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Dongfeng and PSA extend Chinese joint venture

BEIJING/PARIS — China's Dongfeng and Peugeot maker PSA are extending their business cooperation, despite the Chinese company reducing its stake in PSA to help smooth the French carmaker's merger with Fiat Chrysler Automobiles (FCA). Dongfeng said on Thursday it had agreed with PSA to extend the duration of their joint venture Dongfeng Peugeot Citroen Automobiles (DPCA). Under the deal, the venture could get the rights to PSA's new brands in China and will benefit from new technologies and intellectual properties, the Chinese company said. PSA was not immediately available for comment. The announcement comes a day after the companies said Dongfeng would reduce its 12.2% stake in PSA by selling 30.7 million shares to the French company. Analysts said the move could smooth U.S. regulatory approval for PSA's roughly $50 billion (GBP38.97 billion) merger with Italian-American carmaker FCA. The sale of Dongfeng's shares in PSA, worth around 680 million euros ($757 million), will leave the Chinese group holding around 4.5% of the merged PSA-FCA, which is set to become the world's fourth-biggest carmaker by sales volumes. "As the cooperation between Dongfeng and PSA deepens, we expect the joint venture to continue making good progress in China," a Dongfeng representative said. On a conference call, Dongfeng said DPCA would have exclusive rights to PSA's Opel cars should the partners agree to bring the brand to China, and enjoy lower prices on car parts imported from PSA. Earlier this year, a document seen by Reuters showed Dongfeng and PSA plan to cut jobs at Wuhan-based DPCA and reduce its number of car plants to try to make the venture more profitable. Chrysler Dodge Fiat Jeep RAM Citroen Peugeot China FCA PSA Dongfeng

Crawling Moab in the 2015 Jeep Renegade Trailhawk [w/video]

The funny thing about the Renegade Trailhawk is that Jeep still feels the need to defend it. For the past 20 years, automakers have sent emissary vehicles outside the citadel walls surrounding their brand niche. In doing so, these companies found buyers eager to join the cult instead of an angry horde. With the kingdom successfully expanded, automakers had to build new walls to contain this broader identity. This is the story of Jeep's modern expansion, growing with new models while the faithful at the brand's center howl at every quest into broader market segments. Thirteen years after it busted out the Liberty and eight years after birthing the Compass and Patriot, you'd think the resistance to new Jeeps would subside. But no. It's 2015, and while nobody makes the slightest tantrum over BMW's new minivan (except for Sniff Petrol), the Renegade still has to fight its way through pitchforks and torches. Which is a long way of saying that this author is guilty of brand prejudice, too. When the company told us that we'd spend the first day of the Easter Jeep Safari driving seven awesome concepts and the second day driving the Renegade Trailhawk on Dome Point Trail, we could only think, "They giveth excitement, and they taketh it away." Our pessimism was later proven to be incorrect. Sharing the sentiment our colleague Brandon Turkus expressed after his Quick Spin, we found the Renegade to be "in a word, impressive." Dome Point will not trouble a kitted-out Wrangler, but in a compact SUV with on-road tires the rocky sections were chunky enough to require close attention to your lines or use a spotter. As instructed, we put the little 4x4 into the Selec-Terrain's Rock mode, and with common sense plus one eye on the man directing us with hand signals the Renegade climbed over everything with some wheelspin but little fuss. At the first rest point, we turned the car off to wait for vehicles behind. Not realizing that this resets the drive mode to Auto, we crawled through the next two rocky jumbles in the default setting. The result was the same: a bit of wheelspin climbing over thick steps, but an altogether drama-free passage. Auto mode can't use the engine throttle maps unique to each Selec-Terrain setting, but it doesn't hamper the Renegade's capability by much. On a steep bit of trail with a crest capped by stacked stone plinths, it took three tries to find the right line, but that's on us – the Renegade did more than expected.

Jeep Cherokee sales rival Wrangler after two months

In our First Drive article on the 2014 Jeep Cherokee we said, "our informal and thoroughly unscientific opinion is they're going to sell tons of them. Why? Because it is very good." So far, it appears the public concurs. Of course, it's very early - the new compact utility has logged just one month of confirmed sales, but Larry Vellequette at Automotive News says dealers have told him that the second month of sales will be even better, a message that mirrors what we've heard from company execs.
In its first, severely truncated month on sale, the Cherokee sold 579 units. With all of November to play with, though, dealers moved 10,169 of them - compared to 11,753 Wranglers and 14,798 Grand Cherokees. That helped propel Jeep to a 30-percent year-on-year improvement for the month, Chrysler Group to a 16-percent improvement and the group's 44th consecutive month of sales growth, exceeding analyst expectations in posting its best November numbers since 2007.
If it can just keep replicating the its first month of sales, the finalist in North American Truck of the Year voting will smoke the trade done by the outgoing Liberty, which didn't break 7,900 units in a month in the last four years of its life (and normally didn't get close to even that). In March this year, Chrysler said it wants to build 250,000 Cherokees in its Toledo assembly plant for global sales. It's early yet, but with second-month sales quoted as being as "strong as death," the bookies might be resetting the odds.