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China-FCA merger could be a win-win for everyone but politicians

NEW YORK — Fiat Chrysler boss Sergio Marchionne has said the car industry needs to come together, cut costs and stop incinerating capital. So far, his words have mostly fallen on deaf ears among competitors in Europe and North America. But it appears Marchionne has finally found a receptive audience — in China. FCA shares soared Monday after trade publication Automotive News reported the $18 billion Italian-American conglomerate controlled by the Agnelli family rebuffed a takeover from an unidentified carmaker from the Chinese mainland. As ugly as the politics of such a combination may appear at first blush, a transaction could stack up industrially, and perhaps even financially. A Sino-U.S.-European merger would create the first truly global auto group. That could push consolidation to the next level elsewhere. Moreover, China is the world's top market for the SUVs that Jeep effectively invented, so it might benefit FCA financially. A combo would certainly help upgrade the domestic manufacturer; Chinese carmakers have gotten better at making cars, but struggle to build global brands, and they need to develop export markets. Though frivolous overseas shopping excursions by Chinese enterprises are being reined in by Beijing, acquisitions that support the modernization and transformation of strategic industries still receive support, and the government considers the automotive industry to be strategic. A purchase of FCA by Guangzhou Automobile, Great Wall or Dongfeng Motors would probably get the same stamp of approval ChemChina was given for its $43 billion takeover of Syngenta. What's standing in the way? Apart from price (Automotive News said FCA's board deemed the offer insufficient) there's the not-insignificant matter of politics. Even as FCA shares soared, President Donald Trump interrupted his vacation to instruct the U.S. Trade Representative to look into whether to investigate China's trade policies on intellectual property. Seeing storied Detroit brands like Jeep, Chrysler, Ram and Dodge handed off to a Chinese company would provoke howls among Trump's economic-nationalist supporters. It might not play well in Italy, either, to see Alfa Romeo and Maserati answering to Wuhan instead of Turin — though Automotive News said they might be spun off separately. Yet, as Morgan Stanley observes, "cars don't ship across oceans easily," and political considerations increasingly demand local manufacture of valuable products.

Here are the Challenger SRT Demon's bare-minimum performance numbers

This week's Dodge Challenger SRT Demon teaser video provides what seems like more concrete evidence than any of the others before it. We say it seems that way because the numbers flashed on the screen are likely not showing us everything the car has to offer. So we're looking at these as the minimum performance stats and expecting Dodge to reveal even crazier numbers alongside the car next month. The video also provides some hints at features and modes the car will offer. Let's pick it apart. First off, there's the performance data from the various SRT Performance Pages screens. The 0–60 mph time is 3.0 seconds, which compares well to the "regular" Hellcat's 3.5-second manufacturer claim. Then there are two 0–100 times: 6.08 and 6.8. An eighth-mile time of 6.6 seconds at 125 mph and a quarter-mile time of 0.5 seconds at 129 mph lead us to believe the driver lifted off the throttle in that second eighth-mile and that the car will actually do the quarter in the low 10s. For reference, Dodge claims an 11.2-second quarter for the Hellcat on its street tires and a 10.8 with race slicks. View 7 Photos We also get a cryptic message about the supercharger boost pressure, which suggests it will be higher than the 11.6 psi of the 6.2-liter Hellcat engine. A graph shows it heading up toward 10 psi but the final spike is obscured by a Demon head. Cute. There's a hint at horsepower and torque numbers in a graph on the Dyno page, which shows both peaking around 750. In every shot of this video, the clock is set to 7:57, which we think means it either has that much power or, well, more. We think there's more to it because it appears that part of the graph above the dyno run shown, which would reach to 800 or 850, has been blanked out. A horsepower total of 808 would be a nice complement to the Hellcat's 707, don't you think? We can see from the shift indicator screen that the car will come with or at least offer the eight-speed automatic that's also available in the Hellcat and other Challengers. That's likely to be the best option for drag racing. The Demon's user-defined shift light feature, which lets you choose an optimal shift rpm for each individual gear, also suggests that a six-speed manual will be available. We'll cover the many modes and settings highlighted in this video in a separate post. There's a lot to discuss. Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.

2021 Dodge Durango to get SRT Hellcat limited edition

In January, spy photographers caught what we thought might be a mild hybrid version of the coming Dodge Durango, based on information Mopar Insiders gleaned from the UAW contract with Fiat Chrysler. Turns out we were correct, Mopar Insiders citing info from sources at Fiat Chrysler that the base engine on the 2021 Durango will be a 3.6-liter Pentastar V6 with eTorque. We don't have output figures yet, but he current Durango's base engine is the non-hybrid 3.6-liter Pentastar V6 making 293 hp and 260 pound-feet of torque in SXT trim. The V6 hybrid powertrain is offered in the Ram 1500 making 305 horsepower and 269 pound-feet of torque, and the Jeep Wrangler making 285 hp and 260 lb-ft., but doesn't increase output compared to the non-hybrid engine in either of those models. We're sure buyers would love for Dodge to bump the numbers up into Ram territory, but the eTorque unit serves the god of fuel economy and low-end refinement, so we shouldn't be surprised if there's no change. The MI report says Dodge has three other powertrains coming for 2021. The 5.7-liter Hemi V8 that comes standard on the Durango RT will carry over, adding eTorque as an option. That's the same standard and optional configuration Ram offers on the 1500 equipped with the 5.7-liter Hemi V8. The Durango's V8 produces 360 hp and 390 lb-ft., versus 395 hp and 410 lb-ft in the Ram. On the Ram, the eTorque system improves fuel economy by 2 mpg in the city, 1 mpg on the highway. The 6.4-liter Hemi V8 on the Durango SRT moves into 2021 as well. But the Durango SRT will need to cede its crown to a Durango SRT Hellcat coming next year. Dodge has already put the Hellcat engine in a Durango Pursuit model for law enforcement, making the full 797-hp wrought by the Hellcat Redeye motor. A couple of months ago, Road & Track caught a Hellcat badge on a Durango in a now-removed trailer for the new "Fast & Furious" film, leading all to believe a civilian-use version of the muscle SUV was on the way. MI claims we'll get the Hellcat's 707 hp and 645 lb-ft., but the trim will launch as a limited edition bearing numbered plaques on the instrument panel.  The only bad news in all this is that production shutdowns have delayed the 2021 Durango and the brand new three-row Jeep Grand Cherokee "at least three months from their original launch dates." Related Video: