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Strains between France and Italy risk Renault-FCA merger

PARIS/ROME — Fiat Chrysler's proposed $35 billion merger with Renault has cheered investors, won conditional support from Paris and Rome and even earned cautious backing from trade unions. Beneath this veneer, however, the bold attempt to create the world's third-largest carmaker risks becoming rapidly embroiled in the fraught relationship between France's europhile President Emmanuel Macron and Italy's euroskeptic leaders. For while Deputy Prime Minister Matteo Salvini hailed the proposal as a "brilliant operation," Italy's creaking, state-subsidized Fiat factories are likely to bear the brunt of any production-related cost savings. FCA and Renault said this week that more than 5 billion euros ($5.6 billion) of annual savings would come mainly from combining platforms, consolidating powertrain and electrification investments and the benefits of increased scale. Salvini and France's Finance Minister Bruno Le Maire, who called the deal a "good opportunity" to build a European industrial champion able to compete with China and the United States, have both said they want guarantees on local jobs. "It's not every day that I agree with Salvini," said Le Maire, whose government appears to hold the trump cards. When it comes to where any job cuts fall, France will be helped by its existing 15 percent holding in Renault, whose superior efficiency at its five French plants makes it better placed to handle a supply glut, the demise of the petrol engine and the investments needed for electric and autonomous vehicles. "It will take many, many years to find real savings, and ugly political and operational realities can often swamp the potential of such new entities," Bernstein analyst Max Warburton said of the FCA-Renault plan to rival Japan's Toyota and Germany's Volkswagen. Advantage France? As well as Italy's government having to cope with the aftermath of European elections, which coincided with news of the FCA-Renault plans, political leaders in Rome were only informed shortly before the deal was made public, an FCA source said. This contrasted with the way the French government was treated, with Fiat Chrysler Chairman John Elkann, a fluent French speaker, letting it know of his merger proposal to Renault weeks ago, a French government official said.

500+ hp Stellantis 'Hurricane' I6 previews a world without Hemis

After years of rumored development, Stellantis has revealed its new six-cylinder engine family. The 3.0-liter, twin-turbocharged "Hurricane" I6 will offer V8 power, forced induction torque and six-cylinder efficiency in a package designed to fit into any of the company's North American rear-wheel-drive platforms.  What is "V8 power," exactly? Well, in standard output guise, the new I6 cranks out more than 400 horsepower (the specific figure will vary by application) and 450 pound-feet of torque, while the high-output variant is good for more than 500 horses and 475 lb-ft. The final figures will be dependent on the application. We'll save you a little legwork: In current Ram, Jeep and Dodge products, the 5.7-liter Hemi tops out at about 395 hp and 410 lb-ft, give or take, and the 6.4-liter around 485 hp and 475 lb-ft.    This is a clean-sheet design that is only related to the company's turbocharged four-cylinder by some common measurements. The I6 is exclusively direct-injection (no hybrid/port-injection here) and the two I6 variants share 96 common parts, including the block and oil pan design. The differences are found in their internals, intake plumbing, valvetrain components and the turbochargers themselves. Stellantis is not yet ready to share specs or supplier info for the turbos but says announcements will come from its partners soon.  The standard-output I6 has a compression ratio of 10.4:1 and revs to 5,800 rpm. It will run on regular fuel, albeit with reduced performance; 91 octane is recommended for maximum output. The high-output variant has a compression ratio of 9.4:1 and will rev to 6,100 rpm. That one will require premium. The new I6's advantages go beyond basic power output. Every Hemi family engine currently in production is based on an iron block design, so they're heavy. The aluminum-block I6 shaves weight off the total engine package, even if some of that gets added back thanks to the turbos and their associated plumbing. The standard-output I6 weighs 430 pounds, Stellantis engineers told us; the high-output adds just another 11. Fully dressed 5.7-liter V8s are in the 550-560-pound ballpark, and 6.4-liters close in on 600 pounds.  You may be wondering, "Why a clean-sheet gasoline engine now, when the industry is moving toward battery-electrics?" A valid inquiry, and one Stellantis was prepared to address. While the company will be pivoting to electrification over the next decade, it won't be instantaneous.

What will Detroit do with the abandoned AMC headquarters?

As with so many other industrial and residential properties in Detroit, the former headquarters for the American Motors Corporation is having a hard time finding a reputable buyer. In October the Wayne County Treasurer held a tax foreclosure auction of 25,000 properties that included the AMC building, the starting bid being $500. Nicholas Casab won the building for $500, but the county voided the sale when Casab didn't pay the $232,000 in back property taxes. Detroit authorities haven't commented on the failed sale, but the city has until January 4 to decide if it wants to keep the building. If it doesn't want to hold onto it, the 1.5-million-square-foot property on 57 acres might be ceded to the Wayne County Land Bank Corporation. No matter who holds the deed come January 5, all anyone really wants is for someone to take possession of the building who will actually turn it into something useful and viable. The property opened in 1927 as a factory for the Kelvinator Corporation. Over the following decades, Kelvinator merged with the Nash Motor Company, and that merged entity merged with Hudson Motor Car Co, becoming American Motors. Chrysler took over the building in 1987 when it bought AMC, then shuttered it in 2009. The complex has produced refrigerators, Sikorsky helicopters, Jeeps, AMCs, and was used as an engineering center for Jeeps and other Chrysler products. Having been through several hands in the past six years, it is cited as part of the cycle of abandonment plaguing Detroit. Related Video: News Source: Detroit Free Press Government/Legal Chrysler Jeep Auctions Detroit amc