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FCA compromises with France, moving Renault merger bid forward

FRANKFURT/PARIS – Renault directors were preparing to review Fiat Chrysler's $35 billion merger offer on Tuesday, after the Italian-American carmaker resolved differences with the French government overnight, three sources said. The compromise on French government influence over a combined FCA-Renault may clear the way for Renault's board to approve a framework agreement beginning the long process of a full merger, unless new issues surface at the meeting. France, Renault's biggest shareholder with a 15% stake, had been pressing for its own guaranteed seat on the new board and an effective veto on CEO appointments. But after late-night talks with FCA Chairman John Elkann, the French government has accepted a compromise that would see it occupy one of four board seats allocated to Renault, balanced by four FCA appointees, the sources said. Renault would also cede one of its two seats on a four-member CEO nominations committee to the French state, they said. Renault, FCA and the French government all declined to comment on the discussions. The same evening that the compromise was was negotiated, activist hedge fund CIAM wrote to the board of Renault to say it "strongly opposed" a planned $35 billion merger with Fiat Chrysler. Calling the deal "opportunistic," the fund said the current deal terms strongly favored Fiat Chrysler and offered no control premium. (Reporting by Arno Schuetze and Laurence Frost; additional reporting by Giulio Piovaccari in Milan and Simon Jessop; editing by Jason Neely and Rachel Armstrong) Government/Legal Chrysler Fiat Mitsubishi Nissan Renault merger

Fiat Chrysler Automobiles recalls nearly 750k vehicles in two campaigns

Fiat Chrysler Automobiles is recalling a total of 747,817 vehicles in the US in two separate campaigns recently added to the National Highway Traffic Safety Administration database.
The first one covers about 434,581 units of the Chrysler 300, Dodge Charger, Challenger, Durango, and Jeep Grand Cherokee from the 2011-2014 model years with electric hydraulic power steering, the 3.6-liter V6 engine and a 160 amp alternator, according to FCA. In the affected vehicles, it's possible for the alternator to fail without warning and possibly cause the car to stall. According to the documentation submitted to NHTSA, the automaker began investigating the problem in August 2014 and has found possible evidence of one crash caused by the failures but no known injuries.
Customers will begin receiving notification about the recall next month, and obviously the repairs will be done at no cost to them.

2017 Chrysler Pacifica Hybrid: The 80-MPGe minivan [w/video]

As automakers rush to add hybrids and plug-ins to every type of vehicle, one popular segment has been overlooked: minivans. If the idea of a hybrid minivan makes sense to you, that's because it's a smart idea, and one that we're surprised hasn't happened yet. So kudos to Chrysler for not just making it happen, but for creating a plug-in version with an estimated 80 miles per gallon equivalent. You can read all the practical details of the 2017 Pacifica (not Town & Country) here. For the sake of this story, we'll focus on what's different with the hybrid model. Yes, Chrysler is just calling it Pacifica Hybrid, not Plug-In Hybrid, because the company's executives think that when people hear "plug" they think "range anxiety" and freak out. That's not a worry here, though, because when the 16-kWh battery runs out of juice, the 3.6-liter Pentastar V6 kicks in and the minivan functions as normal. Just don't run out of gas. With a full charge, the Pacifica Hybrid can travel up to 30 miles on electric power. And though the gas engine is the same 3.6-liter V6 found in the non-hybrid model, it's detuned to 248 horsepower and 230 pound-feet of torque. Charging the battery takes just two hours on a 240-volt plug, and Chrysler houses the battery pack underneath the floor in the middle of the van, where the wells for Stow 'N Go seating are found on gas-only models. So no, you can't get Stow 'N Go seats on the hybrid, but the third row does still fold into the floor. Powertrain aside, the Pacifica Hybrid is nearly identical to its gas-only sibling, save the addition of the charge port on the driver's side front fender. Unique wheels in 17- and 18-inch sizes can be had, and the Pacifica Hybrid only comes in Touring and Limited Platinum trims. You can read more details on the hybrid system in the release below. First hybrid powertrain in minivan segment "Due to its large footprint and multiple daily trip patterns, the minivan is ideally suited for electrification technology," said Bob Lee, Vice President and Head of Engine, Powertrain and Electrified Propulsion Systems Engineering, FCA – North America. "The all-new 2017 Chrysler Pacifica lives up to this promise and then some, with efficiency, power and refinement." Launching in second half of 2016, the Pacifica Hybrid is the industry's first electrified minivan.