2014 Jeep Grand Cherokee on 2040-cars

Auto blog

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?

UAW strike's three-pronged attack focuses on popular midsize trucks, SUVs

The United Auto Workers announced at midnight last night that they would begin targeted strikes at Ford's Michigan Assembly, Stellantis' Toledo Assembly and GM's Wentzville Assembly — all three home to midsize pickups and, in the case of Toledo and Michigan, popular midsize SUVs.  The Ford Ranger, Jeep Gladiator (just updated for 2024), Chevy Colorado and GMC Canyon are all built on lines that have been shut down by the strike. The Ford Bronco and Jeep Wrangler, which share fundamental underpinnings with the Ranger and Gladiator, respectively, are also in on the party. GM's Wentzville Assembly also builds the GMC Savana and Chevy Express vans, neither of which is a big player in the retail market. While midsize pickups may not move in the quantities we see from the half-ton segment, all of these are fairly high-volume models. Ford sold nearly 120,000 Broncos along with more than 55,000 Rangers in 2022; Wrangler and Gladiator combined for nearly 260,000 units last year (181,000 of those were Wranglers) and the Colorado/Canyon represented more than 117,000 sales for General Motors. Throw in the nearly 80,000 units for Chevrolet Express and GMC Savana, and production from these facilities equated to more than 500,000 units sold in 2022.  Ford has been struggling since launch to deliver its wildly popular Bronco to waiting enthusiasts. With supply woes largely easing last year, the company caught up to a great deal of its pre-existing demand, but lingering supply chain and quality control issues have continued to plague the manufacturer even as general constraints have eased. Even earlier this year, Ford said it was selling every unit it could produce. The Ranger, freshly redesigned for the U.S. market, is still getting its feet wet.  Jeep likewise has been on a tear. Sales of the 4x4 have remained so steady that the Wrangler 4xe became the country's best-selling plug-in hybrid vehicle pretty much by accident. Jeep just formally confirmed this week that a 4xe variant of the Gladiator pickup is on the way by 2025 — and they said you couldn't sell hybrids to truck and SUV buyers.  At GM, meanwhile, the Colorado and Canyon are sporting fresh redesigns for the 2023 model year, with production of both still ramping up. And while the Chevy Express and GMC Savana vans may not be popular consumer models, GM still sold more than 77,000 of them last year combined.  Related video: Plants/Manufacturing UAW/Unions Chevrolet Ford GMC Jeep Truck SUV

May 2016: FCA wins, Ford and GM stumble on weak car volumes

The May 2016 sales numbers are in, and it looks as though FCA is getting some vindication for boldly cancelling two slow-selling car models. Meanwhile, Ford saw overall sales dip and GM's May volume took a big dive versus the same month in 2015. While Marchionne's decision to axe the Chrysler 200 and Dodge Dart has drawn criticism as being short-sighted, it's working for FCA so far. Although the Dart and 200 aren't out of production yet and no capacity has been shifted to crossover or trucks, May's numbers show that the emphasis on Jeep and Ram models makes sense right now. FCA's US sales rose 1 percent last month compared to May 2015, putting the year-to-date total at 955,186 vehicles, an increase of 6 percent compared to the same period last year. Standouts included the Jeep Renegade, Compass, and Patriot, and the Fiat 500X. Ram pickup sales were down 3 percent. And your fun fact is that Alfa Romeo sales were up precisely 10 percent, for a total of 44 4Cs sold versus 40 in the same month last year. At FoMoCo, the Ford brand took a hit to the tune of 6.4 percent from May 2015 to 2016, registering 226,190 sales last month. Lincoln showed improvement on its modest numbers, going from 9,174 to 9,807, a 6.9 percent increase. Overall, Ford was down 5.9 percent for the month to 235,997; despite the slump, year-to-date total Ford sales are up 4.2 percent to 1,112,939. Strong sellers included Escape, Expedition, F-Series, and Transit - big stuff. Most small and/or efficient models (Fiesta, Focus, Fusion, C-Max) saw sales slides. Fusion sales were also down, likely due to effects of model changeover to the freshened 2017 model. Ford has promised four new crossovers and SUVs by 2020 and if things keep trending this way the company will be able to sell them, but things could change in the next four years. GM saw the worst of it for domestic brands. Retail and fleet sales were down for each of the four divisions, with the May 2016 total dropping 18 percent to 240,450 vehicles. GM's year-to-date sales are down 5.0 percent in 2016 to 1,183,705. Both the Sierra and Silverado were down significantly, and the majority of Chevy, Buick, GMC, and Cadillac nameplates saw sales decreases, with both small cars and larger utilities included. Not even big stuff could help GM this month, it seems. We'll have more on the rest of the industry's May sales as those figures trickle in.