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Fiat Chrysler replaces longtime quality chief

By WTOP Staff

TOM KRISHER
AP Auto Writer

DETROIT (AP) — Doug Betts, Fiat Chrysler’s longtime quality chief, abruptly left the company Tuesday, one day after its brands performed poorly in Consumer Reports magazine’s annual reliability rankings.

Fiat Chrysler said in a statement that Betts, who has been with Chrysler for the past seven years, exited the company to pursue other interests. He was immediately replaced by Mark Chernoby, who will head quality for the global company, and Matthew Liddane, who will lead Chrysler Group quality in North America.

Betts, who was senior vice president of quality, joined Chrysler in November of 2007 after more than 21 years of quality experience at Nissan, Toyota, Michelin and General Motors. But he had trouble fixing the company’s longstanding quality problems, and it continually fared poorly in the influential Consumer Reports rankings.

Company spokeswoman Shawn Morgan would not comment on any possible connection between Betts’ departure and the rankings. A message was left Tuesday for Betts.

Sergio Marchionne, CEO of the newly merged company, has shown little patience with executives whose performances fall short of expectations. He’s often changed his top managers since taking control of the company after it emerged from a U.S. government-sponsored bankruptcy in 2009.

But AutoTrader.com senior analyst Michelle Krebs said Marchionne had been more patient than usual with Betts. “It clearly sends the message that Chrysler management is not going to accept bad quality going forward,” she said. “They need to do something. Yesterday’s results were really dismal.”

Fiat Chrysler Automobiles fared worst in the Consumer Reports rankings this year. The Dodge, Ram, Jeep and Fiat brands occupied the bottom four spots of 28 brands ranked by the magazine. Chrysler was the company’s highest-ranked brand at No. 22. Jeep, Ram, Dodge and Chrysler all dropped from last year’s rankings.

The new nine-speed transmission in the Jeep Cherokee was among the company’s headaches.

The instability created by combining Chrysler with Fiat has not helped reliability as the companies switched to using common engines, transmissions and underpinnings to build multiple vehicles worldwide, said Consumer Reports’ head of auto testing Jake Fisher. “It’s just this kind of moving target,” Fisher said.

Chrysler’s quality problems, though, can’t be blamed solely on Betts, Krebs said. The company must fix engineering, design and manufacturing problems as well, she said. Such problems, she said, could hurt Chrysler’s sales in the future if customers have problems with their cars.

Chernoby, who now serves as FCA’s head of product development, will keep that position in addition to his quality duties. Liddane, a longtime Chrysler engineer, previously was vice president of systems and components for Chrysler Group. He has served as chief engineer for Jeep products and led the company’s new compact car efforts.

The Toyota and Lexus brands topped the Consumer Reports survey. It’s the eighth year in a row that a Toyota brand has led the rankings.

Consumer Reports’ annual survey is closely watched by the auto industry, since many potential buyers follow the Yonkers, N.Y.-based company’s recommendations.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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