2014 Jeep Grand Cherokee Limited on 2040-cars

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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?

Jeep burned down by new Samsung Galaxy Note 7

A Florida family is out a Jeep Cherokee and a brand new cell phone after a Samsung Galaxy Note 7 left on a charger allegedly burst into flames on Monday and destroyed both itself and the Jeep. According to Fox 13, Nathan Dornacher and his wife Lydia were cruising garage sales in St. Petersburg, Florida on Labor Day with their daughter and their service dog. They stopped at home to unload a desk they'd purchased earlier. While they got the desk out of the Cherokee's hatch Nathan left his shiny new Galaxy Note 7 charging in the Jeep's center console. When the family went to leave again to run more errands, they were shocked to see that the Jeep's interior was engulfed in flames and thick black smoke was pouring out of the panel gaps. The St. Petersburg Fire department responded to the Dornachers', but it was too late for the Cherokee. The fire destroyed the vehicle, which was dearly loved by Nathan and heavily modified with aftermarket equipment. The Galaxy Note 7 has gained a nasty reputation for spontaneous combustion since its release in August. Samsung has recalled the phone in ten countries after thirty-five instances of Galaxy Note 7s catching fire or exploding for no good reason were confirmed. Fox 13 received a statement from a Samsung spokesperson after they reported the story about the Dornachers' poor jeep. "We are aware of the incident and we are working with Mr. Dornacher to investigate his case and ensure we do everything we can for him. Consumer safety is Samsung's highest priority. With regard to the Galaxy Note7, we are asking owners to take advantage of the Product Exchange Program announced on Friday of last week. The program offers Note7 owners the opportunity to exchange the phone for a new one. More details on the program can be found at http://www.samsung.com/us/note7exchange/." News Source: Fox 13 Auto News Recalls Weird Car News Jeep Technology Smartphone SUV fire Samsung car fire

Chrysler recalls 2013 Ram pickups, 2014 Jeep Grand Cherokee

Chrysler's spate of successful products is about to be marred by a trio of recalls. The Pentastar is recalling 51,477 Ram trucks and Jeep SUVs. According to the National Highway Traffic Safety Administration, there have been no reported accidents, injuries or deaths related to the affected vehicles.
The largest action covers the Ram 1500, which is seeing 45,961 trucks being recalled. Models built between June 26, 2012 and February 5, 2013 are being recalled due to a potential software issue in the electronic stability control. Apparently, the system can be randomly deactivated upon vehicle startup.
Chrysler is also recalling 4,458 2014 Jeep Grand Cherokee models. Covering everything but the SRT models, the potentially defective SUVs were built between January 14 and March 20, 2013. This recall focuses on "premium headlights," which means cars equipped with LED running lights. During the switch from the bright daytime running lamp setting to the low-intensity parking light setting, an electrical spike can cause one of the Jeep's computers to go into a safe mode, turning off the LEDs. This violates Federal Motor Vehicle Safety Standards.