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FCA and Peugeot reportedly agree on merger

Citing a Wall Street Journal report, the Detroit Free Press says "Fiat Chrysler and PSA Groupe have agreed to merge." The Journal reported on talks between the two car companies only yesterday. It's said that Peugeot's board met yesterday to approve the deal, FCA's board met today, and an announcement could come as soon as tomorrow, Thursday. Both automakers have released statements, but neither company has released any information beyond admitting to ongoing talks. If the merger happens, the combined entity would become the world's fourth-largest carmaker with a $50 billion valuation, slotting in behind Toyota, the Volkswagen Group, and the Renault Nissan Mitsubishi alliance. Among the merger options possible, "an all-stock merger of equals" is the one analysts and Moody's seem to give the best grade. The reported merger would come about four months after FCA walked away from merger talks with Renault. FCA said the French government scuppered those talks over the role of Nissan in a reformed entity, but there were also brewing issues with French unions, and ongoing turmoil among Renault and Nissan leadership thanks to continuing fallout from ex-CEO Carlos Ghosn's arrest last year. FCA makes most of its revenue in the U.S. and rules Italy, while Peugeot is the second-best-selling automaker in Europe with its own brand in France and Opel in Germany. The two companies already have a partnership in Europe making vans, one that FCA CEO Mike Manley has spoken highly of. Among the list of obvious benefits in a potential merger, FCA would get access to Peugeot's small, modern platforms, $10.2 billion in cash, and electrified and hybrid architecture developments, the latter especially important to FCA as those are fields where it lags. Peugeot would get much easier access to the U.S. market, and the money-printing brands Jeep and Ram. A merged carmaker would have combined sales of nearly 9 million a year, based on 2018 results. By comparison, both Volkswagen and Toyota sell over 10 million cars a year, while the Renault-Nissan-Mitsubishi alliance almost 11 million. Peugeot CEO Carlos Tavares has proved he knows how to do turnarounds and mergers. After leaving a position as Carlos Ghosn's right-hand man in 2012, Tavares took over Peugeot in 2014, navigated a bailout from the French government and China's Dongfeng Motors in 2015, and turned PSA into a regional powerhouse.

Chrysler's next-gen minivans will get more expensive

Chrysler introduced the value-oriented Great American Package on the base model Chrysler 300 in 2005. That morphed into the American Value Package available as an option on the Dodge Grand Caravan in 2012, which made it the lowest-priced minivan in the country, now with an MSRP of $21,395. Automotive News reports that Chrysler is going to kill the value package when the new Town & Country arrives for 2017, because the new platform and technology of the coming minivan make it "a difficult price point to get to." AN says the next-generation haulers will come in around $26,000 and can go beyond $45,000 with options; clicking every "Add" button we could find on the Town & Country build page, we couldn't get past $43,000 for today's model. That entry pricing in 2017 would eliminate the first three trims on the Dodge option, the American Value Package, the SE that starts at $24,195, and the SE Plus that starts at $24,995. This makes us think the next-generation haulers will take a sizable step upscale in terms of feel, content, and trim, a la the Chrysler 200. In this writer's opinion, if they do as good a job as they've been doing recently, the extra money will be worth it. There have been spy shots and a lot of rumors about it, like the Caravan minivan going away and becoming a crossover, but we'll see it revealed at the 2016 Detroit Auto Show. News Source: Automotive News - sub. req. Chrysler Dodge Car Buying Minivan/Van chrysler town and country price dodge grand caravan

Chrysler 300C gets Sport Appearance Package option

In 2017, Chrysler added the option of a Sport Appearance Package to the sporty trim level of the 300 sedan, the 300S. The package added trim pieces from the hot-blooded 300 SRT sedan that we don't get in the U.S., namely the front fascia with LED foglights and SRT-style side skirts. Mopar Insiders reports that as of this month, the same upgrade is available on the top-level 300C trim as the Performance Appearance Package. Whereas the Sport Appearance Package on the V6-powered S model costs $1,795; the 300C's Performance Appearance Package is said to cost $695. We're sure Chrysler knows this isn't the performance upgrade that U.S. 300 buyers want. For reasons best known inside Chrysler, only Australia, New Zealand, and the Middle East get the 300 SRT and its 6.4-liter V8 with 469 horsepower and 469 pound-feet of torque, limited-slip differential, Bilstein dampers, and Brembo brakes. It's possible the absence of the 300 SRT here is because Chrysler wants North American audiences to see Dodge as the performance brand. At this point, however, anyone intending to buy a 300 should be happy the four-door is still on sale. The model is eight years old and hasn't been the subject of anything close to hard news since last September. That's when Automotive News Canada said the car would die in 2020 to make room for the six-passenger Portal concept. The last hard nugget before that was in 2016, when the late Sergio Marchionne told Reuters the 300 could go front-wheel drive on the Pacifica platform — a fate arguably worse than killing the car. Now all we have is rumor and speculation, such as when Road & Track writes a "major refresh [is] ... supposedly being planned already," and sees a possibility that the 300/Charger/Challenger trio live into the next decade. The moral of the story is: The 300's irons could be as hot as they're ever going to get right now. FCA hasn't announced the upgrade package, but Mopar Insider says dealers can get it right now, order code AJU.