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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.

Mopar '13 Dart is a bruiser of a compact

For the fourth year in a row, Mopar is offering a limited-production car decked with a plenty of add-ons and a unique look. This year's black-and-blue car is the Mopar '13 Dart, which was unveiled at the Chicago Auto Show with the now-signature paint scheme. Like previous Mopar models, only 500 of the '13 Darts will be built. Past models include the Mopar '10 Challenger, Mopar '11 Charger and the Mopar '12 300.
The all-black Dart gets a brightly contrasting, offset blue stripe running the full length of the car, and other styling mods like the aero-tuned body kit, gloss black grille, wheels and mirror caps. Curiously, Mopar chose to stick with the Dart's standard headlights rather than the darker, smoked lights. The interior gets a similar black-and-blue treatment, but this unique cabin features a blue leather driver's seat to go along with the black leather seating for the rest of the passengers.
More than just a styling package, the Mopar '13 Dart also gets some performance and handling goodies to complement the Dart's turbocharged 1.4-liter engine, such as upgraded brakes with slotted rotors, a lowered suspension, retuned electric power steering and a "sport-tuned" exhaust system.

Ralph Gilles responds to Dodge rumors, says brand is 'here to stay'

This is why we love Ralph Gilles. While in Italy hanging out with a group of Viper Club members in Europe, the SRT boss took the time to respond to a question directed at him on Instagram in regards to the future of Dodge.
Recent reports have painted a bleak picture for Dodge, but Gilles defended Chrysler's full-line brand by stating that the rumors are, "all rumors, Dodge is here to stay! It may get more focused going forward but not killed!" The idea of a "more focused" Dodge brand could lend some credibility to reports that the Grand Caravan and Durango are on their way out, which would leave Dodge solely as a car, or car-based, automaker.