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FCA and Peugeot reportedly agree on merger

Citing a Wall Street Journal report, the Detroit Free Press says "Fiat Chrysler and PSA Groupe have agreed to merge." The Journal reported on talks between the two car companies only yesterday. It's said that Peugeot's board met yesterday to approve the deal, FCA's board met today, and an announcement could come as soon as tomorrow, Thursday. Both automakers have released statements, but neither company has released any information beyond admitting to ongoing talks. If the merger happens, the combined entity would become the world's fourth-largest carmaker with a $50 billion valuation, slotting in behind Toyota, the Volkswagen Group, and the Renault Nissan Mitsubishi alliance. Among the merger options possible, "an all-stock merger of equals" is the one analysts and Moody's seem to give the best grade. The reported merger would come about four months after FCA walked away from merger talks with Renault. FCA said the French government scuppered those talks over the role of Nissan in a reformed entity, but there were also brewing issues with French unions, and ongoing turmoil among Renault and Nissan leadership thanks to continuing fallout from ex-CEO Carlos Ghosn's arrest last year. FCA makes most of its revenue in the U.S. and rules Italy, while Peugeot is the second-best-selling automaker in Europe with its own brand in France and Opel in Germany. The two companies already have a partnership in Europe making vans, one that FCA CEO Mike Manley has spoken highly of. Among the list of obvious benefits in a potential merger, FCA would get access to Peugeot's small, modern platforms, $10.2 billion in cash, and electrified and hybrid architecture developments, the latter especially important to FCA as those are fields where it lags. Peugeot would get much easier access to the U.S. market, and the money-printing brands Jeep and Ram. A merged carmaker would have combined sales of nearly 9 million a year, based on 2018 results. By comparison, both Volkswagen and Toyota sell over 10 million cars a year, while the Renault-Nissan-Mitsubishi alliance almost 11 million. Peugeot CEO Carlos Tavares has proved he knows how to do turnarounds and mergers. After leaving a position as Carlos Ghosn's right-hand man in 2012, Tavares took over Peugeot in 2014, navigated a bailout from the French government and China's Dongfeng Motors in 2015, and turned PSA into a regional powerhouse.

This 93-car Iowa auction is like a Big 3 classic muscle museum

Bill "Coyote" Johnson has been buying cars since high school and has amassed a collection totaling 113 vehicles, according to NBC 6 News. But time has changed his motivations and priorities, and he's decided to auction 93 of those cars, many of which are classic muscle from Ford, Chevrolet, Dodge, Plymouth and Pontiac. The megasale will take place Sept. 14, 2019, in Red Oak, Iowa, at the Montgomery County Fairgrounds. A 1969 Plymouth Road Runner infected Coyote with a love for Detroit muscle when he was just a teenager, and his desire quickly turned into an obsession. He's spent the past 40 years finding, buying and working on a variety of makes and models. Unlike some collectors, Coyote didn't discriminate against certain brands and has rides from each of the Big 3 automakers. Included in the auction are Camaros, Satellites, Super Bees, Chargers, Challengers, Barracudas, Coronets, GTOs, Mustangs, Cutlasses and others. Possibly the most intriguing aspect of the auction is that all of these cars will be sold as-is with no reserve. Many of them will need work, depending on quality standards, but this seems like a golden opportunity to find a classic car without leaving a bank account in shambles.  The auctions are open for bidding online now, and the full auction will take place on September 14. Check out the full listings and bid at VanDerBrink Auctions.

Fiat Chrysler's profit boosted by Ram and Jeep in North America

MILAN/DETROIT — Fiat Chrysler took the market by surprise by sticking to its full-year profit guidance on Wednesday after a strong performance from its Ram pickup truck in North America helped it defy an industry slowdown. Chief Executive Mike Manley, in FCA's first earnings release since a failed attempt to merge with France's Renault, also left the door open to that or other deals. "We are open to opportunity," Manley said on a call with analysts. "I have no doubt why there still would be interest in it," he added, when pressed on what it would take to revive talks with Renault. Manley declined to comment further. FCA last month abandoned its $35 billion merger offer for Renault, blaming French politics for scuttling what would have been a landmark deal to create the world's third-biggest automaker. Manley said a merger was not a must-have and Fiat Chrysler's business plan was strong. The company said it remained confident its adjusted earnings before interest and tax (EBIT) would top last year's 6.7 billion euros ($7.5 billion). Given disappointing forecasts from other automakers this earnings season, FCA's confirmation of the outlook sent Milan-listed shares in the Italian-American automaker, whose other brands include Jeep, up over 4%. A broad-based auto sales downturn has rattled the sector, forcing FCA's competitors — including Renault, Daimler and Aston Martin — to cut their sales forecasts after second-quarter results, while U.S. carmaker Ford gave a weaker-than-expected 2019 profit outlook. Japan's Nissan, a long-term partner of Renault, said it would cut 12,500 jobs by 2023 after its earnings collapsed. In the second quarter FCA's adjusted EBIT totaled 1.52 billion euros, versus analysts' expectations of 1.43 billion euros, according to a Reuters poll. FCA's U.S. shipments were down 12% in the second quarter but the group said that the successful performance of its Ram brand resulted in an enhanced share of the large pickup truck market of 27.9%, up 7 percentage points from last year. Adjusted EBIT margin in North America rose to 8.9% from 6.5% in the first quarter, thanks to strong demand for the heavy-duty Ram and the new Jeep Gladiator pickup. Chief Financial Officer Richard Palmer also said FCA expected to report up to 10% margins in the region in both the third and fourth quarters.

Auto sales in March and first quarter down nearly across the board

Nearly every major automaker reported weak U.S. sales for March and the first quarter of 2019, citing a rough start to the year, but said a robust economy and strong labor market should encourage consumers to buy more vehicles as 2019 rolls on. GM, which no longer releases monthly sales figures, saw first-quarter sales fall 7 percent, with declines across all brands. Sales of Silverado pickup trucks fell nearly 16 percent and the high-margin Chevy Suburban large SUV dropped 25 percent. Ford also no longer releases monthly sales numbers, but is due to release its first-quarter sales figures on Thursday. According to industry data, Ford's sales fell 2 percent in the quarter and 5 percent in March. Ford representatives did not immediately respond to requests for comment. FCA reported a 7 percent fall in U.S. sales in March and a 3 percent drop for the first quarter. All of FCA's brands dropped in March, except for Ram, which saw a 15 percent increase in pickup truck sales. "The industry had a tough first quarter, but with spring finally starting to show its face and continued strong economic indicators ... we are confident that new vehicle sales demand will strengthen going forward," FCA's U.S. head of sales, Reid Bigland, said in a statement. Toyota reported a 3.5 percent fall in U.S. sales in March and 5 percent for the first quarter, hurt by declining demand for its Corolla sedans and Camry vehicles. "While some of our competitors are abandoning sedans, we remain optimistic about the future of the segment," Toyota said in a statement. Nissan posted a 5.3 percent drop in sales in March, and its first-quarter sales were down 11.6 percent. Honda and Hyundai bucked the trend. Honda's U.S. sales rose 4.3 percent in March and 2 percent in the quarter, while Hyundai's were up 1.7 percent and 2.1 percent, respectively. Passenger-car sales suffered throughout the January-March quarter compared with the same period in 2018 as Americans continued to abandon them in favor of larger, more comfortable pickup trucks and SUVs, which are far more profitable for automakers. The battle for market share in the particularly lucrative large-pickup truck market intensified in the quarter, as Fiat Chrysler Automobiles' Ram brand outsold the U.S.' No. 1 automaker General Motors' Chevrolet-brand trucks. The two automakers have both launched redesigned pickup trucks.

Watch these Super Bowl car commercials [UPDATE]

On Sunday, February 3, the New England Patriots take on the Los Angeles Rams in Super Bowl 53 at Mercedes-Benz Stadium in Atlanta, Georgia. Some will watch because of the storyline of the old-school dynasty facing off against the new-school wunderkinds, but a large chunk of people will solely be watching for the commercials. Lucky for those who slot into the latter category, many of the manufacturers release their super bowl ads ahead of time, or have simply opted to release the commercials only online. Scroll down to see what car companies have already shown their cards. Audi Audi goes the comedic route in its clip for the Big Game. It starts with a grandpa showing his grandson a gorgeous Audi e-tron GT tucked away in a garage before he's shaken awake. Turns out he was just choking on a cashew in his cubicle at his boring job. Dodge Dodge does what it knows: create enough smoke to punch more holes in the ozone layer. Set to "The Devil Went Down to Georgia (the Super Bowl is in Atlanta, get it!?), a Challenger SRT Hellcat widebody, Charger SRT Hellcat, and Durango SRT are seen ripping through a city, leaving a trail of rubber crumbs in their wakes. Genesis Genesis has not yet released a commercial prior to the Super Bowl, but it is the official luxury vehicle of the NFL. Because of this, Genesis is hosting a fan experience for 10 days before the game. It will showcase the brand's cars, offer games, and have photos opportunities and autograph days. Hyundai Jason Bateman alert! Hyundai is one of the few companies to hook a major celebrity for its advertisement, and the casting is perfect. Bateman plays a doorman who takes people to various terrible events in life, including root canals, the middle seat, and shopping for a car. The ad centers around Hyundai's Shopper Assurance, which is Hyundai's new method for car shopping. Jeep An old 1963 Jeep Gladiator finds its strength in the crusher and transforms into a a new 2020 Gladiator, with a firm declaration that the nameplate is officially back. Kia Through Kia's commercial, a young boy wonders out loud what it'd be like if the millions spent on Super Bowl commercials were used to help others.

Baby Ford Ranger and electrified Dodge Challenger? | Autoblog Podcast #569

In this week's Autoblog Podcast, Editor-in-Chief Greg Migliore is joined by Green Editor John Beltz Snyder. They address a couple interesting news topics, including an upcoming Ford pickup that's smaller than the Ranger, as well as a future electrified Dodge Challenger. They also opine about the new Honda Urban EV prototype that's scheduled to debut at the Geneva Motor Show. Then they talk about the cars they've been driving, including the new Subaru Crosstrek Hybrid, Volvo V60 and Audi A6. Finally, they take a question from Autoblog's recent Reddit AMA to help spend a Redditor's money. Autoblog Podcast #569 Get The Podcast iTunes – Subscribe to the Autoblog Podcast in iTunes RSS – Add the Autoblog Podcast feed to your RSS aggregator MP3 – Download the MP3 directly Rundown Ford Focus-based pickup Electrified Dodge Challenger Honda Urban EV Cars we've been driving 2019 Subaru Crosstrek Hybrid 2019 Volvo V60 2019 Audi A6 Spend My Money Feedback Email – Podcast@Autoblog.com Review the show on iTunes Related Video: Green Podcasts Audi Dodge Ford Honda Subaru Volvo Truck Coupe Crossover Hatchback Wagon Electric Hybrid Performance

FCA inline-six rumored to be real, headed for Jeep Wagoneer

In September, Allpar reported that that clues being dropped at Fiat- Chrysler headquarters, in the carmaker's factories, and on engineer resumes pointed to the development of an inline six-cylinder engine. The site has just proclaimed the rumor is reality, writing that the straight-six, "turbocharged to meet or beat 5.7 Hemi power ratings, with a smoother torque curve, is on the way." The motor's first outing is expected to be either the next-generation Jeep Grand Cherokee, debuting perhaps next year, or the Jeep Wagoneer, debuting in 2020 or 2021. "Tornado" is the purported codename for the power plant said to be just under three liters in displacement, expanding the family begun with the Global Medium Engine 2.0-liter turbo codenamed Hurricane. Engine bay constraints and a long use horizon mean engineers won't simply add two more cylinders to the GME, however. Allpar says the brief is to keep the Tornado GME-T6 — the alphanumeric for "turbocharged six" — no more than three inches longer than the Tigershark 2.4-liter four-cylinder. That means "major design changes" that could include a space-saving head, more closely spaced cylinders, and no cylinder liners. An FCA division called Comau could be called on for its "SmartSpray" plasma lining technology. Allpar muses that the standard version of the engine for Chrysler, Dodge, Jeep, and Ram could get a single twin-scroll turbocharger. Performance trims for Alfa Romeo and Maserati could get different heads and maybe twin turbos, an SRT version might also get both those tweaks. History shows that the Italian versions would make changes to the block, as well. Even so, the Tornado would be less expensive than any Ferrari-supplied V6. A straight-six would put FCA in company with current adopters BMW and Mercedes-Benz, future users like Jaguar, and perhaps Aston Martin. The engine would span the widest range of use cases in the U.S. carmaker's portfolio, though. Potential applications include being a base engine for Ram trucks, serving double duty as a base engine and 5.7-liter Hemi replacement for the Dodge Charger and Challenger, working in the high-end Jeeps, and as a properly hot trim — with Ferrari-designed heads — in the luxury Italian sports cars. The Alfa Romeo Giulia begs for just such motivation to fill the gap between the 280-hp, $42,695 Ti Sport RWD and the 505-hp, $73,700 Giulia Quadrifoglio RWD. And a twin-turbo inline-six in a Maserati Alfieri would stack up nicely with the Germans.

Fiat Chrysler taps Amazon, Shell execs to fill roles

MILAN — Fiat Chrysler Automobiles is tapping executives from Amazon and Shell Oil Company with previous automotive industry experience to fill its ranks. CEO Mike Manley said in a letter to employees Thursday that Mark Stewart would join FCA as chief operating officer of North America from Amazon, "a company known for its culture of innovation, and obsession with delivering incredible value to customers." At Amazon, Stewart led teams focused on advanced robotics, artificial intelligence and automation methods. He previously was COO of ZF TRW automotive components supplier. Niel Golightly was named head of global communications. He was most recently Shell's vice president for external relations in North and South America, with a focus on reputation, brand and stakeholder engagement beyond communication strategies. He previously held roles at Ford Motor Company. Related Video: Image Credit: REUTERS/Rebecca Cook Hirings/Firings/Layoffs Alfa Romeo Chrysler Dodge Fiat Jeep RAM FCA Amazon shell Mike Manley

Dodge Viper and Jaguar XK revival | Autoblog Podcast #543

On this week's Autoblog Podcast, Editor-in-Chief Greg Migliore is joined by Green Editor John Beltz Snyder and Consumer Editor Jeremy Korzeniewski. We talk the possible rebirth of the Dodge Viper and Jaguar XK, as well as the recent goings-on at Tesla. Then we share some of our experiences driving in Europe. We also discuss the cars we've been driving, and help spend another listener's hard-earned dough in this week's "Spend My Money" segment. Autoblog Podcast #543 Your browser does not support the audio element. Get The Podcast iTunes – Subscribe to the Autoblog Podcast in iTunes RSS – Add the Autoblog Podcast feed to your RSS aggregator MP3 – Download the MP3 directly Rundown Dodge Viper and Jaguar XK to make a return? Tesla Model 3 braking issues and Elon Musk vs. media Driving in Europe Cars we've been driving: Porsche Panamera Turbo S E-Hybrid Sport Turismo, Infiniti QX50, Range Rover Velar Spend my money Feedback Email – Podcast@Autoblog.com Review the show on iTunes Related Video: Auto News Green Podcasts Dodge Infiniti Jaguar Land Rover Porsche Tesla Car Buying Used Car Buying Driving Safety Performance jaguar xk infiniti qx50

FCA is setting a five-year strategy: Here's how the last one played out

We're slightly more than four years removed from Sergio Marchionne last five-year plan for FCA, a tell-all where the Italian-American automaker divulged its plans for the 2014 through 2018 model years. It was a grand affair, where Sergio told FCA investors that all was right in Auburn Hills, Alfa Romeo and Maserati were making comebacks, and the fifth-gen Dodge Viper received a mid-cycle refresh. You can read every last one of those past predictions right here. We're on our way to Europe to see Sergio's sequel, coming out Friday straight from FCA's Italian headquarters. (Bloomberg reports a plan to expand Jeep and Ram globally, combine Alfa Romeo and Maserati into a single division for an eventual spinoff, and downsizing Fiat and Chrysler. Also, EVs.) But before we arrive in Italy and find out exactly what Marchionne has planned for 2019 through 2023 as his last act as CEO, let's take a minute to tally up the results of his last term based on the same scoresheet we used in 2014. Now, we're only five months into 2018, so much of this — including vehicles like the Ram HD and Jeep Grand Wagoneer — could still debut this year. For those, we'll mark things TBD. We're not going to draw any conclusions or make any objectionable remarks. We're simply going to let the stats speak for themselves.