2017 Ram 2500 Laramie Diesel 4x4 on 2040-cars

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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?

2019 Ram HD Chassis Cab trucks: tough on the outside, comfy on the inside

The past year or so has been big for Ram. FCA's truck division went from having some of the most dated (though still solid) pickups on the market to introducing the 2019 Ram 1500, arguably the new segment leader. A year later, at the 2019 Detroit Auto Show, FCA revealed the new Ram Heavy Duty. Yesterday, Ram announced the 1500 was getting a trick tailgate to compete with the power tailgate on the Chevy Silverado and MultiPro tailgate on the GMC Sierra. Today, at the 2019 Chicago Auto Show, FCA will present the new Ram 4500 and 5500 chassis cab models. Like the Ram 2500 and 3500, the new chassis cab trucks appear to share a lot with the current crop of Ram HD trucks. The cab itself appears to be unchanged from the outside, though the front fascia has been updated to reflect Ram's current design. As with most things, it's what's inside that counts. The chassis cab models get the fantastic interior from the 2019 Ram 1500. It's a handsome and well-appointed cabin. Even base Tradesman models benefit from the new design and packaging. There's new tech, too. The 12-inch infotainment screen is nice to look at, but customers are likely to enjoy features like adaptive cruise control, forward collision warning and automatic emergency braking (with trailer brakes). The safety tech is available on all trim levels. The trucks also pack parking assist and a 270-degree camera view. There are also camera features to help hook up trailers (including fifth-wheel goosenecks). The Ram Chassis Cab 3500, 4500 and 5500 represent Class 3, 4 and 5 GVW ratings. As such they pack some punch under the hood. The standard engine is the 6.4-liter Hemi V8 making 410 horsepower and 429 pound-feet of torque, though 4500 and 5500 models only make 370 horsepower. The Ram 3500 features cylinder deactivation to improve fuel economy. The three trucks are available with a 6.7-liter Cummins turbo-diesel inline-six. The engine makes 360 horsepower and 800 pound-feet of torque. An Aisin six-speed auto is available on V8 models and standard with the diesel. Both engines are available with dual alternators. The trucks are available in four industry-standard frame lengths measured in inches from the cab to the rear axle: 60, 84, 108 and 120. Upgraded brakes should shorten stopping distances and improve pedal feel. Thanks to high-strength steel and aluminum, the truck should weigh about 120 pounds less than before.

CEO Sergio Marchionne curses FCA spokesman for emissions cheating denial

WASHINGTON — Fiat Chrysler Chief Executive Officer Sergio Marchionne reprimanded the company's top U.S. spokesman for issuing press releases about Fiat's vehicle emissions practices days after Volkswagen's disclosure in September 2015 that the German automaker had used illegal software to evade emissions tests, documents released Monday show. Lawyers suing Fiat Chrysler Automobiles in a securities case filed excerpts of an email from Marchionne to Gualberto Ranieri, then the company's U.S. spokesman, in a filing in federal court in New York criticizing him for saying that the company does not use defeat devices. "Are you out of your goddam mind?" Marchionne wrote in an email on Sept. 22, 2015, adding that Ranieri should be fired and calling his actions "utterly stupid and unconscionable." The company said in a statement on Monday it was "understandable that our CEO would have a forceful response to any employee who would opine on such a significant and complex matter, without the matter having been fully reviewed through its appropriate channels." The statement added that Ranieri's comments came just days after VW's emissions issue became public "and before a comprehensive internal review and discussions with component suppliers was possible." Fiat Chrysler was sued in 2015 along with Marchionne and other executives over claims it defrauded shareholders by overstating its ability to comply with vehicle safety laws. An amended version of the complaint filed in 2017 added claims about its compliance with emissions laws. The shareholders accused the defendants of inflating Fiat Chrysler's share price by hundreds of millions of dollars from October 2014 to October 2015 by downplaying safety concerns. They said the shortcomings materialized in 2015 when the automaker was fined $175 million by the National Highway Traffic Safety Administration, and took a roughly $670 million charge for recalls. Plaintiffs filed the excerpts seeking approval to take up to 40 additional depositions, including Marchionne's. The U.S. Justice Department sued Fiat Chrysler in May 2017, accusing it of illegally using software to bypass emission controls in 104,000 diesel vehicles sold since 2014. Fiat Chrysler has held numerous rounds of settlement talks with the Justice Department and California Air Resources Board to settle the civil suit, including talks as recently as earlier this month. It faces a separate criminal probe into the matter.