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FCA compromises with France, moving Renault merger bid forward

FRANKFURT/PARIS – Renault directors were preparing to review Fiat Chrysler's $35 billion merger offer on Tuesday, after the Italian-American carmaker resolved differences with the French government overnight, three sources said. The compromise on French government influence over a combined FCA-Renault may clear the way for Renault's board to approve a framework agreement beginning the long process of a full merger, unless new issues surface at the meeting. France, Renault's biggest shareholder with a 15% stake, had been pressing for its own guaranteed seat on the new board and an effective veto on CEO appointments. But after late-night talks with FCA Chairman John Elkann, the French government has accepted a compromise that would see it occupy one of four board seats allocated to Renault, balanced by four FCA appointees, the sources said. Renault would also cede one of its two seats on a four-member CEO nominations committee to the French state, they said. Renault, FCA and the French government all declined to comment on the discussions. The same evening that the compromise was was negotiated, activist hedge fund CIAM wrote to the board of Renault to say it "strongly opposed" a planned $35 billion merger with Fiat Chrysler. Calling the deal "opportunistic," the fund said the current deal terms strongly favored Fiat Chrysler and offered no control premium. (Reporting by Arno Schuetze and Laurence Frost; additional reporting by Giulio Piovaccari in Milan and Simon Jessop; editing by Jason Neely and Rachel Armstrong) Government/Legal Chrysler Fiat Mitsubishi Nissan Renault merger

Merged PSA and Fiat would retain all brands, Tavares says

By Elisa Anzolin and Gilles Guillaume PARIS/TURIN, Italy (Reuters) - Peugeot maker PSA Group and Fiat Chrysler would retain all of their car brands if their planned $50 billion merger goes ahead, the would-be chief executive of the combined group said on Friday. PSA CEO Carlos Tavares, seen as the architect of PSA's turnaround and in line to take the operational helm in the Fiat tie-up, said in a TV interview that the companies complemented each other well geographically and in terms of technology and brands. FCA derives 66% of its revenue from North America compared with only 5.7% for PSA, Refinitiv Eikon data shows. Europe remains the main revenue driver for PSA. "There's no doubt it's a very good deal for both parties. It's a win-win," Tavares told France's BFM Business, in his first interview since the French and Italian companies announced plans to create the world's fourth-largest auto maker last week. Fiat Chrysler (FCA) Chairman John Elkann, who would chair the combined group, said on Friday at an event in Turin that the 50-50 share merger would help the Italian carmaker "seize great opportunities." The deal, which would help the firms pool resources to meet tough new emissions rules and investments in electric and self-driving vehicles, as well as counter a broader downturn in car markers, is still at an early stage. PSA and Fiat have said they aim to reach a binding outline in the coming weeks, but still face questions over potential job losses, as well as scrutiny over whether the transaction favors one party more than the other. Tavares said the brands that would come under the combined group's umbrella — PSA's five passenger car nameplates include Citroen, Vauxhall and Opel, while FCA has nine, including Fiat, Alfa Romeo, Maserati, Chrysler, Dodge and Jeep — were all likely to survive. "As of today, I don't see any need to scrap any of the brands if the deal came to pass. They all have their history and their strengths," Tavares said. Few carmakers have as large a portfolio, with German rival Volkswagen Group counting 10 passenger brands, if newer Chinese ones such as electric vehicle label Sihao are included. The merger will also require approval from anti-trust authorities. Tavares said he did not expect the companies to have to make major concessions to meet competition rules, but added they were ready to do so, without giving details.

2017 Chrysler Pacifica First Drive

I know this is supposed to be a shameful secret, but I like minivans. I like the way the kids can enter and exit easily with the sliding doors. I like the comfortable ride they provide on road trips. I like the way I can reconfigure the interior seats to haul groceries, furniture, and kids. For decades, the minivan has been maimed by its uncoolness. Sales of the family movers have tapered to about 500,000 units per year while American families have shifted their allegiance to crossovers and SUVs. But America loves a redemption story, and I believe the minivan can be redeemed. Chrysler does too. At a time when the company is shedding vehicles from its lineup – so long, Chrysler 200 and Dodge Dart – its executives aren't paying any attention to whatever conventional wisdom suggests the minivan segment has foundered and reached its end. Instead, Chrysler just spent $2 billion to overhaul the architecture for its minivan. Enter the 2017 Pacifica, an all-new vehicle that immediately replaces the Town & Country and eventually will replace the Dodge Grand Caravan. It couldn't have come at a better time. Consumer Reports recently named the outgoing Town & Country one of its "Ten Worst Picks" among 2016 vehicles, an eyesore for the company that pioneered the minivan segment. Enticed by a slew of standard features and heavy incentives, I happen to own one of those disparaged Town & Country vans. Other than a transmission that always seems to be searching for the right gear, I've got no substantial complaints about the car. While it'd be a reach to say that any minivan is attractive, the new design makes the Pacifica the best of the bunch. But my ownership experience made me curious about how the new Pacifica would fare, whether Chrysler's billions were invested well and mostly, whether the Pacifica would truly feel like an all-new vehicle or whether it had merely been incrementally advanced. Navigating the roads in the rolling hills of Southern California last week, it didn't take long to find out. A revised 3.6-liter Pentastar V6 engine delivered 287 horsepower and 262 pound-feet of torque, making the climbs up California's hills effortless. Likewise, the new nine-speed automatic transmission never strained or felt clunky, like it has in other recent products like our long-term Jeep Cherokee. The harmonious combination of the upgraded engine and transmission felt like the single-biggest differentiator between the old and new minivans.