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Fiat Chrysler (FCA) betting on low gas prices

Discussion in 'Other Cars' started by cwerdna, Jan 31, 2016.

  1. cwerdna

    cwerdna Senior Member

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    As I posted at Gasoline May Rise Above $5 a Gallon - Page 64 - My Nissan Leaf Forum and has been widely reported in the media lately, FCA asserts that gas prices will remain low and is making bets on that.

    Part of this was briefly mentioned on Nightly Business Report recently and echoed at Chrysler Throws In Towel On Sedans: 200, Dart To Die For SUVs, Trucks (Page 2).

    Other similar coverage:
    Dodge Dart, Chrysler 200 to go away under new FCA plan
    Fiat Chrysler's New Plans Bank On More Cheap Gas
    FCA tilts N.A. production plans to trucks, scales back Alfa ambitions
    Fiat shifting focus toward Jeeps, Rams - The Portland Press Herald / Maine Sunday Telegram
     
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  2. bisco

    bisco cookie crumbler

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    what we really need, is for chrysler to die the death they deserved 30 years ago.
     
  3. wjtracy

    wjtracy Senior Member

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    Well the new FCA hybrid/plug-in Minivan looks like it could be a winner depending on cost and reliability. Quite gentlemanly of the auto industry to let FCA once again lead on the minivan segment. Looks like it'll be similar to my 2009 minivan so that's a big cargo space plug-in.

    Don't know if 54.5 CAFE might enter into their equations. I guess if they focus on trucks/SUV have a lower target.

    I've been predicting $1 gas by Feb_2016...I got 28 more days. then I am a little off. Clearly we are at the beginning of a low cost gaso boom and bust cycle, brought about by high gaso prices which in turn stimulated production. Geopolitical could upset the low price but nothing on the horizon. also of course China going in to lower growth cycle. All of these business cycles have happened before so it's deja vu all over again.
     
    #3 wjtracy, Jan 31, 2016
    Last edited: Jan 31, 2016
  4. Trollbait

    Trollbait It's a D&D thing

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    This sounds more like the Fiat side of the business talking; the one that begged people not to buy the 500e because they were losing money on it. Who wanted Chrysler so that they could sell Jeeps in Europe and elsewhere. Guess they have forgotten why they were able to get Chrysler in the first place.
     
  5. bisco

    bisco cookie crumbler

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    weren't you around in the 80's when we bailed out chrysler like gm recently?
     
  6. wjtracy

    wjtracy Senior Member

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    ...well Lee is gone, but we could give 'em Bob
     
  7. Trollbait

    Trollbait It's a D&D thing

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    Got my license in '92, so I wasn't paying much attention to Chryseler back then.

    I know we bailed them out, but not the specifics, and Daimler got control of them. Not being able to make money by rebadging old model Mercedes, Daimler sold off their stake, and Chrysler was in a sort of limbo until the 2008 Recession. They got got bailed out again by giving Fiat some deals in order to get the company.

    The anti-plug in bias aside, it looked like Chrysler might do well with Fiat in the beginning. They were broadening the range of vehicles offered; under a Chrysler or Fiat badge. Fiat's fuel efficiency technologies and engines were going into Chyrslers and Dodges. They were the first to offer a sensible diesel in a truck or SUV in the US for quite some time.

    "Fiat Chrysler Automobiles CEO Sergio Marchionne said today that the Dodge Dart and Chrysler 200 sedans will eventually be discontinued as the automaker refocuses its efforts on the production of its popular Jeep SUVs, Ram pickups and boosting its electric vehicle lineup." - from the dropping the Dart link in the OP.

    Perhaps Fiat is right about US gas prices staying cheap for awhile, but it was not having any fuel efficient or small cars that hurt Chrysler and GM during that sudden gas price spike in 2008. Coming out with a PHEV minivan is nice(I'd also like to see a diesel version too), but that doesn't tell us what other electric vehicles they are thinking of. Which leaves a discontinue of the Dart and 200 looking like a bad idea in terms of long term product planning to us.
     
  8. bisco

    bisco cookie crumbler

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    i suppose they can repackage fiats under the chrysler badge on the fly if gas goes up. to me, both brands are not long term players in the u.s.
     
  9. PriusC_Commuter

    PriusC_Commuter Active Member

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    I had totally missed that California wants to put an annual road usage fee on electric vehicles of $165/year. Thanks for the heads up :(
     
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  10. wjtracy

    wjtracy Senior Member

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    I missed that too. I wondered if this was coming though because the Transportation Bill that Congress passed had language to the effect such fees should be considered. I don't know if the language survived in the final bill but I think it was in the House or Senate draft.
     
  11. Trollbait

    Trollbait It's a D&D thing

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    Will the fee apply to FCEVs? They get touted as electric.
     
  12. bisco

    bisco cookie crumbler

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    i'll be buying an suv. i'm sure that will make them happy.
     
  13. PriusC_Commuter

    PriusC_Commuter Active Member

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    Yes: "a new $165 annual vehicle registration fee applicable to zero-emission motor vehicles"
    Source: Bill Text - AB-1591 Transportation funding.
     
  14. bisco

    bisco cookie crumbler

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    so, that will make them cost $58,165.?
     
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  15. PriusC_Commuter

    PriusC_Commuter Active Member

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    That's actually an interesting question for FCEVs, since they could easily tax hydrogen (granted customers aren't yet paying for them). Also, are natural gas vehicles considered zero emission vehicles (hence qualify for white stickers), or is the classification for white stickers loosely based? I'm assuming CNG is already taxed.
     
  16. wjtracy

    wjtracy Senior Member

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    Sure FCV is ZEV.
    CNG is not ZEV but I am thinking there are treated well by CA.\
    PHEV I guess would be OK so Volt/Pip no fee?
     
  17. Trollbait

    Trollbait It's a D&D thing

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    CNG doesn't have a federal road tax, and I think that is so in most states. That's part of its attraction of businesses. It could be taxed, but it can't be check if a vehicle is filled with with taxed or non-taxed fuel. With liquid fuels, we just use a dye for that.

    CNG cars were treated like hybrids for the most part in terms of perks in California. Compared to diesel and gasoline, CNG is a much cleaner fuel in emissions.
     
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