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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

FCA goes all-in on Jeep and Ram brands on cheap gas bet

It's no surprise that as SUV and truck sales remain strong in the wake of unusually cheap gas, Jeep and Ram sales are taking off. What is a surprise is that FCA CEO Sergio Marchionne thinks that cheap gas will be a "permanent condition," and feels strongly enough about it to change up North American manufacturing plans. Jeep appears to be the biggest beneficiary of the product realignment. In addition to increasing the sales estimates for the brand worldwide upwards to 2 million units a year by 2018, the brand will get a flood of investment for new product and powertrains. Consider the Wrangler Pickup to be part of the salvo, as well as the Grand Wagoneer three-row announced in 2014 as part of the original five-year plan. The Wrangler four-door will get at least two new powertrains, a diesel and mild hybrid version, in its next generation. That mild hybrid powertrain may utilize a 48-volt electrical system like the one that's being developed by Delphi and Bosch – which the suppliers think will be worth a 10 to 15 percent fuel economy gain at a minimum. Down the road, in the 2020s, the Wrangler could adopt a full hybrid system. The diesel powertrain is planned for 2019 or 2020. The Ram 1500 is also pegged to receive a mild hybrid system, again potentially based on 48-volt architecture, sometime after 2020. Lastly, Jeep and Ram will take over some of the production capacity of existing plants. The Sterling Heights, MI, plant that builds the Chrysler 200 will now build the Ram 1500; the Belvidere, IL, facility that produces the Dodge Dart will take over Cherokee output; the big Jeep facility in Toledo, OH, will be used for increased Wrangler demand. In 2015, according to FCA's numbers, car and van demand went down by 10 percent, but SUV demand went up 8 percent and truck demand 2 percent. Considering that these are high-margin vehicles, FCA can't ignore the math. FCA also won't build any new factories to supplement production to meet demand, but instead are reshuffling production priorities. Think of it this way: FCA is gambling on cheap gas being a permanent part of our lives, at least into the 2020s. By doubling down on SUVs and trucks, the company stands to win big, unless a spike in gas prices changes the landscape. FCA isn't talking about a Plan B, so they're all in. It'll be interesting to see how this plays out.

Dead man went unnoticed in pickup at airport for nearly 8 months

The Kansas City Star reports that on Sept. 12, Lenexa, Kan., police found a dead man in the cab of his Dodge Ram 1500 at the Kansas City International Airport. Though a disturbing thing to find at any time, the scene was made all the worse by the fact that the body had been sitting in that truck for eight months. That's right, for virtually all of 2017 to date. It seems likely that the missing man, Randy Potter, committed suicide, and it likely happened the night he was reported missing, which according to KCTV 5, was Jan. 17. This is because, according to the Chicago Tribune, Potter's parking ticket was printed that day. The fact that it took eight months to find Potter is astonishing. Although the Associated Press reports that Potter's body was covered by a blanket and the windows of the Ram were tinted, those aren't really excusable excuses. Potter's truck was in a large parking lot, one that holds nearly 6,000 cars, according to the Kansas City Star, but that shouldn't have mattered, since the company in charge of the lot, S-P+, was supposed to take an inventory of every car in the lot every single night. Plus, Potter's family took the license plate number of the truck to the parking lot security companies not long after his disappearance. Clearly no one from the parking company was watching closely. As for the police, the Star reports that they never checked the airport since there wasn't any evidence to say he might have gone there. Yet they say they spent "several hundred man hours" on the case, and their operating theory was that he had left his family. One way people leave is by plane. So how was the body finally discovered? Someone who parked nearby complained of a horrible smell. After eight months, no doubt. It's puzzling that no one would have reported a smell sooner. Though the problem would have been bad enough in winter and spring, it would have become pretty intense in the summer months, with high temperatures in the 90s translating into incredible heat inside a truck on shadeless pavement under the relentless Missouri sun. Related video: