Fiat Chrysler Cars Wrecked by Consumer Reports

Photo of Douglas A. McIntyre
By Douglas A. McIntyre Published
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

Cars and light trucks made by Fiat Chrysler Automobiles N.V. (NYSE: FCAU) often do badly in auto quality research. The new survey from Consumer Reports is no different. Fiat Chrysler brands littered the bottom of the list.

Most of the “Most and Least Reliable Cars” research covers 28 major brands. They are ranked by the mean score determined from a survey of Consumer Reports subscribers. Toyota Motor Corp. (NYSE: TM) held the top two spots on the list with its luxury brand Lexus in first place, followed by the Japanese car company’s primary brand.

Fiat Chrysler brands occupied five of the seven lowest positions. Fiat was at the bottom of the list, just below the company’s Jeep and Ram brands. Infiniti and Cadillac were the next most poorly rated brands, with Fiat Chrysler’s Dodge and Chrysler brands just above them. Fiat’s rating was unusually low compared to all other brands covered in the Consumer Report research.

Fiat Chrysler offered an odd comment about the results:

“We greatly value customer feedback and use it to continuously improve our vehicles. Because of this fact, we’re significantly accelerating our pace of improvement for our entire product lineup,” said Matt Liddane, Vice President – Quality, FCA – North America. “We compete with many other global players in an industry that’s always evolving and is certainly not standing still; so, we need to continue to push harder.

It would be correct to say extraordinarily harder to make up the gap between the company’s brands and virtually all the industry’s others.

Poor quality ratings have not kept some divisions of Fiat Chrysler from doing well. Jeep sales have risen 23% over the first nine months of the year to 632,910. Sales of the Chrysler brand rose 12% over the same period to 248,800. Sales of the Ram light truck division were up 6% to 358,488. The Ram pickup is Fiat Chrysler’s best-selling vehicle, with sales of 330,643, up 3%. Sales of the Dodge brand were down 14% for the first nine months of 2016 to 382,347. The Fiat brand posted more ruinous sales, falling 10% to 31,819.

While Fiat Chrysler has a long way to go to improve the quality of its products, it appears some large group of buyers does not care.

ALSO READ: 9 Great Companies That Can Raise Their Dividends for the Next Decade

Photo of Douglas A. McIntyre
About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

Continue Reading

Top Gaining Stocks

CBOE Vol: 1,568,143
PSKY Vol: 12,285,993
STX Vol: 7,378,346
ORCL Vol: 26,317,675
DDOG Vol: 6,247,779

Top Losing Stocks

LKQ
LKQ Vol: 4,367,433
CLX Vol: 13,260,523
SYK Vol: 4,519,455
MHK Vol: 1,859,865
AMGN Vol: 3,818,618