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Report: FCA Is Delaying Many U.S. Vehicle Programs

Parts suppliers tell Reuters that Fiat Chrysler Automobiles NV has delayed the redesign or release of at least 12 current or future vehicles in North America.

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Parts suppliers tell Reuters that Fiat Chrysler Automobiles NV has delayed the redesign or release of at least 12 current or future vehicles in North America.

FCA announced a five-year, $50 billion product overhaul in May 2014. Since then, Reuters' sources say, the company has stretched a dozen or more programs involving its Chrysler, Dodge, Maserati, Jeep and Ram brands.

Among programs that are running behind their original schedules are such highly profitable sellers as the Ram 1500 large pickup truck and Jeep Wrangler SUV, according to Reuters' sources.

They say the Ram 1500's redesign has been delayed about five months to November 2017. They report the next-generation Wrangler will be ready in July 2017, several months later than planned a year ago. They also say the launch of the Grand Cherokee, due in autumn 2017, and the all-new Wagoneer, expected a year later, each may be pushed back as much as 12 months.

Suppliers report several other delays and program changes that would delay schedules by 6-12 months or more. Among the affected models are the Jeep Patriot and Compass small SUVs, Dodge Dart small car and Journey crossover, a new fullsize Chrysler sedan and updates for the Chrysler 300 sedan, Dodge Charger and Challenger cars.

Suppliers acknowledge that last-minute design and engineering changes may account for some of the delays. But they theorize FCA could be drawing out some updates to control spending as CEO Sergio Marchionne pursues a highly public search for a partner carmaker to help share the cost of new-product development.

Gardner Business Media - Strategic Business Solutions