2008 Jeep Wrangle Sahara Unlimited 4d 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?

Autoblog Minute: Wrangler Pickup, Triumph Fined, Cherokee Production Moves

Autoblog senior editor Greg Migliore reports on highlights from the week in automotive news on this edition of Autoblog Minute. Show full video transcript text [00:00:00] Triumph Motorcycles in violation of the Safety Act, Jeep looks to adjust its vehicle production strategy, and a Wrangler pickup may soon be be produced in Toledo. I'm senior editor Greg Migliore, and this is your Autoblog Minute Weekly Recap. Triumph Motorcycles was hit with a $2.9-million fine because of a failure to submit safety documents to NHTSA in a timely fashion. An investigation of 1,300 bikes in September of 2014 led to this finding. Other violations were then discovered, like the late reporting of quarterly recall completion rates, and Triumph's failure to supply warranty data. Fines for these violations may seem harsh but U.S. Transportation Secretary Anthony Foxx said: "Manufacturers must comply with their reporting obligations. The law requires it, and public safety demands it. When companies fail to meet those obligations, we will hold them accountable." In FCA news, it seems that production of the Jeep Cherokee will be moved from the Toledo plant to a nearby state. Automotive News first reported on this adding that Jeep may produce a pickup alongside Wrangler to fill the void left by Cherokee. Jeep declined to comment on this news. Speculation surrounding Jeep's production plans depends on the automaker's ongoing negotiations with the UAW. Those are the highlights from the week that was. Be sure to check out my full recap this Saturday, including details on Ford's performance Fusion. For Autoblog, I'm Greg Migliore. Autoblog Minute is a short-form video news series reporting on all things automotive. Each segment offers a quick and clear picture of what's happening in the automotive industry from the perspective of Autoblog's expert editorial staff, auto executives, and industry professionals. Jeep Autoblog Minute Videos Original Video Triumph Motorcycles

Auto critic calls out Corvette, Mustang and Cherokee faithful

Most automotive purists fear change, but not without reason. Change, after all, did kill big-block V8s, along with most station wagons and manual transmissions. But change has also brought with it far more performance, safety and fuel economy - not to mention ridding the world of shag carpet interiors, bias-ply tires and those horrible motorized seatbelts of the early '90s.
By this time next year, the Chevy Corvette, Jeep Cherokee and next-generation Ford Mustang will all be on sale and will all, in some way, have angered or offended purists. To those critics, Mark Phelan of the Detroit Free Press is preemptively telling them to stop complaining - at least until they've all been driven. From the Corvette's square taillights and the Cherokee's radical nose to whatever pony car purists will harp on the 2015 Mustang for, Phelan's column points out the positives of automotive evolution and the negatives of staying the course for too long. That's fair enough, but do you think Phelan is on point, or all wet? Head on over to the Detroit Free Press to read his words, then have your say in Comments.