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Why FCA-PSA merger is no quick fix for their China problem

BEIJING — Fiat Chrysler and Peugeot owner PSA's merger is unlikely to provide a quick fix to their problems in China, as both companies have long struggled to find the right products at the right price for the world's top car market, analysts say. The companies said on Thursday they aimed to reach a binding deal in the coming weeks to create the world's fourth-biggest automaker by production volume. But scale alone will not make Italian-American Fiat Chrysler Automobiles (FCA) and France's PSA Group more competitive in a market where they have been slow to adapt to trends and win over consumers, leading their sales to lag far behind foreign rivals such as Volkswagen and General Motors. PSA does not have enough competitive SUV models, and neither company has enough electric and plug-in hybrid vehicles, or enough cars packed with hi-tech features for Chinese tastes, analysts say. In a market where 28 million cars were bought in 2018, FCA sold just 155,215, while PSA sold 257,723, according to consultancy LMC Automotive. At the end of September, FCA had a market share of 0.5% in China's passenger car market, while PSA's was 0.6%. Analysts say they have been squeezed by Japanese and local brands, which have product line-ups better suited to Chinese tastes at cheaper prices. "Both companies are very home-market centred and have failed to adapt to shifts in Chinese market preferences," said Bill Russo, head of Shanghai-based consultancy Automobility Ltd and a former senior Asia-based Chrysler executive. "Neither company has recognized and delivered on the trends of shared, connected and electric vehicles,” Russo said. That makes them ill-prepared to deal with further shifts in the Chinese market, which saw annual sales contract for the first time since the 1990s last year and is expected to see another drop this year. "China's overall market is experiencing a transmission and adjustment period," said Alan Kang, a Shanghai-based senior analyst at LMC Automotive. "It is very hard for these two companies, which do not have enough competitive up-to-date products, to quickly recover with the merger." FCA has a partnership in China with Guangzhou Automobile Group, which said on Thursday it backed the merger. PSA has been trying to reboot its operations in China.

FCA to pay buyers $1,700 to swap out of scandal-mired VWs

FCA is trying to gain some sales from arch-rival VW in the competitive European market by offering potential buyers in Italy up to $1,700 to swap into an FCA group car. While the promotion isn't specifically targeted at TDI owners affected by the emissions scandal, it is clearly intended to turn dissatisfaction with VW's defeat device cheat into additional sales, Bloomberg reports. The 500-1,500 euro incentive (roughly $560-1,700, depending on vehicle) stacks on top of any other rebates or deals applicable, and applies if a buyer brings in any of Volkswagen Group's cars – including Audi, Skoda, and SEAT, among (many) others. As Bloomberg notes, it's normal for automakers to offer "conquest" deals – giving a buyer cash for trading in a competitor's vehicle. Those deals aren't usually limited to one company's products, however; FCA's program looks specifically to take advantage of VW's legal and public relations nightmare. FCA isn't the only automaker trying this trick in Italy. Automotive News Europe also reported that Ford is offering approximately $840 in incentives across its entire range to owners of VW vehicles seeking to trade in for a Ford. No word of yet as to whether these incentives will spread beyond Italy or to other automakers.Related Video:

Man escapes attempted carjacking and catches the incident on his dashcam

(Warning: video contains strong language. Viewer discretion is advised.) A quick-thinking driver avoided a potentially dangerous situation this week in New Mexico when he evaded and attempted car jacking. On the evening of December 6, an unnamed man accompanied a friend to a market near the intersection of Central and San Mateo in Albuquerque. After he saw his friend safely away in her car, he got back into his and pulled out of the parking lot. Almost immediately, as shown in dashcam footage uploaded to Youtube, a red Chrysler 300 began following him. When the driver pulled up to a stop sign around the block from the market, the Chrysler zipped around and pulled in front of him, blocking his forward progress. Figuring he was about to be carjacked, the driver threw the car into reverse and backed quickly away from the Chrysler. The Chrysler followed, and a chase ensured. With the Chrysler close on his tail, the unnamed driver fled through the nearly empty streets. At one point he cut through a gas station when the Chrysler tried to block him at another intersection. As they drove through the city the Chrysler continually tried to stop the fleeing driver, but he successfully evaded every time. The driver called 911 and reported his predicament. Eventually, both vehciles pulled up at a stop light right next to an Albuquerque Police cruiser. The driver laid on the horn to get the cop's attention, then jumped out to tell the cop what was going on. The Chrysler then made a run for it with the cop in hot pursuit. Unfortunately, the red Chrysler evaded the APD and the car's license plate was obscured so the APD was unable to identify the vehicle or its occupants. Thankfully no one was hurt during the chase, and the driver was able to get home safe and sound. Carjacking is a serious crime. The driver in this video did everything right, except maybe delay calling the police a little too long. The crime is so prevalent that the US Department of Justice has tips for avoiding carjacking. They suggest drivers avoiding stopping when signaled by other drivers or assisting during an accident. Calling the authorities should be your first step if you're every followed or harassed while driving. Head to the nearest police station if you can't get a hold of a cop in time. Related Video: News Source: YouTube Auto News Weird Car News Chrysler Police/Emergency police chase carjacking albuquerque