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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.

The Hemi deserves to die | Opinion

Hi. I'm Byron and I love V8s. I want them to stick around for a long, long time. But not all V8s are created equal, and I will not mourn the passing of the modern Hemi. You shouldn't either. While we may agree that its death is untimely, if you ask me, that's only because it came far too late.  Stellantis’ announcement of its new, turbocharged inline-six that is all but guaranteed to kill off the Hemi V8 has led to quite a few half-baked internet takes. The notion being suggested by some, that automotive media were brainwashed into believing the Hemi was in need of replacement, is so far divorced from reality that I openly guffawed at the notion. Journalists have been challenging Chrysler, FCA and now Stellantis for years to deliver better high-performance engines. The response has always been the same: “Why?” Why replace a heavy V8 with a lighter, all-aluminum one? Why repackage powertrains for smaller footprints and better handling vehicles? Why be better when “good enough” sells really, really well? I too mourn the departure of good gasoline-burning engines, but since when was the Hemi one? HereÂ’s a quiz: Name every SRT model with an all-aluminum engine. TimeÂ’s up. If you named any, you failed. They donÂ’t exist. This isnÂ’t GMÂ’s compact, lightweight small-block, nor is it a DOHC Ford Coyote that at least revs high enough to justify its larger footprint. The Hemi is an overweight marketing exercise that happened to be in the right place at the right time. That time was 2003, when Chrysler was still Chrysler — except it was Daimler-Chrysler and the "merger of equals" was doing a bang-up job of bleeding the company's cash reserves dry while doing virtually nothing to address its mounting legacy costs. "That thang got a Hemi?" was emblematic of the whimsical, nostalgia-driven marketing of the colonial half of the "marriage made in heaven." That was 20 years ago. 20 years prior to that, emissions-choked American V8s were circling the drain faster than a soapy five-carat engagement ring in a truck stop sink.

Dodge Viper ACR reportedly green lit [w/video]

The Dodge Viper might be getting a little more venomous in the near future thanks to a return of the performance-honed ACR trim. According to an anonymous source leaking the info to Allpar, the version would go into production in July as a 2016 model year vehicle. FCA US showed a concept for a future ACR (pictured above) at the 2014 SEMA Show that sported carbon fiber parts for the front splitter and dive planes, plus a picnic-table-sized rear wing. The body also received ducts at the rear to shoot cool air to the differential. A set of 15.4-inch carbon-ceramic brake rotors also brought things to a halt in a hurry. The company promised all the aero pieces were sculpted in the wind tunnel to give the coupe even more downforce. To shed weight, engineers chucked the radio, speakers, carpet and sound deadening out of the interior, and they replaced many bits with even more carbon fiber. All of the tweaks are necessary because the ACR moniker carries serious cachet for the Viper at the track, especially at the Nurburgring. One reportedly did a 7:22 lap around the 'Ring in 2008, and another improved that further to 7:12 in 2011. Autoblog reached out to FCA US for comment about the possibility for the hotter Viper, but the company wasn't willing to comment about any possible, future projects. Related Video: