Sergio Marchionne, the CEO of Chrysler Group LLC, has been in the media a lot lately thanks to his successful reinvention of Fiat and Chrysler as profitable companies. Announcing a $183 million net income for 2011 was a good way to start off the day for the surely elated Marchionne.

Having brought the company back from the brink of extinction, Marchionne felt the need to reach out to his colleagues with a letter to inspire confidence in them for the future. You’ll find the highlights below.

“Dear Colleagues, For the second straight year, we have delivered on the ambitious financial targets we set as part of the five-year plan that we revealed to the world on Nov. 4, 2009. In the results that we announced today, we posted net income of $225 million in the fourth quarter, and full-year net income of $183 million. We also reported a modified operating profit of $508 million in Q4 2011, and $2 billion for the total year.”

Marchionne continues to provide all of the positive numbers Chrysler has been posting lately, and went on to some motivational words to his workers.

“Based on the Company’s 2011 achievements, I am pleased to inform you that a performance award payment will be made to all eligible salaried and represented employees. This is a reward that you have earned. The more difficult the task, the more satisfying it is to overcome all obstacles. You have been to hell and back, and you defied predictions of our demise. Your efforts rewrote the history that so many naysayers had forecast. As we move forward with Fiat, let’s remain flexible in order to continue to achieve and take advantage of changing conditions while maintaining the same high level of passion and integrity that has brought us the measure of success we have had so far.”

While some of the “to hell and back” references are a little cheesy, no one can deny the steps forward Chrysler and Fiat have made since 2009. To end off his letter Marchionne touts himself as a proud CEO and tells his employees to take personal pride in their work.

“Now it’s time to stay steadfast on our path, guided by the same commitment and same values that we have used to steer toward a better destiny. Make tough, informed decisions; hold yourself and others accountable; and together we will write yet another successful chapter in our history. I am proud to be with you in the reconstruction of a great Chrysler.”

[Source: Detroit News]

Despite Chrysler experiencing a 26-percent growth in sales last year, CEO Sergio Marchionne is still not pleased with the customer experiences at Chrysler’s dealerships.

According to the latest J.D. Power and Associates Sales Satisfaction Index Study, Chrysler Group’s Jeep, Ram and Dodge brands were three of the brands in the bottom four among mainstream, non-luxury brands. The study also ranked Chrysler ninth out of 19 mass market brands, but most importantly the survey gave Chrysler Group dealerships low marks in the categories of salesperson, delivery process and negotiating.

Even Marchionne has admitted that some dealerships’ salespeople weren’t treating customers “with the dignity they deserve.”

Chrysler Group recently suspended its Dealer Standards program temporarily in order to incorporate changes to ensure it results in improved customer satisfaction. The program provides an incentive to dealers to meet factory standards for customer service with rewards of $4,500 to $200,000 per quarter.

“We can do all the Eminems you like, all the commercials, but at the end of the day, this only gets you so far,” Marchionne said. “The interface is with the guy who sells you the car.”

[Source: Automotive News]

Look, we get it. Everyone wants to be a little optimistic when a new model hits the streets, especially when it’s one of Italy’s most iconic compact cars.

When Chrysler first introduced the Fiat 500 (read out review here) to the American market, they might have been a little too optimistic by estimating that they’d sell 50,000 of them in 2011. Turns out, even CEO Sergio Marchionne has no problems admitting that their initial sales target was “incredibly naive.”

Fiat’s original goal was to best the MINI Cooper 2010 sales figure of 45,644 but the 500 fell way short with just 19,769 being sold in 2011. Despite not even coming close to their original sales goal, Marchionne is adamant that Fiat will still do well in the US and admits that “we set ourselves up for a fall.”

A more realistic sales figure of 25,000 – 30,000 is anticipated for 2012 and that number could be aided by the introduction of the Fiat 500 Abarth.

[Source: CNN]

The fuel wars are heating up as automakers search for new ways to squeeze more mileage out of their cars. While some might take this chance to preach doom and gloom for future cars, Chrysler-Fiat CEO Sergio Marchionne isn’t ready to call the Road Warrior just yet.

Some companies are turning to electric vehicles, others to extended-range hybrids. Yet another school of thought is turning to diesel engines to meet mounting expectations for fuel consumption. In the face of what seems like a trembling industry, unsure of what the next revolution will be, Marchionne stands strong.

“I believe in our industry’s ability to find solutions. Even with traditional combustion engines, we have only skimmed the surface of the ability to squeeze out higher fuel efficiency levels, allowing us to extract much more power out of smaller displacements,” Marchionne said during an appearance at the Automotive News World Congress.

For the time being, he is determined that diesel engines will remain reserved for larger cars, like the Jeep Grand Cherokee (pictured above), which Chrysler will begin assembling in Detroit early next year. Diesel engines, despite their shrinking stigma, are still a minority consideration in the overall U.S. market. We really like some of the small car diesel variants to pop up recently. For example, Mazda will offer a diesel version of their Mazda6 sedan in 2013, as will Chevrolet with the Cruze.

Despite that, Marchionne is hanging onto the gasoline engine and hoping cars like their recently unveiled Dodge Dart will tackle the small car market and capture young consumer imaginations. Critics of his stubborn resolve might want to hold their opinions for now, considering the about face Marchionne championed since 2009, taking Chrysler from near-ruin to respectable territory.

“Fiat and Chrysler come from two different pasts, but they have something very strong in common,” said Marchionne. “Both have been to hell and back.”

GALLERY: 2013 Jeep Grand Cherokee Diesel

[Source: The Detroit Bureau]

When there’s blood in the water, sharks start to bite. If the automotive industry does nothing else, it fosters ruthless competition and a winner-takes-all mentality akin to professional sports.

That’s exactly why reporters were peppering Chrysler-Fiat CEO Sergio Marchionne with questions about his company wanting to buy GM’s struggling German subsidiary, Opel.

Outside scheduled announcements, Marchionne told the Detroit News that ”there’s a willingness on the part of Fiat-Chrysler to listen,” going on to say that ”this is an industry that is in evolution.”

Despite his affirmation that Fiat would be willing to consider the idea, there doesn’t seem to be any plan being cooked up. GM vice chairman Steve Girsky said he and Marchionne had dinner last Sunday and that Marchionne wasn’t interested in Opel.

“Opel is not for sale,” Girsky said. “We’re going to make Opel work.” GM is “committed to returning our European business to sustained profitability. There’s a lot of work to do.”

For better or worse, the business world is sensitive to such discussions. The notion that something like that might happen drove speculation that Fiat might also be eyeing Peugeot. Once again, it seems the rumor mill is churning out little more than hot air, though Marchionne maintains that he is open to opportunities.

For now it seems the dinner discussions that spurred these questions were little more than meals, though we’ll stick to Marchionne’s philosophy and refuse to rule anything out, especially considering his original plan after buying Chrysler was, in fact, to take Opel as well.

[Source: Detroit News]

After announcing that the new Dodge compact won’t be called a Hornet, speculation began on what it will be named when it’s released. Even though it’s set to unveil at the upcoming Detroit Auto Show in January, Chrysler Group CEO Sergio Marchionne still isn’t hinting at what the new Dodge compact will be called, nor has he said what the 2013 replacement for the outgoing Jeep Liberty will be.

Both nameless models are the first two Chrysler Group vehicles based on a Fiat platform. It is known that the Chrysler Group trademarked Hornet, Dart, Duster and Camber on October 21st, and Camber is the only name that was never used in a previous vehicle.

The other vehicle, based on Fiat’s CUSW platform, is the 2013 replacement for the outgoing Jeep Liberty. Last week in Toledo, Marchionne noted that a decision hasn’t been made on whether to retain the Liberty name or to go back to Cherokee.

[Source: Automotive News]

Sergio Marchionne revealed Maserati‘s big plan to introduce three new products in quick succession during a recent interview at the CBI business conference held in London.

The three new vehicles are a replacement luxury sedan for the Quattroporte, a smaller Maserati four-door based on the Chrysler 300, and the Maserati Kubang SUV based on the Jeep Grand Cherokee.

Marchionne explained the ambition behind the launch, saying, “Maserati will increase its volumes by having three cars… We are a bit secretive over what you get first because it has implications for the industrial footprint of the group.”

According to CAR magazine, it is likely that the first car launched will be the new Quattroporte. Marchionne also hinted that the smaller four-door will likely be built alongside the flagship luxury sedan, “You see, there is a site in Modena that makes the Quattroporte, there’s some debate what happens to that plant after Quattroporte. There is sufficient commonality in what we’re doing between the smaller car and the bigger one that we can do what we want.”

While some traditionalists may question the merits of a Maserati SUV, the Kubang is real. The new Kubang will be based on Grand Cherokee underpinnings and will likely be built in Jeep’s U.S. plant.

While a Chrysler-based Maserati sedan and SUV may not sound very appealing, Marchionne assures that the important bits will be thoroughly Italian with Ferrari/Maserati-based engines, suspensions, styling, and cabin furniture.

GALLERY: Maserati Kubang

[Source: CAR magazine]

Sergio Marchionne, head of Fiat, told reports that he expects combined sales of Fiat and Chrysler vehicles to hit 6 million units by 2014. Marchionne’s remarks come even in the face of declining auto sales in Europe, as well as an overall shaky economic climate.

Marchionne said that he was reviewing Fiat’s 2012 European targets, but that overall strength in the U.S. market and strong growth in Brazil had helped contribute to a successful year. He also stated that Fiat and Chrysler would not merge in 2012.

Speaking at a conference in London, Marchionne also expressed his vision for the future of the car industry, with consolidation as a key theme. ”We’re bound to see the elimination of marginal players going forward, I believe we’ll end up with just five to six players whose success will be based on sharing architecture, at a global level,” he said.

[Source: Automotive News]

Despite concerns within Jeep, Chrysler Group CEO Sergio Marchionne confirmed yesterday that the Wrangler will continue to be manufactured in Toledo, Ohio exclusively.

The question about moving production comes for a couple of reasons. First, because of remarks made in September by Jeep brand CEO Mike Manley that Chrysler was exploring production of Jeep vehicles in China. Second, because Wranglers are selling better than expected, and breaking monthly sales records.

“This plant has been at the heart of what we’ve done. I’ve said publicly that I would never build the Wrangler outside the U.S. and outside of Toledo. These are things that are unthinkable — to assemble a Wrangler somewhere else,” Marchionne said.

Marchionne’s comments came during a press conference where he talked about Chrysler’s recent $500 million investment into the same Toledo plant to build the next generation of Jeep Liberty.

Yesterday, union officials said that November produciton for the Wrangler surpassed the monthly sales record of 14,355 set in July. Sales for the Wrangler and Wrangler Unlimited collectively rose by 28 percent through October. It’s a sign that the brand is still expanding steadily, but that could be cause for concern.

Chrysler has yet to expand production capacity at the Toledo Supplier Park, which assembles the Wrangler and is part of the Toledo Assembly Complex. That means Jeep might not be able to keep up with demand for Wranglers, especially given that they are expanding into Europe.

“The horrible thing about Jeep is that it’s never had the chance to be exploited internationally. We’ve started a very active marketing effort in Europe now with Jeep, and we’ve had phenomenal results. Sales are doubling almost every 12 months,” Marchionne said.

“As we open up the distribution network to Jeep, it’s becoming probably the star of the European market, and I have similar expectations for Jeep, especially in the eastern part of Europe, and in China and Russia,” he said.

Gallery: 2011 Jeep Wrangler

[Source: Automotive News]

The future of the Jeep Liberty will be revealed Wednesday when Chrysler CEO Sergio Marchionne  will visit the Toledo, Ohio plant that currently builds the truck.

The new Liberty will shed its traditional off-road roots and move to a Fiat-based car platform. While the move to a crossover may anger traditionalist, Marchionne was apparently less than enthused regarding the Liberty’s lagging sales, especially compared to crossovers like the Honda CR-V. There is also talk of reviving the iconic Cherokee nameplate for the new car.

The new platform is expected to underpin as many as 8 future vehicles. Chrysler will invest $365 million in the plant and add 1,105 jobs.

[Source: Automotive News]