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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?

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.

Consumer Reports says these are the worst new cars of 2014

Consumer Reports has announced its annual list of worst vehicles, a cringe-inducing contrast to its list of top vehicles. Ignominiously leading the way in 2014 is Chrysler, which has a staggering seven models listed.
Jeep nearly sweeps the small SUV segment by itself, with its Compass, Patriot and 2.4-liter version of the new Cherokee, while the only midsize sedans listed by CR were the Chrysler 200 and Dodge Avenger. The new Dodge Dart and the Dodge Journey round out CR's condemnation of Chrysler.
Ford is taking heat as well, with the Taurus, Edge and their counterparts from Lincoln all listed as the worst vehicles in their respective segments. Toyota doesn't fare much better, with its Lexus IS, Scion iQ and tC also making the list.