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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.

Maxwell RHEV Prototype First Drive Review | More than meets the eye

The Maxwell RHEV looks just like any small business' panel van, sporting large vinyl graphics and unassuming steel wheels. You'd have no idea that the co-founders of the startup based out of Seattle had grafted a salvaged Voltec powertrain from a junkyard Chevy Volt into this Ram ProMaster. Somewhere, a battery pack lurks. Maxwell's co-founders, CEO Max Pfeiffer and engineer Trey Camp, open the cargo area to reveal a completely unaltered space. Both are ex-Tesla employees with a long fascination for the #vanlife movement – that their interests intersected in a hybrid cargo van isn't surprising once you start talking to them. This is their first vehicle, a salvaged ProMaster sidelined with a blown 3.6-liter Pentastar, and it's both their prototype and the only Maxwell in existence right now. That said, the company is building a low-roof version for a customer, which will be lighter, have less aero drag and therefore be more efficient. The company is just emerging from a stealth startup mode, and while their backstory is fascinating, I'm still wondering where the Volt's 18.4 kWh battery pack is. "There's nothing in the back ... we're able to get the battery underneath the floor, in the center," Pfeiffer says. Ducking my head under the side reveals, sure enough, a little underside blister that contains the battery, tucked up neatly. The other changes to the RHEV – short for Range-extended Hybrid Electric Vehicle – are minimal. He pops the hood. There are some rough edges, but the 1.5-liter, 101-horsepower engine and 48-kW motor fit comfortably on custom engine mounts and with re-routed exhaust, behind a fascia that improves aero and houses the charge port. Custom axles send power to unaltered Ram hubs and brakes. "This version, it's a little bit prototype-y," Pfeiffer says. "We've had more time to work with the CAD [computer-aided design, engineering drawings] we were able to get from GM and Chrysler, and we've done a better job packaging for production." GM already spent billions on the Voltec and its controlling software, and Maxwell can happily ride those coattails. Despite the help GM has lent Maxwell, there are no official ties. An emulator sends spoofed signals to the Ram instruments, which have a new custom-printed face. The Ram's body control module is left alone. For powertrain faults, Maxwell says the vehicle can theoretically be serviced by any Chevy dealer, and any issue with the rest of the vehicle can be handled by a Ram service shop.

Ram and Fiat Professional announce plans for new trucks, vans starting in 2015

Ram Trucks CEO and President Reid Bigland got his turn among the executives elucidating the near-term futures for brands in the Fiat Chrysler Automobiles umbrella, laying out the plans for both Ram trucks and Fiat Professional. After Bigland said that the company "will continue to invest heavily in commercial vehicles" for the Italian arm, he didn't give many specifics as to where that investment would go. What we do know for now is that a new Fiat Doblo will come next year - that's the truck we've been catching spy shots of and that will be the basis for the Ram ProMaster City.
In 2016 will come the next-generation Fiorino, a small cargo van sold in markets outside the US as a Fiat, as the Citroën Nemo and Peugeot Bipper. The European and South American markets will also get a new midsize pickup that same year.
Bigland's goal for Ram Trucks and Ram commercial is just a touch more ambitious: "Build the best pickup trucks and commercial vehicles in the industry" and increase NAFTA-market sales from 463,000 in 2013 to 620,000 in 2018. The waypoints along that road include a refresh for the Ram 1500 in 2015 and then a brand new 1500 to come two years later in 2017. Bracketing that, a refresh for the Heavy Duty lineup happens in 2016, and two years later it will also get an all-new generation.