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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?

Happy Hellcat Halloween

Happy Halloween, everybody. There's no real Hellcat news in this post. No growl of the second-scariest Dodge Challenger SRT's 707-horsepower engine, no shriek of its supercharger. Just a Hellcat on a photo shoot. A little eye candy on Halloween. In a graveyard. With a black cat. (No cats were doomed to hell in the making of this feature.) But a Hellcat is a good kind of scary, so here are some of our previous galleries. And may a Hellcat cross your path soon. View 18 Photos View 17 Photos View 80 Photos Related Video:

2014 Dodge Durango teaser reveals new 'racetrack' taillights

Not wanting to let Jeep get all of the SUV attention for the 2014 model year, Dodge is unveiling a refreshed version of its Durango at the New York Auto Show. Teased in this image, all we can really tell about the 2014 Dodge Durango is that it will be getting Dodge's "racetrack" taillights similar to the Charger and Dart.
The chrome or painted strip currently between the Durango's Zorro taillamps have been removed to allow for a full-width LED array with "DODGE" lettering displayed more prominently above the license plate pocket. Parent company Chrysler also promises that the updated Durango will add "several new class-exclusive features," but stops short of saying what those are. Earlier reports suggest that among the changes, buyers will be able to look forward to an eight-speed automatic gearbox, which ought to improve the three-row SUV's fuel efficiency.