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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?

Chrysler uses Super Bowl spots to honor troops, farmers

How do you follow up such revered and successful ads as Chrysler's last two Super Bowl commercials? Imported from Detroit and Halftime in America should be given credit for giving the automaker's public perception a complete overhaul after its rescue from the brink with taxpayer money. What next, then?
We just found out during Super Bowl XLVII. This year Chrysler went with two commercials, one for Jeep and the other Ram. The two-minute-long Jeep commercial, called Whole Again, is narrated by Oprah Winfrey and presented as an open letter to the service men and women of America, simply expressing admiration for what they do - poignant message coming from a company whose history is so entwined with that of the military's.
The Ram commercial, called Farmer, honors the agricultural backbone of this country. Its soundtrack is a speech entitled "So God Made a Farmer" given by the famous radio broadcaster Paul Harvey, which plays over a slideshow of original photography commissioned by Ram. The images, of course, focus on farming and the people who do it for a living, and there's a few Ram trucks in there, as well.

Car dealership in East Texas destroyed by tornado

Few things are as fundamentally and unconditionally destructive as a tornado. These cataclysmic phenomena pass through towns, leaving nothing in their wake but ruin and despair. According to an NBC affiliate in the Dallas-Fort Worth region, a car dealership in nearby Canton was hit by a tornado Saturday night. No employees were hurt. Four other people in the area weren't so lucky. Chrysler Dodge Jeep Ram of Canton's new showroom and service center were pounded by the storm, leaving dozens of cars in various states of ruin. Some merely lost windows, while others were flipped and left on their sides or roofs. Photos show piles of cars stacked up like Hot Wheels dumped on the ground. According to a statement from the National Weather Service, winds reached speeds of up to 140 mph. Two other tornadoes were reported in the region. The area has been declared a disaster zone and first responders from up to 100 miles away have swarmed in to help out those in need. According to Reuters, the storms Saturday killed 11 people nationwide. Related Video: News Source: NBC DFW, National Weather Service, Reuters via Automotive NewsImage Credit: Reuters Chrysler Dodge Jeep RAM tornado