USA - Chrysler group wins five POLK Automotive awards

• Chrysler Town & Country wins Polk Loyalty Award for record 13th consecutive year
• Jeep Grand Cherokee and Wrangler win their respective SUV categories, Grand Cherokee for fifth time
• Dodge Challenger wins third Polk Loyalty Award for Non-Luxury Sport Mid-size Car
• Fiat 500 wins Non-Luxury Traditional Subcompact Car

The Chrysler Group starts off the 2014 calendar year by winning five Polk Automotive Loyalty Awards, presented by IHS Automotive. The Chrysler Town & Country won its 13th consecutive Loyalty Award taking the Non-Luxury Mid-size Van category, extending its own record of consecutive wins. The Jeep Grand Cherokee won its fifth award in the Non-Luxury Mid-size SUV category and the Dodge Challenger took Non-Luxury Sport Mid-size Car honors for the third time. Jeep Wrangler nabbed the Non-Luxury Compact SUV award and the Fiat 500 won the Non-Luxury Traditional Subcompact Car category, both winning their first Polk Loyalty Awards.

”Chrysler Group’s emphasis on owner loyalty across their lineup is an indicator that the organization is truly working with consumers to bring them back” said Jeffrey Anderson, director of loyalty and source of sales solutions at Southfield, Mich.-based IHS Automotive, a division of research and analytics firm IHS. “To see five awards across multiple segments is impressive, and Town & Country’s run is unprecedented.”
                                                                                     
The Polk Loyalty Awards recognize manufacturers for superior owner loyalty performance, which is determined when a household that owns a new vehicle returns to market and purchases or leases another new vehicle of the same model or make. The 2013 awards are based on an analysis of more than 7.4 million new vehicle owners who bought new vehicles again during the 2013 model year.

“Winning five Polk Automotive Loyalty Awards is proof-positive of Chrysler Group’s drive to build the best vehicles on the market,” said Reid Bigland, Head of U.S. Sales, Chrysler Group LLC. “Customers will only come back if they trust their vehicles to deliver flawless quality and reliability, and these awards speak volumes about Chrysler Group’s extensive vehicle lineup.”

Chrysler Town & Country
The 2014 Chrysler Town & Country minivan is celebrating its 30th anniversary as one of the leading innovators in the segment it created back in late 1983. The world-class interior of the Chrysler Town & Country minivan is beautifully crafted with high-quality materials that are soft to the touch, and offers tech-savvy entertainment features and smart storage and seating options including Stow ‘n Go® seating with one-touch fold-down function, class-exclusive dual Blu-ray DVD entertainment system, navigation and SIRIUSXM satellite radio with Travel Link making the Chrysler Town & Country the ultimate family vehicle. A 3.6-liter Pentastar V-6 engine produces a best-in-class 283 horsepower and is mated to a six-speed automatic transmission with a fuel economizer mode delivering up to 25 miles per gallon highway.

Jeep Grand Cherokee
Jeep Grand Cherokee completely redefines the premium SUV, delivering an unprecedented combination of best-in-class fuel economy and driving range, available clean-diesel technology, legendary benchmark capability, world-class craftsmanship, and a host of advanced user-friendly technology and safety features. For 2014, Grand Cherokee offers a new EcoDiesel engine with best-in-class 30 mpg highway and an unmatched driving range of more than 730 miles.  A new eight-speed transmission drives all Grand Cherokee engines, including the 3.6-liter Pentastar V-6 – achieving up to 25 mpg and more than 600 miles driving range – and the 5.7-liter V-8, now achieving up to 22 mpg.

Jeep Wrangler
The iconic Jeep Wrangler – the most capable and recognized vehicle in the world – is equipped with a 3.6-liter Pentastar V-6 engine delivering 285 horsepower and 260 lb.-ft. of torque and up to 21 miles per gallon. Jeep Wrangler delivers unmatched off-road capability with legendary four-wheel drive and is produced with more than seven decades of 4x4 engineering experience.  Wrangler continues to offer a body-on-frame design, front and rear five-link suspension system, live axles, electronic lockers, and is one of the few mid-size SUVs that offer a six-speed manual transmission – in addition to its five-speed automatic transmission.

Dodge Challenger
With record sales levels since the reintroduction of the Challenger in 2008, the Dodge brand’s performance icon continues to deliver exactly what muscle car enthusiasts want – a powerful and efficient engine lineup, iconic muscle-car design with numerous personalization packages. Dodge Challenger combines world-class ride, refinement and braking performance with more power and a track-tuned suspension to deliver a thrilling driving experience. With its award-winning 3.6-liter Pentastar V-6 engine producing 305 horsepower and an impressive 25 mpg highway, the Dodge Challenger is the most powerful, refined and technologically advanced entry-level Challenger ever. And now with the return of “Scat Package” performance stage kits, plus the enthusiast-demanded Shaker performance hood with its HEMI® V-8 engine-mounted, fully floating scoop and exposed high-flow element for cold-air induction – the new 2014 Challenger R/T Shaker delivers up to 375 horsepower, performance and even more heritage-inspired style for the most hardcore Dodge enthusiasts.

Fiat 500
Reminiscent of the original 500 or "Cinquecento" born in 1957, the new Fiat 500 builds on the vehicle's global popularity. Since its initial launch on July 4, 2007, more than 1,000,000 Fiat 500 vehicles have been sold in more than 100 countries around the world. In addition to success on the sales front, the Fiat 500 has earned more than 80 international awards, including being named the 2008 European Car of the Year, 2009 World Car Design of the Year and Best New Engine of 2010 (Fiat MultiAir® Turbo). In the U.S., the 2012 Fiat 500 was named "Best Buy" in the subcompact category by Consumers Digest and was deemed a "Top Safety Pick" by the influential Insurance Institute for Highway Safety (IIHS).

USA - Chrysler announces December and full year corporate figures.

Chrysler Group LLC Reports December 2013 U.S. Sales Increased 6 Percent – Best December Sales in Six Years; Full-Year Sales Up 9 Percent – Strongest Annual Sales Since 2007

• 45th-consecutive month of year-over-year sales gains
• Chrysler Group full-year U.S. sales increase 9 percent in 2013; fourth-consecutive year of annual sales growth
• Jeep® and Ram Truck brands each post double-digit sales increases in December compared with same month a year ago
• Jeep brand posts best December sales ever with 34 percent sales gain; brand sets global sales record in 2013
• All-new 2014 Jeep Cherokee sales top 15,000 units in its second full month of sales; sales up 48 percent compared with previous month of November
• Motor Trend selects Ram 1500 as its 2014 Truck of the Year; Ram pickup sales up 11 percent in December
• 2014 Dodge Dart, Dodge Avenger and Chrysler 200 sedans earn Top Safety Pick ratings from Insurance Institute for Highway Safety

Chrysler Group LLC today reported U.S. sales of 161,007 units, a 6 percent increase compared with sales in December 2012 (152,367 units), and the group’s best December sales since 2007.

The Jeep® and Ram Truck brands each posted double-digit percentage sales gains in December compared with the same month a year ago. The Jeep brand’s 34 percent increase was the largest sales gain of any Chrysler Group brand during the month. FIAT brand sales were up 1 percent. Chrysler Group extended its streak of year-over-year sales gains to 45-consecutive months in December.

“Chrysler Group ended the year with a 6 percent sales gain in December and our 45th-consecutive month of year-over-year sales gains,” said Reid Bigland, Head of U.S. Sales. “Our Jeep and Ram Truck brands had a strong finish led by the all-new 2014 Jeep Cherokee and the Ram pickup truck, Motor Trend’s 2014 Truck of the Year. Sales of the new Cherokee topped 15,000 units in December as our newest SUV continues its solid sales performance out of the gate.”

In its second full month of sales, the new Cherokee mid-size SUV recorded sales of 15,038 units, surpassing sales of the Jeep Wrangler. The Jeep brand recorded its best December sales ever. In addition, the Wrangler and Jeep Patriot each recorded their best December sales ever.

Full-year Chrysler Group sales were up 9 percent in 2013, compared with sales during 2012. It was the fourth-consecutive year of Chrysler Group sales growth. The Ram Truck brand, with its 22 percent increase in 2013, had the largest full-year sales gain of any Chrysler Group brand. Chrysler Group realized sales growth in both its car and truck segments during the year. Chrysler Group car sales in the U.S. were up 11 percent in 2013, while truck sales were up 8 percent. The Jeep brand set a global sales record in 2013.

Chrysler Group finished the month of December with a 79 days supply of inventory (508,615 units). U.S. industry sales figures for December are internally projected at an estimated 15.8 million units Seasonally Adjusted Annual Rate (SAAR).

December 2013 U.S. Sales Highlights by Brand

Jeep® Brand

Jeep brand sales were up 34 percent in December, its best December sales ever and the largest percentage sales gain of any Chrysler Group brand for the month. The Jeep brand’s December sales were second only to record sales in July 2005.

Sales of the all-new 2014 Jeep Cherokee were up 48 percent compared with the previous month of November. Jeep brand dealers sold 15,038 units of the new Cherokee during December, its second full month of sales. The Cherokee topped Jeep Wrangler sales in December as it continued its strong sales launch. The Cherokee was crowned the “Best New SUV/CUV Under $35,000” in December by the Automobile Journalist Association of Canada. The new Cherokee bested a quartet of rivals from one of the country’s most popular and hard-fought vehicle segments.

The Wrangler, Jeep Patriot and Jeep Compass each posted year-over-year sales gains in December. The Patriot compact SUV, with its 35 percent increase, logged the largest percentage sales gain of any Jeep brand model in December. Wrangler sales were up 4 percent in December, compared with the same month a year ago. Both the Wrangler and Patriot each posted their best December sales ever.

Ram Truck Brand

Sales of the Ram pickup truck were up 11 percent in December, its 44th-consecutive month of year-over-year sales gains and its best December sales since 2004. Sales of the Ram Heavy Duty pickups were up 16 percent, while Ram Light Duty sales increased 7 percent. Motor Trend selected the Ram 1500 in December as its 2014 Truck of the Year, its first ever back-to-back winner. Nine Truck of the Year contenders were put through an extensive battery of testing designed to evaluate virtually every aspect of each vehicle. The judges were particularly impressed with the performance of the Ram 1500’s all-new EcoDiesel V-6 engine as well as its eight-speed TorqueFlite transmission, a combination that boasts a towing capacity of up to 9,200 pounds. The 3.0-liter EcoDiesel V-6 is among Ward’s 10 Best Engines for 2014.

Ram Truck brand sales were up 17 percent in December compared with the same month a year ago. Sales of the all-new 2014 Ram ProMaster van were up 126 percent, compared with the previous month of November. The ProMaster van went on sale in the U.S. in October. The Ram Commercial Truck division in December announced that it will offer an all-new small van for the North American market. Joining the larger ProMaster as an additional van offering, the 2015 Ram ProMaster City will compete with small commercial and passenger vans.

Full-year Ram Truck brand sales were up 22 percent in 2013, the largest percentage sales increase of any Chrysler Group brand for the year.

FIAT Brand

FIAT brand sales were up 1 percent in December compared with the same month a year ago. The FIAT brand recorded nine months of year-over-year sales gains during 2013. Sales of the new Fiat 500L, which debuted in June, were up 52 percent in December compared with the previous month of November.

The all-electric Fiat 500e Battery-Electric Drive System was among Ward’s 10 Best Engines for 2014 and the lone representative of electric-vehicle technology. The battery-electric drive system in the 500e hatchback delivers the best-in-class range of 87 miles.

Dodge Brand

Dodge brand sales were down 9 percent in December, but full-year sales in 2013 were up 14 percent on strong Dodge Dart, Dodge Durango, and Dodge Challenger sales. Sales of the Durango full-size SUV were up 3 percent in December compared with the same month a year ago, extending its run of year-over-year sales gains to 14-consecutive months. It was the Durango’s best December sales in eight years. Sales of the Dodge Charger were up 29 percent in December.

The 2014 Dart and Dodge Avenger sedans earned Top Safety Pick ratings from the Insurance Institute for Highway Safety (IIHS) in December. The announcement marks the fifth-consecutive year that the IIHS has commended the Avenger mid-size sedan. Meanwhile, the insurance industry organization has hailed the Dart compact sedan each year since it arrived on the market in 2012. The Dodge sedans feature significant advanced-technology steel content, which enhances structural integrity. The Dart’s 68 percent content ratio of high-strength steel is among the highest in the industry. The Dart also boasts a 5-star safety rating based on crash tests performed by the U.S. National Highway Traffic Safety Administration.

Chrysler Brand

Chrysler brand sales were down 21 percent in December, but sales of the award-winning Chrysler Town & Country minivan were up 5 percent compared with the same month a year ago. It was the Town & Country’s best December sales in three years. For the full year, Town & Country sales were up 9 percent in 2013.

Chrysler 200 sedan sales were up 3 percent for the full year, compared with sales in 2012. The 2014 Chrysler 200 mid-size sedan earned a Top Safety Pick from the Insurance Institute for Highway Safety in December, the model’s fourth-consecutive Top Safety Pick from the insurance industry organization.

USA - FIAT agrees terms with UAW to take control of Chrysler Group

FIAT S.p.A. (“FIAT”) today announced an agreement with the VEBA Trust[1], under which its wholly owned subsidiary, FIAT North America LLC (“FNA”), will acquire all of the VEBA Trust’s equity membership interests in Chrysler Group LLC (“Chrysler Group”), representing the 41.4616% of Chrysler Group not currently held by FNA.  The transaction is expected to close on or before January 20, 2014.

In consideration for the sale of its membership interests in Chrysler Group, the VEBA Trust will receive aggregate consideration of U.S. $3,650 million consisting of:

• a special distribution payable by Chrysler Group to its members, in an aggregate amount of approximately U.S.$1,900 million (FNA’s portion of the special distribution will be paid by FNA to the VEBA Trust as part of the purchase consideration)[2]; and
• at closing, FNA will pay the remainder of approximately U.S.$1,750 million in cash purchase consideration to the VEBA Trust.

FIAT expects to fund the U.S. $1,750 million in cash from available cash on hand.  Chrysler Group expects to fund the special distribution from available cash on hand.

Contemporaneously with the transactions described above, Chrysler Group and the International Union, United Automobile, Aerospace and Agricultural Implement Workers of America (the “UAW”) have agreed to a memorandum of understanding under Chrysler Group’s existing collective bargaining agreements to provide for additional contributions by Chrysler Group to the VEBA Trust of an aggregate of U.S. $700 million in four equal annual installments.  The initial payment will be made on closing of the transaction with FIAT and additional payments will be payable on each of the next three anniversaries of the initial payment. Chrysler Group expects to fund the initial contribution to the VEBA Trust from available cash on hand.

In consideration for these contributions, the UAW will agree to certain commitments to continue to support the industrial operations at Chrysler Group and the further implementation of the FIAT-Chrysler alliance, including to use best efforts to cooperate in the continued roll-out of FIAT-Chrysler World Class Manufacturing programs, actively participate in benchmarking efforts associated with implementation of these programs across all of FIAT-Chrysler manufacturing sites to ensure objective performance assessments and provide for proper application of WCM principles, and actively assist in the achievement of the Group’s long-term business plan.

“I have been looking forward to this day from the very moment that we were chosen to assist in the rebuilding of a vibrant Chrysler back in 2009,” said John Elkann, Chairman of FIAT. “The work, commitment and achievement I have witnessed from Chrysler over the past four and a half years is nothing short of exceptional, and I take this opportunity to officially welcome each and every one of the people in the Chrysler organisation to the integrated FIAT-Chrysler world.”

Sergio Marchionne, Chief Executive of FIAT and Chairman and CEO of Chrysler Group, had this to say: “In the life of every major organisation and its people, there are defining moments that go down in the history books. For FIAT and Chrysler, the agreement just reached with the VEBA is clearly one of those moments. I will be forever grateful to the leadership team for the support and unwavering dedication shown to the integration project that today has taken its final shape. The unified ownership structure will now allow us to fully execute our vision of creating a global automaker that is truly unique in terms of mix of experience, perspective and know-how, a solid and open organisation that will ensure all employees a challenging and rewarding environment.”

As part of the transactions, FNA and the VEBA Trust will agree to dismiss with prejudice the current proceedings before the Delaware Court of Chancery with respect to the interpretation of the call option agreement pursuant to which FIAT has, through FNA, exercised three tranches of a call option to acquire membership interests in Chrysler Group held by the VEBA Trust.  All of these membership interests will be acquired by FNA in connection with the transactions described above.

Given the funding arrangements for this transaction, it is not envisioned that FIAT will require equity capital to be raised via a rights issue.

[1] The UAW Retiree Medical Benefits Trust, a Voluntary Employees’ Beneficiary Association, is an independently administered trust established to pay health care benefits for retirees from Chrysler.

[2] In the event that the special distribution from Chrysler Group cannot be paid by the intended closing date (January 20, 2014 or earlier) FIAT intends to make payment to the VEBA Trust of the aggregate consideration and thereafter receive the special distribution when it is the 100% owner of Chrysler Group.

Lotus gains government grant to grow workforce and improve model range.

British car manufacturer Lotus has secured a £10 million government grant which will see the firm create more than 300 new jobs.

The Regional Growth Fund (RGF) has awarded the automotive firm £10.44 million, which will be used for research and development of products, along with staff training. In addition Lotus is expected to create 313 new full time jobs to support production over the coming years.

Business Secretary, Vince Cable MP visited Lotus’ Norfolk headquarters today, 25 November 2013, where he toured the engineering and factory facilities and formally announced the grant to Lotus management.

The grant is a further boost for Lotus, following a £100 million investment by its owners DRB-HICOM which has allowed the company to enhance its engineering, productivity, efficiency and quality. Lotus is also recruiting for more than 130 new jobs, previously announced in July 2013.

The Regional Growth Fund (RGF) is a flexible and competitive £3.2 billion fund operating across England from 2011 to 2017. It supports projects that are using private sector investment to create economic growth and sustainable employment.

Aslam Farikullah, Chief Operating Officer at Lotus, said: “This grant is part of a wider strategy for Lotus created to ensure we thrive and grow.  We are responding to increased global demand for our cars and engineering consultancy services and this grant will help to position Lotus at the forefront of global automotive innovation.

“We have very exciting plans for our sports cars and it’s a very positive move for Lotus that we’re in a position to create new jobs and to significantly contribute to Britain’s automotive industry.

“The team here at Lotus have worked very hard to secure this grant and every employee is playing their part in the stability, growth and future success of our company.”

Business Secretary Vince Cable said: “Lotus is an iconic British car maker, with some of the most innovative engineers in the business. The car industry is one of Britain's great success stories, employing over 130,000 people and helping to build a stronger economy by contributing £11 billion a year. The Government's industrial strategy is working and giving business the confidence to invest, creating more high skilled, long term jobs in the UK.

“I am pleased to announce today that our flagship economic plan to create jobs outside of London - the regional growth fund - is awarding Lotus a £10 million grant which will help them develop their next generation of cars and create over 300 new jobs in East Anglia.  The Government has already supported over 400 projects with £2.6 billion from the Regional Growth Fund, promoting growth in regions across England. The latest round is still open for another two weeks and I'd urge all businesses with a plan to support jobs in their local areas to apply"