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UAW may be key to forced FCA merger with GM

Sergio Marchionne doesn't give up on a business deal easily. While outwardly not much has recently been said about FCA's attempted merger with General Motors, Marchionne might be hoping to garner a powerful, new ally that could help break things wide open. The United Auto Workers retiree health care trust is the single largest shareholder of GM with 8.7 percent of the stock, and having its support would certainly improve FCA's position in getting a deal done. "Whatever happens in terms of consolidation, it would never be done without the consent and support of the UAW," Marchionne said when FCA recently began contract talks with the UAW, The Detroit News reports. The boss is also allegedly on good terms with the union president Dennis Williams. Still, using the organization for a hostile takeover could be very difficult because of the way its votes are structured. Other activist investors might already be on board, though. Marchionne believes that consolidation in the industry is vital because automakers are investing to create the same technologies. A GM/FCA merger still has many roadblocks, though, including the fact that Marchionne's company is smaller than GM. From a regulatory perspective, the size of the merged company could raise serious anti-trust concerns among regulators, according to The Detroit News. There's also the concern for lost jobs from redundant work with the two combined businesses. Even if the UAW angle doesn't work out, there are contingency plans afoot for other merger targets. According to The Detroit News speaking to anonymous insiders, FCA bigwigs have a meeting in London on Thursday to take a close look at other options. In addition to GM, they are investigating possible deals with Volkswagen and the Renault-Nissan Alliance. In the past, PSA Peugeot Citroen and multiple Asian automakers have also been brought up as partners, and UBS has reportedly been providing financial advice on what to do.

Buy a real Popemobile: the Pontiff's Fiat 500L

Pope Francis has urged people to drive "humble" cars, and he practiced what he preached during last year's US visit by riding in a Fiat 500L rather than a more opulent vehicle. The Archdiocese of Philadelphia will offer the chance to feel a little closer to His Holiness on January 29 by auctioning at least one of the Fiats from the Pope's trip at the Philadelphia Auto Show Black Tie Tailgate. All of the auction's proceeds will follow Pope Francis' desire to help the less fortunate. Half of the money will go to the Catholic Charities Appeal, which aids those that struggle with homelessness and poverty. The other half will be split equally among Mercy Hospice, Casa Del Carmen, and the Schools of Special Education of the Archdiocese of Philadelphia. "The Fiat is such an icon of Pope Francis' visit to Philadelphia and the auction of this vehicle serves as an extraordinary final event to close this memorable chapter in the City's history," Donna Crilley Farrell, Executive Director of the World Meeting of Families – Philadelphia 2015, said. FCA US let Pope Francis use two 500Ls while he was in Philadelphia, and the automaker then donated the cars to the Archdiocese, according to its director of communications Kenneth Gavin to Autoblog. The Archdiocese still hasn't decided whether to auction the other one at the Black Tie Tailgate, but the Fiat will be on display at the Philadelphia Auto Show from January 30 through February 7. It's difficult to put a price tag on these special vehicles, Gavin told Autoblog, but the Archdiocese hopes to get as much as possible for them to benefit the charities. FCA US and the US Secret Service have records of the cars' VINs from the trip, and the Archdiocese would show the winning bidder all the documentation to certify the vehicle's authenticity. Related Video: The Archdiocese of Philadelphia and World Meeting of Families – Philadelphia 2015 Offer Opportunity for Bidders to Own a FIAT 500L Used by Pope Francis During Historic Philadelphia Visit at the Philadelphia Auto Show Black Tie Tailgate Held at the Pennsylvania Convention Center on Friday, January 29, the auction will benefit the Catholic Charities Appeal, Catholic Social Services, Mercy Hospice, Casa Del Carmen, and the Archdiocesan Schools of Special Education.

Marchionne says Fiat Chrysler can make 6 million cars per year

The combined Fiat Chrysler Automobiles will see its production capacity increase from a projected 4.6 million in 2014 to 6 million units once it completes its integration, according to statements made by FCA CEO Sergio Marchionne.
"With the initiatives we will announce in May, six million is accessible," Marchionne said during a Fiat shareholders' meeting in Turin, according to The Detroit News. Marchionne is aiming to complete the merger between the Turin, Italy-based Fiat and the Auburn Hills, MI-based Chrysler by the end of this year.
Increasing production by 1.4 million units is no small order, particularly when combined Fiat and Chrysler sales have increased only modestly in the past few years - only 4.4 million units were sold in 2013, and while 4.6 million is projected for 2014, 4.5 million is also a distinct possibility. Six million units per year has been Marchionne's self-imposed goal for the combined automaker, according to The News, claiming that FCA would need to crest that point to achieve profitability.