2014 Ram 1500 Slt on 2040-cars

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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.

Chrysler recalling 2009-2010 Ram 1500, Dodge Dakota pickups over axle pinion nut

Chrysler is issuing a recall for the 2009 and 2010 Ram 1500 and Dodge Dakota pickup trucks due to improper installation of the rear axle pinion nut. According to the National Highway Traffic Safety Administration, a total of 44,300 trucks are affected by the recall, and there have been 12 confirmed incidents including one crash.
The issue on both trucks is that the pinion nut is loosening on some trucks due to a lack of thread adhesive, and it is causing the rear axle to lock up resulting in loss of vehicle control. NHTSA's recall notice says that eight incidents occurred at speeds over 35 miles per hour and most also exhibited driveshaft failures as well since the loss of the pinion nut would cause the gear to separate from the driveshaft. In one complaint, the driveshaft separated from the rear axle and punctured the gas tank.
Chrysler will begin sending out recall notices to affected owners in November, but scroll down to see the official NHTSA notice.

Ram thinks EcoDiesel will lure small-pickup buyers into fullsize 1500

One of the more curious developments at the Los Angeles Auto Show this week was the return of the Chevrolet Colorado pickup truck. General Motors ended production of the Colorado and its cousin, the GMC Canyon, early last year. At the time, the decision seemed to be the final curtain for small and midsize domestic pickups, as it followed Ford's decision to kill the Ranger and Chrysler's decision to end production of the Dodge Dakota.
Bigland argues the Ram 1500 EcoDiesel is essentially competing for the same buyers as the Colorado.
Does Chevy's revival of the Colorado mean a new dawn for the segment overall? Yes and no. The Colorado's reinvention essentially provides a peek at how automakers tackle the same problem in two different ways. GM's approach is to create a new midsize pickup. Chrysler's approach, on the other hand, would seem to focus more on the prospective buyer than the product itself.