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Four-horse race opens up for next Chrysler-Fiat CEO

There are some companies that could change leadership overnight and still remain more or less the operations that they are. But some have built themselves up around one central figure. Just ask Carlos Tavares, who found he couldn't escape the long shadow of Renault-Nissan CEO Carlos Ghosn. Tavares recently left to find his own limelight. But Ghosn isn't the only executive who presides over two disparate automakers on opposite ends of the globe.
Having built up Fiat and Chrysler around himself, we can hardly imagine either automaker getting along without Sergio Marchionne. But the day will come when the famously sweater-clad bigwig will step down. The pressing questions remain when when that day will come, and who will take his place. The only solid clues we have are in the statements made mostly by Marchionne himself, but those statements have been all over the place. When speaking to Automotive News in 2012, he said he would step down "no earlier than 2013, no later than 2015." But a year later, he had already seemingly changed his tune, indicating he could still be at the helm in 2016. Fiat chairman John Elkann seems to think Marchionne, 61, could and should stay on longer.

FCA and PSA sign merger agreement

Confirming an earlier rumor, PSA Group and Fiat-Chrysler Automobiles (FCA) signed a binding merger agreement to create the world's fourth-largest automaker. The partners hope to leverage the benefits of economies of scale as they develop new technologies and expand their global presence. The announcement ends FCA's years-long search for a partner, which nearly ended earlier in 2019 when it came close to merging with Renault, PSA's rival. It brings Fiat, Chrysler, Dodge, Ram, Jeep, Alfa Romeo, Maserati, Lancia, Peugeot, Citroen, DS, and Opel/Vauxhall under the same roof. That's a huge portfolio of brands that often overlap, but executives pledged to keep them all open, as well as all their respective factories as a result of the transaction. They're committed to making this big family of automakers work by building on each one's strengths, whether they're technical or regional. FCA and PSA jointly predicted they'll sell about 8.7 million cars annually around the globe, while posting an ˆ11 billion (about $12.2 million) profit. North America, a strong market for FCA, will provide 43% of its revenues, and 46% will be generated in Europe, where Peugeot's brands are doing better than ever. Together, they plan to achieve ˆ3.7 billion (about $4.1 million) in annual run-rate synergies. They'll notably have the purchasing power to negotiate a better price with suppliers, and they'll merge their research and development efforts where it makes sense to do so. Over two thirds of the group's annual volume will be built on two shared platforms. One will underpin about three million small cars annually, and the other will serve as the foundation for approximately three million compact and mid-sized cars. Details about these architectures haven't been made public yet, but a quick look at both companies' product portfolios reveals the small car will very likely come from Peugeot. Recent additions to its range, like the second-generation 208, are built on a new architecture named Common Modular Platform (CMP) developed with electric powertrains in mind. Meanwhile, Fiat is still making the cheeky 500 on an evolution of the platform found under the second-generation Panda released in 2003. The bigger architecture could come from FCA, however. The group's brands will share engines, transmissions, electric powertrains, infotainment systems, various sensors used to power electronic driving aids, and other components like wiring looms, but each one will retain its own identity.

U.S.-Mexico border congestion is complicating automakers' lives

No matter where you fall on the political spectrum, there’s no denying that the U.S. has some significant challenges at its southern border. The droves of people attempting to cross the border from Mexico into the U.S. have complicated trade between the two countries as border authoritiesÂ’ limited resources and increasing political scrutiny have made it difficult to move goods. While that will have an impact on the prices of several consumer goods, it will also slow vehicle and parts shipments needed to keep the U.S. auto industry running. Automotive News reported that the Texas border has been particularly slow, as the state has implemented new screening measures for illegal crossings and drugs. That extra effort has had a severe impact on border logistics, to the point that Bloomberg estimated 19,000 trucks and $1.9 billion in cargo were stranded in Mexico waiting to cross. Officials said the delays have created wait times of up to 24 hours and a line of trucks 14 miles long. The delays will likely have a noticeable impact on the U.S. auto industry. Mexico manufactures millions of cars each year, the majority of which end up here. Nissan, General Motors, Stellantis and others have noted slight delays, but thereÂ’s little wiggle room for the Big 3 while the UAW strike rages on. Should the strike end, slowness at the border would make it difficult to ramp up production and make up for lost time. There have been some promising signs in recent times, such as the Bridge of the Americas between El Paso, Texas, and Ciudad Juarez, Mexico, reopening after a three-week closure. Still, the challenges created by border congestion have led some to take drastic measures. A few manufacturers have begun flying parts over the border, while General Motors noted that it was shipping components “on a limited basis” by sea. Related Video: