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Auto blog

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.

Ron Burgundy calls Durango a 'terrible car,' yet his ads help sales climb by 59% [w/videos]

Ron Burgundy was put on this planet to do one thing: to read the news. If that ever falls through, though, the womanizing, scotch-drinking anchorman could have a great career just as a Dodge salesman. Bloomberg points out that sales of the 2014 Dodge Durango have rocketed up 59 percent in the first month of Chrysler's funny new ad campaign (which began in early October). But then again, the entire year has been strong for the big SUV, with year-over-year sales increases in the double and even triple digit percentages - including an increase of 117 percent in August.
Of course, the Durango has also received a wealth of new content and a freshened look for 2014 in addition to the Burgundy campaign, and that has to be helping close sales, too. Whether or not the spots themselves are leading to more sales may be a moot point, since they are definitely getting plenty of attention. Almost two months into the marketing tie-up between Dodge and the movie Anchorman 2, Dodge's YouTube videos have received well over seven million views. More than just YouTube shorts and television commercials, the Durango has even received late-night attention, including when Will Ferrell showed up in character as Ron Burgundy on Conan earlier this week.
In the interview, he calls the Durango a "terrible car" that "cracked in half," a joke that probably had Dodge ad execs squirming uncomfortably in their Barcaloungers. Scroll down to watch the Conan interview as well as some of our favorite Burgundy-pitched Durango ads. And there's still plenty of time to "touch" Ron to win a new Durango.

Junkyard Gem: 1964 Dodge Dart station wagon

The Chrysler A Platform, built from the 1960 through 1976 model years for the North American market (and for a few years beyond that in Australia and Latin America), was one of Chrysler's greatest hits, if not the greatest hit. We know these cars best as the 1963-1976 Dodge Dart and the 1960-1976 Plymouth Valiant, and they established a reputation for reliability matched only by the likes of the Mercedes-Benz W123 diesel. I still see many of these cars during my junkyard wanderings, but A-Body wagons have become very rare. Here's a tattered '64 Dart wagon that I spotted in a self-service wrecking yard in San Jose, California. 1964 was the first model year for factory-installed V8 engines in the Dart and Valiant (and the Valiant's sporty sibling, the Barracuda), and the 273-cubic-inch pushrod V8 was a sturdy powerplant indeed. The slant-6 engine, though less powerful, went into most of these cars, and for good reason: It was harder to kill than all the world's cockroaches and rats put together. This car would have come with a 170- or 225-cubic-inch version of the slant-6, optimistically rated at either 101 or 145 gross horsepower (probably about 55 horses at the wheels), but I didn't feel like scraping sludge off casting numbers to see if it's on its first or 11th engine. In any case, slant-6 Darts were on the pokey side but would get you to your destination every time. This one has a lot of rust for a California car (in New Hampshire or Wisconsin, it would be considered pretty solid) and the interior is more or less obliterated, so even dedicated station-wagon lovers wouldn't have been motivated to take it on as a restoration project. So another early Dart is poised to be stuffed into The Crusher, for reasons that make good economic sense. This still makes us sad, though. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. Here's the compact you've been waiting for!