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Marchionne recruiting activist investors to prompt GM merger

Sergio Marchionne may have been rebuffed in his previous advances at General Motors, but he's not about to give up that easily. According to The Wall Street Journal, the Fiat Chrysler chief is now turning to activist investors to help coax GM into joining forces. Marchionne has been a staunch and ceaseless advocate of the need for consolidation, arguing that the industry needs to amalgamate into larger groups that will share resources and reduce overhead. Under his leadership, the Fiat group consolidated its own operations, and officially merged with Chrysler last year. But he's also been pursuing additional mergers with the likes of Volkswagen, Peugeot, Ford, and Opel (to name just a few). Now he's pursuing a merger with GM, which has not shown much enthusiasm towards the idea. For one thing, GM is a much larger company, and probably doesn't need FCA as much as FCA needs it. For another, it has a troubled past with Marchionne, who in 2005 dissolved an agreed merger (of sorts) with GM, yet still managed to get the General to pay Fiat some $2 billion in the process. However, Marchionne is evidently hoping that the intervention of activist investors could compel GM CEO Mary Barra and company to proceed with a merger anyway. For precedent, he's looking at the recent negotiation between GM and some of its stakeholders that prompted the company to buy back $5 billion of its own shares, demonstrating Barra's willingness to deal with investors. The more compelling precedent, however, may have been set in 2006, when activist investor Kirk Kerkorian locked arms with Carlos Ghosn to get GM to consider joining the alliance between Renault and Nissan. GM ultimately declined, and Ghosn turned instead of Daimler (which of course has its own history of having merged with Chrysler). Only time will tell if this initiative will prove more successful, but one thing's for sure, and that's that Marchionne isn't about to relent in his pursuit of a major merger partner.

Chrysler honors Arsenal of Democracy's 75th anniversary

The Allied victory in World War II wouldn't have been possible without the Arsenal of Democracy. This phrase, originally coined by President Franklin D. Roosevelt 75 years ago today, described the war-time transformation of US manufacturing, especially the auto industry, to produce tanks and planes instead of cars and trucks. One of the earliest purpose-built facilities was the Albert Kahn-designed Detroit Arsenal, located in suburban Warren, MI, literally across the street from the future site of the General Motors Technical Center. Built by Uncle Sam, the plant churned out M3 Grant and M4 Sherman tanks with frightening speed, but it wouldn't have been possible without Chrysler. The company (which is ironically now allied to a former supplier of Nazi Germany and fascist Italy) operated the plant and applied automotive mass-production techniques to producing the government-designed tanks. The plant was so successful, according to Fiat Chrysler historian Brandt Rosenbusch, that it singlehandedly outpaced the entire Third Reich's tank production by 5,000 units over the course of the war. The Detroit Arsenal was also responsible for a quarter of all American tank production during the war. And like so many wartime factories, women formed a large percentage of the workforce, as men were drafted out of assembly work and into the armed forces. Chrysler has commemorated the 75th anniversary of the Arsenal of Democracy speech with a video on the Detroit Arsenal and its role there. And as for the site today? It built tanks up until 1997, and still serves as the home of the US Army's TACOM (Tank-automotive and Armaments Command) Life Cycle Management Command, a major site for tank research and development. News Source: Fiat Chrysler Automobiles via YouTube Chrysler Military Classics Videos FCA warren

2015 Chrysler 200S AWD

I love road trips. Honestly, one of the best parts about this job is the freedom we're given to experience the open road, whether at new car launches or while bombing around with whatever we're testing on our home turf. But the longer-form road trip is equally special to me, and it's something I'm always eager to do. Air travel stinks - that's not news. So if I can drive, I will. And without our dear TSA to fight with, I can pack all the chainsaws and gallon jugs of chocolate milk that I want.
So when it came time to attend the 2014 New York Auto Show this past April, I thought, "Why not drive?" Typically, the route from downtown Detroit to Manhattan is something like 10 hours, but I decided to bake some extra time into the journey and planned for the vast majority of my travels to be off the beaten path. Doing the "avoid expressways" route allows you to see parts of America you've never encountered before, and to meet people with stories and opinions that you've never heard. It's a great way to travel if you have the time. There's something uniquely serene about seeing the country in a great car on a great road.
Let's talk about that "great car" line for a moment. Ideally, long stretches of backroads are best done in something fast, comfortable and involving - a Porsche 911 comes to mind. Or, another school of thought says to pick some fun little spitfire like the always-lovely Mazda MX-5 Miata, for top-down, sun-drenched fun. But for this trip, I chose the 2015 Chrysler 200, in fully loaded S guise with all-wheel drive. Now, settle down; I'm not about to compare it to either the Porsche or Mazda. The point I'm making is this: after 1,500 test miles under my butt, I can emphatically state that the new 200 is indeed a great car in its own right.