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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 recalling over 280k minivans because airbags may deploy on wrong side

Chrysler has issued a recall for some 2013 Town & Country, Dodge Grand Caravan and Ram C/V Tradesman vans built between May 10, 2012 and June 7, 2013. These vehicles may have a software error that would cause the wrong side (opposite side) airbags to deploy in a crash. With this defect, a left-side impact would cause the right-side airbag to deploy, etc.
The recall affects 281,500 vehicles in total: 224k in the US, 49,300 in Canada, 2,900 in Mexico and 5,300 in other locations. Chrysler will notify owners of effected vehicles, and reflash the offending occupant restraint control module to resolve the issue. Scroll down to read the National Highway Traffic Safety Administration press release.

2020 Ram 1500's new EcoDiesel horsepower and torque revealed

Following on the reveals of Ford and GM's light-duty diesel full-size pickup truck engines, Ram has finally revealed its second-generation EcoDiesel V6 for the 2020 Ram 1500 and 2019 Ram 1500 Classic. The engine is once again a 3.0-liter V6, but it now makes 260 horsepower and 480 pound-feet of torque. That's an increase of 20 horsepower and 60 pound-feet of torque over the previous engine. Ram notes a number of changes were made to achieve these numbers, including adding a water-cooled variable geometry turbo, reducing compression ratio from 16.5:1 to 16:1, adding lighter pistons, revising the intake ports, and using a new fuel injection system and exhaust gas recirculation system. Those numbers also put the new Ram diesel at the top of its class for torque. Just behind it is the 3.0-liter inline-six in the 2020 Chevy Silverado and GMC Sierra that makes a bit more power at 277 horsepower but less torque at 460 pound-feet. Then there's the 2019 Ford F-150's 3.0-liter V6 that makes 250 horsepower and 440 pound-feet of torque. The Ram engine also hits peak torque at 1,600 rpm, which is sooner than the Ford engine at 1,750 rpm. The Chevy engine's torque arrives even earlier than both at 1,500 rpm. The Ram's maximum towing capacity of 12,560 pounds also tops the F-150 diesel's 11,400 pounds. There are still a number of unknowns regarding the new EcoDiesel engine, though. Ram hasn't announced payload capacity, pricing or fuel economy for the engine. We expect fuel economy will be slightly improved over its predecessor's 20 mpg in the city and 27 on the highway. But we don't know if it will match or surpass the F-150 diesel's 22 mpg in the city and 30 on the highway. All these numbers should be announced closer to the engine's release window of fourth quarter of 2019. The engine will also be available in every single trim and configuration of the 2020 Ram 1500 including the Rebel, which used to be a gas-only trim. The engine will even be available on the 2019 Ram 1500 Classic. This should also be the engine that will soon appear in the Jeep Gladiator and Wrangler.