2023 Jeep Compass Sport on 2040-cars

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Auto Mergers and Acquisitions: Suicide or salvation?

We love the Moses figure. A savior riding in from stage right with the ideas, the smarts, and the scrappiness to put things right. Alan Mullaly. Carroll Shelby. Lee Iacocca. Andrew Carnegie. Steve Jobs. Elon Musk. Bart Simpson. Sergio Marchionne does not likely view himself with Moses-like optics, but the CEO of Fiat Chrysler Automobiles recently gave a remarkable, perhaps prophetic interview with Automotive News about his interest and the inevitability of merging with a potential automotive partner like General Motors. Marchionne has been overtly public about his notion that GM must merge with FCA. For a bit of context, GM sold 9.9 million vehicles in 2014, posting $2.8 billion in net income, while FCA sold 4.75 million units and earned $2.4 billion in net income, painting a very rosy FCA earnings-to-sales picture. But that's not the entire picture. Most people in the auto industry still remember the trainwreck that was the DaimlerChrysler "merger" written in what turned out to be sand in 1998. It proved to be a master class in how not to fuse two companies, two cultures, two continents, and two management teams. Oh, it worked for the two individuals at both helms pre-merger. They got silly rich. And the industry itself was in a misty romance at the time with mergers and acquisitions. BMW bought Rolls-Royce. Volkswagen Group bought Bentley, Bugatti, and Lamborghini, putting all three brands into their rightful place in both products and positioning. No marriages there, so no false pretense. Finally, Nissan and Renault got married in 1999. A successful marriage requires several rare elements in this atmosphere of gas fumes and power lust. But a successful marriage requires several rare elements in this atmosphere of gas fumes and power lust, the principle part being honesty. Daimler and Chrysler lied to each other. The heads of each unit, the product planners, and finance all presented their then-current and long-range forecasts to each other with less-than-forthright accuracy. Daimler was the far greater equal and no one from the Chrysler side enjoyed that. The cultures were entirely different, too, and little was done to bridge that gap. Which brings me back to the present overtures by Marchionne to GM. "There are varying degrees of hugs," Marchionne stated in the Automotive News piece. "I can hug you nicely, I can hug you tightly, I can hug you like a bear, I can really hug you." Seriously?

FCA will pay you to hack its systems

FCA is willing to pay you to hack its cars, as long as you tell the company how you did it. In an effort to enhance cybersecurity and prevent future incidents like the Jeep Cherokee hack last year, FCA announced it's working with Bugcrowd to find vulnerabilities in its vehicle software. Bugcrowd labels itself as a crowdsourced application security testing company. Users, or independent security researchers as Bugcrowd calls them, can find exploits or vulnerabilities in FCA systems. They then submit the information to Bugcrowd, who in turn supplies the info to FCA. The goal is to update systems and close any possible security breaches. FCA is offering bounties from $150 to $1,500 to any Mr. Robot types, with payment based on the size and severity of the flaw. FCA wants hackers to focus specifically on the UConnect website and the company's iOS and Android apps. No bounties will be given for anything outside the scope of those three things. Bugcrowd says it will not take any legal action against anyone who submits an exploit. While we think it's good that the company is taking steps to address these problems, it's not a groundbreaking maneuver. Other companies employ similar systems. Earlier this year, both Tesla and Uber announced that they're willing to offer up to $10,000 to hackers who find vulnerabilities in their system. For years, Microsoft has been paying hackers to find exploits. It also seems that FCA took its time to announce this plan, considering the Jeep hack happened nearly a year ago. If the partnership works, we can expect other automakers to make similar deals. Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. News Source: FCA, Bugcrowd Jeep Safety Technology Infotainment Smartphone FCA

FCA to appeal reduced judgment in Georgia Jeep case

FCA is appealing the $40 million verdict against it in a case in Georgia where a four-year-old boy died in a fire in a Jeep Grand Cherokee, according to The Detroit News. The jury originally awarded the child's family $150 million, but the judge decided to significantly to reduce the amount based on other precedents. The automaker has been considering further legal options since the decision was announced in July. The boy's death happened in 2012 when he was riding in a Grand Cherokee. The vehicle was rear-ended, and the fuel tank burst, causing a fire. This is the same issue that led to a recall of millions of the SUVs and a recent agreement with the US government from FCA to pay to get them fixed. In the original ruling, the jury said that the automaker was 99 percent responsible for the fatality and didn't adequately warn owners. It asked the company to pay $120 million for wrongful death and $30 million for his pain and suffering. FCA countered that the Jeeps met the safety standards of the time they were made. FCA requested that the jury's award be reduced in May calling the amount "grossly excessive." If the family didn't agree to a lower amount, the company also threatened to seek a new trial. Among the arguments was that $30 million was too much for the child's one minute of suffering. The parents did accept the judge's adjusted figure, though.