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4 ways FCA-PSA merger could be a plus

DETROIT — In a merger deal announced overnight, Fiat Chrysler stands to gain electric vehicle technology while PSA Peugeot Citroen could benefit from a badly needed dealership network to reach its goal of selling vehicles in the U.S. The merger would create the world's fourth-largest automaker with a combined market value of around $50 billion. Neither company would comment. Experts say the two automakers will be able to share car, SUV and commercial vehicle designs, helping each other fill weaknesses and share costs that will make them a strong global player. "We view the combination of these two companies as reasonable given global competition, high capital intensity, and industry disruption from electrified powertrain as well as autonomous technologies," Morningstar analyst Richard Hilgert wrote in a note to investors. Here are four areas that could be crucial to the two automakers' success: Technology For years, Fiat Chrysler has lagged its rivals in electric vehicle technology, with its former CEO once trying to discourage people from buying its only fully electric car in the United States, the Fiat 500E, because he lost money on each sale. The company has made progress on gas-electric hybrids and may have plans for more fully electric vehicles, but PSA has valuable technology that FCA can use, said Navigant Research analyst Sam Abuelsamid. Peugeot was relatively late to the electric vehicle game but is now working fast to catch up, notably with fellow French rival Renault. CEO Carlos Tavares has made a point of stressing the company's need to adapt to changing technology at car shows and earnings calls. Last year he announced plans to offer 40 electric models across its lineup by 2025. "Electrification hasn't been a huge part of their play up until now," Abuelsamid said. "Between the two of them, I think they could generate some scale for whatever they're doing, sharing component costs, development costs across electrical platforms," he said. More electric vehicles also would help FCA meet pollution and fuel economy regulations in Europe. As far as autonomous vehicles, neither company is among the leaders, Abuelsamid said. But that's a technology that's years into the future, giving them time to share the huge expenses and catch up together. FCA also has alliances with other companies such as Google spinoff Waymo that could bring autonomous vehicle technology to the market when ready, Abuelsamid said.

To grease the skids for Stellantis, PSA offers to boost Toyota's fortunes

BRUSSELS/MILAN — Peugeot maker PSA has offered to boost Japanese rival Toyota to try to address EU antitrust concerns about its plan to create the world's fourth-biggest carmaker, to be called Stellantis, by merging with Fiat Chrysler, people familiar with the matter said on Friday. PSA has offered to increase the production capacity for Toyota in their van joint venture, one of the sources said. Another source said the French company would sell the vans at close to cost. PSA makes vans for Toyota in its Sevelnord plant in northern France. The van collaboration started in 2012. PSA submitted its offer to the European Commission earlier on Friday, three months after the EU enforcer opened a full-scale investigation into the deal with FCA on concerns that it would hurt competition in small vans in 14 EU countries and Britain. "As of now, the transaction has obtained merger clearance in 14 jurisdictions. As previously stated, closing of the transaction is expected to occur in the first quarter of 2021," PSA and FCA said in a joint statement. The Commission, which temporarily halted its investigation into the deal in July while waiting for the companies to provide requested data, did not set a deadline for its decision. "The deadline is still suspended. This procedure in merger investigations is activated if the parties fail to provide, in a timely fashion, an important piece of information that the Commission has requested from them," the EU executive said. It is now expected to seek feedback from customers and rivals before deciding whether to demand more concessions, or either clear or block the deal. Government/Legal Chrysler Fiat Peugeot Stellantis

Chrysler touts Pacifica Plug-in minivan's lower emissions

Put the words "Chrysler" and "minivan" together, and the concept of lower greenhouse-gas emissions may not immediately come to mind – especially given today's news about FCA sister brands Ram and Jeep. Among mass-market automakers, Chrysler and its sister companies (namely Dodge and Ram) have long lagged its competitors in fuel economy, with little in the way of drivetrain electrification. Now, though, Fiat Chrysler says it's taking steps to make some green-vehicle progress via its new Chrysler Pacifica Plug-in Hybrid minivan. Namely, the automaker says the minivan, which can go 33 miles on electric power alone, generates 31 percent less emissions than previous-generation Pacifica, and 24 percent less than the 2017 model-year gas-powered variant. The Pacifica Plug-in, which will be the first hybrid minivan to be sold in the US, has a fuel-economy rating of 84 miles per gallon equivalent, and can go as far as 566 miles on a full tank and full electric charge. That full charge takes about two hours with a 240-volt charger, and 14 hours from a standard, 110-volt outlet. That means that over the lifecycle of the vehicle (estimated at 120,000 miles), the plug-in minivan, which will compete against models such as the Toyota Sienna and Honda Odyssey, may cut emissions by 21 metric tons of carbon dioxide relative to the gas-powered version. That is the equivalent to the annual emissions of about 22 US households, or, as Chrysler put it, 14 commercial flights to Los Angeles from Detroit. Chrysler is pricing the minivan at about $43,000 (or about $35,000 once the $7,500 federal tax credit for plug-in vehicles kicks in) and will start selling the model by the end of March. Take a look at Autoblog's First Drive impressions here. Related Video: Featured Gallery 2017 Chrysler Pacifica Hybrid: First Drive View 19 Photos News Source: Fiat Chrysler via Green Car Reports Green Chrysler Fiat AutoblogGreen Exclusive Emissions Fuel Efficiency Minivan/Van Hybrid chrysler pacifica