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China's Geely says it has no plan to buy Fiat Chrysler — as FCA stock leaps

HONG KONG — Chinese carmaker Geely Automobile denied media speculation on Wednesday that it planned to make a takeover bid for Fiat Chryslerk Automobiles (FCA), the world's seventh-largest automaker. Geely was one of several Chinese carmakers cited in by Automotive News, which said representatives of "a well-known Chinese automaker" had made an offer this month for FCA, which has a market value of almost $20 billion. "We don't have such a plan at the moment," Geely executive director Gui Shengyue told reporters at an earnings briefing, when asked if Geely was interested in Fiat. He said a foreign acquisition would be complicated, but he did not elaborate. "But for other (Chinese) brands, it could be a fast track for their development," Gui added. However, a source close to the matter said FCA and Geely Automobile's parent firm, Zhejiang Geely Holding Group, had held initial talks late last year, without disclosing their nature. The source confirmed Geely was no longer interested in FCA, noting that the parent company had only three months ago announced its first push into Southeast Asia with the purchase of 49.9 percent of struggling Malaysian carmaker Proton, a deal that also included a stake in Lotus. Geel's denial failed to dent FCA's stock. The price of its Milan-based shares has jumped more than 10 percent to a 19-year high since Automotive News first reported on Monday, citing unnamed sources, that FCA had rejected the Chinese offer as too low. FCA stock on the New York Stock Exchange rose sharply on Monday from $11.60 to $12.38 and on Wednesday was trading at $12.84. FCA declined to comment on Wednesday. FCA Chief Executive Sergio Marchionne has repeatedly called for mergers as a way of sharing the costs of making cleaner, more advanced cars, but he has repeatedly failed to find a partner and retreated from his search for in April, saying FCA would stick to its business plan. He has also spoken of spinning the successful Jeep and Ram divisions off from FCA. Europe's largest carmaker, Volkswagen, and General Motors have both said they are not interested in talks with FCA. On Wednesday, Geely Automobile reported a doubling of first-half profit, above expectations, as cars designed with Sweden's Volvo won over domestic consumers. Volvo is a unit of the Zhejiang Geely group, and has recently announced it will share its technology with Geely.

Will Nissan's Cummins deal upset Ram's marketing mojo? [w/poll]

Ram has used Cummins engines in its heavy duty trucks since 1989, and it is the only pickup truck brand to use products from the Indiana-based engine maker. With the announcement that the next Nissan Titan will also use a Cummins powerplant, and a Nissan spokesman having already said "We will definitely leverage the Cummins brand name," a piece in Automotive News wonders whether the deal will affect the way Ram markets its tie-up with Cummins.
The question really is, how intense is this competition? While it is the first time that trucks from two different brands have used Cummins engines, they'll be two different engines in two different kinds of trucks; Nissan is going to put a 5.0-liter turbodiesel in a non-heavy-duty Titan, Ram only uses its 6.7-liter, inline six-cylinder turbodiesel in heavy-duty offerings. The diesel that Ram will offer in its light-duty, half-ton 1500 is a 3.0-liter V6 EcoDiesel with 240 horsepower and 420 pound-feet of torque - compared to about 300 hp and 550 lb-ft expected from the Titan's Cummins - and its marketing so far has focused on the fuel economy gains.
If Nissan was going to prove its commitment to the segment, it had to do something compelling. If we're talking about sales competition between Ram and Nissan, Ram has sold 201,633 trucks as of July this year, up 24.2 percent, 31,314 of those sales coming last month; Nissan has sold 10,020 Titans through the end of July, down 21.1 percent, and just 1,168 in July itself. Nissan's new truck boss - who hopped there from Ram - said that buyers have asked for a powerful turbodiesel in something other than a heavy duty pickup, and from what we've read on various comment boards, the pickup truck crowd is excited about Nissan's move.

Fiat Chrysler to get $105M fine from NHTSA for recall woes

The National Highway Traffic Safety Administration is about to send a powerful message to automakers doing business in the United States, assuming reports of an upcoming $105 million fine against Fiat Chrysler Automobiles comes to fruition. In addition to the record-setting monetary fine, according to The Wall Street Journal, FCA will have to accept an independent auditor that will monitor the company's recall and safety processes and will be forced to buy back certain recalled vehicles. In other cases, such as with Jeep Grand Cherokee and Liberty models with gas tanks that could potentially catch fire in certain types of accidents, FCA will offer financial encouragement for owners to get their recall work done or to trade those older vehicles in on new cars, according to the report. FCA could reportedly reduce its fines if it meets certain conditions, though those remain unclear at this time. These actions against FCA are being taken after NHTSA began a probe into the automaker over almost two dozen separate instances where the government claims FCA failed to follow proper procedures for recalls and safety defects. Included in those safety lapses are more than 11 million vehicles currently in customer hands. These penalties and fines are separate from the investigation over security problems with Chrysler's Uconnect system that allowed hackers to obtain remote access into key vehicle systems in 1.4 million vehicles. Related Video: Image Credit: Marco Bertorello/AFP/Getty Earnings/Financials Government/Legal Recalls Chrysler Dodge Fiat Jeep RAM Safety fiat chrysler automobiles fine