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Marchionne backs off merger plans, could retire after 2018

FCA boss Sergio Marchionne is stepping back from plans to attempt a major auto industry merger like the oft-speculated deal with General Motors last year. According to Bloomberg, Marchionne now wants to grow his automaker through 2018, and then the 63-year-old could retire around the end of that year. Marchionne claims he received merger proposals last year, but he couldn't find an attractive enough partnership. "We went back to concentrate on the 2018 plan which would boost Fiat Chrysler's value and its position in a deal," he said to Bloomberg. He still believes that a big merger is possible, but "it will be someone else's duty," he said after previously hinting about possibly staying at FCA until 2020. Marchionne was clear that any chance for the GM merger was likely over. "I met Mary Barra less than a month ago in Washington," he told Bloomberg. "I don't think I will have another coffee with her. It won't happen again in the future." Now, the boss intends to spend the rest of his time at FCA building the automaker through its five-year plan, and his goal is to grow global deliveries to seven million units a year by 2018. To make that happen, the automaker will invest around $52 billion over that time to improve its brands' product slate. Marchionne began backtracking from the possible GM merger late in 2015 after it became clear that The General's board wasn't interested. Earlier in the year, he seemed more aggressive about the prospect by suggesting a hostile takeover with a bizarre metaphor about giving the company a hug. Related Video: News Source: BloombergImage Credit: Richard Drew / AP Photo Chrysler Fiat GM Sergio Marchionne FCA fca us

Trucks, SUVs — and Camry — shine in mixed U.S. January vehicle sales

DETROIT — Automakers posted mixed U.S. new vehicle sales data for January, with American consumers continuing to abandon passenger cars for the larger pickup trucks, SUVs and crossover models that manufacturers also love because they are far more profitable. Total industry auto sales for the month rose 1 percent versus January 2016. According to Autodata Corp, which tracks industry sales, the seasonally adjusted annualized rate (SAAR) of U.S. car and light truck sales in January fell to 17.12 million units from 17.44 million a year earlier. Analysts polled by Reuters had expected a January SAAR of 17.2 million units. U.S. auto industry sales fell 2 percent in 2017 to 17.23 million vehicles after hitting a record high in 2016 and are expected to drop further in 2018 despite a solid economy. Interest rates are rising and around 4 million late-model used cars will return to dealer lots this year to compete with more expensive new ones. Automakers have used consumer discounts to boost sales, a growing concern for observers who say this undermines resale values and profits. Discounts declined in January, but remained above 10 percent of manufacturers' recommended prices. ""I think the industry has accepted that (sales) volumes will fall somewhat in 2018 ... and I don't think the industry is going to go over the cliff with insane incentives," Mike Jackson, chief executive officer of AutoNation Inc, told Reuters after his company, the largest U.S. auto retail chain, posted a higher quarterly net profit. Mark Wakefield, head of the North American automotive practice for consultancy AlixPartners, had a gloomier perspective. The industry's less-than-stellar sales performance for January showed "we are now past the peak," he said. "Automakers are now selling the deal instead of the vehicle," he said. "That's a tough spot to be in because that treadmill is hard to get off once you're on it." General Motors January sales rose 1.3 percent, driven by a 16 percent rise in fleet sales. Sales to consumers fell 2.4 percent. GM posted strong gains for models such as the Silverado pickup truck and Equinox crossover model, while its passenger cars continued to struggle. Ford The Blue Oval posted a 6.6 percent sales decline for January, with retail sales down 4.3 percent. Sales of Ford's F-Series pickup trucks - America's best-selling vehicle brand for decades — rose 1.6 percent. Passenger cars were down more than 23 percent.

Fiat Chrysler may build an AWD Pacifica minivan

Fiat Chrysler is reportedly considering building an all-wheel-drive variant of the Chrysler Pacifica as a salve for the minivan's flagging sales, especially in Canada, where it's built, and where the Dodge Grand Caravan is eating its lunch. Automotive News cites a ranking official with Unifor, Canada's autoworker union, and two anonymous sources familiar with the company's internal machinations. In addition, the outlet cites the CEO of AutoForecast Solutions, a consulting firm, who says his industry data show that FCA will begin production of an AWD Pacifica in the second quarter of 2020 at its plant in Windsor, Ontario. "It's going to help them with their leadership of the product," it quoted CEO Joe McCabe as saying. An FCA spokeswoman told Autoblog the company doesn't comment on speculation about future products. Pacifica sales have held relatively steady in the U.S. Full-year 2018 sales were a respectable 118,322, essentially flat with 2017, compared to 151,927 Grand Caravans, an increase of 21 percent. Sales through February of this year were down by 24 and 27 percent, respectively, but FCA says its share of the overall U.S. minivan market has nevertheless risen to 57.7 percent. But cross the Detroit River into Canada, FCA's second-largest market for minivans, and things don't look as rosy for the company's flagship minivan. There, the Grand Caravan in 2018 outsold the Pacifica by a 5-to-1 ratio, 32,253 to 5,999, which represented respective declines of 31 percent and 3 percent. Things haven't gotten any better in 2019, either, with Pacifica sales falling 55 percent through the first two months to 512 and Grand Caravan sales slipping 20 percent to 4,836. FCA's share of the Canadian minivan market was 59 percent at the end of 2018, the company says. Canada is known as the Great White North, after all, so it makes perfect sense that all-wheel drive is a popular sell there as a way to navigate the long, snowy winters. But there are questions about whether adding a rear driveshaft would affect the Pacifica's Stow 'n Go system, which allows users to fold the third-row seats into the floor to add cargo space. Chrysler in fact offered all-wheel drive versions of its minivans through 2004, when it first introduced the Stow 'n Go, AN reports.