Jeep: Wrangler Unlimited 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?

Canadians build Jeep Wrangler out of cans for charity

The Jeep Wrangler can do a lot of things. It can traverse most any terrain, take you to work, the kids to school, get you and your friends to the surf on time, and so on. Turns out it can also feed the hungry – or at least this one can. And by can, we mean actual cans of food. To celebrate Canada Day (which was Wednesday), Jeep recreated a Wrangler out of more than 4,500 cans of food. The project was undertaken together with Canstruction Inc, a charity that works to fight hunger and poverty, serve the community, and promote science, technology, engineering, and math. The full-scale replica took a team of teenagers a good 12 hours to build. It's being displayed at Vancouver's waterfront Canada Place during the festivities, after which it will be dismantled to provide 3,120 meals for the hungry through the Greater Vancouver Food Bank Society. This is the second such project we've seen FCA Canada undertake together with Canstruction. Last time it was a Dodge Grand Caravan created to celebrate the minivan's 30th anniversary. It was built out of 30,000 cans and displayed in downtown Toronto before being distributed as 2,000 food baskets through the Daily Bread Food Bank. Next time maybe we'll see a Viper or Challenger made out of cans on display in Montreal during the Canadian Grand Prix weekend and donated to the Old Brewery Mission, which this writer knows first-hand does good work to feed Montrealers in need. Related Video: JEEP® AND THE FCA FOUNDATION CELEBRATE CANADA DAY WITH LIFE-SIZE 'CANSTRUCTION®' OF JEEP® WRANGLER FOR CHARITY - Full-scale Jeep® Wrangler built from over 4,500 cans of food will provide more than 3,120 meals to Greater Vancouver Food Bank Society - Vehicle built by local students 12-18 years of age - Jeep and the FCA Foundation again partnered with Canstruction® Inc. for the build, an international non-profit organization that aims to raise awareness for hunger and poverty, along with Science, Technology, Engineering and Math (STEM) principals, plus community service - Public can stop by Canada Place on Canada Day to take a #JeepCANselfie in the vehicle - In 2014, FCA Canada was the top-selling automaker in B.C., a title it's retained thus far in 2015 - Jeep Wrangler is B.C.'s best-selling small SUV by more than double its closest competitor July 1, 2015 , Vancouver, B.C.

China-FCA merger could be a win-win for everyone but politicians

NEW YORK — Fiat Chrysler boss Sergio Marchionne has said the car industry needs to come together, cut costs and stop incinerating capital. So far, his words have mostly fallen on deaf ears among competitors in Europe and North America. But it appears Marchionne has finally found a receptive audience — in China. FCA shares soared Monday after trade publication Automotive News reported the $18 billion Italian-American conglomerate controlled by the Agnelli family rebuffed a takeover from an unidentified carmaker from the Chinese mainland. As ugly as the politics of such a combination may appear at first blush, a transaction could stack up industrially, and perhaps even financially. A Sino-U.S.-European merger would create the first truly global auto group. That could push consolidation to the next level elsewhere. Moreover, China is the world's top market for the SUVs that Jeep effectively invented, so it might benefit FCA financially. A combo would certainly help upgrade the domestic manufacturer; Chinese carmakers have gotten better at making cars, but struggle to build global brands, and they need to develop export markets. Though frivolous overseas shopping excursions by Chinese enterprises are being reined in by Beijing, acquisitions that support the modernization and transformation of strategic industries still receive support, and the government considers the automotive industry to be strategic. A purchase of FCA by Guangzhou Automobile, Great Wall or Dongfeng Motors would probably get the same stamp of approval ChemChina was given for its $43 billion takeover of Syngenta. What's standing in the way? Apart from price (Automotive News said FCA's board deemed the offer insufficient) there's the not-insignificant matter of politics. Even as FCA shares soared, President Donald Trump interrupted his vacation to instruct the U.S. Trade Representative to look into whether to investigate China's trade policies on intellectual property. Seeing storied Detroit brands like Jeep, Chrysler, Ram and Dodge handed off to a Chinese company would provoke howls among Trump's economic-nationalist supporters. It might not play well in Italy, either, to see Alfa Romeo and Maserati answering to Wuhan instead of Turin — though Automotive News said they might be spun off separately. Yet, as Morgan Stanley observes, "cars don't ship across oceans easily," and political considerations increasingly demand local manufacture of valuable products.