2014 Jeep Grand Cherokee Laredo on 2040-cars

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Fiat Chrysler CEO: No plans to sell brands to Chinese

DETROIT — Fiat Chrysler Automobiles (FCA) has no intention of breaking up the company or selling individual brands to China or other parties, the company's chief executive said on Monday at the Detroit Auto Show, adding that the group was counting on its coveted Jeep brand to drive future profits. "We're not going to break up anything," Chief Executive Sergio Marchionne said at a news conference at the Detroit Auto Show. "We have no intention of breaking it up and giving anything to the Chinese." Marchionne said the Jeep sport utility vehicle brand could help FCA double its net profit. FCA's portfolio also includes luxury Maseratis, sporty Alfa Romeos and tiny Fiats. FCA's share price has jumped more than 30 percent this year on a bullish outlook for the auto sector, Jeep growth expectations and speculation that Marchionne's final year at the helm could prompt strategic deals such as spinoffs, technology alliances and disposals. The popularity of the Jeep brand, which is targeting sales of 2 million vehicles this year, has prompted talk it could be spun off from the group, as happened with tractor maker CNH Industrial and supercar group Ferrari, or sold off. Rumors have resurfaced that Guangzhou Automobile Group might be interested in snapping up part of FCA. Marchionne said on Monday that while GAC has partnered to deliver Jeeps to the Chinese market and FCA is talking to the Chinese automaker about helping it enter the U.S. market, "none of these things are designed to impact on the independence of FCA." FCA has often been the subject of merger speculation, especially after its unsuccessful 2015 attempt to tie up with larger U.S. rival General Motors. Its share price jumped to record highs in August after reports of interest from China's Great Wall Motor Co and South Korea's Hyundai. Marchionne said while both Jeep and truck brand Ram are strong enough to exist on their own, "we need to talk about ... what will be left behind." Marchionne said he has recommended to the company's board that the automaker spin off Magneti Marelli, a maker of components for lighting, engines, electronics, suspension and exhausts, to shareholders by the end of 2018. Marchionne confirmed FCA's targets for 2017 and for 2018, including a plan to erase all debt and generate up to 5 billion euros ($6.14 billion) in net cash.

Chrysler axes old V6s, goes all-Pentastar

Old technology has a way of lingering on, particularly at Chrysler headquarters in Auburn Hills. So while the Pentastar V6 has replaced the older engine architecture in just about every application, it still soldiered on in some export markets. But the introduction of a new 3.0-liter Pentastar V6, produced in Michigan and meant only for the Chinese market, has put the final nail in the old engine's coffin.
Fitted into the 2014 Jeep Grand Cherokee and Jeep Wrangler just introduced to China at the Chengdu Motor Show, the downsized six uses the same architecture as the larger 3.6-liter Pentastar V6. But because of its 2,997cc capacity, it can be exported to China without the increased duty the 3.6-liter or even 3.2-liter Pentastar engines would incur. The 3.0-liter V6 develops 230 horsepower at 6,350 rpm and 210 pound-feet at 4,400 rpm.
Admittedly, it's unlikely, but even though the engine was said to be created solely to undercut tax thresholds in China and Europe, the 3.0-liter Pentastar has recently surfaced in rumors of an application here: as the boosted heart of a potential Cherokee SRT with anywhere from 375 to 410 hp.

Mahindra vs. FCA case rages on amid confusion from false reports

The Mahindra vs. FCA case is trucking on despite some reports from India that say otherwise. It was widely reported over the weekend that Mahindra had come out on the winning side of the U.S. International Trade Commission's investigation. However, that's not the case, and FCA says it expects a final decision to be made this month. Apparently, the reports used a brief filed by Mahindra that doesn't actually have any bearing on what the final decision in court is. The briefing was rather explicit in its language, but FCA released a similar brief following hearings. We'll list them both for you below. Mahindra: "FCA is contractually barred from pursuing this investigation if Mahindra's vehicles contain or use the approved grille design. The evidence shows that Mahindra's Roxor uses the approved grille design. Thus, the record supports a finding that Mahindra met its burden of proving by a preponderance of the evidence that FCA is contractually barred from pursuing this investigation." FCA: "Mahindra has failed to carry its burden in showing that all of FCA's claims fall under the narrow scope of the 2009 Agreement. The Investigation against Respondents should therefore proceed." These statements represent opinions of both companies, but not actual decisions made by the U.S. ITC. In case you were still wondering, this whole battle is about the Mahindra Roxor's front grille design. FCA says is looks too much like a Jeep, and is worried the Roxor will cut into Wrangler sales. The Mahindra Roxor isn't road-legal, which would make it difficult to steal actual Jeep sales from FCA, and there was also an agreement signed in 2009 between the two companies related to this issue. FCA agreed then not to bring about infringement claims against Mahindra as long as it used a grille design that differs from the classic Jeep trademark grille FCA approved of. One could argue Mahindra's grille is different than Jeep's design because it only has five slats instead of seven, but it sure does look a lot like an old Willys. It will be another month before official word is out on this case, and we'll be following to see whether Mahindra will be allowed to sell its fun, diesel off-roader in the U.S. Related video: