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China's Geely says it has no plan to buy Fiat Chrysler — as FCA stock leaps

HONG KONG — Chinese carmaker Geely Automobile denied media speculation on Wednesday that it planned to make a takeover bid for Fiat Chryslerk Automobiles (FCA), the world's seventh-largest automaker. Geely was one of several Chinese carmakers cited in by Automotive News, which said representatives of "a well-known Chinese automaker" had made an offer this month for FCA, which has a market value of almost $20 billion. "We don't have such a plan at the moment," Geely executive director Gui Shengyue told reporters at an earnings briefing, when asked if Geely was interested in Fiat. He said a foreign acquisition would be complicated, but he did not elaborate. "But for other (Chinese) brands, it could be a fast track for their development," Gui added. However, a source close to the matter said FCA and Geely Automobile's parent firm, Zhejiang Geely Holding Group, had held initial talks late last year, without disclosing their nature. The source confirmed Geely was no longer interested in FCA, noting that the parent company had only three months ago announced its first push into Southeast Asia with the purchase of 49.9 percent of struggling Malaysian carmaker Proton, a deal that also included a stake in Lotus. Geel's denial failed to dent FCA's stock. The price of its Milan-based shares has jumped more than 10 percent to a 19-year high since Automotive News first reported on Monday, citing unnamed sources, that FCA had rejected the Chinese offer as too low. FCA stock on the New York Stock Exchange rose sharply on Monday from $11.60 to $12.38 and on Wednesday was trading at $12.84. FCA declined to comment on Wednesday. FCA Chief Executive Sergio Marchionne has repeatedly called for mergers as a way of sharing the costs of making cleaner, more advanced cars, but he has repeatedly failed to find a partner and retreated from his search for in April, saying FCA would stick to its business plan. He has also spoken of spinning the successful Jeep and Ram divisions off from FCA. Europe's largest carmaker, Volkswagen, and General Motors have both said they are not interested in talks with FCA. On Wednesday, Geely Automobile reported a doubling of first-half profit, above expectations, as cars designed with Sweden's Volvo won over domestic consumers. Volvo is a unit of the Zhejiang Geely group, and has recently announced it will share its technology with Geely.

Dodge Viper to out-Hell the Hellcat with supercharged V10?

The Viper wouldn't be the Viper if it wasn't the most powerful model under the Chrysler umbrella. But with the arrival of the Hellcat engine in the Dodge Charger and Challenger, the Viper has fallen behind in the bragging rights department: where the new supercharged V8 produces 707 horsepower and 650 pound-feet of torque, the naturally aspirated V10 offers "only" 640 hp and 600 lb-ft - gargantuan output figures by almost any other standard, but crucially behind on the SRT power scale. Conner Avenue is going to have to do something about that.
Although the Hellcat's engine reportedly won't fit under the Viper's hood, SRT is now rumored to have another trick up its sleeve: supercharge the existing V10. According to the Pentastar performance enthusiasts at allpar.com, Chrysler has already taken delivery of the first such prototype engines so that it can begin the process of fitting it into an upgraded Viper.
The spooled ten-pot is tipped to produce around 800 hp and 650 lb-ft of torque. More than that and the Viper's drivetrain, chassis and bodywork would have to be substantially reworked. Though beefier transmissions are available, fitting them would reportedly set off a domino-game of changes required to handle the added torque. Which may be something Chrysler would be prepared to do for the next-generation model, but in the meantime, 800 hp could prove enough to put the Viper back atop the Mopar performance ladder where it belongs, and give it an edge against the new Corvette Z06 to rekindle sales.

Dodge Dart falls short of Consumer Reports Recommended, Caddy XTS and Lincoln MKS, too

The Dodge Dart, Cadillac XTS and Lincoln MKS all failed to earn a "Recommended" rating from Consumer Reports. When it came to the compact Dart, the organization's testers thought the vehicle offered a quiet cabin, solid-feeling chassis and nimble suspension, but the new model ultimately fell short of the coveted rating due to powertrain issues. The institute's reviewers found the base 2.0-liter four-cylinder engine to be underpowered and noted "drivability issues" when the available turbocharged 1.4-liter four was paired with the optional dual-clutch transmission (some of our editors disliked it paired with the six-speed manual). CR also dinged the latter powerplant for sounding "raspy." For what it's worth, we think the forced-induction engine offers an excellent and playful exhaust note, but that's just us.
As for the XTS, CR lauded the car for its luxurious cabin, but the vehicle's experience was dulled by its finicky CUE infotainment interface. Overall, the big Cadillac scored much higher than its cross-town rival from Lincoln. While testers found the American luxury sedan to offer a quiet ride and quality fit and finish, they felt the MKS delivered a "cramped driving position, ungainly handling, uncomposed ride, and limited visibility." Ouch. At the end of the day, both cars fell short of rivals from Japan, Germany and Korea. Check out the full press release below with more details, along with CR's musings on the Chevrolet Spark and Lexus ES.