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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

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).

The 2019 Ram 1500 will wear a brand-new face

A day after a dealer meeting leak gave us a look at the 2018 Jeep Wrangler JL and 2019 Jeep Grand Wagoneer, we now have this, our first look at the 2019 Ram 1500. The renderings, which come from a printout titled "Ram Brand Lit Signatures" on the wall of a dealer meeting, gives us a clear look at the next-gen truck's front and rear fascias. At the front, the 2019 1500, codenamed DT, gets a more modern, sophisticated look with a refined grille that boasts a massive vertical bar and a skinner horizontal slot. The headlights are slimmer than the current model's square-like units and feature modern LED lamps. The lower end of the front fascia also has slim lighting elements that could be used for fog lights, along with an off-colored skid plate. The hood continues to sport the same bulge as the current model's, but is shaped like a pyramid instead of a massive rectangle. It looks like Ram took a page out of Ford's design book at the back with a rugged design that imitates the 2017 F-150. The taillights, while retaining the same overall shape, have an unlit section that would most likely be used for the reverse lights and turn signals. With the front end benefiting from LED lamps, the rear taillights would probably get LED units, as well. With Ram still testing new configurations of the 1500 and a document revealing FCA's future products, we expect the next-gen 1500 to come out in the near future as a 2019 model year. Related Video: Featured Gallery 2019 Ram 1500 Dealer Leak Spy Shots Image Credit: KGP Photography Design/Style Spy Photos RAM Truck rendering