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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.

2019 Jeep Renegade spied out in the cold

The upcoming facelifted Jeep Renegade has been caught again in winter testing wearing only light camo. (Won't it get cold?) Photographed somewhere in Northern Scandinavia where it's currently very chilly, the renewed Renegade shows off a redesigned front bumper, which features a new shape for the lower air intake, and the inward repositioning of the fog lights, cleaning up the front fascia. The rear end of the Renegade wears matching swirly camo, but there's not much to analyze about it: Even the X-shape of the blocky taillights will be retained by the looks of it. These spy shots also provide a look inside, where the dashboard screen has noticeably grown in size, and the lower portion of the dash with its HVAC and audio controls has been redesigned. The refresh of the Renegade is expected to debut sometime this year, making it a 2019 model. The current iteration of the Fiat-related Renegade was first unveiled at Geneva four years ago, so it's certainly due for a 2019 facelift. No rumors of powertrain changes have yet been heard. Related Video: Featured Gallery Jeep Renegade spy photos View 9 Photos Spy Photos Jeep Crossover jeep renegade

Jeep Wrangler plug-in hybrid confirmed for 2020

The Jeep Wrangler will get a plug-in hybrid electric model in 2020, brand head Mike Manley confirmed this week at the Los Angeles Auto Show in a move he says is "future proofing" the legendary off-roader. "A full plug-in electric Jeep Wrangler will be available in 2020, furthering our commitment to all those who value the responsible, sustainable enjoyment of the great outdoors and very importantly, future proofing this Wrangler for generations to come," he said after the reveal of the 2018 model. It was reminiscent of a Steve Jobs 'One More Thing' moment from an Apple event. Manley explained the details of the new Wrangler, codenamed JL, and then dropped the EV nugget near the end of the press conference in Los Angeles. He didn't offer up further details like range or power. The plug-in hybrid will join a now-expansive powertrain lineup for new generation of the Wrangler. Jeep will offer a mild hybrid next year with its 2.0-liter turbo four-cylinder engine. Called eTorque, the hybrid adds regeneration, stop-start and electric power assist. This system makes 270 horsepower and 295 pound-feet of torque. In 2019, the Wrangler will get a 3.0-liter V6 EcoDiesel engine rated at 260 hp and 442 lb-ft. The tried-and-true Pentastar V6 with 285 hp and 260 lb-ft also continues. In an exclusive interview with Autoblog in January, Manley previewed the Wrangler's electric plans at the Detroit Auto Show. "The hybridization could actually help Wrangler," he said, noting it could improve torque distribution, a critical element for four-wheel drive vehicles." He added, "Electrification, absolutely. I could see Wrangler being a form of electric." The 2018 Wrangler goes on sale in January featuring a raft of improvements. It is about 200 pounds lighter thanks to the use of aluminum. There are also new engines, updated styling features and a nicer interior. Related Video: Featured Gallery 2018 Jeep Wrangler Rubicon View 80 Photos Green LA Auto Show Jeep SUV Off-Road Vehicles confirmed 2017 LA Auto Show