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2017 Chrysler Pacifica Hybrid scored 84 MPGe in government testing

The 2017 Chrysler Pacific, in non-hybrid form, was already at the top of the minivan heap in terms of EPA-rated fuel economy. Now the government agency has released its official test numbers for the Pacifica Hybrid, and they're looking pretty good. The non-hybrid Pacifica achieved 28 highway, 18 city, and 22 combined miles per gallon, which compared favorably to the 2016 Honda Odyssey's 28/19/22 and Nissan Quest's 27/20/23 ratings. You can read more about the regular Pacifica's scores right here. But none of these vans compare to the Pacifica Hybrid, which is incidentally the only hybrid in the class. FCA claims that the EPA's numbers are even better than the anticipated 80 MPGe, although we can't speak to whether that's an honest admission or a too-convenient claim. But there's no denying that the official rating – 84 MPGe – is impressive. If you aren't familiar with the MPGe rating, no worries. It's not as straightforward as conventional EPA MPG ratings, but a layperson can understand how it works. MPGe stands for miles per gallon equivalent, and measures fuel economy based on the energy content of a gallon of petroleum-based gasoline. For those who like formulas, the Automotive X Prize once defined MPGe as (miles driven) / [(total energy of all fuels consumed)/(energy of one gallon of gasoline)]). As for a conventional rating, the EPA only provides a combined city/highway number on the Monroney sticker, and an FCA spokesperson told us that the rating for the Pacifica Hybrid will be 32 MPG. This represents the hybrid working as normal, not in EV-only mode. It's also an improvement of almost 10 MPG over the combined ratings of the top three conventional minivans in the segment, including the non-hybrid Pacifica. Range is also fantastic. The EPA rated the total EV-only range as 33 miles, and the overall combined range at a staggering 566 miles. And that's from a fuel tank that's just 17 gallons (compared to the 19-gallon tank in the conventional Pacifica, which nets it a 418-mile EPA-rated range). FCA is going to extraordinary lengths to credit its eFlite transmission-generator unit, which can supply electric power to the front wheels if necessary. It's a piece of equipment that represents a substantial engineering investment, and apparently that's all paid off. Chrysler tells us that the Pacifica Hybrid will go on sale next month, and that dealers will get more volume in Q1. Related Video: This content is hosted by a third party.

Marchionne urges industry consolidation, again

Sergio Marchionne isn't just an instigator of mergers – he's also a staunch advocate for their need in the industry. And he seems convinced another big one will happen in the next few years. "I am absolutely certain that before 2018 there will be a merger," said Marchionne. "It's my personal opinion, based on a gut feeling." Though the terms "absolutely certain" and "gut feeling" would seem to convey vastly different degrees of certainty, his chief's statement would seem to suggest some inside knowledge of an impending deal. Marchionne, of course, brokered the consolidation of the Fiat Chrysler Automobiles empire over which he now presides, and has been actively seeking another merger to help reduce redundancy and overhead between major automakers in the industry. With which automaker he might be seeking such a merger, however, remains a big question. He was recently reported to have approached Mary Barra regarding a potential merger with General Motors, but was said to have been rebuffed. The Italian-Canadian executive may not be alone in his advocacy for industry consolidation, though. Opel chief Karl-Thomas Neumann said that "In principle, Marchionne is right – the auto industry develops the same things ten times over." Bringing major automakers together would ostensibly reduce that redundancy. Marchionne had been linked to a potential takeover of Opel when GM was shedding brands post-bankruptcy, but in the end the Detroit giant opted to keep its European division in-house.

Fiat Chrysler begins Magneti Marelli spinoff

MILAN — Fiat Chrysler has kicked off its planned spinoff of parts maker Magneti Marelli, which will be registered in the Netherlands and listed on the Milan stock exchange, a document outlining initial plans and seen by Reuters showed. The spinoff is part of a plan by FCA Chief Executive Sergio Marchionne to "purify" the Italian-American carmaker's portfolio and to unlock value at Magneti Marelli similar to his earlier spinoff of Ferrari. Analysts say Magneti Marelli could be worth between 3.6 billion and 5 billion euros ($4.2 billion to $5.8 billion). It sits within FCA's components unit alongside robotics specialist Comau and castings firm Teksid. FCA has created a separate entity called MM Srl, the document showed, into which it will fold Magneti Marelli's electronics and electro-mechanical operations related to racing motorbikes and racing cars, as well as 14 other holdings in various companies around the world, including Germany, Slovakia, Mexico and South Africa. MM will be incorporated into a Dutch holding company via a cross-border merger, it added. FCA declined to comment. The move follows a similar procedure adopted by FCA for the spinoff and listing of Ferrari as well as of trucks and tractor maker CNH Industrial, both registered in the Netherlands and listed in Milan. The Dutch holding company would allow Marchionne, known for his success in extracting shareholder value through this strategy, to introduce a loyalty share scheme to reward long-term investors through multiple voting rights, as was the case with CNH and Ferrari. That would tighten the grip of FCA's controlling shareholder Exor, the Agnelli family's investment holding company, on the parts maker. Magneti Marelli, which employs around 43,000 people and operates in 19 countries, is a diversified components supplier specialized in lighting, powertrain and electronics. The Magneti Marelli separation is expected to be completed by the end of this year or early 2019, FCA has said. FCA's advisers initially looked at a possible initial public offering for the business to raise cash to cut FCA's debt, but the Agnelli family — FCA's main shareholder — was put off by low industry valuations and did not want its stake in Magneti Marelli to be diluted, three sources close to the matter told Reuters in March. Magneti Marelli has often been touted as a takeover target, and FCA has fielded interest from various rivals and private equity firms over the years.