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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?

Refreshed Jeep Cherokee gets more conservative styling

When the Jeep Cherokee hit the market a few years ago, it created a bit of controversy within the Jeep community. The two biggest issues were the styling and the fact that the former rough-and-tumble Cherokee was now a soft, car-based crossover. While there isn't much that can be done about the latter, it looks like Jeep is planning to address the Cherokee's love-it-or-hate-it looks. These spy shots, in typical fashion, don't reveal as much as we would like. The Cherokee here has a good amount of camouflage covering the front and rear fascias, the two areas that generated controversy. It looks like the headlights have moved up and sit alongside the bumper, not below it. The seven-slot grille remains, but there would likely be fires in Toledo if that disappeared. The rear has been changed as well, and it looks like there is a body-width trim piece similar to that on the Grand Cherokee. When the refreshed Cherokee debuts, the Jeep lineup will be murkier than ever. More conservative styling would make it look like a baby Grand Cherokee, but that's exactly what the all-new Compass looks like. It seems the pair might step on each other's toes, but Jeep must hope it's better than going to another manufacturer. Look for a full reveal this fall. Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. Featured Gallery Jeep Cherokee spy shots View 15 Photos Image Credit: Spied Bilde Design/Style Spy Photos Jeep Crossover SUV

Happy 50th birthday, Jeep Wagoneer

The Wagoneer got the SUV on the radar of buyers looking for something capable, comfortable and rugged.
The Jeep Wagoneer was introduced 50 years ago, and it's that vehicle we have to thank for the herds of excellent crossovers and SUVs that make up our current automotive landscape. On a personal level, I have always loved the full-size Jeeps and their crisp Brooks Stevens styling, which aged well over their long tenure on the market. The SJs, as they're known among enthusiasts, were the Wagoneer and its two-door counterpart, the original Cherokee. The Wagoneers had become true luxury vehicles by the end of their run, which stretched form late 1962 as a '63 model all the way to 1991, when they were offered exclusively under the Grand Wagoneer nameplate.