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Auto Mergers and Acquisitions: Suicide or salvation?

We love the Moses figure. A savior riding in from stage right with the ideas, the smarts, and the scrappiness to put things right. Alan Mullaly. Carroll Shelby. Lee Iacocca. Andrew Carnegie. Steve Jobs. Elon Musk. Bart Simpson. Sergio Marchionne does not likely view himself with Moses-like optics, but the CEO of Fiat Chrysler Automobiles recently gave a remarkable, perhaps prophetic interview with Automotive News about his interest and the inevitability of merging with a potential automotive partner like General Motors. Marchionne has been overtly public about his notion that GM must merge with FCA. For a bit of context, GM sold 9.9 million vehicles in 2014, posting $2.8 billion in net income, while FCA sold 4.75 million units and earned $2.4 billion in net income, painting a very rosy FCA earnings-to-sales picture. But that's not the entire picture. Most people in the auto industry still remember the trainwreck that was the DaimlerChrysler "merger" written in what turned out to be sand in 1998. It proved to be a master class in how not to fuse two companies, two cultures, two continents, and two management teams. Oh, it worked for the two individuals at both helms pre-merger. They got silly rich. And the industry itself was in a misty romance at the time with mergers and acquisitions. BMW bought Rolls-Royce. Volkswagen Group bought Bentley, Bugatti, and Lamborghini, putting all three brands into their rightful place in both products and positioning. No marriages there, so no false pretense. Finally, Nissan and Renault got married in 1999. A successful marriage requires several rare elements in this atmosphere of gas fumes and power lust. But a successful marriage requires several rare elements in this atmosphere of gas fumes and power lust, the principle part being honesty. Daimler and Chrysler lied to each other. The heads of each unit, the product planners, and finance all presented their then-current and long-range forecasts to each other with less-than-forthright accuracy. Daimler was the far greater equal and no one from the Chrysler side enjoyed that. The cultures were entirely different, too, and little was done to bridge that gap. Which brings me back to the present overtures by Marchionne to GM. "There are varying degrees of hugs," Marchionne stated in the Automotive News piece. "I can hug you nicely, I can hug you tightly, I can hug you like a bear, I can really hug you." Seriously?

Junkyard Gem: 1964 Dodge Dart station wagon

The Chrysler A Platform, built from the 1960 through 1976 model years for the North American market (and for a few years beyond that in Australia and Latin America), was one of Chrysler's greatest hits, if not the greatest hit. We know these cars best as the 1963-1976 Dodge Dart and the 1960-1976 Plymouth Valiant, and they established a reputation for reliability matched only by the likes of the Mercedes-Benz W123 diesel. I still see many of these cars during my junkyard wanderings, but A-Body wagons have become very rare. Here's a tattered '64 Dart wagon that I spotted in a self-service wrecking yard in San Jose, California. 1964 was the first model year for factory-installed V8 engines in the Dart and Valiant (and the Valiant's sporty sibling, the Barracuda), and the 273-cubic-inch pushrod V8 was a sturdy powerplant indeed. The slant-6 engine, though less powerful, went into most of these cars, and for good reason: It was harder to kill than all the world's cockroaches and rats put together. This car would have come with a 170- or 225-cubic-inch version of the slant-6, optimistically rated at either 101 or 145 gross horsepower (probably about 55 horses at the wheels), but I didn't feel like scraping sludge off casting numbers to see if it's on its first or 11th engine. In any case, slant-6 Darts were on the pokey side but would get you to your destination every time. This one has a lot of rust for a California car (in New Hampshire or Wisconsin, it would be considered pretty solid) and the interior is more or less obliterated, so even dedicated station-wagon lovers wouldn't have been motivated to take it on as a restoration project. So another early Dart is poised to be stuffed into The Crusher, for reasons that make good economic sense. This still makes us sad, though. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. Here's the compact you've been waiting for!

Fiat Chrysler to get $105M fine from NHTSA for recall woes

The National Highway Traffic Safety Administration is about to send a powerful message to automakers doing business in the United States, assuming reports of an upcoming $105 million fine against Fiat Chrysler Automobiles comes to fruition. In addition to the record-setting monetary fine, according to The Wall Street Journal, FCA will have to accept an independent auditor that will monitor the company's recall and safety processes and will be forced to buy back certain recalled vehicles. In other cases, such as with Jeep Grand Cherokee and Liberty models with gas tanks that could potentially catch fire in certain types of accidents, FCA will offer financial encouragement for owners to get their recall work done or to trade those older vehicles in on new cars, according to the report. FCA could reportedly reduce its fines if it meets certain conditions, though those remain unclear at this time. These actions against FCA are being taken after NHTSA began a probe into the automaker over almost two dozen separate instances where the government claims FCA failed to follow proper procedures for recalls and safety defects. Included in those safety lapses are more than 11 million vehicles currently in customer hands. These penalties and fines are separate from the investigation over security problems with Chrysler's Uconnect system that allowed hackers to obtain remote access into key vehicle systems in 1.4 million vehicles. Related Video: Image Credit: Marco Bertorello/AFP/Getty Earnings/Financials Government/Legal Recalls Chrysler Dodge Fiat Jeep RAM Safety fiat chrysler automobiles fine