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Current Ram 1500 sticking around into 2019

Ram is preparing a big redesign of its 1500 pickup truck for 2018, but for fans of the current truck, don't feel like you need to rush out to grab one – it's sticking around until 2019. That's according to Automotive News, whose sources spoke on condition of anonymity. The move allows Ram to take a two-prong approach to truck sales, offering the current model as a low-cost option for fleet users while pushing retail consumers toward the new pickup. The factories that build the 1500 today – Warren, MI, and Saltillo, Mexico – will assemble around 200,000 trucks in 2018 and 65,000 in 2019 before Ram phases out the older model. Meanwhile, FCA's Sterling Heights, MI, plant will screw together 325,000 redesigned 1500s starting in 2018, with production to increase to over 400,000 units in 2019. While Ram refused to comment when AN reached out, FCA CFO Richard Palmer hinted at the move during a conference call last week, saying "having more pickup capacity will allow us also to satisfy the fleet customers' demand on pickup, which we struggle to do today because we favor retail in the U.S. and Canadian volume, which have higher margins." "As we realign our capacity, we're going to be able to continue to work on improving our fleet mix," Palmer said. Beyond making a play for fleet buyers, continuing to build the current 1500 guarantees dealerships maintain a solid inventory as Ram ramps up production of the new truck. You can check out leaked images of the redesigned Ram here. According to Automotive News, the new truck won't use aluminum, like the Ford F-150, relying on steel instead. FCA's 3.6-liter V6 will provide thrust along with turbocharged options, although there's no mention of the venerable 5.7-liter Hemi V8. Don't read too much into that, of course – we'll eat our shoe if the 1500 ditches the popular eight-cylinder. It's still too early to predict when the 2019 Ram 1500 will debut, but it will likely happen in 2018 at the North American International Auto Show in Detroit or perhaps at a non-auto show event. Related Video:

China-FCA merger could be a win-win for everyone but politicians

NEW YORK — Fiat Chrysler boss Sergio Marchionne has said the car industry needs to come together, cut costs and stop incinerating capital. So far, his words have mostly fallen on deaf ears among competitors in Europe and North America. But it appears Marchionne has finally found a receptive audience — in China. FCA shares soared Monday after trade publication Automotive News reported the $18 billion Italian-American conglomerate controlled by the Agnelli family rebuffed a takeover from an unidentified carmaker from the Chinese mainland. As ugly as the politics of such a combination may appear at first blush, a transaction could stack up industrially, and perhaps even financially. A Sino-U.S.-European merger would create the first truly global auto group. That could push consolidation to the next level elsewhere. Moreover, China is the world's top market for the SUVs that Jeep effectively invented, so it might benefit FCA financially. A combo would certainly help upgrade the domestic manufacturer; Chinese carmakers have gotten better at making cars, but struggle to build global brands, and they need to develop export markets. Though frivolous overseas shopping excursions by Chinese enterprises are being reined in by Beijing, acquisitions that support the modernization and transformation of strategic industries still receive support, and the government considers the automotive industry to be strategic. A purchase of FCA by Guangzhou Automobile, Great Wall or Dongfeng Motors would probably get the same stamp of approval ChemChina was given for its $43 billion takeover of Syngenta. What's standing in the way? Apart from price (Automotive News said FCA's board deemed the offer insufficient) there's the not-insignificant matter of politics. Even as FCA shares soared, President Donald Trump interrupted his vacation to instruct the U.S. Trade Representative to look into whether to investigate China's trade policies on intellectual property. Seeing storied Detroit brands like Jeep, Chrysler, Ram and Dodge handed off to a Chinese company would provoke howls among Trump's economic-nationalist supporters. It might not play well in Italy, either, to see Alfa Romeo and Maserati answering to Wuhan instead of Turin — though Automotive News said they might be spun off separately. Yet, as Morgan Stanley observes, "cars don't ship across oceans easily," and political considerations increasingly demand local manufacture of valuable products.

Tesla Model 3: Finding perspective

The reveal of the Tesla Model 3 this week was one of the biggest automotive events of the year. The car attracted 180,000 pre-orders in just 24 hours, gave the company's stock a jolt, and set Tesla on a more ambitious growth path for the rest of the decade. It's a staggering feat considering the Model 3 is one car, from one company that's just 13 years old. It begs the question: Is all of this attention warranted? Barclays analyst Brian Johnson urged investors to "take a deep breath," and be mindful that the Model 3 won't likely arrive in "significant volume" until possibly 2019. Though Tesla promises the car will launch in 2017, Johnson points to the slow rollouts of the Model S sedan and Model X crossover as cautionary notes. The potential extended wait didn't temper the enthusiasm of Tesla's faithful, and many put down deposits before they had even seen the car. Johnson compared the hype to a "Black Friday atmosphere," saying the social media buzz went from "insane mode to ludicrous mode," in a riff on Tesla's driving features. Still, the Barclays analyst was admittedly "curmudgeonly" when it came to Tesla's stock price. In comparison, Morgan Stanley called Tesla's shares undervalued, and expects the Model 3 to be the start of cataclysmic changes in the industry. "We have said for some time that, despite its many worthy accomplishments, Tesla had not yet truly disrupted the auto industry," according to a report led by Adam Jonas. "We are now getting a feeling that this may be starting to change." The Model 3 offers a range of 215 miles on a single charge, can sprint to 60 miles per hour in less than six seconds, and has room for five. It will also be capable of charging on Tesla's supercharging network and features the company's autonomous technology. With a starting price of $35,000 before incentives, it's arguably the most futuristic car that's attainable for a wide swatch of American buyers, though the Chevy Bolt EV is comparable (200-plus-mile range, $37,500 MSRP before incentives) in many ways. The Model 3's attainability is what partially drove the hype. It was like Elon was whispering: Y ou can own the future. The question is now: Can Tesla deliver? If it does, this early fanfare will be richly deserved. News & Analysis News: Top Gear appears to be in turmoil as Chris Evans works four hours a day. Analysis: Is this a soap opera or a car show?