Auto blog

Marchionne's FCA-GM merger might come after Ferrari spinoff

Sergio Marchionne is continuing to rumble about working out a merger with General Motors, but don't expect anything big to happen before at least early next year. That's because Marchionne would likely wait for the Ferrari spin-off to be complete before beginning his next big deal, according to Automotive News. While the Ferrari IPO on the New York Stock Exchange is expected in the coming weeks, that only concerns 10 percent of the shares. The remaining 80 percent of stock is being distributed among shareholders in 2016. Piero Ferrari holds the final 10 percent with no intention to sell. This strategy allows FCA to claim 80 percent of the Prancing Horse's profits in the automaker's 2015 financial results. According to Automotive News, the tactic has other advantages, as well. FCA would be flush with cash by waiting for the spin-off to be complete, and it would keep Ferrari separate if a GM merger actually happens. Marchionne thinks Ferrari could be valued at over $11 billion in the IPO, and it could make FCA $3.3 billion richer when complete. Marchionne believes a combined FCA/GM could sell 17 million vehicles a year globally and rake in $30 billion in earnings. In the CEO's opinion, the two automakers are wasting money by developing components to do the same things on their vehicles. Although, so far the General's top execs are rebuffing all of his advances.

Autonomous Chrysler Pacficas join Lyft test fleet

Lyft has another year of building out its autonomous driving program under its belt, and the ride-hailing company has been expanding its testing steadily throughout 2019. The company says that it's now driving four times more miles on a quarterly basis than it was just six months ago, and has roughly 400 people worldwide dedicated to autonomous vehicle technology development. Going into next year, it's also expanding the program by adding a new type of self-driving test car to its fleet: Chrysler's Pacifica hybrid minivan, which is also the platform of choice for Waymo's current generation of self-driving car. The Pacifica makes a lot of sense as a ridesharing vehicle, since it's a perfect passenger car with easy access via the big sliding door and plenty of creature comforts inside. Indeed, Lyft says that it was chosen specifically because of its "size and functionality" and what those offer to the Lyft AV team when it comes to "experiment[ing] with the self-driving rideshare experience. Lyft says it's currently working on building these test vehicles out in order to get them on the road. Lyft's choice of vehicle is likely informed by its existing experience with the Pacificas, which it encountered when it partnered with Waymo starting back in May, with that company's autonomous vehicle pilot program in Phoenix, Arizona. That ongoing partnership, in which Waymo rides are offered on Lyft's ride-hailing network, is providing Lyft with plenty of information about how riders experience self-driving ride-hailing, Lyft says. In addition to Waymo, Lyft is also currently partnering with Aptiv on providing self-driving services commercially to the public through that company's Vegas AV deployment. In addition to adding Pacificas to its fleet alongside the current Ford Fusion test vehicles it has in operation, Lyft is opening a second facility in addition to its Level 5 Engineering Center, the current central hub of its global AV development program. Like the Level 5 Engineering Center, its new dedicated testing facility will be located in Palo Alto, and having the two close together will help "increase the number of tests we run," according to Lyft. The new test site is designed to host intersections, traffic lights, roadway merges, pedestrian pathways and other features of public roads, all reconfigurable to simulate a wide range of real-world driving scenarios.

Chrysler 'at war' with world's largest Viper club?

The situation was bound to boil over at some point. Grumblings from former and current members of the Viper Club of America, and letters sent from Chrysler to VCA president Lee Stubberfield, allege that the non-profit club is being run illegally as a for-profit business, Jalopnik reports.
The trouble reportedly started in 2007, when VCA member and former club national president Chris Marshall is alleged to have taken a paid position at the club courtesy of the acting board members at the time. By 2010, with the demise of the Dodge Viper looming, the VCA reportedly made a deal with Chrysler to to acquire a stash of old parts and tooling for the Viper. The stash would then be sold by the newly formed Viper Parts of America, a company that was supposed to be run by Marshall, Jalopnik reports.
This sounds like shady business to us - at the very least a conflict of interest. And it's said that the VCA will not hesitate to suspend - for a year or more - the memberships of those who oppose it.