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Why FCA-PSA merger is no quick fix for their China problem

BEIJING — Fiat Chrysler and Peugeot owner PSA's merger is unlikely to provide a quick fix to their problems in China, as both companies have long struggled to find the right products at the right price for the world's top car market, analysts say. The companies said on Thursday they aimed to reach a binding deal in the coming weeks to create the world's fourth-biggest automaker by production volume. But scale alone will not make Italian-American Fiat Chrysler Automobiles (FCA) and France's PSA Group more competitive in a market where they have been slow to adapt to trends and win over consumers, leading their sales to lag far behind foreign rivals such as Volkswagen and General Motors. PSA does not have enough competitive SUV models, and neither company has enough electric and plug-in hybrid vehicles, or enough cars packed with hi-tech features for Chinese tastes, analysts say. In a market where 28 million cars were bought in 2018, FCA sold just 155,215, while PSA sold 257,723, according to consultancy LMC Automotive. At the end of September, FCA had a market share of 0.5% in China's passenger car market, while PSA's was 0.6%. Analysts say they have been squeezed by Japanese and local brands, which have product line-ups better suited to Chinese tastes at cheaper prices. "Both companies are very home-market centred and have failed to adapt to shifts in Chinese market preferences," said Bill Russo, head of Shanghai-based consultancy Automobility Ltd and a former senior Asia-based Chrysler executive. "Neither company has recognized and delivered on the trends of shared, connected and electric vehicles,” Russo said. That makes them ill-prepared to deal with further shifts in the Chinese market, which saw annual sales contract for the first time since the 1990s last year and is expected to see another drop this year. "China's overall market is experiencing a transmission and adjustment period," said Alan Kang, a Shanghai-based senior analyst at LMC Automotive. "It is very hard for these two companies, which do not have enough competitive up-to-date products, to quickly recover with the merger." FCA has a partnership in China with Guangzhou Automobile Group, which said on Thursday it backed the merger. PSA has been trying to reboot its operations in China.

2015 Ram 1500 Rebel is rugged, oddly styled

Feeling rebellious? Ram has you covered for 2015 with its new 1500 Rebel model, which, though nowhere near as focused as the Ford F-150 Raptor with which you may think it competes, is skewed toward the always-nebulous "outdoor lifestyle" set that marketing teams the world over seem to covet so much. For such hiking/camping or otherwise outdoorsy types, the Ram Rebel offers an extra inch of suspension travel over regular-grade 1500 models, along with 33-inch tires, a new bumper that affords a better approach angle, tow hooks and a center skid plate. Those are the kind of upgrades many buyers consider mandatory for basic off-road capability, and it's nice that Ram has baked them into a single model. We're less enthused by the in-your-face styling of the rebel, particularly up front, where the traditional crosshair grille has been replaced by a protruding proboscis that's nothing if not unique. There's also massive RAM lettering on the tailgate, just in case you weren't sure who made the Rebel... The show truck's red exterior is mimicked inside, and the leather seats are embossed in a tire-tread pattern. Subtle, it is not. Buyers will have the choice of a 3.6-liter V6 or 5.7-liter Hemi V8 engine, mated to an automatic transmission and the choice of two- or four-wheel drive, though we don't understand why anyone would choose a Rebel without 4x4. In any case, check out the live pics above and the press release and videos below for more details. New 2015 Ram 1500 Rebel Makes a Statement 2015 Ram 1500 Rebel takes advantage of exclusive air suspension in order to offer increased ride height Standard 33-inch tires provide capability and rugged looks First time 3.92 axle ratio available on 3.6-liter Pentastar V-6 engine Equipped with factory lift, skid plates, tow hooks and other off-road-ready features New front grille design a significant styling departure for Ram Truck brand New interior colors and materials, including Radar Red and Black seats with tire tread-matching pattern January 13, 2015 , Auburn Hills, Mich. - The new 2015 Ram 1500 Rebel brings a one-of-a-kind off-road design to the full-size truck segment. "Offering an off-road-style package on the Ram 1500 has been on our to-do list for some time but the right combination didn't present itself until now," said Bob Hegbloom, President and CEO - Ram Truck Brand, FCA US LLC.

Junkyard Gem: 1983 Chrysler LeBaron Mark Cross Town & Country Convertible

When Lee Iacocca took the helm at the Chrysler Corporation in 1978, the company appeared to be doomed. The company's only modern front-wheel-drive cars either came from Japan or had been developed from Chrysler Europe's Simca operation, inflation was raging, and Middle Eastern conflict a year later sent fuel prices skyrocketing for the second time in the decade. Iacocca secured government loans to keep the company afloat until vehicles based on a brand-new front-drive platform could reach showrooms. Those were the K-Cars, debuting in the 1981 model year, and they saved Chrysler. The LeBaron was the ritziest of the early Ks, and today's Junkyard Gem is an example of the most prestigious LeBaron of 1983, found in a Colorado car graveyard last summer. The cheapest possible 1983 K-Cars were the two-door Plymouth Reliant and Dodge Aries, priced at $6,577 (about $19,959 in 2023 dollars). The 1983 LeBaron Mark Cross Town & Country convertible had an MSRP of way more than twice as much: $15,595, which comes to around $47,327 today. The LeBaron name came from a coachbuilder that Chrysler eventually devoured, and it was applied to the most glamorous Imperial models for decades. The LeBaron didn't become a model name in its own right until the 1977 model year, when a thick coat of bling was slathered onto the midsize Dodge Diplomat. That generation of Chrysler LeBaron stayed in production through the 1981 model year. The Town & Country name goes way back in Chrysler history, too. The very first Town & Country was a woodie wagon—with real wood— that first appeared as a 1941 model. Over the decades that followed, the T&C name was applied to sedans, coupes, wagons and convertibles, some with wood (or "wood") trim and some without, with only wagons getting that designation from 1969 through 1982. Beginning in 1990, the Chrysler Town & Country name went on minivans, and that's where it remained through 2016. The paneling on this car is plastic, but it was more convincing (when new) than most of the fake wood found on Detroit cars of the era. Convertibles made a big comeback for American car companies during the early 1980s, after much wailing and gnashing of teeth over "the last convertible" 1976 Cadillac Eldorado (it wasn't the last convertible you could buy new here, even at the time). The LeBaron convertible went on sale for the 1982 model year, and new drop-top LeBarons remained available all the way through 1995.