2024 Jeep Wagoneer on 2040-cars

Auto blog

Chinese Jeep production confirmed with Fiat, Guangzhou agreement

Fiat has just finalized a deal originally set up in January between it and China's Guangzhou Automotive Group to bring Jeep production to China. It remains unclear which models will be built, although we're wagering that it'll be the 2014 Cherokee. What we do know, now, is where production will take place.
According to Automotive News, Guangzhou originally wanted production to take place in its home assembly plant in its namesake city. Fiat has battled to send production to a joint venture facility established between Guangzhou and Fiat in the town of Changsha. The joint facility won out, and now the factory, originally built in 2010 with a 140,000-unit capacity, will see Jeeps rolling out of it.
Currently, the GAC-Fiat factory produces the Fiat Viaggio, a jointly developed product that is closely related to America's Dodge Dart. And while it remains unclear as to which model will join the Viaggio on the assembly line, that model is understood to ride on Fiat's Compact platform. The only Jeep to share those underpinnings is the new Cherokee, so there's not much connecting of dots needed to see why this scenario would make sense.

Stellantis not looking for further mergers, including with Renault

MILAN — Stellantis Chairman John Elkann on Monday denied the carmaker was hatching merger plans, responding to press speculation about a possible French-led tie-up with rival Renault. Elkann said that the Peugeot owner, the world's third largest carmaker by sales, was focused on the execution of its long-term business plan. "There is no plan under consideration regarding merger operations with other manufacturers," said Elkann, who also heads Exor, the Agnelli family holding company that is the largest single shareholder in Stellantis. After abandoning the Russian market, at the time its second largest after France, and reducing the scope of its global cooperation with Nissan, Renault has been seen as a potential M&A target. Speculation intensified after an electric vehicle market slowdown forced it last week to cancel IPO plans for its EV and software unit Ampere. Its market cap remains stubbornly low at little over 10 billion euros ($10.8 billion) despite a financial recovery over the past few years. Stellantis, the product of a 2021 merger between France's PSA and Fiat Chrysler and one of the most profitable groups in the industry, has a market cap of more than 85 billion euros when unlisted shares are factored in. It has a 14 brand portfolio also including Citroen, Jeep, Opel and Alfa Romeo. NEWSPAPER REPORT Italian daily Il Messaggero had said on Sunday that the French government, which is Renault's largest shareholder and also has a stake in Stellantis, was studying plans for a merger between the two groups. A spokeswoman for Renault said on Monday the group did not comment on rumors. France's Finance Ministry had declined to comment on Sunday. Stellantis has crossed swords with the Italian government, which has accused it of acting against the national interest on occasions. Industry Minister Adolfo Urso last week raised the prospect of the Italian government taking a stake in Stellantis to help to balance the French influence. Renault shares pared gains after Elkann's comments to stand 1.2% higher by 1220 GMT, having initially risen more than 4%. Stellantis CEO Carlos Tavares, a Portuguese-national, last week said in an interview with Bloomberg that the group was "ready for any kind of consolidation" and that its job was to make sure that it would be "one of the winners". Analysts, however, question the rationale of a Stellantis-Renault merger, which would also expand the group's excess capacity in Europe.

FCA to appeal reduced judgment in Georgia Jeep case

FCA is appealing the $40 million verdict against it in a case in Georgia where a four-year-old boy died in a fire in a Jeep Grand Cherokee, according to The Detroit News. The jury originally awarded the child's family $150 million, but the judge decided to significantly to reduce the amount based on other precedents. The automaker has been considering further legal options since the decision was announced in July. The boy's death happened in 2012 when he was riding in a Grand Cherokee. The vehicle was rear-ended, and the fuel tank burst, causing a fire. This is the same issue that led to a recall of millions of the SUVs and a recent agreement with the US government from FCA to pay to get them fixed. In the original ruling, the jury said that the automaker was 99 percent responsible for the fatality and didn't adequately warn owners. It asked the company to pay $120 million for wrongful death and $30 million for his pain and suffering. FCA countered that the Jeeps met the safety standards of the time they were made. FCA requested that the jury's award be reduced in May calling the amount "grossly excessive." If the family didn't agree to a lower amount, the company also threatened to seek a new trial. Among the arguments was that $30 million was too much for the child's one minute of suffering. The parents did accept the judge's adjusted figure, though.