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Google's deal with FCA is the 'first phase' of partnership

Google and Fiat Chrysler Automobiles confirmed a partnership Tuesday in which the two companies will collaborate on creating autonomous minivans. The two companies will work together to build and test approximately 100 Chrysler Pacifica hybrid minivans, and they first of the bunch could hit the road by the end of the year. This marks the first time Google has worked with a traditional automaker in designing a self-driving car since the start of its autonomous project in 2009. "FCA will design the minivans so it's easy for us to install our self-driving systems, including the computers that hold our self-driving software and the sensors that enable our software to see what's on the road around the vehicle," Google said in a written statement. "The minivan design also gives us an opportunity to test a larger vehicle that could be easier for passengers to enter and exit, particularly with features like hands-free sliding doors." "Those of us in the tech industry recognize how hard it is to build cars." – Jennifer Haroon. That could be particularly important if Google and FCA intend to launch the autonomous minivans as a competitor to traditional public transportation options. Chris Urmson, the director of Google's self-driving car project, indicated that may be a potential business model during a public meeting on autonomous operations last week. "Public transit executives could be buying autonomous minivans rather than expensive buses," he said. "Federal standards determine what kinds of vehicles cities can use for transit. This needs attention." In the Pacifica, Google's engineers get an all-new minivan. Chrysler showcased the vehicle for the first time in January at the North American International Auto Show in Detroit, and sales of the non-hybrid versions of the vans went on sale last month. FCA CEO Sergio Marchionne says further collaboration between his company and Google is possible. "This first phase of the operation is very targeted. It's designed to take Google technology into the minivan. It's very, very focused," he said, according to Automotive News. The collaboration won't be Google's first experience with hybrids. The Lexus RX 450h SUV is one of the two cars in its current test fleet, which consists of approximately 70 vehicles. With roughly 100 autonomous minivans slated to be part of the collaboration, Google's test fleet will more than double.

FCA CEO Manley says alliances are still possible but aren't necessary

DETROIT — Fiat Chrysler Automobiles Chief Executive has a message for Renault SA and other would-be partners: We are happy to talk, but we can go it alone. "Strategically, we have a solid future and clear plans that are being invested in and are underway now," Mike Manley said during a session with reporters the day after the company released better than expected second-quarter results. "That isn't to say if there is a better future through an alliance or partnership or merger we wouldnÂ’t be open and interested to it." Fiat Chrysler is open to re-starting merger negotiations with French automaker Renault, Manley said, but added the French car maker is not the only potential partner to gain scale or plug gaps in Fiat Chrysler's technology or vehicle lineup. "To say are they the only opportunity, the answer to that question would be a definitive ‘No,Â’" Manley said. Fiat Chrysler in June withdrew a $35 billion merger proposal with Renault after French government officials intervened in the talks and sought to delay a decision on the deal. The Wall Street Journal reported on Friday that Renault and Nissan are trying again to reshape their alliance and resolve disagreements that helped to derail the merger talks with Fiat Chrysler. Fiat Chrysler has a commercial vehicle partnership with French rival Peugeot SA, and the two companies discussed a broader combination before Fiat Chrysler made its offer to Renault, people familiar with the situation have said. Manley said automakers are not the only potential partners. "There are cooperations that can help in specific technologies. There are cooperations as we think about the consumer-car interface," he said. "You could see collaborations that never would be there in the past." Fiat Chrysler's North American business is strong thanks to Ram trucks and Jeep SUVs, but in other markets the automaker faces continued challenges. The company is overhauling its mass-market business in Europe, which is anchored by the Fiat brand. Fiat Chrysler's Europe, Middle East and Africa operations were marginally profitable in the second quarter and achieved 1.8% profit margin in 2018. Manley has set a goal of 3% operating margins, well short of the 10% margins the company forecast for North America.

Volkswagen is not cool with a Fiat Chrysler merger

Volkswagen CEO Matthias Mueller shot down Fiat Chrysler CEO Sergio Marchionne's overtures for a merger in blunt fashion this week. Mueller told Reuters at the Geneva Motor Show, "We are not ready for talks about anything ... we have other problems. I haven't seen Marchionne for months." The unusually candid – and icy – response from one chief executive to another comes after Marchionne similarly pursued General Motors (again) this week. The FCA boss suggested GM might be looking for a new European partner as it prepares to unload its troubled Opel and Vauxhall divisions to PSA. A GM spokesman told USA Today that the company is not interested. Marchionne has been openly suggesting a GM merger since at least 2015, despite GM never reciprocating interest. VW's "other problems," as Mueller notes, include legal proceedings, fines, recalls, and other issues related to its long-running diesel scandal. Marchionne has long sought industry consolidation, arguing that automakers don't get a proper return on their investments in technologies, some of which are relatively similar. He's suggested sharing chassis and powertrain components could be a benefit to the collective auto sector. Skeptics argue FCA, which is smaller than GM, VW, Toyota, and others, needs a partner to survive, while its rivals already have the necessary scale to remain competitive. Related Video: