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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.

Fiat-Chrysler shows its SEMA lineup

Fiat Chrysler Automobiles already previewed its 2014 SEMA show lineup with some slick renders. Now, the automaker has finally showed us the actual cars, and among the group there are definitely some that stand out more than others.
Dodge is really showing off its muscle at this year's show with four concepts that all pump up the power of the brand's models. Perhaps most interesting among them is the Challenger T/A Concept (pictured above) in striking Sublime Green and matte black. It's meant to resemble the classic Trans Am racer from the '70s. Under the hood is a 6.4-liter V8, and to fit the vintage style there's a pistol-grip gearshift inside.
The Charger R/T also gets some attention with the Mopar concept that shows off what FCA's aftermarket performance arm can do. Mods include an updated body kit, cold-air intake for the 5.7-liter V8 and a coil-over suspension kit. Beyond that, the Dart R/T Concept looks a lot meaner with a black hood with duct work that leads straight to the air intake. The rest of the compact sedan is dolled up in O-So-Orange paint and is fitted with upgrades to improve handling like a coil-over suspension and big brake kit from the Mopar catalog.

Is Ram bringing a trick tailgate to the Chicago Auto Show?

Last week featured running jokes and mirth on truck Twitter. It started when the GMC account played off the Super Bowl, posting a short video that started with the caption, "The Rams already lost." Then came a picture of a current Ram tailgate, followed by a short pictorial demonstration of the six-function MultiPro tailgate available on the GMC Sierra (pictured). Ram responded with a pigskin play of its own, calling GMC out for a false start and requesting everyone "Check back with us on 2/7/19." That is the first media day of the Chicago Auto Show. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. The easy inference is that Ram has plans to reveal a clever tailgate of its own. The easy question is, will it be the split tailgate we first saw in a patent application in 2014, then in spy photos in 2017? That patent application detailed a gate split down the middle, with a traditional handle on the left-side door. The entire unit could open like a standard tailgate, or, each half could fold down like a tailgate as well as swing out like a door. The Honda Ridgeline has a similar option, but not being split, the Ridgeline's whole tailgate swings out like a door. Another novel feature of the Ram patent application was that the doors could be operated with a touchpad. When spy photographers caught a 2020 Ram prototype in Detroit with a split tailgate, the split was no longer 50/50, but about 65/35. After snapping the silver truck that day, the split tailgate was never seen again. Thursday in Chicago might be the day that changes, since it's fair to expect Ram to show something that will get the 1500 current with proliferating tailgate trickery. GMC and Ram weren't finished, though. The Ram 1500 won the Motor Trend Truck of the Year award at the Detroit Auto Show, and two hours after GMC's first tweet, GMC got around to sending this bit of congratulations: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.