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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?

Ram confirms Fiat Ducato vans to form new Promaster series for US

Chrysler has officially confirmed that Ram will develop an all-new large van for the US market based on the Fiat Ducato. The commercial rig will go on sale in the third quarter of next year, joining the Ram C/V on the company's professional van line. Expect to see the Promaster face off against the Ford Transit and revised Chevrolet Express.
Chrysler is pretty skimpy on details when it comes to the Promaster, but it has said the vehicle will make use of "familiar Ram Truck styling cues." The van will reportedly also bow with powertrains targeted specifically at the North American market.
Chrysler and Ram made the announcement ahead of the LA Auto Show alongside news that the company will launch a new Ram commercial truck division.

Here's how I averaged 31.5 mpg in a Ram HFE EcoDiesel

Few things could be more American than a bright red Ram pickup parked in front of Mount Rushmore. To get there and back on a single tank of fuel from the nearest major city, however, requires a collaboration of international proportions. This particular Ram is a 1500 HFE EcoDiesel, festooned with badges indicating the presence of an Italian turbodiesel V6 mated to a German eight-speed automatic. Some Rams are even built in Mexico, but this one only boasted a 27 percent Mexican parts content. A rather global truck, this one. It is the sum of its parts, but those bits and pieces were curated by a team of engineers in Michigan. At the risk of hipstering its history, the Ram HFE (High Fuel Efficiency) package was truly custom-tailored for one purpose: Achieving an EPA-rated 29 mpg on the highway, which is 1 mpg better than a standard Ram 1500 EcoDiesel. It did just that. No, it did better than that, but more on that in a minute. The Ram has stuck with its "son of big rig" styling for nearly 25 years; opting for the EcoDiesel V6 means you can fill up next to Peterbilts. My goal was to bypass truck stops entirely. I left Denver early in the morning and aimed to enjoy lunch with Washington, Jefferson, Roosevelt, and Lincoln looking over my shoulder before heading home for dinner. Mt. Rushmore is about 370 miles away from the northernmost truck stop within Denver, where I filled the Ram HFE's tank and headed northbound on Interstate 25 toward Wyoming and a series of smaller highways that roughly follow an old stagecoach route from Cheyenne to what is now Mt. Rushmore in South Dakota. The Ram was such a fuel miser that I could have driven an extra 50 miles each way and still avoided the pumps. It's beautifully stark country: the kind of desolate place where the FM radio does a lot of seeking; that's all the audio I had on board because the Ram HFE is decidedly lacking in comfort and convenience features. To get to an EPA-estimated 29 mpg highway figure, Ram engineers had to goals: To strip weight and improve aerodynamics. In the wind tunnel, the medium-size 4x2 Quad Cab with 20-inch wheels and the Ram Express trim level's one-piece front bumper proved the most aerodynamic configuration of the many flavors of Ram available. Interestingly, testing revealed that adding full-length tubular side steps and a tri-fold tonneau cover normally offered in the Mopar accessories catalog aid aerodynamics.