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Auto Mergers and Acquisitions: Suicide or salvation?

We love the Moses figure. A savior riding in from stage right with the ideas, the smarts, and the scrappiness to put things right. Alan Mullaly. Carroll Shelby. Lee Iacocca. Andrew Carnegie. Steve Jobs. Elon Musk. Bart Simpson. Sergio Marchionne does not likely view himself with Moses-like optics, but the CEO of Fiat Chrysler Automobiles recently gave a remarkable, perhaps prophetic interview with Automotive News about his interest and the inevitability of merging with a potential automotive partner like General Motors. Marchionne has been overtly public about his notion that GM must merge with FCA. For a bit of context, GM sold 9.9 million vehicles in 2014, posting $2.8 billion in net income, while FCA sold 4.75 million units and earned $2.4 billion in net income, painting a very rosy FCA earnings-to-sales picture. But that's not the entire picture. Most people in the auto industry still remember the trainwreck that was the DaimlerChrysler "merger" written in what turned out to be sand in 1998. It proved to be a master class in how not to fuse two companies, two cultures, two continents, and two management teams. Oh, it worked for the two individuals at both helms pre-merger. They got silly rich. And the industry itself was in a misty romance at the time with mergers and acquisitions. BMW bought Rolls-Royce. Volkswagen Group bought Bentley, Bugatti, and Lamborghini, putting all three brands into their rightful place in both products and positioning. No marriages there, so no false pretense. Finally, Nissan and Renault got married in 1999. A successful marriage requires several rare elements in this atmosphere of gas fumes and power lust. But a successful marriage requires several rare elements in this atmosphere of gas fumes and power lust, the principle part being honesty. Daimler and Chrysler lied to each other. The heads of each unit, the product planners, and finance all presented their then-current and long-range forecasts to each other with less-than-forthright accuracy. Daimler was the far greater equal and no one from the Chrysler side enjoyed that. The cultures were entirely different, too, and little was done to bridge that gap. Which brings me back to the present overtures by Marchionne to GM. "There are varying degrees of hugs," Marchionne stated in the Automotive News piece. "I can hug you nicely, I can hug you tightly, I can hug you like a bear, I can really hug you." Seriously?

Dodge Hellcat Widebody delivers Christmas tree at 174 mph

The holidays are here, and so last-minute shoppers are going to be in a serious rush to get all the items they need, especially Christmas shoppers that haven't even put up a tree yet. Those seriously late folks may want to invest in a Challenger Hellcat because apparently they can go an incredible 174 mph with a Christmas tree strapped to the roof. This was discovered by the folks at Hennessey. They got a Hellcat Widebody from Dodge for the little experiment, along with a suction cup mount roof rack from SeaSucker and a real Christmas tree from Lowe's. Then it was off to the Continental Tire test track in Texas to see how fast it could go, which, as mentioned was 174 mph. As you'll see in the video, it takes quite a bit of road to move up from 170 to 174 mph. It's impressive that the tree and roof rack don't seem to budge. And it's all capped off with a huge smokey burnout to the sound of V8 rumble and supercharger whine. It's a fun way to get into the holiday spirit. And we'll look forward to next year when maybe Dodge will give Hennessey a Demon to try out. Related Video:

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