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GM, FCA retain financial advisors amid merger rumors

Well, here we go again. Despite allegedly shutting down the idea of a merger, General Motors has retained financial advisors to, well, advise it on Fiat Chrysler Automobiles' advances. GM brought in New York-based Goldman Sachs, while FCA is currently working with Switzerland's UBS. Another source told Reuters that GM was working with Morgan Stanley, as well. But what does all this mean? Well, as we know, FCA boss Sergio Marchionne still has his eyes set very much on merging his automaker to combat what he claims are the prohibitive costs that come from developing today's vehicles. And while GM has said "no thanks," to a merger, the FCA boss is still looking to shareholders of the world's third-largest automaker to force the issue. Rather than a sign of an impending merger, voluntary or otherwise, between the two automotive powers – analysts called a hostile move by FCA "beyond ambitious," after all – retaining financial advisors on both sides could be viewed as just good business. News Source: ReutersImage Credit: Paul Sancya / AP Chrysler Fiat GM Sergio Marchionne FCA

Is it time for American carmakers to give up on dual-clutch transmissions? [w/poll]

Last week, in the midst of Detroit's first days seeking relief in Chapter 9 of the bankruptcy code, Automotive News contributor Larry P. Vellequette penned an editorial suggesting that American car companies raise the white flag on dual clutch transmissions and give up on trying to persuade Americans to buy cars fitted with them. Why? Because, Vellequette says, like CVT transmissions, they "just don't sound right or feel right to American drivers." (Note: In the article, it's not clear if Vellequette is arguing against wet-clutch and dry-clutch DCTs or just dry-clutch DCTs, which is what Ford and Chrysler use.) The article goes on to state that Ford and Chrysler have experimented with DCTs and that both consumers and the automotive press haven't exactly given them glowing reviews, despite their quicker shifts and increased fuel efficiency potential compared to torque-converter automatic transmissions.
Autoblog staffers who weighed in on the relevance of DCTs in American cars generally disagreed with the blanket nature of Vellequette's statement that they don't sound or feel right, but admit that their lack of refinement compared to traditional automatics can be an issue for consumers. That's particularly true in workaday cars like the Ford Focus and Dodge Dart, both of which have come in for criticism in reviews and owner surveys. From where we sit, the higher-performance orientation of such transmissions doesn't always meld as well with the marching orders of everyday commuters (particularly if drivers haven't been educated as to the transmission's benefits and tradeoffs), and in models not fitted with paddle shifters, it's particularly hard for drivers to use a DCT to its best advantage.
Finally, we also note that DCT tuning is very much an evolving science. For instance, Autoblog editors who objected to dual-clutch tuning in the Dart have more recently found the technology agreeable in the Fiat 500L. Practice makes perfect - or at least more acceptable.

Renault wants to merge with Nissan, then go after Fiat Chrysler

The late Sergio Marchionne used to say consolidation would be the only way to compete against the biggest global carmakers. The company looks certain to fulfill that goal, but perhaps not in the way he intended. The Financial Times reports that Renault wants to begin merger talks with Nissan in the next 12 months. Assuming a merger gets completed, the plan is for the combined company to then pursue another merger, with Fiat Chrysler a prime target. Renault, Nissan, and Mitsubishi have been busy since cutting ties with ex-alliance boss Carlos Ghosn. They formed a new alliance board with Renault chairman Jean-Dominique Senard at the helm, Renault has shrunk the size of its board while Nissan added more outside directors, and the two agreed to a new governance structure to ease operational decision making. All three automakers have walked away from Ghosn-era goals to sell 14 million cars and find 10 billion euros in savings by 2022. New strategic plans for all three car companies are in the works. With stability in sight, it's said Senard wants to succeed where Ghosn failed — a full-fledged merger between Renault and Nissan with talks to begin "as soon as possible." Ghosn's pursuit of a merger last year in attempt to make the 20-year-old alliance "irreversible" is part of what led to his downfall, with Nissan executives including CEO Hiroto Saikawa against the push. The new effort is presented as larger scale being the only way for the alliance to take on companies like Volkswagen and Toyota. But the Nissan-Renault-Mitsubishi trio sold 10.76 million cars around the world last year, second to Volkswagen with 10.83 million sales, ahead of Toyota with 10.39 million. If Nissan hadn't suffered a 2.8 percent dip in sales, the alliance would have taken the top spot. If a little scale is good that means more is better, right? Pulling Fiat Chrysler into the alliance would add around 5 million annual sales, and would be another move in Ghosn's footsteps. The former honcho is said to have "held talks with FCA" about some kind of union within the past three years. The French government, which has a 15 percent stake in Renault and double voting rights, shut down the initiative. It's not clear if FCA will be an independent company by the time a potential Nissan-Renault merger closed, though.