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Stellantis mega-merger gets approval from FCA, PSA shareholders

MILAN — Shareholders of Fiat Chrysler and PSA Peugeot decisively voted Monday to merge the U.S.-Italian and French carmakers to create worldÂ’s 4th-largest auto company. Addressing separate meetings, both PSA Peugeot CEO Carlos Tavares and Fiat Chrysler Chairman John Elkann spoke of the “historic” importance of the vote, which combines legacy car companies that helped write the industrial histories of the United States, France and Italy. Before the merger is finalized, shares in the new company, to be called Stellantis, must the launched. It will be traded in Milan, New York and Paris. The marriage of PSA Peugeot and Fiat Chrysler Automobiles is built on the promise of cost-savings in the capital-hungry industry, but what remains to be seen is if it will be able to preserve jobs and heritage brands in a global market still suffering from the pandemic. The deal will create the worldÂ’s fourth-largest carmaker, with the capacity to produce 8.7 million cars a year, behind Volkswagen, Toyota and Renault-Nissan, and create 5 billion euros in annual synergies.  “We are fully aware of the fact that together we will be stronger than individually,'' PSA CEO Carlos Tavares told a virtual gathering of eligible shareholders. “The two companies are in good health. These two companies have strong positions in their markets.” The new company will put together under one roof French mass-market carmakers Peugeot and Citroen, top-selling Jeep and Italian luxury and sports brands Maserati and Alfa Romeo - pooling companies that have helped define the industry in the United States, France and Italy. While the tie-up is billed as a merger of equals, the power advantage goes to PSA, with Tavares running Stellantis and holding the tie-breaking vote on the 11-seat board. Tavares is set to take full control of the company early this year, possibly by the end of January. Fiat Chrysler chairman John Elkann, heir to the Fiat-founding Agnelli family and Fiat ChryslerÂ’s biggest shareholder, will be the Stellantis chairman. Fiat Chrysler CEO Mike Manley will head North American operations, which is key to Tavares' long-time goal of getting a U.S. foothold for the French carmaker he has run since 2014, and the clear money-maker for Fiat Chrysler. Such a deal was long wanted by Fiat ChryslerÂ’s long-time CEO Sergio Marchionne, who had predicted the necessity of consolidation in the industry. He was unable to find a deal before his sudden death in July 2018.

Side-X-Sides: The next Wrangler?

The Jeep Wrangler has a huge following, but I've long thought that it is ripe for plucking. And if rumors of a neo-Bronco prove to be true, it sounds like Ford may agree. If a new Bronco does pan out, I hope it's small like the original Bronco, and not a huge F-150-based vehicle. To be a true Wrangler-fighter it has to be small and nimble. Here's another option How about developing a slightly larger, but street-legal version of the popular side-x-sides which are so popular with hunters, fishermen, farmers and anyone outdoors-oriented? This, to me, seems to be the next logical evolution of these side-x-sides. Currently side-x-sides have to be either trailered or stuffed into the back a of a pickup to wherever they're going to be used. Offering a street-legal off-roader solves that problem. There's no shortage of side-x-side makers out there. Any one of them could engineer and market such a vehicle, should they decide to. Plus there are plenty of dealer outlets, although Honda is the only one that currently sells cars, etc.; so they could have an edge in the selling and servicing aspects of such a vehicle. That said, I'm not sure Honda would want to sell such a vehicle in their car outlets. It may be better suited to their dealers that sell motorcycles, ATVs, watercraft, etc., as that outdoorsman type of customer already frequents those dealers. Then again, if the new Ridgeline proves popular, such a vehicle could offer something much more capable and sporting to that customer who is looking for something more extreme. The Wrangler has its fans, and they love it just as it stands. In fact Wrangler fans would reject any drastic engineering changes to their beloved off-roaders Side-x-sides, on the other hand, offer a completely different take on how to engineer a small but serious off-roader. Both are valid approaches. Currently the only thing missing are street-legal side-x-sides that go head-to-head against the Wrangler. Having more purchase options available is always a good thing; seems like a no-brainer to me. Image Credit: Honda Jeep Off-Road Vehicles open road

Chrysler accelerates Jeep recall repairs from 2018 to March

You may remember that Jeep's unusual fix for this recall involves fitting a trailer hitch.
The recall of about 1.5 million models of the 2002-2007 Jeep Liberty and 1993-1998 Grand Cherokee over fuel tanks may finish far sooner than originally estimated. In a new filing from Jeep's parent, Chrysler Group, with the National Highway Traffic Safety Administration, the company says that it can complete the repairs for the affected vehicles by March 2015, much sooner than the previous estimate of sometime in 2018. Jeep predicts the total cost of the campaign will be around $151 million.