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Fiat Chrysler and Peugeot boards meet to finalize merger

MILAN/PARIS — The boards of Fiat Chrysler Automobiles and Peugeot will meet separately on Tuesday to discuss finalizing an initial agreement for a $50 billion merger to create the world's number four carmaker, sources said. A source close to FCA said the two companies could announce the signing of a binding memorandum early on Wednesday, followed by a conference call to explain further details later in the day. The two mid-sized carmakers announced plans six weeks ago for a tie-up to help them deal with big challenges in the industry, including a global demand downturn and the need to develop costly cleaner cars to meet looming anti-pollution rules. Ahead of the meetings, entities representing the Peugeot family, Etablissements Peugeot Freres (EPF) and FFP, unanimously approved a proposed memorandum of understanding for the planned merger, a source familiar with the situation said. FCA and PSA have said they would seek to finalize a deal by year-end to create a group with 8.7 million in annual vehicle sales. That would put it fourth globally behind Volkswagen, Toyota and the Renault-Nissan alliance. PSA's Carlos Tavares will be chief executive and FCA's John Elkann — the scion of Italy's Agnelli family, which controls FCA through their holding company Exor — chairman of the combined company. The group will include the Fiat, Jeep, Dodge, Ram, Chrysler, Alfa Romeo, Maserati, Peugeot, DS, Opel and Vauxhall brands, allowing it to serve mass and premium passenger car markets as well as those for trucks and light commercial vehicles. Related Video:       Chrysler Dodge Fiat Jeep RAM Citroen Peugeot

Junkyard Gem: 1994 Dodge Caravan with manual transmission

The K Platform saved Chrysler from certain doom after the company's 1979 bailout by the federal government, and one of the most successful K-based vehicles was the one that spawned the American minivan craze in 1984: the original Dodge Caravan/Plymouth Voyager. Built all the way through the 1995 model year, these K-Caravans or K-Voyagers could be purchased with a four- or five-speed manual transmission, but just a handful were sold that way. Here's an extraordinarily rare late 5-speed example, spotted in a San Francisco Bay Area wrecking yard. The shifter location is a little awkward, requiring the driver to reach back a bit more than would be the case in, say, a Dodge Shadow (which shared the same powertrain). It's too bad that Chrysler never offered these vans with five-on-the-tree manuals. Even though plenty of Mitsubishi-V6-powered front-wheel-drive Chryslers of the late 1980s and early 1990s were available with manual transmissions (e.g., the Chrysler Laser/Dodge Daytona or the Plymouth Sundance/Dodge Shadow), Chrysler minivan shoppers who wanted a stickshift had to take the four-cylinder engine (either a Chrysler 2.2/2.5 or, in the early years, a Mitsubishi 2.6 Astron). This one has the naturally-aspirated 2.5-liter engine that went into so many Plymouth Acclaims and Chrysler LeBarons. In 1995, it was rated at 100 horsepower, which made for stately acceleration with a full load of passengers. For the 1989 and 1990 model years, a 150-horse turbocharged Chrysler 2.5 with 5-speed was the high-performance minivan setup... and you should let us know if you find a factory-built one. This is only the second example of a manual-trans-equipped 1990s Chrysler minivan I have found in the junkyard (the first was this '93 Voyager), and both vans were lightly-optioned El Cheapo models with cloth seats and hand-crank windows; the manual transmission was a bit cheaper than the automatic in those days. At least this one has air conditioning. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. Advertising for these minivans tended to focus on price, price, price. Featured Gallery Junked 1994 Dodge Caravan with 5-speed View 18 Photos Auto News Dodge Minivan/Van dodge caravan

Mopar unveils Dodge Challenger Drag Pak [w/video]

Dodge is going drag racing, and it's doing it with an all-new version of the Challenger for NHRA's Sportsman class. FCA's Mopar parts and performance arm announced the new Challenger Drag Pak Friday, showing off a version with a 354-cubic-inch (that's a 5.8-liter, by the way), supercharged V8 and a 426-ci (7.0-liter), naturally aspirated V8 – both Hemis, of course – that can get the big coupes through the quarter-mile in "the eight-second range." While the two engines deliver similar performance, at their base, they're quite a bit different. The supercharged model uses a cast-iron block, while the 426 has aluminum for both the block and head. That said, both models get customized engine calibrations, and are mated to unique, race-spec automatic transmissions. But drag racing is about far more than just outright power. Mopar significantly updated the four-link rear suspension, adding a four-inch rear axle from Strange Engineering, along with an aluminum, nine-inch third member, while the rear-axle housing has been strengthened in general. Both the rear shocks and front struts can be adjusted for rebound and compression, too. Lightweight 15-inch wheels, meanwhile, are shod in super-sticky Hoosier drag radials, with nine inches of tread in back and 4.5 inches in front. The new Challenger Drag Pak should run the quarter-mile in "the eight-second range." In the cabin, there's an NHRA-spec roll cage, a Racepak gauge cluster, and a handsome pair of Sparco racing seats. Outside, supercharged models get blue decals, while naturally aspirated varieties get black stickers, although there's more to the new Challenger dragster's exterior than just its decals. Mopar tweaked the big-scoop hood, promising it's easier to get up to check on the engine, and the designers also added trailer tie-down straps in both the front and rear. While the dragster was the big news today, Mopar officials also announced the two enhanced Scat Pack kits for both the Dodge Charger and Challenger R/T. The 5.7-liter Hemi models gain an extra 56 horsepower and 30 pound-feet of torque in the Scat Pack 2 thanks to a new cam, valve springs, pushrods, and gaskets. The Scat Pack 3, meanwhile, adds 75 hp and 44 lb-ft, on top of the gains from the lower packages. That should be perfect for drivers who wish to snort in the face of their SRT 392-driving friends. The third stage adds a ported cylinder heads, as well as high-flow manifolds and catalysts.