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Marchionne now considering 'Plan B' partners for FCA merger

Okay Sergio, just stop. With the sting of rejection from General Motors CEO Mary Barra still fresh, Fiat Chrysler Automobiles CEO Sergio Marchionne is moving on and trying to find another automaker to merge with. FCA may not be giving up hope on a merger with GM, but that doesn't mean it isn't at least considering alternatives. Sergio's so-called "Plan Bs" include the Volkswagen Group, as well as smaller Asian outfits, like Mazda, Honda, Suzuki, and Hyundai. Bloomberg reports that France's beleaguered PSA Peugeot Citroen could as a sort of "fallback" option due to its relative lack of volume, an unidentified source claimed. There are, of course, problems with each option. According to Bloomberg, Volkswagen expects complete control of a company, but the Agnelli family, which holds a large portion of FCA stock, is loathe to relinquish its stake in the company. On top of that, VAG just isn't looking to make a deal right now. Mazda, meanwhile, is enjoying a new partnership with Toyota and Suzuki is partially owned by VW. Honda and Hyundai have never expressed any interest in a partnership with a western automaker. That kind of just leaves the French then, but even that remains a long shot. As Bloomberg tells it, PSA boss Carlos Tavares is still working on a turn-around plan, and would want at least another six months to execute before even considering a deal with FCA. And even then, Tavares hasn't given any indication that he's considering a pairing. News Source: BloombergImage Credit: Paul Sancya / AP Chrysler Fiat GM Honda Hyundai Mazda Suzuki Citroen Peugeot Sergio Marchionne FCA Mary Barra psa peugeot citroen

Mazda's EV resistance may mean CAFE trouble ahead

Is Skyactiv the limit for Mazda? The Japanese automaker has ridden its gas-powered engine technology platform to the upper end of fleetwide fuel economy among automakers in the US. But the company's lack of electrification, either hybrids of plug-in vehicles, combined with increasing sales of crossovers, may limit future fuel-efficiency gains, Automotive News reports. Mazda has no plans to add battery-electric variants across its product line, the publication says, citing comments from Mazda North America CEO Masahiro Moro. So far, the dependence on Skyactiv has worked well, as Mazda was the second automaker - after electric-vehicle maker Tesla Motors – to meet the US fuel-economy mandate of 34.1 miles per gallon for 2016. Additionally, Mazda plans to unveil the second-generation version of Skyactiv next year. Using a technology called "homogenous-charge compression ignition" (HCCI), Mazda's gas-powered engines will approximate the compression in diesel engines, boosting fuel economy accordingly. Because of that development, Mazda's Moro is "very confident" that the company will meet the US Corporate Average Fuel Economy (CAFE) mandate for 2021. With no plans for US plug-ins or hybrids (Mazda's only hybrid, a variant of the Mazda3, is sold in Japan), Moro is not so sure about meeting the 2025 CAFE mandate of 54.5 mpg (which equates to a "real world" fuel economy of about 40 mpg). Additionally, Mazda's "biggest regulatory headache" will be meeting California's mandate that 15 percent of the state's new-vehicle sales be zero-emissions within the next decade. In 2011, Mazda laid out its strategy of leaning on its Skyactiv technology instead of moving to drivetrain electrification as a way to boost fleetwide fuel economy, saying at the time that "you can't out-Toyota Toyota and you can't out-Honda Honda." The company also took a strong stance against even the idea of electrification in vehicles. According to the US Environmental Protection Agency (EPA), Mazda's model-year 2015 vehicles averaged 30.1 mpg, beating out Honda's 28.9 mpg, Subaru's 28.7 mpg, and Nissan's 28.3 mpg. Mazda's fleetwide fuel efficiency increased from 29.4 mpg for the 2014 model year, and from 28.1 for the 2013 model year, according to the EPA. Related Video: Featured Gallery Mazda3 SkyActiv-Hybrid View 21 Photos News Source: Automotive News-sub.req. Green Mazda Fuel Efficiency Green Automakers Electric Hybrid skyactiv mazda hybrid mazda electric car

Jay Leno brings a rotary-powered VW Beetle to the garage

It takes something really unique or inventive to pique Jay Leno's interest. His show, Jay Leno's Garage, has featured everything from concours-worthy classics to completely custom, home-built machinery. How do you get Leno to feature one of more than 20 million Beetles on his program? Stick a turbocharged rotary engine under the hood. The Beetle's owner, Mario Markakis, swapped the car's stock flat four-cylinder for the Wankel engine from a 1990 Mazda RX-7 Series 5 Turbo. The engine's 250 horsepower are fed through a reinforced version of the Beetle's stock four-speed transmission. That's about five times the original engine's output. It works well, with the car putting down some impressive times at the drag strip. Markakis did most of the work to the Beetle in his garage. In addition to the engine swap, he's modified the car's brakes, suspension, and interior. Check out the video to hear all the details of this custom Wankel-powered Volkswagen. Related Video: Celebrities TV/Movies Mazda Volkswagen Classics Videos Jay Lenos Garage rotary mazda rx-7