2014 Ram 1500 Tradesman/express on 2040-cars

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Fiat Chrysler and Peugeot boards meet to finalize merger

MILAN/PARIS — The boards of Fiat Chrysler Automobiles and Peugeot will meet separately on Tuesday to discuss finalizing an initial agreement for a $50 billion merger to create the world's number four carmaker, sources said. A source close to FCA said the two companies could announce the signing of a binding memorandum early on Wednesday, followed by a conference call to explain further details later in the day. The two mid-sized carmakers announced plans six weeks ago for a tie-up to help them deal with big challenges in the industry, including a global demand downturn and the need to develop costly cleaner cars to meet looming anti-pollution rules. Ahead of the meetings, entities representing the Peugeot family, Etablissements Peugeot Freres (EPF) and FFP, unanimously approved a proposed memorandum of understanding for the planned merger, a source familiar with the situation said. FCA and PSA have said they would seek to finalize a deal by year-end to create a group with 8.7 million in annual vehicle sales. That would put it fourth globally behind Volkswagen, Toyota and the Renault-Nissan alliance. PSA's Carlos Tavares will be chief executive and FCA's John Elkann — the scion of Italy's Agnelli family, which controls FCA through their holding company Exor — chairman of the combined company. The group will include the Fiat, Jeep, Dodge, Ram, Chrysler, Alfa Romeo, Maserati, Peugeot, DS, Opel and Vauxhall brands, allowing it to serve mass and premium passenger car markets as well as those for trucks and light commercial vehicles. Related Video:       Chrysler Dodge Fiat Jeep RAM Citroen Peugeot

The EPA has alleged that FCA installed undisclosed emissions software in about 100k Ram and Jeep diesel models [UPDATE]

Update: The text has been updated with official information from the EPA given in a press release and a conference call. Although an initial report from Reuters said the EPA will accuse Ram and Jeep of using emissions defeat devices today, that isn't quite the case. In a press release and a conference call, the EPA stated that the notice of violation sent to FCA is for the installation of eight undisclosed auxiliary emissions control devices on 2014 to 2016 Jeep Grand Cherokee and Ram 1500 models with the 3.0-liter turbodiesel V6. The violation applies to about 104,000 vehicles in total. The agency also explained that auxiliary emissions controls on vehicles are not necessarily illegal, but installing them without disclosing them to the EPA when having the vehicle certified is. Though this initial notice of violation is for installing undisclosed software, the EPA may soon also classify these emissions devices as defeat devices, as it did with the software Volkswagen used. Depending on the outcome of the investigation, there could be fines of up nearly $45,000 per vehicle involved in the notice of violation. The agency revealed that the software alters how the emissions system performs in certain situations. In controlled testing, the vehicles are compliant, but in conditions such as high speed operation, the EPA found the vehicles would produce much higher levels of NOx emissions. The EPA is continuing to investigate, and is waiting for FCA to explain why these emissions control devices are not cheating or defeat devices. In an official statement, FCA stated it is looking forward to explaining that the software does not constitute a defeat device, and has also proposed software updates to achieve compliance. During the conference call, EPA representatives also noted that the vehicles are still safe and legal to be driven, and that owners do not need to take any action yet regarding their cars. It should be noted there is no stop-sale on current models at this time. Additionally, 2017 versions of the 3.0-liter diesel FCA vehicles have not been emissions certified yet. Related Video: News Source: Reuters, Environmental Protection Agency Government/Legal RAM

Pickup prices rising at 2x industry average

We've said it before, but bears repeating: Pickup trucks are the financial engines of America's automakers. Good thing, then, that the segment is in rude health - in fact, Automotive News is suggesting that pickup truck sales are arguably healthier than they were pre-recession, even though the segment's volume is still significantly down from where it was before the bottom fell out of the US economy. That's because per-unit profits on full-size trucks are skyrocketing, outpacing the industry's average price increases by more than double since 2005. According to data from Edmunds, the average transaction price of a full-size pickup is now $39,915 - a heady increase over the $31,059 average price in 2005 - a gain of over 8 percent after inflation is factored in.
Just how important are trucks to automakers' bottom lines? Automotive News quotes a Morgan Stanley analyst as saying the Ford F-Series is responsible for 90 percent of the company's 2012 profits, and General Motors isn't far behind, with the Chevrolet Silverado and GMC Sierra twins chipping in about two-thirds of the automaker's earnings.
Automotive News points out that Detroit's automakers now have the money to invest in modernizing their full-size truck offerings, in part because they don't have the same overhead and legacy costs that pushed General Motors and Chrysler into bankruptcy. Certainly, the pickup segment has seen a lot of innovations as of late, including turbocharged V6s, coil-spring rear suspensions and active aero. Those improvements in important areas like fuel economy and ride comfort have given existing pickup buyers new reasons to upgrade. In addition, automakers are piling on the tech and luxury goodies, creating more and more high-content, high-profit models like the Ford F-150 King Ranch, Ram 1500 Laramie Longhorn and Chevrolet Silverado High Country (shown).