2012 Jeep Liberty Sport on 2040-cars

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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.

FCA to test Jeep car-sharing and other pilots

Fiat Chrysler plans to launch a trio of pilot programs in Boston aimed at boosting sales of its Jeep cash cow and other brands, according to media reports. The programs, which involve car-sharing and subscription services, are expected to roll out starting this month. Bloomberg reported earlier this month that Jeep is launching two small pilot programs in Boston — one in which owners can rent out their Jeeps through peer-to-peer car-sharing startup Turo, the other a three-month subscription service in partnership with Avis Budget Group in which owners can swap their Jeeps for other vehicles, like a Ram 1500 pickup or a Dodge Challenger. There's also a third program in the works, according to Motor Authority. It's called "Car Borrowing" and it's also a partnership with Avis. According to the report, it'll allow Jeep owners in Boston starting next month to purchase six "Jeep Coins," each good for a one-day rental of most Chrysler, Dodge, Jeep and Ram vehicles, valid for a year. Participants will be able to pick up the borrowed vehicles or have them delivered. The former two programs will reportedly be limited to the first 100 owners who register for each. Jeep brand manager Tim Kuniskis says the programs will help develop new prospective customers and help generate customer feedback to see whether the programs are right for the brand and could be offered at the dealerships at the point of sale. Avis would supply the inventory in the subscription pilot, and participants would be able to swap models up to six times in three months, two with delivery and the remainder by picking them up. It wasn't clear what services would be offered with the program. In a blog post, Turo CEO Andre Haddad said the "Jeep Freedom Experience" program was aimed at introducing Jeep enthusiasts to new models of mobility and was a natural fit, since Jeep models "have long been among the most popular vehicles for guests on Turo," and the Wrangler and Cherokee rank tops in the company's recent study ranking vehicles based on their potential return by sharing them on the platform. "As Turo hosts, Jeep buyers can get help covering their payments, offset the cost of ownership entirely, or even turn a profit," Haddad wrote.

2014 Jeep Cherokee starting price set at $22,995*

Love it or hate it, the 2014 Cherokee is on its way to a Jeep showroom near you this fall. Today, Chrysler announced the different trim levels, features and pricing for its new compact utility with a starting price of $22,995 (*not including $995 for destination), which is $400 less than the 2012 Liberty it ostensibly replaces.
Available in four trim levels - Sport, Latitude, Limited and Trailhawk - the new Cherokee will come standard with Chrysler's 2.4-liter Tigershark inline four-cylinder engine with the upper three levels offering the option of the company's 3.2-liter Pentastar V6. The base Sport is your typical entry-level model, featuring equipment including manual cloth seats and black exterior mirrors and door handles, but it also has a five-inch Uconnect media center, LED taillights and 10 standard airbags. Stepping up from the Sport model, Latitude and Limited trims bring increasing levels of luxury starting at $24,495 and $27,995, respectively. All three of these trims are front-wheel drive in standard configuration and offer varying versions of Jeep's Active Drive four-wheel-drive system.
The range-topping $29,495 Cherokee Trailhawk (shown above) comes standard with four-wheel drive and numerous upgrades to earn Jeep's Trail Rated fender badge. These changes include a unique design that adds an off-road suspension with taller ride height giving more aggressive approach and departure angles, underbody skid plates, distinguishing exterior design elements and a seven-inch, reconfigurable instrument gauge cluster similar to what it found in high-trim Dodge Dart models. Scroll down for a full breakdown of the 2014 Cherokee pricing and trim levels, and let us know what you think of the model's pricing and equipment in Comments.