1950 Dodge Coronet on 2040-cars

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Fiat Chrysler and Peugeot boards meet to finalize merger

MILAN/PARIS — The boards of Fiat Chrysler Automobiles and Peugeot will meet separately on Tuesday to discuss finalizing an initial agreement for a $50 billion merger to create the world's number four carmaker, sources said. A source close to FCA said the two companies could announce the signing of a binding memorandum early on Wednesday, followed by a conference call to explain further details later in the day. The two mid-sized carmakers announced plans six weeks ago for a tie-up to help them deal with big challenges in the industry, including a global demand downturn and the need to develop costly cleaner cars to meet looming anti-pollution rules. Ahead of the meetings, entities representing the Peugeot family, Etablissements Peugeot Freres (EPF) and FFP, unanimously approved a proposed memorandum of understanding for the planned merger, a source familiar with the situation said. FCA and PSA have said they would seek to finalize a deal by year-end to create a group with 8.7 million in annual vehicle sales. That would put it fourth globally behind Volkswagen, Toyota and the Renault-Nissan alliance. PSA's Carlos Tavares will be chief executive and FCA's John Elkann — the scion of Italy's Agnelli family, which controls FCA through their holding company Exor — chairman of the combined company. The group will include the Fiat, Jeep, Dodge, Ram, Chrysler, Alfa Romeo, Maserati, Peugeot, DS, Opel and Vauxhall brands, allowing it to serve mass and premium passenger car markets as well as those for trucks and light commercial vehicles. Related Video:       Chrysler Dodge Fiat Jeep RAM Citroen Peugeot

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.

Towing with the 2016 Ram lineup [w/video]

I do not tow things. Ever. Yet I recently found myself at the Fiat Chrysler Automobiles proving grounds in Chelsea, MI, where I'd be testing the hauling capabilities of Ram's current product range. This experience was not only a perfect education for a towing novice like me, but allowed me to tow far more weight than I'd ever consider hauling the real world, and all within the safe confines of the Chelsea Proving Grounds. There was an extremely diverse array of vehicles at my disposal, including Ram's gasoline- and diesel-powered offerings with trucks ranging from the 1500 on up through the 5500 Chassis Cab, as well ProMaster vans. Beyond that, FCA brought out a number of vintage Dodge pickups for me to play with, while also working with Case IH to provide a track-loader I could test. I put together a range of videos covering everything from the classics to the production trucks to the construction equipment. And despite some technical difficulties – you'll notice a distinct lack of in-car videos, with blame going to a corrupted micro SD card – I've assembled ten videos that give an up-close look at Ram's offerings. 2015 Ram ProMaster City Let's start small. The ProMaster City only has a towing capacity of 2,000 pounds. That's a reasonably impressive figure for a van that uses the same powertrain as a Chrysler 200. The 2.4-liter four-cylinder and nine-speed automatic weren't really bothered with the extra weight added by the trailer. Even when accelerating at freeway speeds, the ProMaster City didn't feel out of breath or hampered by its load. That said, the rear of the van was unloaded, which probably wouldn't be the case for most consumers. It's unclear how the City would feel if its driver were taking advantage of the max payload (1,883 pounds) and towing. 2015 Ram ProMaster 1500 To be polite, the Ram ProMaster is a difficult vehicle to like. Its awkward seating position is bus-like and lacks the visibility enjoyed by the Ford Transit or the utter driving comfort of the Mercedes-Benz Sprinter. Its 3.0-liter, four-cylinder turbodiesel engine, meanwhile, is something of an anomaly. While it's potent for a four-cylinder diesel, producing 295 pound-feet of torque and 174 horsepower, those numbers don't feel all that impressive when loaded down. The model I tested was barely using half of its 5,100-pound maximum towing weight and was loaded down with just 500 of its 3,620-pound payload. Yet it lacked the pluckiness of the smaller City.