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Competitors’ bad news good for FCA?

by David Zatz on

Yesterday, two breaking stories may help FCA somewhat.

First, Hyundai’s auto union workers voted to go on strike again for higher wages, as their company has been increasing in sales and raking in huge profits. If the strike continues for a long period, as it very well might, some of those sales might be diverted to Dodge, Chrysler, or Jeep.

VW Volkswagen diesel

Second, Volkswagen’s V6-diesel “repair” plan was rejected by California’s air quality board, with a Federal official agreeing that it didn’t solve the problems. Volkswagen’s “solution” was accepted in the European Union, with critics there also saying it didn’t do enough. Again, fewer Volkswagen sales may or may not mean more FCA sales.

Tesla, meanwhile, has been having problems meeting sales goals, and has dropped prices while (as of July 1) ending its resale-price guarantee. This may be good news for Chrysler Future, which plans on more plug-in hybrids and full electric cars.

General Motors also had good news, as it absorbed a bankrupt supplier quickly enough to avoid major factory stoppages.

David Zatz founded Allpar in 1998 (based on a site he had begun in 1993-94), after years of writing reviews for retail trades. He has been quoted by the New York Times, the Daily Telegraph, the Detroit News, and USA Today. Before making Allpar a full-time career, he was a consultant in organizational psychology. You can reach him by using our contact form (much preferred) or by calling (313) 766-2304


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