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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.

2013 Chrysler 300C John Varvatos Limited Edition

Who is John Varvatos? If you're like me, that's the question you were asking after seeing commercials that advertised a limited-edition model of the Chrysler 300 with this mystery man's name attached. If you're not like me and consider yourself a fashionista even in the slightest, then you probably already know that John Varvatos is a successful menswear designer who cut his teeth in the fashion houses of Ralph Lauren's Polo and Calvin Klein. He's also a native of Detroit, which makes the joining of his brand and that of Chrysler's more intelligible, what with the Auburn Hills-based automaker still eking efficacy from its nearly three-year-old "Imported from Detroit" tagline.
Whenever one of these co-branded vehicles crosses my path, I try to judge them according to some simple questions. The first is, does the co-branding make sense for the target audience? And the second is, do the changes improve or diminish the experience of the standard vehicle? With this partnership, both brands are clearly aiming at the same target, or perhaps Chrysler hopes its aim will improve by partnering with the JV set, bringing it closer to that bullseye of style-conscious trendsetters.
The second question, meanwhile, can be answered with your eyes alone, as no mechanical changes are included among the Varvatos upgrades. Despite that, the 300C John Varvatos Edition is priced above - well above - all other 300 sedans save the 300 SRT8, suggesting that cool is not sold by the barrel (was it ever?) and Mr. Varvatos is a dealer in the stuff. Yet while I couldn't actually tell you if John Varvatos was a designer or a ditch digger before Chrysler introduced us, I do like his style, and the man knows how to dress a car.

Fiat-Chrysler shows its SEMA lineup

Fiat Chrysler Automobiles already previewed its 2014 SEMA show lineup with some slick renders. Now, the automaker has finally showed us the actual cars, and among the group there are definitely some that stand out more than others.
Dodge is really showing off its muscle at this year's show with four concepts that all pump up the power of the brand's models. Perhaps most interesting among them is the Challenger T/A Concept (pictured above) in striking Sublime Green and matte black. It's meant to resemble the classic Trans Am racer from the '70s. Under the hood is a 6.4-liter V8, and to fit the vintage style there's a pistol-grip gearshift inside.
The Charger R/T also gets some attention with the Mopar concept that shows off what FCA's aftermarket performance arm can do. Mods include an updated body kit, cold-air intake for the 5.7-liter V8 and a coil-over suspension kit. Beyond that, the Dart R/T Concept looks a lot meaner with a black hood with duct work that leads straight to the air intake. The rest of the compact sedan is dolled up in O-So-Orange paint and is fitted with upgrades to improve handling like a coil-over suspension and big brake kit from the Mopar catalog.