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Dodge closes Caravan order books at the end of this month

After being introduced as the Dodge Caravan in 1983, after debuting a long wheelbase Grand Caravan in 1987, after entering its fifth generation in 2007 and going almost unchanged since then to become the oldest minivan in the segment, after being publicly sent to the slaughterhouse in 2011, again in 2013, and again in 2015 before being pardoned thrice by the automotive governor, this month it's over for good for the best-selling Dodge and best-selling minivan in the U.S. and Canada. At least, according to Mopar Insiders, which credits dealer sources for the news that "the end of the month" will be a car shopper's last chance to order the Dodge Grand Caravan in the states that don't adhere to California emissions. Since the Grand Caravan's 3.6-liter V6 can't clear CARB mandates, Dodge pulled the model from the 13 so-called ZEV states in March this year.  Last summer, an analyst at AutoForecast Solutions told Automotive News that Dodge would cease Grand Caravan production at the Windsor Assembly Plant in Ontario, Canada in May this year. The brief reprieve is said to be related to the coronavirus standstill, Fiat Chrysler not alone in revising its plans to make up for two months of lost production. The new 2020 Chrysler Voyager is the official replacement for the Dodge, being a de-contented Pacifica that returns an old Chrysler nameplate to circulation and is built in the same plant as the Pacifica and Grand Caravan. The Grand Caravan's numbers have come down this year, but Dodge still sold a strong 24,931 units through the first quarter of the year; the kid-hauler has sold less than 100,000 units in a year in the U.S. only twice since 1985, topping six figures for the last four years. In 35 years on sale here, the minivan has hurdled the 200,000-unit marker 19 times. With the order books open until the end of the month and Windsor plant working a single shift and still finding its feet, Grand Caravans will continue to trickle off the lines after May, but not for long. 

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.

Dongfeng and PSA extend Chinese joint venture

BEIJING/PARIS — China's Dongfeng and Peugeot maker PSA are extending their business cooperation, despite the Chinese company reducing its stake in PSA to help smooth the French carmaker's merger with Fiat Chrysler Automobiles (FCA). Dongfeng said on Thursday it had agreed with PSA to extend the duration of their joint venture Dongfeng Peugeot Citroen Automobiles (DPCA). Under the deal, the venture could get the rights to PSA's new brands in China and will benefit from new technologies and intellectual properties, the Chinese company said. PSA was not immediately available for comment. The announcement comes a day after the companies said Dongfeng would reduce its 12.2% stake in PSA by selling 30.7 million shares to the French company. Analysts said the move could smooth U.S. regulatory approval for PSA's roughly $50 billion (GBP38.97 billion) merger with Italian-American carmaker FCA. The sale of Dongfeng's shares in PSA, worth around 680 million euros ($757 million), will leave the Chinese group holding around 4.5% of the merged PSA-FCA, which is set to become the world's fourth-biggest carmaker by sales volumes. "As the cooperation between Dongfeng and PSA deepens, we expect the joint venture to continue making good progress in China," a Dongfeng representative said. On a conference call, Dongfeng said DPCA would have exclusive rights to PSA's Opel cars should the partners agree to bring the brand to China, and enjoy lower prices on car parts imported from PSA. Earlier this year, a document seen by Reuters showed Dongfeng and PSA plan to cut jobs at Wuhan-based DPCA and reduce its number of car plants to try to make the venture more profitable. Chrysler Dodge Fiat Jeep RAM Citroen Peugeot China FCA PSA Dongfeng