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China's Great Wall confirms its interest — in Jeep, or all of FCA

HONG KONG/SHANGHAI — Chinese automaker Great Wall Motor reiterated its interest in Fiat Chrysler Automobiles NV on Tuesday, but said it had not held talks or signed a deal with executives at the Italian-American automaker. China's largest sport utility vehicle manufacturer made a direct overture to Fiat Chrysler on Monday, with an official saying the company was interested in all or part of FCA, owner of the Jeep and Ram truck brands. Automotive News first reported the news, quoting Great Wall Motor President Wang Fengying as saying she planned to contact FCA to discuss acquiring the Jeep brand specifically. Those comments sent FCA shares higher but also raised questions over the ability of China's seventh-largest automaker by sales to buy larger Western rival FCA, or even Jeep, which some analysts value at as much as one-and-a-half times FCA. Great Wall sought to dampen speculation on Tuesday. It confirmed it had studied Fiat Chrysler, but said there was "no concrete progress so far" and "substantial uncertainty" over whether it would eventually bid. "The company has not built any relationship with the directors of FCA nor has the company entered into any discussion or signed any agreements with any officer of FCA so far," the company said in an English-language stock exchange filing. It did not give further detail. Fiat Chrysler stock dipped on the statement on Tuesday. Great Wall said trading in its Shanghai-listed shares would resume on Wednesday after having been suspended. Fiat Chrysler declined to comment on Great Wall's statement. On Monday, it said it had not been approached and was fully committed to implementing its current business plan. FLUSHING OUT RIVALS? Great Wall Motor, which was early to spot China's love of SUVs, had revenue of $14.8 billion last year and sold 1.07 million vehicles - but that compares with FCA's 2016 revenue of 111 billion euros ($130.6 billion). Analysts said Great Wall would need to raise both debt and equity to complete any deal, meaning its chairman Wei Jianjun could lose majority control. One possible scenario, according to analysts at Jefferies, would see Wei keeping a roughly 30 percent stake, while Great Wall would raise $10-$14 billion in debt and $10 billion in equity - hefty for a group currently worth just $16 billion. Ultimately, politics could be the clincher.

China's Geely says it has no plan to buy Fiat Chrysler — as FCA stock leaps

HONG KONG — Chinese carmaker Geely Automobile denied media speculation on Wednesday that it planned to make a takeover bid for Fiat Chryslerk Automobiles (FCA), the world's seventh-largest automaker. Geely was one of several Chinese carmakers cited in by Automotive News, which said representatives of "a well-known Chinese automaker" had made an offer this month for FCA, which has a market value of almost $20 billion. "We don't have such a plan at the moment," Geely executive director Gui Shengyue told reporters at an earnings briefing, when asked if Geely was interested in Fiat. He said a foreign acquisition would be complicated, but he did not elaborate. "But for other (Chinese) brands, it could be a fast track for their development," Gui added. However, a source close to the matter said FCA and Geely Automobile's parent firm, Zhejiang Geely Holding Group, had held initial talks late last year, without disclosing their nature. The source confirmed Geely was no longer interested in FCA, noting that the parent company had only three months ago announced its first push into Southeast Asia with the purchase of 49.9 percent of struggling Malaysian carmaker Proton, a deal that also included a stake in Lotus. Geel's denial failed to dent FCA's stock. The price of its Milan-based shares has jumped more than 10 percent to a 19-year high since Automotive News first reported on Monday, citing unnamed sources, that FCA had rejected the Chinese offer as too low. FCA stock on the New York Stock Exchange rose sharply on Monday from $11.60 to $12.38 and on Wednesday was trading at $12.84. FCA declined to comment on Wednesday. FCA Chief Executive Sergio Marchionne has repeatedly called for mergers as a way of sharing the costs of making cleaner, more advanced cars, but he has repeatedly failed to find a partner and retreated from his search for in April, saying FCA would stick to its business plan. He has also spoken of spinning the successful Jeep and Ram divisions off from FCA. Europe's largest carmaker, Volkswagen, and General Motors have both said they are not interested in talks with FCA. On Wednesday, Geely Automobile reported a doubling of first-half profit, above expectations, as cars designed with Sweden's Volvo won over domestic consumers. Volvo is a unit of the Zhejiang Geely group, and has recently announced it will share its technology with Geely.

FCA joins BMW, Intel and Mobileye on autonomous car project

Today, BMW, Intel and Mobileye announced that FCA would be joining their effort to build a sharable and scalable platform for autonomous cars. This project has been moving ahead full steam, with Intel purchasing Mobileye earlier this year, not long after Tesla and Mobileye parted ways. Not long after that, parts supplier Delphi joined the autonomous effort. The group's current goal is to have 40 autonomous test vehicles on the road by the end of 2017. The eventual end game is to create a new architecture that each partner can use and adapt to its needs. The platform will support level 3 to level 4/5 automated driving, and can be adapted to suit brand identity. The main headquarters for the effort will be in Germany. FCA staff will join the already established group of engineers from BMW, Intel and Mobileye. The group expects this new platform to hit the streets by 2021. It's unclear how this will affect FCA's relationship with Waymo, Alphabet's autonomous vehicle project. Waymo currently uses modified Chrysler Pacificas for its fleet. In addition to FCA, the trio of BMW, Intel and Mobileye have extended an invitation to any other automakers and suppliers that want to join the project. Related Video: News Source: BMW/Intel Green BMW Chrysler Fiat Autonomous Vehicles mobileye

China own a Detroit automaker? Would the U.S. let that happen?

The news that several Chinese automakers want to buy Fiat Chrysler Automobiles, and that one has even made an offer, elicits some mixed feelings. On one hand, as some have pointed out, it could be a win-win both for China and for FCA's American workers, ensuring the company's survival and opening new markets. On the other hand, this is China, whose trade relationship with the U.S. is the source of considerable scrutiny from the Trump administration — and whose not-a-friend, not-an-enemy status is particularly difficult to gauge right now during heightened tensions with its client state North Korea. So would such a deal pass regulatory muster? One reason that springs to mind for blocking any sale has to do with national security. Chrysler's role as a military supplier dates back to Dodge trucks used by Gen. Blackjack Pershing to chase Pancho Villa in Mexico, and shortly thereafter by American forces in World War I. The Detroit Three automakers were, of course, mainstays of the Arsenal of Democracy of World War II. Even before U.S. entry into the war in December 1941, America's industrial machinery went into overdrive, and Chrysler was one of the biggest cogs. It engineered and built the M3, Sherman and Pershing tanks and trucks for Gen. George Patton's Redball Express. It helped develop a radar-guided antiaircraft gun that knocked German bombers and V1 rockets out of the sky — on one day, shooting down 97 of 101 V1s headed for London. On D-Day, the radar system helped thwart Luftwaffe counterattacks on the beaches of Normandy, and it later helped Allied forces break out at the Battle of the Bulge. Chrysler redesigned the Wright Cyclone engines used by the Boeing B-29 Superfortress, the plane that firebombed Tokyo and dropped the atomic bombs that ended the war. Chrysler even played a secret role refining uranium in Oak Ridge, Tenn., that was used in the Hiroshima bomb and in the ensuing Cold War arms race. It worked on military missiles and was NASA's prime contractor for the Saturn V rocket that put men on the moon. More recently, Chrysler produced the M1 Abrams tank. And of course Chrysler is the keeper of the flame for Jeep, a 75-plus-years military legacy handed down from Bantam and Willys to Kaiser to AMC to Chrysler. The point of this history lesson is to note that in times of war or national emergency, America's industrial might has been called to serve, and may well be called on again.

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.

Dodge, Jeep and Ram could soon be owned by Chinese automakers

For the past several years, Fiat Chrysler CEO Sergio Marchionne has made it widely known that the automaker he helms is up for grabs. First, he sent an email to GM CEO Mary Barra, who immediately refused to even discuss a merger. Later, Marchionne set his sights on Volkswagen. That too was swiftly rebuffed. It seemed like no global automaker was remotely interested in a partnership. Now, Automotive News reports that several Chinese automakers have come calling, only FCA isn't ready to answer. At least not yet. The news broke this morning that a major Chinese automaker had made an offer to purchase FCA for slightly above market value. FCA refused, saying the offer wasn't quite generous enough. It's unclear which automaker made the offer, but Automotive News says there's more than one interested party. FCA representatives have recently traveled to China to meet with Great Wall Motors, while Chinese representatives were seen at FCA corporate headquarters in Auburn Hills, Mich. The Chinese government has a lot of money invested in local automakers. It's putting pressure on these automakers to expand globally, including to the United States. As it stands, it's a matter of when a Chinese automaker will start selling cars here, not if. Purchasing an established automaker with a wide range of products and a huge dealer network would do wonders in giving the Chinese a foothold here. Sure, Geely owns Volvo, but a luxury automaker doesn't have nearly as much reach as a more mainstream company like FCA. This seems like the best case scenario for both a Chinese automaker looking to move into the U.S. and for FCA, at least from a business standpoint. The latter doesn't seem to have any other interested parties. It will be interesting to see how FCA would sell a deal like this to the public. We're not sure everyone will be happy with Dodge, Jeep and Ram falling under Chinese ownership. FCA didn't turn down the Chinese because they didn't like the idea. It turned down the offer because there wasn't enough money on the table. Related Video: News Source: Automotive News Earnings/Financials Alfa Romeo Chrysler Dodge Fiat Jeep RAM

Junkyard Gems: 1959 Oldsmobile Super 88 Fiesta and 1971 Fiat 850 Spider

It's 1971. You're a young professional with a starter home in the suburbs, a beautiful wife, two kids, and a dog. Of course, you also have a station wagon; a 1959 Oldsmobile Super 88 Fiesta. It's not the newest car on the block, but it was an unbeatable deal. You're quickly moving up the corporate ladder, so you decide you've rightfully earned a fun little convertible to commute in. $2,200 and change gets you into a brand-new Fiat 850 Spider. It's no powerhouse, but it's considerably more affordable than an Alfa Romeo Spider and it's pretty good on gas, to boot. It's also tiny; The Italian roadster looks like a Matchbox car next to 4,600 pounds of burly, V8-powered Detroit iron. Your next-door neighbor jokes the 850 could fit in the Super 88's trunk by simply folding down the rear seats, and she's probably right. For those of us who weren't around 50 years ago, a junkyard in the heart of the Rockies has recreated the picture-perfect American driveway of the 1970s. It's a mind-blowing reminder of just how small Fiats used to be, and just how massive American wagons once were. While the 850 was green when it set sail for the United States, the Oldsmobile is still wearing its original two-tone paint job – or what's left of it. It must have been quite a looker when it was new, and every single slat on the lane-wide grille was as shiny as the finest silverware in the White House. Today, both cars are worse for the wear. There's rust on virtually every body panel, the glass is either broken or missing, and the upholstery is as dry as washed-up seaweed on a hot summer day. There's no obvious accident damage, and both cars are relatively complete, so it's not too far-fetched to assume they were brought to the yard as beaters that were lingering at the bottom of their depreciation curve. Related Video: Featured Gallery Fiat 850 and Oldsmobile 88 View 12 Photos Fiat Classics

Marchionne: Maserati to ‘switch all of its portfolio to electrification’  

After 2019, all Maseratis will be electrified, according to FCA CEO Sergio Marchionne. It's part of a larger electrification strategy from FCA as a whole, which intends to have half of its fleet electrified by the end of its five-year plan through 2022, Marchionne said. On an earnings call last week, he said: I'll give you a couple of broad sort of indications of where we are today in terms of the delineation of the post 2018 FCA. The first one and I've mentioned this in passing and other occasions about the fact that there's nothing that will prevent an OEM from engaging in the type of development work that Tesla has done so far. We have been – as you well know, we have been reluctant to embrace that avenue until we saw a clear – a path forward. I think we're now in a position to acknowledge at least one of our brands and in particular Maserati will, when it completes the development of its next two models effectively switch all of its portfolio to electrification. It's especially significant because of FCA's feet-dragging when it comes to offering hybrid and electric vehicles. As it currently stands, Fiat offers the 500e ­– of which Sergio Marchionne has said "I hope you don't buy it" because the company loses money on them — and Chrysler offers the Pacifica Hybrid minivan, which experienced significant launch delays. While diesel is an important part of the emissions strategy for 2020 standards in Europe, Marchionne said he thinks the current situation leaves diesel in a "weaker state" as a solution. Hence the electrification push. He said, "I think what has really made the issue absolutely mandatory now is the fate of diesel and the fact that it's actually the inclusion of, especially in Europe, of some type of electrification on gas engines is inevitable." In the short term, at least, it will put pressure on prices. Though Marchionne said he's "encouraged" by the direction of battery costs, he said, "I still think that there's going to be a huge increase in prices in 2021, 2022. If effectively the electrification becomes as widespread as people expect, there has to be a shift in pricing." He also says that FCA has no intention of making its own batteries. "Given the level of knowledge and depth of that knowledge that sits with other people in the industry, what right do I have to enter that space? None." We already know what the first two plug-in vehicles from Maserati will likely be. The company plans to launch an all-electric Alfieri in 2020.

2017 Fiat 500 Abarth Quick Spin | Old dog masters old tricks

It's hard to believe, but the raucous little hatchback we know as the Fiat 500 Abarth is nearly a decade old. The 160-horsepower version we get here first appeared in Europe at the end of 2008, and while ours didn't arrive until the 2012 model year, it was mostly the same car. That's a really long time for a car to be on sale without any major changes or mechanical updates. So we spent some time with a 2017 model to see how it's holding up. Here's what we learned: It's still a lot of fun for a number of reasons, not least of which is the exhaust. This is by far the best sounding exhaust for the money. It growls, it pops, it's generally a riot. Sure it can drone a bit on long highway jaunts, and you might annoy your neighbors in the morning, but it's worth it. Other manufacturers could learn a thing or two about making their cars more exciting to hear. (I'm talking especially to you, Honda, because the Civic Si is too quiet). The turbo 1.4-liter engine will still nudge you back at full throttle and pull you through corners quickly. The boost comes on very smoothly, too, making it easy to work with. Just make sure you have the car in Sport mode. Boost is limited in Normal mode, so if you want to enjoy everything the car has to offer, hit that button the moment you fire up the Fiat. The seating position is the closest thing this side of a Smart ForTwo to feeling like a road-going motorized bar-stool. The very tall driving position and short, narrow body make for one of the most unique driving feelings on the market. It's not good, it's not bad, just different. And fortunately, you don't feel like the car is going to tip over. In fact, it feels pretty secure... ...most of the time. The short wheelbase does make the Abarth feel a tad nervous when driving through long, fast corners such as freeway ramps. It probably wouldn't bite you with the driving aids on, but you'll find yourself concentrating a little harder in some corners than in cars longer than a Little Tikes Cozy Coupe. Steering is a bit of a mixed bag, too. It's the same electrically-assisted rack the car has used over the years, and it's still vague off-center and slow. Maybe this was on purpose to keep people from unsettling such a short little car. Hints of torque steer show up, as well, and the car does like to follow the contour of the road. On the upside, the steering is weighted well, and the car doesn't lean much and grips well.

Scott Pruitt unfiltered: EPA administrator talks climate science, car emissions

U.S. Environmental Protection Agency Administrator Scott Pruitt gave Reuters a wide-ranging interview on Monday at his office in Washington, discussing issues from climate science to automobile emissions. The following is a full transcript of the interview: REUTERS: You have said the EPA will focus on a "Back to Basics" approach under your leadership. What does this mean for how EPA enforces polluters? You have been critical of the idea of regulation by enforcement. PRUITT: I think what I'm speaking about, there is a consent decree approach to enforcement, where you use judicial proceedings to actually engage in regulation. Enforcement should be about existing regulations that you're actually enforcing against someone who may be violating that, very much in the prosecutorial manner. As attorney general [in Oklahoma], I lived that. There was a grand jury that I led. Being a prosecutor, I understand very much the importance of prioritization, of enforcing the rule of law, of addressing bad actors. That's something we are going to do in a meaningful way across the broad spectrum of cases, whether it is in the office of air or the Superfund area, or otherwise. REUTERS: Do you want to see states play a bigger role in enforcing polluters, even though some have less of a capacity to do so – financially and personnel wise? PRUITT: I think the state's role is really, when you look at this office working with states, it should be how do we assist, how do we engage in compliance and assistance with states. The office [at EPA that deals with enforcement] is called OECA, the Office of Enforcement, Compliance and Assistance, so those are the tools we have in the toolbox to achieve better outcomes. So what we ought to be doing is working proactively with state DEQs [Departments of Environmental Quality] to get their state implementation plans [for federal regulations] timely submitted, provide assistance and technical support, drive a draft of state implementation plans, and then actually work with them on how to achieve through those plans better outcomes and air and water quality. As far as enforcement is concerned, we will actually work with states. We actually did that recently with Colorado. There was an oil and gas company that was emitting some 3,000 tons, is that what it was, it was quite a bit of ... it was an ozone case. In any event, we joined with Colorado in that prosecution. So sometimes states will do it, sometimes we will join with them.