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FCA and Peugeot reportedly agree on merger

Citing a Wall Street Journal report, the Detroit Free Press says "Fiat Chrysler and PSA Groupe have agreed to merge." The Journal reported on talks between the two car companies only yesterday. It's said that Peugeot's board met yesterday to approve the deal, FCA's board met today, and an announcement could come as soon as tomorrow, Thursday. Both automakers have released statements, but neither company has released any information beyond admitting to ongoing talks. If the merger happens, the combined entity would become the world's fourth-largest carmaker with a $50 billion valuation, slotting in behind Toyota, the Volkswagen Group, and the Renault Nissan Mitsubishi alliance. Among the merger options possible, "an all-stock merger of equals" is the one analysts and Moody's seem to give the best grade. The reported merger would come about four months after FCA walked away from merger talks with Renault. FCA said the French government scuppered those talks over the role of Nissan in a reformed entity, but there were also brewing issues with French unions, and ongoing turmoil among Renault and Nissan leadership thanks to continuing fallout from ex-CEO Carlos Ghosn's arrest last year. FCA makes most of its revenue in the U.S. and rules Italy, while Peugeot is the second-best-selling automaker in Europe with its own brand in France and Opel in Germany. The two companies already have a partnership in Europe making vans, one that FCA CEO Mike Manley has spoken highly of. Among the list of obvious benefits in a potential merger, FCA would get access to Peugeot's small, modern platforms, $10.2 billion in cash, and electrified and hybrid architecture developments, the latter especially important to FCA as those are fields where it lags. Peugeot would get much easier access to the U.S. market, and the money-printing brands Jeep and Ram. A merged carmaker would have combined sales of nearly 9 million a year, based on 2018 results. By comparison, both Volkswagen and Toyota sell over 10 million cars a year, while the Renault-Nissan-Mitsubishi alliance almost 11 million. Peugeot CEO Carlos Tavares has proved he knows how to do turnarounds and mergers. After leaving a position as Carlos Ghosn's right-hand man in 2012, Tavares took over Peugeot in 2014, navigated a bailout from the French government and China's Dongfeng Motors in 2015, and turned PSA into a regional powerhouse.

The 2019 Jeep Grand Wagoneer looks like a Grand Cherokee on steroids

It's a special day for Jeep fans. Thanks to the same dealer meeting leak that gave us a look at the 2018 Jeep Wrangler JL, here is our first glimpse of the new Grand Wagoneer. When it arrives for 2019, this three-row crossover SUV will be the top model in Jeep's range. We knew the Grand Wagoneer would be expensive – Jeep CEO Mike Manley said not to rule out prices upwards of $130,000 for this Range Rover fighter – but now we know it looks like it wants to pick an actual fight with its competitors. What's visible of the front and rear styling is very reminiscent of the current Grand Cherokee, but it's muscled up a bit and gets a set of sinister seven-element headlights. The seven-light theme is carried to the rear as well, and we have a feeling the number is a not-so-subtle reference to the seven-slot grille that all Jeeps wear. That said, here the grille is a short, wide-mouth affair that is a bit of a departure from those of other models. And there's a lot of brightwork in these renderings, not just on the grille but for similar pieces that connect the exhaust tips in the rear and tow-hook surrounds up front. Either by design or engineering, the Grand Wagoneer also looks wider than the two-row Grand Cherokee. The Grand Wagoneer will be about the size of the Dodge Durango three-row crossover and will be based on the platform used by the next-generation Grand Cherokee. The GC and Durango currently share a platform based on one used by Mercedes for its large SUVs, and it is not yet known whether the new Jeeps will use an evolution of that platform or something new. Hemi V8 and diesel and gas V6 engines are the likely powertrain options, and we wouldn't be surprised to see a Hellcat-powered version of this mean-looking luxury SUV at some point. Or at least we can hope. Related Video: Featured Gallery 2019 Jeep Grand Wagoneer Dealer Leak Spy Shots Image Credit: KGP Photography Design/Style Spy Photos Jeep Crossover SUV

Stellantis reports $15B profit in first year of merger

FRANKFURT, Germany — Automaker Stellantis said Wednesday that it made 13.4 billion euros ($15.2 billion) in its first year after it was formed from the merger of Fiat Chrysler Automobiles and PSA Group. The earnings nearly tripled profits compared with its pre-merger existence as two separate companies, as the maker of Jeep, Opel and Peugeot vehicles exploited cost efficiencies from combining the businesses. The result compared to a combined 4.79 billion euros for the separate companies in 2020 before the merger, which took effect on Jan. 17, 2021. Revenue for the combined business rose 14%, to 152 billion euros. CEO Carlos Tavares said the results “prove that Stellantis is well positioned to deliver strong performance" and had overcome “intense headwinds” during the year. Automakers have struggled with shortages of key parts such as semiconductor electronic components and rising costs for raw materials as the global rebound from the worst of the coronavirus pandemic brings more demand. The company said the benefits of the merger were worth some 3.2 billion euros during the year. Mergers can lead to streamlined costs as companies combine functions and spread fixed costs over a larger revenue base. The company accelerated its rollout of battery-powered vehicles, with sales of low-emission vehicles reaching 388,000 — an increase of 160%. Stricter environmental regulations in Europe and China are pushing automakers to roll out more electric vehicles with longer range. Stellantis started production of a hydrogen fuel cell commercial van under its Opel brand in December. Stellantis' other brands include Chrysler, Citroen, DS, Fiat, Maserati, Ram and Vauxhall. Related video: Earnings/Financials Chrysler Dodge Ferrari Fiat Jeep RAM Citroen Opel Peugeot Vauxhall