2011 Chrysler 200 Limited on 2040-cars

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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.

November U.S. new car sales mixed as automakers deepen discounts

DETROIT — Major automakers posted mixed U.S. November new vehicle sales on Friday and predicted a competitive December as they rushed to sell vehicles and boost their numbers before 2017 ends. Automakers are trying to sell down 2017 model-year vehicles, offering high discounts to consumers as the year-end nears. In 2016, the industry reported record annual sales of 17.55 million units. According to consultancies J.D. Power and LMC, discounts have been above 10 percent of the average transaction price for 16 of the past 17 months, a level experts say is unhealthy and unsustainable. The November sales results come as the National Automobile Dealers Association said on Friday it expects new vehicle sales to decline to 16.7 million units in 2018, after dropping to 17.1 million for the full year in 2017. If that forecast comes true, the race to move new vehicles off dealers' lots will only intensify next year. Brandon Mason, a director at PwC's automotive practice, said a worrying trend for the industry was a rising number of subprime loans. He said subprime levels are at just over 20 percent of originations, against more than 30 percent prior to the Great Recession, but recent increases remain a concern. "That's a bit of a red flag," Mason said. "It's something to keep an eye on as we move into 2018." November results by automaker: General Motors: Sales fell 2.9 percent, with sales to consumers flat against the same month in 2016. Much of the decrease was driven by lower fleet sales. GM said strong SUV and crossover sales pushed its average transaction price for the month above $37,000 for the first time. The level of unsold cars, which has been a concern for analysts and the industry, rose slightly to 83 days' supply, from 80 days at the end of October. "More vehicles are sold in December than any other month, and we are very well positioned because we have momentum in so many segments, but especially in crossovers," said Kurt McNeil, U.S. vice president of sales operations. Fiat Chrysler Automobiles: Fleet sales are low-margin, and FCA in particular has targeted a significant reduction in this type of sale in 2017. It posted a 4 percent overall decrease in sales for November, but fleet sales were down 25 percent while sales to consumers were up 2 percent on the year. Ford: The No. 2 U.S. automaker reported a 6.7 percent increase for the month, with fleet sales up nearly 26 percent and retail sales 1.3 percent higher than in November 2016.

Junkyard Gem of the Week: 1979 Plymouth Horizon (with the Woodgrain Package!)

While Ford and GM proved to have sufficiently deep pockets to design their own US-market subcompacts for the fuel-starved 1970s, Chrysler had to look to its overseas outposts to create such a car. Turning to Simca, which had become part of Chrysler Europe after Chrysler's absorption of the Rootes Group, a promising hatchback concept was developed into both a European-market version and a significantly different American-market version. Today's Junkyard Gem is an example of the latter type, found in a Denver-area self-service boneyard last summer. The first of these cars came off the Belvidere Assembly line in Illinois as 1978 models (sadly, Stellantis just shuttered Belvidere in February). The Dodge-badged version was the Omni, while the Plymouth version was the Horizon; the generic term for this car is thus Omnirizon. The Omnirizon was a great success for Chrysler, and many other vehicles were based on its platform. To name a few members of the extended Omnirizon family: the 1982-1987 Dodge Charger, the Dodge Rampage/Plymouth Scamp minitrucks, and even the Plymouth Turismo of Cocaine Factory fame. Astoundingly, production continued all the way through 1990, which meant that these thoroughly 1970s cars stuck around long enough to get airbags as standard equipment. Just as was the case with the Mitsubishi-built Dodge and Plymouth Colts, there never were any significant differences—pricing or otherwise—between the Dodge Omni and Plymouth Horizon. The Omnirizon got a fascinating assortment of engines during its first half-decade or so. For 1978 through 1980, it received the same 1.7-liter Volkswagen straight-four that went into US-market Rabbits, Sciroccos, Jettas and Audi 4000s. This one was rated at 77 horsepower and 90 pound-feet. Chrysler began bolting in its homegrown 2.2-liter four-banger starting with the 1981 Omnirizons, with the hilariously quick Omni GLH and GLHS getting turbocharged versions a few years later. From the 1983 through 1986 model years, penny-pinching Americans could buy their base-model Omnirizons with 1.6-liter Peugeot-built Simca engines delivering 62 French horses to the front wheels. This Horizon is absolutely loaded by the standards of late-1970s economy cars. The MSRP was just $4,278 (about $18,843 in 2023 dollars), but this automatic transmission would have added another $319 to the cost ($1,405 today). The base transmission for 1979 was a four-on-the-floor manual.