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FCA and Peugeot reportedly agree on merger

Citing a Wall Street Journal report, the Detroit Free Press says "Fiat Chrysler and PSA Groupe have agreed to merge." The Journal reported on talks between the two car companies only yesterday. It's said that Peugeot's board met yesterday to approve the deal, FCA's board met today, and an announcement could come as soon as tomorrow, Thursday. Both automakers have released statements, but neither company has released any information beyond admitting to ongoing talks. If the merger happens, the combined entity would become the world's fourth-largest carmaker with a $50 billion valuation, slotting in behind Toyota, the Volkswagen Group, and the Renault Nissan Mitsubishi alliance. Among the merger options possible, "an all-stock merger of equals" is the one analysts and Moody's seem to give the best grade. The reported merger would come about four months after FCA walked away from merger talks with Renault. FCA said the French government scuppered those talks over the role of Nissan in a reformed entity, but there were also brewing issues with French unions, and ongoing turmoil among Renault and Nissan leadership thanks to continuing fallout from ex-CEO Carlos Ghosn's arrest last year. FCA makes most of its revenue in the U.S. and rules Italy, while Peugeot is the second-best-selling automaker in Europe with its own brand in France and Opel in Germany. The two companies already have a partnership in Europe making vans, one that FCA CEO Mike Manley has spoken highly of. Among the list of obvious benefits in a potential merger, FCA would get access to Peugeot's small, modern platforms, $10.2 billion in cash, and electrified and hybrid architecture developments, the latter especially important to FCA as those are fields where it lags. Peugeot would get much easier access to the U.S. market, and the money-printing brands Jeep and Ram. A merged carmaker would have combined sales of nearly 9 million a year, based on 2018 results. By comparison, both Volkswagen and Toyota sell over 10 million cars a year, while the Renault-Nissan-Mitsubishi alliance almost 11 million. Peugeot CEO Carlos Tavares has proved he knows how to do turnarounds and mergers. After leaving a position as Carlos Ghosn's right-hand man in 2012, Tavares took over Peugeot in 2014, navigated a bailout from the French government and China's Dongfeng Motors in 2015, and turned PSA into a regional powerhouse.

The Dodge Challenger plays its trump card: all-wheel drive

Perennially stuck in third place behind the Ford Mustang and Chevy Camaro in sales and enthusiast comparisons, the Dodge Challenger is doing something unconventional for a muscle couple. It's adding all-wheel drive. It's a new feature for Detroit's pony cars – none of the three have ever had it – and it could be a game-changer. Called the Challenger GT, the Dodge launches this winter for a starting price of $34,490. The Challenger GT comes with the Pentastar 3.6-liter V6 rated at 305 horsepower and 268 pound-feet of torque. It teams with an eight-speed TorqueFlight automatic transmission and is estimated to get 18 miles per gallon in the city and 27 mpg on the highway. An FCA spokesperson said no manual transmission or V8 models will be offered on the all-wheel-drive Challenger. It will be on display in January at the Detroit auto show. View 8 Photos All-wheel drive is a widely expected addition for the Challenger. The coupe shares underpinnings with the four-door Charger, which offers an all-wheel drive variant and the cars have similar powertrain offerings (the AWD Charger is also V6 and automatic only). Naturally, the Challenger borrows the Charger's AWD system and during regular driving conditions, the front axle disengages and full torque goes to the back wheels, allowing the Challenger to function as a rear-wheel drive car. It automatically goes back to AWD when more traction is needed. Handling is also fortified with a vehicle dynamic control system. Conversely, the electronic stability control has three modes and can be switched off for drift-happy enthusiasts. The GT has features familiar to other Challenger and Dodge owners, including an 8.4-inch touchscreen radio, Performance Pages (accessible through the Super Trak Pack button), and paddle shifters. A Sport Mode changes shift points to improve acceleration. It all rolls on 19-inch wheels wrapped in all-season rubber. The exterior gets a hood bulge, LED head- and taillights, and a decklid spoiler. The Challenger GT also offers a $995-interior package different than RWD models, adding Nappa leather, Alcantara suede seats, a nine-speaker Alpine audio system, performance steering wheel, and more. All of that is just window dressing. It's all-wheel drive that could be a difference-maker for consumers. The Challenger won't likely be able to take down the Mustang, which will finish 2016 as the pony car sales king.

Dodge Challenger R/T Shaker and Mopar '14 Challenger up the retro appeal

The reborn Dodge Challenger might be getting a bit long in the tooth, having been on the market in its current form since 2008, but Chrysler isn't going to give up on its brutish, full-size two-door just yet. For this year's SEMA Show, the Challenger will be getting a new Mopar edition, as well as a retro-cool shaker hood on the 5.7-liter, Hemi-equipped R/T models.
As we mentioned last night, the Shaker Package will cost $2,500, but includes the Super Track Pak (new steering rack, brake linings, upgraded shocks and 20-inch Goodyear Eagle F1 Super Car tires), a $595 option on its own. The shaker hood result in a performance bump of any kind, but the blacked-out, pop-up scoop is a nifty feature that hasn't been seen on a production car since the Ford Mustang Mach 1 in the early 2000s.
The Mopar '14 Challenger (pictured right) follows the cues of previous Mopar Editions, which have included the 2010 Challenger, 2011 Charger, 2012 300 and 2013 Dart. Only 100 Mopar '14 Challengers will be produced, and they'll include the new shaker hood, Mopar's distinctive blue graphics and wheels, and whatever is pilfered from the accessory catalog.