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Court ruling to delay Fiat's Chrysler buyout?

We've already reported on the attempts of Fiat to purchase the remaining 41.5-percent stake in Chrysler, currently owned by the United Auto Workers' VEBA healthcare trust. And while the issues still aren't resolved, Fiat has received both a bit of good news and a bit of bad news from a Delaware judge.
The good news is that the court ruled in favor on two key arguments of Fiat's, relating to what is a fair price for the Chrysler shares. The rulings essentially slash half a billion dollars off the price of the 54,000 shares owned by VEBA, according to a report from Reuters.
The bad news is that this makes the UAW an even more difficult opponent in negotiations. Its VEBA fund is meant to cover ever escalating retiree healthcare costs, so naturally, the UAW wants to get as much money as possible. Losing a big chunk of cash isn't likely to make the union more cooperative.

2017 Chrysler Pacifica Hybrid electrifies the family hauler

The 2017 Chrysler Pacifica Hybrid is the first-ever hybrid minivan – why didn't anyone think of this before? The extra jolt of electric propulsion lets Chrysler estimate this hauler can get a very green 80 miles per gallon equivalent, with 30 miles of full electric range. To make those amazing numbers possible, the Pacifica Hybrid uses a version of the 3.6-liter Pentastar V6 that runs on the Atkinson cycle for improved efficiency, matched with an electric motor. A 16-kWh lithium-ion battery sits underneath the second-row floor to supply the energy. The PHEV doesn't launch until the latter half of 2016, but Chrysler currently estimates the powertrain's output at 248 horsepower, versus 287 hp from the non-hybrid Pacifica. Charging the system to full takes just two hours from a 240-volt outlet. Other than the charging port just head of the driver's door and different wheel designs, the Pacifica Hybrid looks the same as the other model. The nearly identical styling isn't a bad thing because this is one of the most attractive minivans ever. The aesthetics are similar inside, too, but the battery removes the ability to stow the second row of seats. However, the third row can still fold flat. First hybrid powertrain in minivan segment "Due to its large footprint and multiple daily trip patterns, the minivan is ideally suited for electrification technology," said Bob Lee, Vice President and Head of Engine, Powertrain and Electrified Propulsion Systems Engineering, FCA – North America. "The all-new 2017 Chrysler Pacifica lives up to this promise and then some, with efficiency, power and refinement." Launching in second half of 2016, the Pacifica Hybrid is the industry's first electrified minivan. With an estimated 248 horsepower, the vehicle will deliver an estimated range of 30 miles solely on zero-emissions electric power from a 16-kWh lithium-ion (Li-ion) battery. In city driving, it is expected to achieve an efficiency rating of 80 miles per gallon equivalent (MPGe), based on U.S. Environmental Protection Agency standards. When the battery's energy is depleted to a certain threshold, the Pacifica Hybrid becomes a part-time electric vehicle, like a conventional hybrid. Power to the wheels is supplied by the electric drive system or supplemented by a specially adapted new version of the award-winning FCA US Pentastar 3.6-liter V-6 engine.

The next steps automakers could take after sales drop again in April

DETROIT (Reuters) - Major automakers on Tuesday posted declines in U.S. new vehicle sales for April in a sign the long boom cycle that lifted the American auto industry to record sales last year is losing steam, sending carmaker stocks down. The drop in sales versus April 2016 came on the heels of a disappointing March, which automakers had shrugged off as just a bad month. But two straight weak months has heightened Wall Street worries the cyclical industry is on a downward swing after a nearly uninterrupted boom since the Great Recession's end in 2010. Auto sales were a drag on U.S. first-quarter gross domestic product, with the economy growing at an annual rate of just 0.7 percent according to an advance estimate published by the Commerce Department last Friday. Excluding the auto sector the GDP growth rate would have been 1.2 percent. Industry consultant Autodata put the industry's seasonally adjusted annualized rate of sales at 16.88 million units for April, below the average of 17.2 million units predicted by analysts polled by Reuters. General Motors Co shares fell 2.9 percent while Ford Motor Co slid 4.3 percent and Fiat Chrysler Automobiles NV's U.S.-traded shares tumbled 4.2 percent. The U.S. auto industry faces multiple challenges. Sales are slipping and vehicle inventory levels have risen even as carmakers have hiked discounts to lure customers. A flood of used vehicles from the boom cycle are increasingly competing with new cars. The question for automakers: How much and for how long to curtail production this summer, which will result in worker layoffs? To bring down stocks of unsold vehicles, the Detroit automakers need to cut production, and offer more discounts without creating "an incentives war," said Mark Wakefield, head of the North American automotive practice for AlixPartners in Southfield, Michigan. "We see multiple weeks (of production) being taken out on the car side," he said, "and some softness on the truck side." Rival automakers will be watching each other to see if one is cutting prices to gain market share from another, he said, instead of just clearing inventory. INVESTORS DIGEST BAD NEWS Just last week GM reported a record first-quarter profit, but that had almost zero impact on the automaker's stock. The iconic carmaker, whose own interest was once conflated with that of America's, has slipped behind luxury carmaker Tesla Inc in terms of valuation.