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China-FCA merger could be a win-win for everyone but politicians

NEW YORK — Fiat Chrysler boss Sergio Marchionne has said the car industry needs to come together, cut costs and stop incinerating capital. So far, his words have mostly fallen on deaf ears among competitors in Europe and North America. But it appears Marchionne has finally found a receptive audience — in China. FCA shares soared Monday after trade publication Automotive News reported the $18 billion Italian-American conglomerate controlled by the Agnelli family rebuffed a takeover from an unidentified carmaker from the Chinese mainland. As ugly as the politics of such a combination may appear at first blush, a transaction could stack up industrially, and perhaps even financially. A Sino-U.S.-European merger would create the first truly global auto group. That could push consolidation to the next level elsewhere. Moreover, China is the world's top market for the SUVs that Jeep effectively invented, so it might benefit FCA financially. A combo would certainly help upgrade the domestic manufacturer; Chinese carmakers have gotten better at making cars, but struggle to build global brands, and they need to develop export markets. Though frivolous overseas shopping excursions by Chinese enterprises are being reined in by Beijing, acquisitions that support the modernization and transformation of strategic industries still receive support, and the government considers the automotive industry to be strategic. A purchase of FCA by Guangzhou Automobile, Great Wall or Dongfeng Motors would probably get the same stamp of approval ChemChina was given for its $43 billion takeover of Syngenta. What's standing in the way? Apart from price (Automotive News said FCA's board deemed the offer insufficient) there's the not-insignificant matter of politics. Even as FCA shares soared, President Donald Trump interrupted his vacation to instruct the U.S. Trade Representative to look into whether to investigate China's trade policies on intellectual property. Seeing storied Detroit brands like Jeep, Chrysler, Ram and Dodge handed off to a Chinese company would provoke howls among Trump's economic-nationalist supporters. It might not play well in Italy, either, to see Alfa Romeo and Maserati answering to Wuhan instead of Turin — though Automotive News said they might be spun off separately. Yet, as Morgan Stanley observes, "cars don't ship across oceans easily," and political considerations increasingly demand local manufacture of valuable products.

Alfa Romeo celebrates 110th anniversary with 79-page e-book

For its 110th anniversary, Alfa Romeo wanted to host a summer bash at its renovated Museo Storica Alfa Romeo in Arese, Italy. Coronavirus nixed that, so part of the Plan B syllabus is a 79-page e-book that plucks all sorts of fascinating details from even before the automaker's birth as A.L.F.A., which stood for Anonima Lombarda Fabbrica Automobili, and the fecund history since. The work can be considered more than a dive into Alfa Romeo history because of Alfa Romeo's reach for much of its existence. The 1914 Aerodinamica by Castagna built on an Alfa Romeo 40/60 HP chassis predates Buckminster Fuller's Dynmaxion by 20 years. Enzo Ferrari raced for Alfa Romeo or with Alfra Romeo support for 19 years, the driver's seat also occupied by legends like Juan Manuel Fangio, Tazio Nuvolari, and Alberto Ascari. Nuvolari drove the Bimotore — a car with one V8 in front of the cockpit, another V8 behind — to a top speed of 209 miles per hour in 1934, and raced the car alongside Louis Chiron, the same Frenchman Bugatti would later name a car after. Alfa Romeo's tech prowess impressed famed tinkerer Henry Ford so much that in 1939 Ford said, "When I see an Alfa Romeo go by, I tip my hat." And it's hard to believe Ian Fleming hadn't heard of the 1900 C52 Disco Volante concept from 1952 when conjuring a name for Emilio Largo's motor yacht for his 1961 book, "Thunderball." There's plenty of Alfa-centric trivia, too, like an employee coming up with the idea for the automaker's logo while waiting for a train, the origin of the quadrifoglio, intended as a good luck charm for all the three drivers in the 1923 Targa Florio but only paying off for one, and how Nicola Romeo inscribed his name in history. The stories carry up to the present day Giulia GTA and coming Tonale crossover, with a cameo by FCA design chief Ralph Gilles to boot. The book is a quick read, so check it out, or just scroll through lots of photos documenting 110 years of Italian automotive history. Related Video:    

Alfa Romeo 33 Stradale revealed, Dodge Challenger Black Ghost driven | Autoblog Podcast #796

In this episode of the Autoblog Podcast, Editor-in-Chief Greg Migliore is joined by Senior Editor John Beltz Snyder. John has been driving the 2024 Jeep Wrangler Rubicon 392, while Greg has been making noise in another last call from Dodge, the 2023 Challenger Black Ghost. John, along with Associate Editor Byron Hurd, recently tested the 2023 Honda CR-V and Kia Sportage hybrids for an upcoming comparison review. In the news, Felipe Massa seeks to overturn the 2008 F1 Championship in his favor through legal means; Ford might return to the street-performance truck scene with the F-150 Lobo; Volkswagen has been hinting at something interesting at the Munich show by tweeting a mysterious video of a rabbit (the animal); and while the podcast recording was underway, Alfa Romeo unveiled its beautiful 33 Stradale supercar. Send us your questions for the Mailbag and Spend My Money at: Podcast@Autoblog.com. Autoblog Podcast #796 Get The Podcast Apple Podcasts – Subscribe to the Autoblog Podcast in iTunes Spotify – Subscribe to the Autoblog Podcast on Spotify RSS – Add the Autoblog Podcast feed to your RSS aggregator MP3 – Download the MP3 directly Rundown Cars we're driving 2024 Jeep Wrangler Rubicon 392 2023 Dodge Challenger Black Ghost Additional reading: 1970 Dodge Challenger Black Ghost hammers for $975,000 at Mecum Spring Classic 2023 Honda CR-V Sport Touring Hybrid vs. 2023 Kia Sportage Hybrid SX Prestige Massa vows to fight for Hamilton's 2008 Formula 1 title Ford F-150 Lobo reportedly coming as street-oriented performance truck Volkswagen teases Rabbit in mysterious video Alfa Romeo 33 Stradale supercar revealed with gas and EV versions, gorgeous either way Additional reading: Alfa Romeo 33 Stradale is a fast Alfa, developed fast Feedback Email – Podcast@Autoblog.com Review the show on Apple Podcasts Autoblog is now live on your smart speakers and voice assistants with the audio Autoblog Daily Digest. Say “Hey Google, play the news from Autoblog” or "Alexa, open Autoblog" to get your favorite car website in audio form every day. A narrator will take you through the biggest stories or break down one of our comprehensive test drives. Related video: Green Podcasts Alfa Romeo Dodge Ford Honda Jeep Kia Volkswagen Truck Coupe Crossover SUV Electric Hybrid Luxury Off-Road Vehicles Supercars