership, prompting a statement of commitment from the company. More recently, following a Free Press article by auto reviewer Mark Phelan suggesting the next Stellantis CEO consider axing Chrysler, Rhodes reached out to express his concerns to Filosa. Rhodes was pleased to share that the response he received from Filosa noted that 'Chris and I are just as committed to Chrysler's future as you are, and we have great plans in place to support Chrysler's future. Stay tuned!' Rhodes recalled what his grandmother, Bernice Chrysler Garbisch, told him before she died in 1979 that he should do what he can to 'keep the engine running.' It's a request he's tried to honor. Rhodes, a furniture-maker in Maryland, has long argued that Chrysler should be able to thrive with the right investment and vehicle offerings. It was overshadowed, for instance, when Fiat Chrysler Automobiles, then-led by Sergio Marchionne, elevated brands like Alfa Romeo and Fiat instead. Rhodes said he understands the leaders of what by then had become an international company had that right, but 'Chrysler's been here a long time' even though it's 'burned through' a few of its 'nine lives.' Those would probably include a 2008 bankruptcy and 1979 government bailout. But Chrysler also has quite a heritage from its incorporation "from the assets of the Maxwell Motor Co." on June 6, 1925. Among its innovations and vehicles, the company highlighted a few this year ahead of the New York International Auto Show, including: 1924 Chrysler Six, 'a light, powerful vehicle equipped with a groundbreaking L-head six-cylinder engine and four-wheel hydraulic brakes — an uncommon feature in the 1920s.' 1934 Chrysler Airflow, 'the first production vehicle designed in a wind tunnel, in a new facility built by Chrysler at its Highland Park, Michigan, headquarters. Wind tunnel testing inspired the Airflow's modified teardrop shape and resulted in a vehicle that represented future design and engineering advances.' The Hemi engine, which dates to 1951 and the Chrysler Firepower V-8. The Chrysler 300 in 1955 was 'one of the first muscle cars … The hardtop contained a 300-horsepower HEMI V-8, with solid valve lifters and dual four-barrel carburetors, the most powerful full-size car in the world.' Chrysler's innovations over the years are the kinds of things that Bill Adams Jr., president of the WPC Club (named for Walter P. Chrysler) noted when he was asked about the company's significance. He pointed to Chrysler's role as an engineering company focused on innovation. Chrysler has faced many odds over the years. In response, 'they've made bold moves in the industry, and it has worked out for them,' Adams said, suggesting that Chrysler is once again at such a juncture. The WPC Club has about 4,000 members/enthusiasts. Adams, who's based in Oakdale, California, called it a social club interested in preserving the history of the many brands associated with Chrysler over the years. "If Chrysler doesn't make it, the legacy's going to be left to us enthusiasts to keep it alive," he said. Contact Eric D. Lawrence: elawrence@ Become a subscriber. Submit a letter to the editor at This article originally appeared on Detroit Free Press: Chrysler CEO discusses future of brand as it approaches 100th birthday Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 days ago
- Automotive
- Yahoo
Chrysler CEO discusses future of brand as it approaches 100th birthday
Chris Feuell has heard speculation about the future of Chrysler before. The CEO of the brand that is on the edge of its 100th anniversary has been asked about this periodically since she took the helm in 2021. Chrysler, which once stood on its own as a member of the Detroit Three, is one of numerous brands within Stellantis. Feuell's response to that speculation is forward-looking even as it acknowledges a reality. 'The question about Chrysler's future and viability is one that seems to come up in various news articles on a weekly basis,' she said. 'That has not come up once in my conversations with Antonio or others in the leadership team. I understand the curiosity regarding: Can a company really sustain 14 brands? It's lot of mouths to feed, and that is true, but for Chrysler there is a belief in our positioning strategy.' 'Antonio' is Antonio Filosa, the newly named Stellantis CEO, who was still chief operating officer for the Americas and chief quality officer at the company when Feuell spoke to the Free Press on May 23. Chrysler's legacy is real, but the brand name today is limited to minivans, a segment that the company started with the 1984 model year. Feuell, who noted a lack of investment in the brand for two decades, reiterated that Chrysler will launch a crossover vehicle, but that's now set for 2027 (it's expected to be shown in 2026) rather than this year. The Pacifica minivan is also due for a refresh early next year. A vehicle 'inspired by' the futuristic-looking Halcyon concept car, unveiled early last year, is planned, although Feuell didn't offer a date. The vehicle would be an answer to the customers and dealers who want to see a return of the discontinued 300 sedan, but it's not clear that's what the vehicle would be called. 'I believe the car segment is ripe for growth and resurgence,' Feuell said. She described a 'high level of confidence in our road map and ability to launch these products.' Plans for the entire portfolio to go all electric have been scrapped in favor of 'multienergy' options. The crossover will launch as a hybrid with the capability to go electric, she said. But Chrysler's automotive heritage also warrants attention, according to Feuell. In case you missed it: Ford has some pretty famous cars stored in a new fleet. Here's a peek at some 'There are very few brands or companies that have had the strength or horsepower to last 100 years,' she said. In the months ahead, a number of celebrations are planned for the Chrysler 100th, including an event with journalists at Belle Isle that promises to highlight more than 20 historic Chrysler concept and production vehicles. And significantly for Chrysler fans, the Carlisle Chrysler Nationals in Pennsylvania July 11-13 is expected to showcase a narrated parade of Chrysler-related vehicles, memorabilia, including Walter P. Chrysler's toolbox, and meet-and-greets with Frank Rhodes, who is Chrysler's great-grandson, and other automotive notables. Rhodes has long been an advocate for preserving the brand and boosting its profile. He was concerned about its future prior to the merger of Fiat Chrysler Automobiles and Peugeot maker PSA Group that created Stellantis in 2021, and he's remained so. He caused a stir last year with a proposal to save Chrysler and Dodge with U.S. ownership, prompting a statement of commitment from the company. More recently, following a Free Press article by auto reviewer Mark Phelan suggesting the next Stellantis CEO consider axing Chrysler, Rhodes reached out to express his concerns to Filosa. Rhodes was pleased to share that the response he received from Filosa noted that 'Chris and I are just as committed to Chrysler's future as you are, and we have great plans in place to support Chrysler's future. Stay tuned!' Rhodes recalled what his grandmother, Bernice Chrysler Garbisch, told him before she died in 1979 that he should do what he can to 'keep the engine running.' It's a request he's tried to honor. Rhodes, a furniture-maker in Maryland, has long argued that Chrysler should be able to thrive with the right investment and vehicle offerings. It was overshadowed, for instance, when Fiat Chrysler Automobiles, then-led by Sergio Marchionne, elevated brands like Alfa Romeo and Fiat instead. Rhodes said he understands the leaders of what by then had become an international company had that right, but 'Chrysler's been here a long time' even though it's 'burned through' a few of its 'nine lives.' Those would probably include a 2008 bankruptcy and 1979 government bailout. But Chrysler also has quite a heritage from its incorporation "from the assets of the Maxwell Motor Co." on June 6, 1925. Among its innovations and vehicles, the company highlighted a few this year ahead of the New York International Auto Show, including: 1924 Chrysler Six, 'a light, powerful vehicle equipped with a groundbreaking L-head six-cylinder engine and four-wheel hydraulic brakes — an uncommon feature in the 1920s.' 1934 Chrysler Airflow, 'the first production vehicle designed in a wind tunnel, in a new facility built by Chrysler at its Highland Park, Michigan, headquarters. Wind tunnel testing inspired the Airflow's modified teardrop shape and resulted in a vehicle that represented future design and engineering advances.' The Hemi engine, which dates to 1951 and the Chrysler Firepower V-8. The Chrysler 300 in 1955 was 'one of the first muscle cars … The hardtop contained a 300-horsepower HEMI V-8, with solid valve lifters and dual four-barrel carburetors, the most powerful full-size car in the world.' Chrysler's innovations over the years are the kinds of things that Bill Adams Jr., president of the WPC Club (named for Walter P. Chrysler) noted when he was asked about the company's significance. He pointed to Chrysler's role as an engineering company focused on innovation. Chrysler has faced many odds over the years. In response, 'they've made bold moves in the industry, and it has worked out for them,' Adams said, suggesting that Chrysler is once again at such a juncture. The WPC Club has about 4,000 members/enthusiasts. Adams, who's based in Oakdale, California, called it a social club interested in preserving the history of the many brands associated with Chrysler over the years. "If Chrysler doesn't make it, the legacy's going to be left to us enthusiasts to keep it alive," he said. Contact Eric D. Lawrence: elawrence@ Become a subscriber. Submit a letter to the editor at This article originally appeared on Detroit Free Press: Chrysler CEO discusses future of brand as it approaches 100th birthday Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Miami Herald
3 days ago
- Automotive
- Miami Herald
‘Car Wars' report from Bank of America sees ‘rough ride' for industry in next couple years
FARMINGTON HILLS, Michigan - Bank of America's annual "Car Wars" report forecasts a "rough ride" for the U.S. industry in the next couple of years because of low model replacement rates and struggling electric vehicle growth. The annual study led by analyst John Murphy predicts automaker performance in the U.S. market by looking at product launches over the next few years with the premise that automakers with higher showroom replacement rates will perform better. The report predicts those rates in the next couple of years will be historically low ahead of major truck launches from the Detroit Three later this decade, and because of cutbacks in electric vehicle products from low demand. "What's wild this year is that we expect 159 models to be launched over the next four years," Murphy said before the Automotive Press Association. "Last year, it was over 200. Traditionally, it's over 200" over a four-year stretch. He added: "This year, at 159, is a dramatic decline from above 200 last year. We have never seen this kind of change before." Murphy noted there are 29 new model launches this year, the lowest in decades. He attributed the declines to a pullback in EV investment. Adoption of vehicles with all-electric powertrains has failed to meet industry expectations, with them comprising about 8% of annual U.S. sales. Limited access to charging stations, higher prices of EVs compared to gas-powered alternatives, range anxiety and more have limited adoption. Car Wars is predicting 71 EV nameplates being offered over the next four years. That's about half of what the forecast had expected two years ago. "There are a lot of tough decisions that are going to be made," Murphy said. "Based on the study, I think we're going to see multi-million dollar write-downs that are flooding the headlines for the next few years." Ford Motor Co. last year wrote off nearly $2 billion when it canceled plans for a three-row all-electric SUV, saying it wasn't going to be profitable within the first year. Murphy underscored that automakers will best serve their shareholders by emphasizing their core business - which is gas- and diesel-powered SUVs and trucks - and leveraging connectivity to get customers returning to smaller, strengthened dealer franchises. From those revenues, then, it can invest in future technologies like EVs, autonomy and other software applications and brave threats like tariffs and Chinese competition. "I do think, as we look at this, although we've said lower product intros, that these core products that generate a lot of profit for the companies, including the D3, will likely create a pretty profitable next few years for the industry," Murphy said. "So although it looks a bit scary at the moment, I do think we're looking at a pretty good upside to earnings, and potentially stocks over the coming years." Traditionally, replacement rates average about 15% in the industry. Car Wars predicts rates at about 11% in 2026 and 2027. "It's gonna be a little bit of a rough ride for these two years," Murphy said. The report predicts the Detroit Three's replacement rate from model year 2026 to 2029 will fall around the industry average of 16%, indicating a likely stagnant market share. Ford's was at 16.1%, General Motors Co.'s was 15.7% and Chrysler parent Stellantis NV's was at 15.4%. Ford Motor Co. spokesperson Mike Levine emphasized the Dearborn automaker has new product in the marketplace today, including the full-size Ford Expedition and Lincoln Navigator SUVs that recently went on sale. "Ford is committed to offering our customers vehicles that they love and can't live without," he said in a statement. "We are investing in all-new ICE, hybrid and electric vehicles to provide customers with freedom of choice to find the best vehicle to meet their needs." Representatives for GM and Stellantis declined to remark on the report. On the upper end of replacement rate, meanwhile, is Tesla Inc. It has a 22.4% replacement rate, indicating the Texas EV maker could grow its market share in the coming years. But the rate is also a bit "dubious," Murphy declared, noting Tesla has postponed launches and favors more frequent updates to its vehicles versus total redesigns. "That's questionable whether that all will happen," Murphy said, "given their track record of not really introducing new-generation models." On the lower end is Nissan Motor Co. Ltd. with a 12.3% replacement, indicating it could lose market share. The automaker is under financial stress, has cut jobs and is losing market share in the United States with aging product. "Nissan remains a mess," Murphy said. "It's just unclear what their commitment is, in their current form, to the U.S. market." Copyright (C) 2025, Tribune Content Agency, LLC. Portions copyrighted by the respective providers.
Morocco World
10-05-2025
- Automotive
- Morocco World
Morocco's Auto Labor Cost: Just $106 Per Vehicle
Doha – Morocco has emerged as the global leader in low-cost vehicle manufacturing, with labor costs of just $106 per vehicle – far lower than any other automotive manufacturing country worldwide, according to a new comprehensive analysis from Oliver Wyman. The 'Getting Under the Hood of Automotive Labor Cost Per Vehicle' report shows Morocco has become the strategic low-cost production center for French manufacturers, similar to Mexico's role for American automakers over the past 40 years. French car manufacturers now produce more than half of their vehicles outside France, with Morocco playing a critical role in this shift. Oliver Wyman examined more than 250 vehicle assembly plants worldwide, using publicly available data and third-party sources. The study focused on labor cost per vehicle, which considers both wages and productivity – a key metric for determining an automaker's competitiveness and profitability. Morocco's $106 labor cost per vehicle puts it well ahead of other low-cost manufacturing countries like Romania ($273), Mexico ($305), and Turkey ($414). China, often considered a low-cost manufacturing hub, ranks fifth with $597 per vehicle. The report reveals strong production growth in Morocco, showing a 29% increase in 2024 compared to 2019 levels – the highest growth rate among all countries analyzed. Traditional automotive manufacturing countries show opposite trends: France (-36%), Italy (-34%), and the United Kingdom (-31%) face major production declines. 'Morocco has become the low-cost production center for French manufacturers, much in the same way the Detroit Three automakers have operated out of Mexico for the past 40 years,' states the report. Read also: Report: 70% of Moroccans Do Not Own a Car? The analysis categorizes global automakers into four distinct groups based on labor costs per vehicle. Euro premium manufacturers like Mercedes-Benz and BMW have the highest costs at $2,232 per vehicle. EV-only manufacturers follow at $1,660, mainstream model manufacturers at $880, and Chinese car manufacturers at $585. Labor costs represent approximately 65% of total vehicle conversion costs. German manufacturers face particularly high labor costs, averaging $3,307 per vehicle – over 31 times Morocco's cost – due to strong labor unions and strict regulations on working hours. The report notes a shifting landscape in manufacturing economics. 'Perhaps surprising to some, China is no longer the lowest labor cost per vehicle country,' the analysis states. 'Today, lower wage rates are paid in countries, such as Morocco and Romania, and rising production volumes and productivity have pushed these new production centers into the top slots for lowest labor cost per vehicle, along with Mexico,' it adds. This development positions Morocco as a crucial player in the global automotive industry, especially as manufacturers seek to optimize costs amid increasing competition and economic pressures, including potential tariffs between major trading partners. The findings come from Oliver Wyman's Harbour Report, considered the leading authority in automotive manufacturing benchmarking. The firm plans additional analyses in coming months covering tariffs, sourcing, battery electric vehicle demand, and Chinese expansion in the automotive sector. Tags: Automotive Sector in Moroccocars production in morocco
Business Recorder
30-04-2025
- Automotive
- Business Recorder
Trump set to soften auto tariffs after industry pushback
WASHINGTON: U.S. President Donald Trump on Tuesday will soften the blow of his auto tariffs through an executive order mixing credits with relief from other levies on parts and materials, after automakers pressed their case with the administration. The changes to Trump's 25% vehicle tariffs will provide auto companies with credits for up to 15% of the value of vehicles assembled domestically. These could be applied against the value of imported parts, allowing time to bring supply chains back home, a senior administration official said. The official said this would work out to allowing automakers to import duty-free parts worth about 3.75% of the sticker-price value of domestically produced cars they sell in the first year, and 2.5% in the second year. The benefit, retroactive to April 3, phases out in the third year to push companies to move parts production to the U.S. Moreover, autos and parts subject to those tariffs would no longer be subject to Trump's other tariffs, including 25% duties on Canadian and Mexican goods, 25% levies on steel and aluminum, as well as 10% duties applied to most other countries. The change also extends a duty-free exemption for North American parts that comply with the U.S.-Mexico-Canada trade agreement (USMCA) rules of origin. 'If you build your car elsewhere and bring them in on a ship, right, you are going to be at a very, very big disadvantage,' the official said. In the case of the metals tariffs, auto makers would pay either the vehicle tariff or the steel and aluminum tariffs, whichever is higher, the official said. No relief for China A White House official said, however, that the tariff relief would not apply to Chinese parts, which will continue to be subject to Trump's latest tariffs of at least 145% in addition to any prior duties. Trump was scheduled to travel to the U.S. auto hub of Michigan on Tuesday to mark his first 100 days in office, during which the Republican president has upended the global economic order. The state is home to the Detroit Three automakers and more than 1,000 major auto suppliers. Softening the impact of auto levies is his administration's latest move to show flexibility on tariffs which have sown turmoil in financial markets, created uncertainty for businesses and sparked fears of a sharp economic slowdown. Trump to reduce impact of auto tariffs, Commerce secretary says The first quarterly report on U.S. gross domestic product covering Trump's term is due out on Wednesday. It is expected to reflect a large drag from the effect of his tariffs, mostly from a record surge in imports as companies and consumers front-loaded purchases of foreign goods to try to beat the new levies. The economy was forecast to have expanded at just a 0.3% annualized rate from January through March, according to a Reuters poll of economists, down from 2.4% in the final three months of 2024. 'Volatility continues' General Motors, CEO Mary Barra, Ford CEO Jim Farley and Stellantis Chairman John Elkann praised the planned changes ahead of the new order's signing by Trump. 'We believe the president's leadership is helping level the playing field for companies like GM and allowing us to invest even more in the U.S. economy,' Barra said. Farley said the changes 'will help mitigate the impact of tariffs on automakers, suppliers and consumers.' Elkann said Stellantis looked forward to continued collaboration with the Trump administration 'to strengthen a competitive American auto industry and stimulate exports.' But the uncertainty unleashed across the auto sector by Trump's tariffs remained on full display Tuesday when GM pulled its annual forecast even as it reported strong quarterly sales and profit. In an unusual move, the carmaker also opted to delay a scheduled conference call with analysts until later in the week, after the details of tariff changes were known. 'Automakers would welcome any exemption, but the volatility continues with the trade policy uncertainty. As we have seen, tariffs can be proposed and revised on short notice. That also doesn't change the broader business strategy questions facing automakers,' said Lenny LaRocca, KPMG's U.S. auto industry leader. Last week, a coalition of U.S. auto industry groups urged Trump not to impose 25% tariffs on imported auto parts, warning they would cut vehicle sales and raise prices. Earlier, Trump had said he planned to impose tariffs of 25% on auto parts no later than May 3. 'Tariffs on auto parts will scramble the global automotive supply chain and set off a domino effect that will lead to higher auto prices for consumers, lower sales at dealerships and will make servicing and repairing vehicles both more expensive and less predictable,' the industry groups said in the letter. The letter from the groups representing GM, Toyota Motor, Volkswagen, Hyundai and others, was sent to U.S. Trade Representative Jamieson Greer, Treasury Secretary Scott Bessent and Commerce's Lutnick. 'Most auto suppliers are not capitalized for an abrupt tariff-induced disruption. Many are already in distress and will face production stoppages, layoffs and bankruptcy,' the letter added, noting 'it only takes the failure of one supplier to lead to a shutdown of an automaker's production line.'
