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Auto Mergers and Acquisitions: Suicide or salvation?

We love the Moses figure. A savior riding in from stage right with the ideas, the smarts, and the scrappiness to put things right. Alan Mullaly. Carroll Shelby. Lee Iacocca. Andrew Carnegie. Steve Jobs. Elon Musk. Bart Simpson. Sergio Marchionne does not likely view himself with Moses-like optics, but the CEO of Fiat Chrysler Automobiles recently gave a remarkable, perhaps prophetic interview with Automotive News about his interest and the inevitability of merging with a potential automotive partner like General Motors. Marchionne has been overtly public about his notion that GM must merge with FCA. For a bit of context, GM sold 9.9 million vehicles in 2014, posting $2.8 billion in net income, while FCA sold 4.75 million units and earned $2.4 billion in net income, painting a very rosy FCA earnings-to-sales picture. But that's not the entire picture. Most people in the auto industry still remember the trainwreck that was the DaimlerChrysler "merger" written in what turned out to be sand in 1998. It proved to be a master class in how not to fuse two companies, two cultures, two continents, and two management teams. Oh, it worked for the two individuals at both helms pre-merger. They got silly rich. And the industry itself was in a misty romance at the time with mergers and acquisitions. BMW bought Rolls-Royce. Volkswagen Group bought Bentley, Bugatti, and Lamborghini, putting all three brands into their rightful place in both products and positioning. No marriages there, so no false pretense. Finally, Nissan and Renault got married in 1999. A successful marriage requires several rare elements in this atmosphere of gas fumes and power lust. But a successful marriage requires several rare elements in this atmosphere of gas fumes and power lust, the principle part being honesty. Daimler and Chrysler lied to each other. The heads of each unit, the product planners, and finance all presented their then-current and long-range forecasts to each other with less-than-forthright accuracy. Daimler was the far greater equal and no one from the Chrysler side enjoyed that. The cultures were entirely different, too, and little was done to bridge that gap. Which brings me back to the present overtures by Marchionne to GM. "There are varying degrees of hugs," Marchionne stated in the Automotive News piece. "I can hug you nicely, I can hug you tightly, I can hug you like a bear, I can really hug you." Seriously?

McLaren 650S Spider wrecked in multi-vehicle crash in LA

A multi-vehicle crash in Los Angeles left a $280,000- McLaren 650S Spider mangled and two hospitalized, reports KTLA5. The Los Angeles Police Department suspects street racing caused the incident. The crash occurred just outside of Hale Charter Academy in Woodlawn Hills on Tuesday night. According to eyewitness statements, the 650S Spider was traveling at a high rate of speed in a race against a black Dodge Charger or Challenger before colliding with an Audi (possibly an A6), leaving the Audi heavily damaged. The Dodge fled the scene before police arrived. Related Video: News Source: KTLA5Image Credit: News Top / YouTube Auto News Audi Dodge McLaren Coupe Supercars Sedan lapd mclaren 650s spider Los Angeles Police Department

SRT partners with Bondurant for performance driving classes

Dodge and Bob Bondurant have announced a new partnership that will see the latter become the former's official high-performance driving school. The deal will see the Bondurant school's entire fleet of nearly 100 vehicles switched over from mostly General Motors products to Dodge Chargers, Challengers, and Vipers. It will give paying customers the chance to drive models like the new Hellcats and even the Viper ACR (for those deemed qualified to drive it) on the track in Arizona. The arrangement won't only benefit Bondurant clients, though. Anyone who buys or leases a new SRT model will get a one-day course at the school, including professional instruction on track. They'll have to pay for their own travel and accommodations, but the instruction will hopefully show more drivers of SRT vehicles how to handle all that muscle they've got at their disposal. DODGE/SRT PARTNERS WITH LEGENDARY BOB BONDURANT SCHOOL OF HIGH PERFORMANCE DRIVING The Bob Bondurant School of High Performance Driving Is Now "The Official High Performance Driving School of Dodge/SRT" - All customers who buy a new 2015 or 2016 model SRT will receive one full-day session of high-performance driving with professional instruction and time on the track as part of the Dodge/SRT package - Bondurant attendees will get to experience the full line of Dodge/SRT vehicles, including the Dodge Challenger and Dodge Charger Hellcats - Bondurant's entire fleet of cars is being converted over to Dodge Chargers, Challengers and Vipers - Non-Dodge owners can purchase racing instruction through Bondurant and experience their full line of Dodge SRT vehicles on the track - Racing participants who qualify will get to experience the Dodge Viper ACR, the fastest street-legal Viper track car ever November 3, 2015 , Auburn Hills, Mich. - New Dodge/SRT buyers grab your racing shoes and helmets – Dodge is teaming up with the legendary Bob Bondurant School of High Performance Driving to create "The Official High Performance Driving School of Dodge/SRT." Starting Jan. 1, 2016, Dodge customers who purchase or lease a 2015 or 2016 Dodge/SRT can experience a high-performance driving class with professional instruction and time on the track where they can develop their racing and driving skills in a one-day performance-packed adventure. Dodge will provide the rides – nearly 100 SRT vehicles – including the 707-horsepower Dodge Charger and Challenger SRT Hellcats.