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China-FCA merger could be a win-win for everyone but politicians

NEW YORK — Fiat Chrysler boss Sergio Marchionne has said the car industry needs to come together, cut costs and stop incinerating capital. So far, his words have mostly fallen on deaf ears among competitors in Europe and North America. But it appears Marchionne has finally found a receptive audience — in China. FCA shares soared Monday after trade publication Automotive News reported the $18 billion Italian-American conglomerate controlled by the Agnelli family rebuffed a takeover from an unidentified carmaker from the Chinese mainland. As ugly as the politics of such a combination may appear at first blush, a transaction could stack up industrially, and perhaps even financially. A Sino-U.S.-European merger would create the first truly global auto group. That could push consolidation to the next level elsewhere. Moreover, China is the world's top market for the SUVs that Jeep effectively invented, so it might benefit FCA financially. A combo would certainly help upgrade the domestic manufacturer; Chinese carmakers have gotten better at making cars, but struggle to build global brands, and they need to develop export markets. Though frivolous overseas shopping excursions by Chinese enterprises are being reined in by Beijing, acquisitions that support the modernization and transformation of strategic industries still receive support, and the government considers the automotive industry to be strategic. A purchase of FCA by Guangzhou Automobile, Great Wall or Dongfeng Motors would probably get the same stamp of approval ChemChina was given for its $43 billion takeover of Syngenta. What's standing in the way? Apart from price (Automotive News said FCA's board deemed the offer insufficient) there's the not-insignificant matter of politics. Even as FCA shares soared, President Donald Trump interrupted his vacation to instruct the U.S. Trade Representative to look into whether to investigate China's trade policies on intellectual property. Seeing storied Detroit brands like Jeep, Chrysler, Ram and Dodge handed off to a Chinese company would provoke howls among Trump's economic-nationalist supporters. It might not play well in Italy, either, to see Alfa Romeo and Maserati answering to Wuhan instead of Turin — though Automotive News said they might be spun off separately. Yet, as Morgan Stanley observes, "cars don't ship across oceans easily," and political considerations increasingly demand local manufacture of valuable products.

78k Chrysler 200 sedans recalled for stalling

Chrysler has been at the top of our list of recalls lately, and is showing little sign of dropping down. The latest campaign announced from Auburn Hills affects nearly 80,000 units over a problem that could see the vehicle suddenly stall or shift into neutral unexpectedly. According to the automaker's statement below, the issue primarily affects the 2015 Chrysler 200. However it indicates that unspecified "additional vehicles are also included in the campaign." Of the 77,834 units affected by the recall, the vast majority – nearly 70k – are in the United States. Another 7,115 are located in Canada, 848 in Mexico, and another 19 outside of North America. The problem stems from some electrical connectors that may have been damaged by the supplier during post-production validation tests. FCA stresses, however, that it is "unaware of any related injuries or accidents" resulting from this issue, and that the glitch may or may not be "accompanied by a dashboard warning-light illumination." Airbag function is reportedly unaffected. Related Video: Statement: Electrical Connectors August 14, 2015 , Auburn Hills, Mich. - FCA US LLC is conducting a voluntary safety recall to correct a condition in an estimated 77,834 U.S.-market sedans that may lead to engine stall or gearshift to neutral. The Company is unaware of any related injuries or accidents. The condition, which may be accompanied by a dashboard warning-light illumination, does not affect air-bag function. An investigation by FCA US revealed some electrical connectors were damaged when the supplier conducted post-production validation tests. Affected are certain 2015 Chrysler 200 midsize sedans. Additional vehicles also are included in campaign. Of these, approximately 7,115 are in Canada; 848 are in Mexico; and 19 are outside the NAFTA region Affected customers will be advised when they may schedule service, which will be performed free of charge. Customers with questions or concerns may call the FCA US Customer Care Center at 1-800-853-1403.

How to update and secure a vulnerable Chrysler Uconnect system

If you own one of the 1.4 million vehicles affected by the recent Chrysler software recall, you may want to watch this video. In it, we explain how to get the latest infotainment software loaded onto the 8.4-inch Uconnect system. The recall was a response to the findings of researchers who were able to hack into and remotely control a 2014 Jeep Cherokee through its cellular connection. Although Fiat Chrysler has worked with Sprint to plug most of the holes on the carrier side, there are still some vulnerabilities that only this latest software version can patch. Owners have three options to get the update: download it now, wait for a USB stick in the mail, or take the vehicle to an FCA dealer. Chrysler will be sending USB sticks loaded with the software update to customers. Anyone with an internet connection and a USB stick of their own with at least 4 GB capacity can speed things up by downloading the patch from the Uconnect website. We cover that process from start to finish in the video, with the final portion still applicable to those using the FCA-supplied USB stick. If after watching this you still don't want to tackle the patch yourself, you can take your vehicle to the dealer to have it done. Also note that this process is the same for all Uconnect updates, not just the one patching the exploits. Our demonstrator vehicle is a 2015 Ram 1500 pickup. The procedure should be very similar on other products with the 8.4-inch Uconnect system, with only the location of the USB port varying. Once you have the USB stick with the software on it – either after having downloaded it yourself or receiving it in the mail from Chrysler – the installation process is relatively simple. It takes about 15 minutes to perform the update; we edited out the wait in the video. To check whether or not your car's 8.4-inch Uconnect system is running the latest software, go to System Information on the touch screen's Settings page and look at Software Version. The update related to the recall is version 15.17.5. Related Video: Recalls Chrysler Dodge Jeep RAM Safety Technology Infotainment Videos Original Video hacking