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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.

2014 Ram 1500 EcoDiesel gets 9,200-pound tow rating

The current-generation Ram 1500 is entering its fifth year on the market, but Ram's half-ton truck is not showing its age whatsoever. While we continue to wait for the fuel economy figures for the all-new EcoDiesel V6, Ram has released towing figures for trucks equipped with this new engine, as well as models fitted with the upgraded gasoline-powered V6.
The EcoDiesel - a $2,850 option - will help the Ram compete with V8-powered trucks with its max towing capacity of 9,200 pounds, which is just 50 pounds shy of the 2013 Ram 1500 with the 5.7-liter V8. The true benefit here is that the diesel should return impressive fuel economy in the process, and even though official estimates have yet to be released, Chrysler has promised that it will achieve more than 25 miles per gallon on the highway.
But even with the Pentastar 3.6-liter V6, upgrades to the eight-speed automatic transmission have resulted in an increase in towing capacity, now up to 7,450 pounds. This number is expected to be best in class for base-engine trucks.

2014 Ram Promaster reporting for duty

We already knew Chrysler would be getting its own version of the Fiat Ducato for use as the 2014 Ram Promaster, but it was just a question of when and what changes would be made. Well now we know. Though far from conventional-looking, the new Promaster should give Chrysler a fullsize van that is more competitive than the old Ram Van and more affordable than the Mercedes-based Dodge Sprinter.
Chrysler says it made numerous changes to transform the Ducato into the US-friendly Promaster, and the biggest changes were made to the powertrains. Standard equipment on the Promaster 1500 is the widespread 3.6-liter Pentastar V6 rated at 280 horsepower and 260 pound-feet of torque paired, which, paired with a six-speed automatic transmission, offers a gross combined weight rating (GCWR) of 11,500 pounds. Other models will get the 3.0-liter diesel inline four-cylinder producing 174 hp and 295 lb-ft of torque, giving this version a GCWR of 12,500 pounds, and this engine is mated to a six-speed automated manual transmission.