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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.

FCA tries to block sale of Mahindra Roxor, says it's too Jeep-like

This week, FCA filed a complaint intended to stop the sale of the new Mahindra Roxor, claiming the Indian-built off-roader looks too much like a Jeep, particularly the original Willys Jeep from the 1940s. Automotive News reports that FCA is worried about both the Roxor's design and the undercutting of Jeep Wrangler sales with a new, foreign-built model. Late last year, Mumbai-based automaker Mahindra & Mahindra announced it was investing $600 million in a production facility in metro Detroit. It's actually just miles from FCA's corporate headquarters in Auburn Hills. Mahindra & Mahindra plans to start selling EVs in the U.S. and has been spied testing prototype vehicles for the U.S. Postal Service. Roxors are built in India, with the parts shipped to the U.S. for final assembly. The new diesel-powered Roxor isn't road-legal in the U.S. because of safety and emissions regulations. It has a top speed of just 45 mph, so it won't be competing with the Wrangler when it comes to mass-market sales. That said, FCA has a point when it comes to the looks — though years ago, Mahindra actually licensed the design for the original Jeep. It's unclear where that license currently stands. Related Video:

Jeep will build old Wranglers next to new ones in Toledo

Jeep made a lot of people happy when it confirmed that the next-generation Wrangler would continue to be built in Toledo, OH. Now, news is breaking about the lengths the automaker will go to in updating its northern Ohio factory. There's good news for Jeep dealers (more Wranglers to sell!), Jeep fans (more JKs to buy!), and Jeep itself (more money to be made!). According to a report from Automotive News, capacity at the factory will be increased to 350,000 units per year. That's around a 50 percent increase over what the Toledo complex can currently manage and is, according to Jeep boss Mike Manley, part of a move to keep production "at the right place" so "supply [stays] just behind demand." The other big news revealed by the AN report focuses on the future of the current Wrangler. Yes, the current JK has a future. It'll continue to be built at the Toledo factory up to six months after it successor arrives in showrooms, a move that's partially down to the way Jeep is shuffling production about. Toledo currently builds the Cherokee on a unibody production line – it'll continue to do so until March of 2017, when production will move to Belvidere, IL. The unibody line in Toledo will then be converted for body-on-frame production, which should take about six months. But during that time, the current JK (likely rebadged as a "Wrangler Classic") will continue to be built alongside another line of next-generation Wranglers, keeping dealers supplied with the today's Wrangler through March of 2018. The two Wranglers will overlap for about six months. This is all very good news if you've been waiting to pull the trigger on today's Wrangler. But move quickly – the clock is officially ticking. Related Video: News Source: Automotive News - sub. req.Image Credit: Bill Pugliano/Getty Images Plants/Manufacturing Chrysler Fiat Jeep FCA toledo Mike Manley