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China's Geely says it has no plan to buy Fiat Chrysler — as FCA stock leaps

HONG KONG — Chinese carmaker Geely Automobile denied media speculation on Wednesday that it planned to make a takeover bid for Fiat Chryslerk Automobiles (FCA), the world's seventh-largest automaker. Geely was one of several Chinese carmakers cited in by Automotive News, which said representatives of "a well-known Chinese automaker" had made an offer this month for FCA, which has a market value of almost $20 billion. "We don't have such a plan at the moment," Geely executive director Gui Shengyue told reporters at an earnings briefing, when asked if Geely was interested in Fiat. He said a foreign acquisition would be complicated, but he did not elaborate. "But for other (Chinese) brands, it could be a fast track for their development," Gui added. However, a source close to the matter said FCA and Geely Automobile's parent firm, Zhejiang Geely Holding Group, had held initial talks late last year, without disclosing their nature. The source confirmed Geely was no longer interested in FCA, noting that the parent company had only three months ago announced its first push into Southeast Asia with the purchase of 49.9 percent of struggling Malaysian carmaker Proton, a deal that also included a stake in Lotus. Geel's denial failed to dent FCA's stock. The price of its Milan-based shares has jumped more than 10 percent to a 19-year high since Automotive News first reported on Monday, citing unnamed sources, that FCA had rejected the Chinese offer as too low. FCA stock on the New York Stock Exchange rose sharply on Monday from $11.60 to $12.38 and on Wednesday was trading at $12.84. FCA declined to comment on Wednesday. FCA Chief Executive Sergio Marchionne has repeatedly called for mergers as a way of sharing the costs of making cleaner, more advanced cars, but he has repeatedly failed to find a partner and retreated from his search for in April, saying FCA would stick to its business plan. He has also spoken of spinning the successful Jeep and Ram divisions off from FCA. Europe's largest carmaker, Volkswagen, and General Motors have both said they are not interested in talks with FCA. On Wednesday, Geely Automobile reported a doubling of first-half profit, above expectations, as cars designed with Sweden's Volvo won over domestic consumers. Volvo is a unit of the Zhejiang Geely group, and has recently announced it will share its technology with Geely.

Four-horse race opens up for next Chrysler-Fiat CEO

There are some companies that could change leadership overnight and still remain more or less the operations that they are. But some have built themselves up around one central figure. Just ask Carlos Tavares, who found he couldn't escape the long shadow of Renault-Nissan CEO Carlos Ghosn. Tavares recently left to find his own limelight. But Ghosn isn't the only executive who presides over two disparate automakers on opposite ends of the globe.
Having built up Fiat and Chrysler around himself, we can hardly imagine either automaker getting along without Sergio Marchionne. But the day will come when the famously sweater-clad bigwig will step down. The pressing questions remain when when that day will come, and who will take his place. The only solid clues we have are in the statements made mostly by Marchionne himself, but those statements have been all over the place. When speaking to Automotive News in 2012, he said he would step down "no earlier than 2013, no later than 2015." But a year later, he had already seemingly changed his tune, indicating he could still be at the helm in 2016. Fiat chairman John Elkann seems to think Marchionne, 61, could and should stay on longer.

Are old airbags killers?

Takata airbags may not be the only ones with some very serious problems. A new report from TheDetroitBureau.com claims that the National Highway Traffic Safety Administration has opened its second investigation into bad airbag inflators, and this time, they aren't from Takata. The focus of this latest case is on the airbag inflators in some 500,000 older Chrysler Town and Country minivans and Kia Optima sedans, all of which come from ARC Automotive. While the Takata case looks at problems stemming from the engineering and production process, the ARC investigation focuses on the age of the inflators. As TDB explains, airbag inflators are essentially what the military refers to as shaped charges, sort of like Claymores (for fans of the Call of Duty series). In combat, they blow up in a specific direction, protecting those behind the explosion, although in the case of airbags, the explosion "[creates] a precise rush of hot gases" that inflate the bags. NHTSA's worry is that with the increased average age of today's vehicles, years and years of being bounced, jolted, and shaken about and exposed to often-radical temperature changes have altered the nature of the explosives in these vehicles, causing too big of an explosion. "It may be a reasonable assumption that as these things age they deteriorate." – Analyst George Peterson "It may be a reasonable assumption that as these things age they deteriorate," analyst George Peterson told TheDetroitBureau.com. NHTSA boss Mark Rosekind backed up aging angle. "Cars are lasting on the road a lot longer than ever before," Rosekind told TDB, adding that seals could start breaking down. "Is aging now an issue? That's part of the investigation going on." NHTSA has only identified two "incidents" so far, although according to Center for Auto Safety Director Clarence Ditlow, there's genuine concern that there could be additional unidentified cases. "Could we have missed more? That could be the case," Ditlow told TDB, citing the misidentified deaths in the Takata investigation. Ditlow was quick to point out that, even in older vehicles, airbags are much more likely to protect than harm. "No one is saying you should disable your airbags," the safety advocate told TDB. "You're far more likely to be helped than hurt by one if they go off." At least one automaker, meanwhile, has already been advised of the investigation by NHTSA and is checking its airbags.