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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?

Junkyard Gem: 1979 Fiat Brava Sedan

Ever since I started spending too much time crawling around in junkyards, about 40 years ago, one thing has been constant: a steady supply of Fiat 124 Sport Spiders and X1/9s scattered among the dullsville econoboxes. These cars were shinier in the early 1980s, but they remain just about as easy to find today in your local Ewe Pullet. Of course, the current generation of Fiat 500 has been with us for a decade and so the days of shiny junkyard Fiats have returned for us. But what about the other Fiat models sold here prior to the company's departure from our shores in 1982? I've found the occasional discarded 128 and even a couple of 850s, but the rear-wheel-drive Fiat sedans of the 1970s and 1980s have become all but extinct. I'm not expecting to find a junkyard 130, ever, but this year I have managed to spot a pair of 131s (which were badged as Bravas during their last couple of years in North America). Here's one of those cars, now residing in a Denver yard. Unusually in the case of a Junkyard Gem, I know something about this Brava's history. Back in 2019, the owner of a beloved Fiat repair shop passed away and all 75 Fiats (plus some Alfa Romeos and Lancias) in the shop's storage yard went up for auction, cheap. I did my best to spread the word about these cars, and some got rescued. You can see our subject in this photo above, awaiting its new home. It had a lot of surface rust from sitting outside for decades, but not a lot of genuinely alarming corrosion. Along with a white '79 Brava sedan nearby, it was purchased for a couple of hundred bucks— at most— and towed out of there. Perhaps the buyer or buyers of those two Bravas planned to flip them for a profit, or maybe the intent was to fix them up and drive them. Two years later, both are parked in the same boneyard just north of downtown Denver. I'm guessing that everybody in Front Range Colorado who wanted an old Fiat sedan already has a half-dozen, and the 20-hour tow to places like Chicago or San Francisco is just too daunting for Fiat fanatics in those places to come here and buy a car. The 131/Brava could be bought new in the United States from the 1976 through 1981 model years. In 1979, the list price of a carbureted Brava sedan was $7,583 (about $30,860 in 2021 dollars). That was a lot cheaper than its similarly-sized BMW 320i rival, which cost $11,810, though the plusher and more powerful $8,129 Datsun 810 sedan must have stolen some sales from both types that year.

Fiat seeking autonomous partnerships with Uber and Amazon

If Fiat Chrysler Automobiles CEO Sergio Marchionne can't find another automaker to partner with, he'll have to look elsewhere. Like, outside the traditional automotive industry entirely, if recent reports are to be believed. According to Bloomberg and Business Insider, Fiat is pursuing relationships with Uber and Amazon for self-driving vehicles. This news comes shortly after FCA announced an official tie-up with Google to turn 100 Chrysler Pacifica minivans into autonomobiles. Uber might want to venture into self-driven vehicles for its ride-hailing service, cutting out the expense of human drivers. For its part, Amazon could use autonomous vehicles for deliveries from its online shopping destinations. FCA's interest in these endeavors seems to revolve around their vehicles being used as platforms for software and bespoke hardware setups created by the tech companies. There's no indication of what vehicles FCA would provide to either Uber or Amazon, but something minivan shaped could capably serve both the ride-sharing and package delivery service industries. Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. News Source: Bloomberg, Business InsiderImage Credit: Jeff Kowalsky/Bloomberg via Getty Green Chrysler Fiat Transportation Alternatives Technology Emerging Technologies Autonomous Vehicles Uber Sergio Marchionne FCA Amazon