1977 Dodge W100 Power Wagon on 2040-cars

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Auto Mergers and Acquisitions: Suicide or salvation?

We love the Moses figure. A savior riding in from stage right with the ideas, the smarts, and the scrappiness to put things right. Alan Mullaly. Carroll Shelby. Lee Iacocca. Andrew Carnegie. Steve Jobs. Elon Musk. Bart Simpson. Sergio Marchionne does not likely view himself with Moses-like optics, but the CEO of Fiat Chrysler Automobiles recently gave a remarkable, perhaps prophetic interview with Automotive News about his interest and the inevitability of merging with a potential automotive partner like General Motors. Marchionne has been overtly public about his notion that GM must merge with FCA. For a bit of context, GM sold 9.9 million vehicles in 2014, posting $2.8 billion in net income, while FCA sold 4.75 million units and earned $2.4 billion in net income, painting a very rosy FCA earnings-to-sales picture. But that's not the entire picture. Most people in the auto industry still remember the trainwreck that was the DaimlerChrysler "merger" written in what turned out to be sand in 1998. It proved to be a master class in how not to fuse two companies, two cultures, two continents, and two management teams. Oh, it worked for the two individuals at both helms pre-merger. They got silly rich. And the industry itself was in a misty romance at the time with mergers and acquisitions. BMW bought Rolls-Royce. Volkswagen Group bought Bentley, Bugatti, and Lamborghini, putting all three brands into their rightful place in both products and positioning. No marriages there, so no false pretense. Finally, Nissan and Renault got married in 1999. A successful marriage requires several rare elements in this atmosphere of gas fumes and power lust. But a successful marriage requires several rare elements in this atmosphere of gas fumes and power lust, the principle part being honesty. Daimler and Chrysler lied to each other. The heads of each unit, the product planners, and finance all presented their then-current and long-range forecasts to each other with less-than-forthright accuracy. Daimler was the far greater equal and no one from the Chrysler side enjoyed that. The cultures were entirely different, too, and little was done to bridge that gap. Which brings me back to the present overtures by Marchionne to GM. "There are varying degrees of hugs," Marchionne stated in the Automotive News piece. "I can hug you nicely, I can hug you tightly, I can hug you like a bear, I can really hug you." Seriously?

Stellantis and LG launch joint venture for North American battery plant

Stellantis has struck a preliminary deal with battery maker LG Energy Solution (LGES) to produce battery cells and modules for North America, as the world's No. 4 automaker rolls out its 30 billion euro ($35 billion) electrification plan. Global automakers are investing billions of euros to accelerate a transition to low-emission mobility and prepare for a progressive phase-out of internal combustion engines. Stellantis and LGES's joint venture will produce battery cells and modules at a new facility with an annual capacity of 40 gigawatt hours (GWh), the two firms said on Monday. No financial details of the deal were provided. The plant is scheduled to start production by the first quarter of 2024, with groundbreaking expected in the second quarter of 2022, the companies said in their statement. Its location is under review and will be announced later. Stellantis, formed in January from the merger of Italian-American automaker Fiat Chrysler and France's PSA, has said it wants to secure more than 130 GWh of global battery capacity by 2025 and more than 260 GWh by 2030. The batteries produced under the deal will supply Stellantis' U.S., Canadian and Mexican assembly plants for installation in hybrid and fully electric vehicles, supporting its goal of e-vehicles making up more than 40% of its U.S. sales by 2030. The company, whose brands include Peugeot, Fiat, Opel and U.S. best-sellers Jeep and Ram, earlier this year announced it would invest more than 30 billion euros through 2025 on electrifying its vehicle lineup. Stellantis has said it would build three battery plants in Europe and two in North America, including at least one in the United States. Intesa Sanpaolo analyst Monica Bosio said the deal was positive, and a further step ahead in Stellantis' electrification process. It comes weeks after Stellantis and its partner TotalEnergies agreed to open up their battery cell joint venture ACC to Daimler, to expand their European sourcing of battery cells. Stellantis is also targeting more than 70% of sales in Europe to be of low-emission vehicles by 2030, and aims to make the total cost of owning an EV equal to that of a gasoline-powered model by 2026. Related video: Green Plants/Manufacturing Alfa Romeo Chrysler Dodge Ferrari Fiat Jeep Maserati RAM Citroen Lancia Opel Peugeot Vauxhall Electric Hybrid EV batteries LG

Performance doesn't matter anymore, it's all about the feel

We've just had a week of supercars and high-end EVs revealed. Many of them boast outrageous performance specs. There were multiple vehicles with horsepower in the four-figure range, and not just sports cars, but SUVs with 0-60 mph times under 3.5 seconds. And it's not just a rarified set of supercar builders, comparatively small tuners are also building this stuff. Going fast is easy nowadays and getting easier. So what will distinguish the greats from the wannabes? It's all about how a car feels. This may seem obvious. "Of course it matters that a car should have good steering feel and a playful chassis!" you say. "Why are you being paid for this stuff?" But a lot of automakers have missed the memo. This past week I spent some time in a BMW M4 Competition convertible, and it's a perfect example of prioritizing performance over experience. It boggles my mind how a company can create such dead and disconnected steering; the weight never changes, there's no feel whatsoever. The chassis is inflappable, but to a fault, because it doesn't feel like anything you're doing is difficult or exciting. The car is astoundingly fast and capable, but it feels less like driving a car and more like tapping in a heading on the Enterprise-D. I also happened to drive something of comparable performance that was much more enjoyable: a Mercedes-AMG GT. It was a basic model with the Stealth Edition blackout package, and even though it had a twin-turbo V8 instead of a six-cylinder, it only made 20 more horsepower. The power wasn't the big differentiator, it was (say it with me) the feel. While not the best example, the steering builds resistance as you dial in lock, giving you a better idea of what's happening up front. Pulses and vibrations come back to you as you move over bumpy pavement in corners. The chassis isn't quite as buttoned down, either, providing a little bit of body roll that tells you you're pushing it. It's also easier to feel when the car is wanting to understeer or oversteer, and how your throttle and steering inputs are affecting it. The whole thing is much more involving, exciting and fun. 2021 Mercedes-AMG GT Stealth Edition View 8 Photos That's also to say nothing of the Merc's sounds. That V8 is maybe not the best sounding engine, but its urgent churn through the opened-up exhaust gets your heart racing. It also seems like it's vibrating the whole cabin, so you feel it as much as you hear it.