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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.

You probably won't see FCA's famous Easter eggs on an Alfa Romeo

They started in Jeeps, with images of seven-slot grilles showing up on windshield edges, the text "SINCE 1941" appearing in the clear plastic of headlight units, and a relief map of Moab engraved into a rubber cubby liner. Then a Chrysler got a map of Detroit and the outline of Laguna Seca materialized near the Viper's window switch. We've come to call them Easter eggs, but Klaus Busse points out that they were never really meant to be secrets, just ways to dress up what he calls "dead plastic." He's nevertheless cool with the phrase being applied and likes the enthusiastic response these design details get. Busse is intimately familiar with many of them, having signed off on many of them in his time as head interior designer for FCA's US operations. He recently moved to Europe to lead Alfa Romeo, Maserati, and Fiat design there, so when I caught up with him next to the new Stelvio crossover at the Alfa stand in LA, I had to ask: Are we going to see any of those neat design details in Alfas or Maseratis anytime soon? The short answer is no. But he didn't say it's out of the question. Busse said if, for example, a designer wanted to put an Italian phrase somewhere on a car that was in keeping with the brand, he would allow it. Although he didn't come out and say it, it seems like he might feel this type of fun design element isn't necessarily appropriate for a higher-end brand like Alfa. And I get that. But I'm still going to check all the compartments of that new Alfa crossover for a map of the Stelvio Pass. Related Video: Featured Gallery 2018 Alfa Romeo Stelvio: LA 2016 View 11 Photos Design/Style LA Auto Show Alfa Romeo Jeep 2016 LA Auto Show easter egg

Jay Leno rides high in Fab Fours Legend

Jeep showcased some pretty awesome concepts at its Easter Safari in Moab a few days ago, but few if any of them were quite as extreme as what's rolled in to Jay Leno's Garage for this latest video installment. It's called the Legend, and it was made by aftermarket bumper manufacturer Fab Fours to demonstrate its capabilities. It's obviously based on the Jeep Wrangler, but it's riding high on 50-inch tires with a jacked-up monster truck suspension, giant fenders, a chopped-down red-tinted greenhouse and something its creators call a "grumper" that integrates the bumper into the grille. Or vice versa. Though most of the oily bits have carried over from the production model, it's hardly what you'd call "practical," but it's sure to turn a lot of heads... even one as massive as Jay's. Related Video: