2005 Chrysler 300 Limited Sedan 4-door 3.5l on 2040-cars

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Fiat ups Chrysler stake by 3.3%, inches closer to full control

Fiat is one step closer to completing a merger with Chrysler after exercising an option to acquire an additional 3.3 percent of the Auburn Hills-based automaker today. Automotive News reports that Fiat now controls 68.49-percent of Chrysler, which is up almost 10 percent since we last heard news of this deal back in February when Fiat talking to various banks to raise more capital in order to complete the acquisition.
The article says that Fiat is still able to increase its stake in Chrysler up to 75 percent over the next 12 months, but it sounds like CEO Sergio Marchinonne would rather purchase the remaining shares from VEBA - the retiree benefits trust - sooner rather than later. Unfortunately, the two sides still seem far from an agreement on a fair price for the rest of Chrysler, as Fiat has them valued at $4.2 billion compared to the $10.3 billion estimate from the unions that currently own the remaining stake in Chrysler.

Pickup prices rising at 2x industry average

We've said it before, but bears repeating: Pickup trucks are the financial engines of America's automakers. Good thing, then, that the segment is in rude health - in fact, Automotive News is suggesting that pickup truck sales are arguably healthier than they were pre-recession, even though the segment's volume is still significantly down from where it was before the bottom fell out of the US economy. That's because per-unit profits on full-size trucks are skyrocketing, outpacing the industry's average price increases by more than double since 2005. According to data from Edmunds, the average transaction price of a full-size pickup is now $39,915 - a heady increase over the $31,059 average price in 2005 - a gain of over 8 percent after inflation is factored in.
Just how important are trucks to automakers' bottom lines? Automotive News quotes a Morgan Stanley analyst as saying the Ford F-Series is responsible for 90 percent of the company's 2012 profits, and General Motors isn't far behind, with the Chevrolet Silverado and GMC Sierra twins chipping in about two-thirds of the automaker's earnings.
Automotive News points out that Detroit's automakers now have the money to invest in modernizing their full-size truck offerings, in part because they don't have the same overhead and legacy costs that pushed General Motors and Chrysler into bankruptcy. Certainly, the pickup segment has seen a lot of innovations as of late, including turbocharged V6s, coil-spring rear suspensions and active aero. Those improvements in important areas like fuel economy and ride comfort have given existing pickup buyers new reasons to upgrade. In addition, automakers are piling on the tech and luxury goodies, creating more and more high-content, high-profit models like the Ford F-150 King Ranch, Ram 1500 Laramie Longhorn and Chevrolet Silverado High Country (shown).

Chrysler 200 replacement coming in January

Autoweek reports the next Chrysler 200 will bow early next year. CEO Sergio Marchionne has said the 2015 model will debut next January, and Chrysler plans to cut the 2014 200 model year short to make way for the model's successor. According to AW, internal documents reveal 2014 model production will start this July and run through early January, 2014. The memos don't specify whether its Dodge Avenger twin will also see a shortened model year (the latter was originally rumored for discontinuation, but a successor is apparently back on the table). Chrysler is investing some $1 billion to construct paint and body facilities at its Sterling Heights, Michigan plant for the next-generation 200.
From what we've heard so far, we can expect the 2015 200 to bring a new design language to the Chrysler brand that will eventually bleed into the automaker's other products. Early reports have also suggested the four door will boast a nine-speed automatic transmission and return up to 38 miles per gallon.
Chrysler executed a very successful facelift in 2011, turning the flailing Sebring into the newly minted 200. Buyers responded enthusiastically, with sales jumping 44 percent in 2012. That step up was enough to make the 200 the brand's best-selling car. The momentum hasn't slackened, either, with sales up 21 percent during the first two months of this year.