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Google-FCA deal is a coup for both sides

FCA made a savvy play this week to team with internet giant Google. It's not as sexy as partnering with Apple, but it's almost as good. This move positions FCA to expand its capabilities in the autonomous driving field, and connecting with Google could boost the automaker's image. FCA will provide Google with about 100 Chrysler Pacifica hybrid minivans specially developed for autonomous testing. Google will integrate its sensors and computers into the vehicles. They'll work together at a site in Southeast Michigan and test the prototypes on Google's private test track in California. It's looks like an equitable deal and a win for both sides. "This marks a watershed event for the auto industry on two major levels: contract manufacturing for high tech firms and allowing such firms a clear pathway into the brain of the car," Morgan Stanley researchers said in a note. Don't underestimate how big this is for Google. The deal more than doubles the size of the tech firm's fleet, and does so with the Pacifica, a potentially segment-defining entry. Currently, it's using Lexus vehicles and other modified prototypes as testers. Though FCA is the smallest of Detroit's carmakers, it's also viewed as nimble and willing to embrace change. The Jeep and Ram divisions are as strong as any brand in the industry, and the Hellcats and Viper reinforce FCA's enthusiast cred. Google doesn't need those things, but they're pretty cool associations, nonetheless. If Ferrari can try to position itself as a leather goods maker, Google can have a little octane in its system. While experts expect Google to eventually partner with other automakers or to license its technology (FCA chief Sergio Marchionne reportedly said the deal isn't exclusive), FCA is positioned to get a head start. IHS Automotive predicts there will be 10.5 million self-driving or driverless cars used around the world by 2030. General Motors, Mercedes, Tesla, Volvo, Ford, and others have launched or are planning to roll out their own versions of autonomous driving technology. For now, FCA goes from having no apparent autonomous plans to potentially being among the leaders, and Google secures a legitimate automotive partner. Like we said, it looks like a win-win. NEWS & ANALYSIS News: Sergio Marchionne is taking over the CEO job at Ferrari. Analysis: This is a consolidation of Marchionne's power over the famous Italian sports-car maker and racing team.

2014 Chrysler 200 to set design tone for brand

Speaking with Wards Auto at this year's Detroit Auto Show, Chrysler design chief Ralph Gilles said that the next-generation Chrysler 200 will launch a whole new styling direction for the brand when it arrives for the 2014 model year. Gilles did not reveal any specific design cues or elements that will be found on the next 200, only saying that the new car "shares no surface language with any previous Chrysler we've ever seen."
Indeed, the current 200 isn't exactly setting the world on fire with any sort of clever, emotive design, but Gilles knows that. "The current Chryslers on the road today certainly don't reflect where we're headed," he told Wards Auto. Instead, Gilles said that "we are deviating from where we are today, completely. It's a very different feeling (and) look."
The launch of the new Chrysler 200 will officially mean the death of its Dodge Avenger counterpart, though Gilles says that the company is working on an all-new product to replace that vehicle down the road. Still, Chrysler will need a successful player in the popular midsize segment, and Gilles fully expects the new 200 to be up to the task. "I think it's going to be a beautiful and relevant vehicle."

FCA to pay buyers $1,700 to swap out of scandal-mired VWs

FCA is trying to gain some sales from arch-rival VW in the competitive European market by offering potential buyers in Italy up to $1,700 to swap into an FCA group car. While the promotion isn't specifically targeted at TDI owners affected by the emissions scandal, it is clearly intended to turn dissatisfaction with VW's defeat device cheat into additional sales, Bloomberg reports. The 500-1,500 euro incentive (roughly $560-1,700, depending on vehicle) stacks on top of any other rebates or deals applicable, and applies if a buyer brings in any of Volkswagen Group's cars – including Audi, Skoda, and SEAT, among (many) others. As Bloomberg notes, it's normal for automakers to offer "conquest" deals – giving a buyer cash for trading in a competitor's vehicle. Those deals aren't usually limited to one company's products, however; FCA's program looks specifically to take advantage of VW's legal and public relations nightmare. FCA isn't the only automaker trying this trick in Italy. Automotive News Europe also reported that Ford is offering approximately $840 in incentives across its entire range to owners of VW vehicles seeking to trade in for a Ford. No word of yet as to whether these incentives will spread beyond Italy or to other automakers.Related Video: