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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?

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:

Ram confirms Fiat Doblo-based ProMaster City for North America

As Sergio Marchionne flies back and forth between Turin and Auburn Hills, he doesn't just bring Chryslers back with him to Italy to sell as Lancias. He also brings Fiat products to sell Stateside under various Chrysler labels, chief among them Ram.
The former Dodge truck brand launched the Fiat Ducato as the Ram ProMaster earlier this year, giving it a greater foothold in the commercial vehicle market and a replacement for the Sprinter which Mercedes-Benz took back from its Chrysler-partnership days. Now Auburn Hills has announced that Ram will begin selling the Fiat Doblo on this side of the Atlantic as the Ram ProMaster City.
The Doblo, which was twice named International Van of the Year, has sold over 1.3 million units worldwide. Whether that includes the rebadged version which Vauxhall and Opel sell as the Combo is another matter, as is the question over how much longer Fiat and General Motors will continue that particular partnership as the ties between Fiat and Chrysler deepen.