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Fiat, PSA poised to win EU approval for $38 billion Stellantis merger

BRUSSELS/MILAN — Fiat Chrysler and PSA are set to win EU approval for their $38 billion merger to create the world's No.4 carmaker, people close to the matter said, as they strive to meet the industry's dual challenges of funding cleaner vehicles and the global pandemic. The green light from the European Commission would formalize the creation of Stellantis, a carmaking group that could tap hefty profits from selling Ram pickup trucks and Jeep SUVs to U.S. drivers to fund the expensive development of zero-emission vehicles for sale in Europe and China. The all-share merger announced late last year would unite brands such as Fiat, Jeep, Dodge, Ram and Maserati with the likes of Peugeot, Opel and DS — while targeting annual cost cuts of 5 billion euros ($6 billion) without closing factories. The Commission and Italian-American group Fiat Chrysler Automobiles (FCA) declined to comment. France's PSA did not immediately respond to a request for comment. PSA and FCA shares reversed losses after the Reuters story was published. PSA stock was last up 2% at 16.83 euros, while FCA shares were 1.9% higher at 11.31 euros. To allay EU antitrust concerns, PSA has offered to strengthen Japanese rival Toyota Motor Corp, with which it has a van joint venture, by ramping up production and selling it vans at close to cost price, the people said. FCA and PSA will also allow their dealers in certain cities to repair rival brands. Following feedback from rivals and customers, the carmakers only had to tweak the wording of their concessions, with no changes to the substance, the people said. The companies did not have to use the COVID-19 pandemic to argue for the merger, they added. FCA and PSA have said they hope to complete the merger in the first quarter of 2021. The challenge of switching to electric cars has been complicated by the COVID-19 pandemic. Just last month, FCA and PSA restructured the terms of their deal to conserve cash and raised their targeted cost savings because of the economic fallout from the health crisis. The companies have said about 40% of the savings will come from product-related expenses, 40% from purchasing and 20% from other areas, such as marketing, IT and logistics.

Mopar opening Custom Shop at Cobo

While other automakers have been streamlining their brand portfolio, the Chrysler Group has shown no such signs. It's got the Dodge, Chrysler and Jeep brands, plus Fiat, and it recently broke out its SRT and Ram nameplates into their own brands. And you can bet each will have its own presence at the Detroit Auto Show this year. But don't forget Mopar. The company's performance parts division is getting its own display at Cobo this year, and it'll be the largest in the brand's history.
The Mopar Custom Shop is poised to take up 5,500 square-feet of Cobo floor space, further expanding on last year's Mopar Garage. If the image above offers any indication, the show stand will include a Dodge Challenger, SRT Viper, Fiat 500L, Jeep Wrangler, Jeep Cherokee, Ram 3500 and what looks like (but isn't identified in the press release below as) a Chrysler 200 (which may be replaced by a 2014 model), all augmented with Mopar parts and accessories.
Visitors will also be able to use pre-programmed iPads to configure Chrysler Group vehicles with a wide range of accessories - a portfolio that grows by 1,500 new parts every year and tops over 100 add-ons for every new vehicle Chrysler launches.

2015 Chrysler 200 gets 36 mpg with Tigershark four-cylinder

Chrysler has come out with the official fuel economy information on the new 200 following the info that was leaked from the EPA earlier this week. It turns out that our initial report of 18 miles per gallon in the city and 29 mpg on the highway for the all-wheel-drive V6 was correct.
What we didn't know at the time, though, was what sort of economy the 200's other powertrain options managed. Outfitted with the 2.4-liter four-pot, Chrysler is promising 23 mpg in the city and 36 mpg on the highway, with a combined rating of 28 mpg. Those figures are fairly impressive; besting figures of the 2.5-liter Ford Fusion and tying the 1.5-liter, EcoBoost, non-start-stop model. It's also beats the four-cylinder Toyota Camry's 35-mpg highway figure while tying its combined efficiency.
Stepping up to the 295-horsepower Pentastar V6 pushes the economy down to 19 mpg in the city, while the highway figure is a respectable 32 mpg for the front-driver. The combined rating for the FWD V6 is 23 mpg. Those figures can't quite match the 270-horsepower 2.0-liter, EcoBoost four of the Fusion, which nets 22 city and 33 highway. In fact, the V6 200 has trouble besting even the 3.5-liter V6 of the Camry, which returns 21 mpg city and 31 mpg highway. Again, though, the 200 is noticeably more powerful.