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China's Great Wall confirms its interest — in Jeep, or all of FCA

HONG KONG/SHANGHAI — Chinese automaker Great Wall Motor reiterated its interest in Fiat Chrysler Automobiles NV on Tuesday, but said it had not held talks or signed a deal with executives at the Italian-American automaker. China's largest sport utility vehicle manufacturer made a direct overture to Fiat Chrysler on Monday, with an official saying the company was interested in all or part of FCA, owner of the Jeep and Ram truck brands. Automotive News first reported the news, quoting Great Wall Motor President Wang Fengying as saying she planned to contact FCA to discuss acquiring the Jeep brand specifically. Those comments sent FCA shares higher but also raised questions over the ability of China's seventh-largest automaker by sales to buy larger Western rival FCA, or even Jeep, which some analysts value at as much as one-and-a-half times FCA. Great Wall sought to dampen speculation on Tuesday. It confirmed it had studied Fiat Chrysler, but said there was "no concrete progress so far" and "substantial uncertainty" over whether it would eventually bid. "The company has not built any relationship with the directors of FCA nor has the company entered into any discussion or signed any agreements with any officer of FCA so far," the company said in an English-language stock exchange filing. It did not give further detail. Fiat Chrysler stock dipped on the statement on Tuesday. Great Wall said trading in its Shanghai-listed shares would resume on Wednesday after having been suspended. Fiat Chrysler declined to comment on Great Wall's statement. On Monday, it said it had not been approached and was fully committed to implementing its current business plan. FLUSHING OUT RIVALS? Great Wall Motor, which was early to spot China's love of SUVs, had revenue of $14.8 billion last year and sold 1.07 million vehicles - but that compares with FCA's 2016 revenue of 111 billion euros ($130.6 billion). Analysts said Great Wall would need to raise both debt and equity to complete any deal, meaning its chairman Wei Jianjun could lose majority control. One possible scenario, according to analysts at Jefferies, would see Wei keeping a roughly 30 percent stake, while Great Wall would raise $10-$14 billion in debt and $10 billion in equity - hefty for a group currently worth just $16 billion. Ultimately, politics could be the clincher.

How Dodge dealers are earning the right to sell Hellcats

We all hate the idea of the dreaded dealer markup when it comes to buying a highly anticipated new car. Take the 2015 Dodge Challenger SRT Hellcat, for example. You might spend hours reading about its supercharged V8 and speccing the model just right in the configurator, but when it finally comes down to laying down the cash, the dealer adds thousands of dollars as a "market adjustment" on the muscle machine of your dreams. As it turns out, when the Hellcat starts hitting showrooms in the third quarter, Dodge is trying to make sure that's not the case.
Dealer orders for the much-hyped Hellcat recently started, but Dodge boss Tim Kuniskis has put some special caveats in place to ensure that the Hellcat makes it to the road quickly. The initial allocation is based on the number of Dodge products that a showroom has sold in the last 180 days, and a second allotment in December is based on the last 90 days of sales and 30-day turnover. "You sell a lot of Darts for me, Journeys for me, Durangos for me, I'm going to give you the rights to this one, too, because this is a halo of the brand," said Kuniskis to Automotive News.
Furthermore, how quickly the Hellcat sells is also going to decide whether showrooms get more of them. "If you want to market-adjust the car, that's your right. But if your days-on-lot goes above what the other guys that are selling them at MSRP is, they will end up earning the allocation because their days-on-lot will be lower," he said to Automotive News. Obviously, this doesn't prevent dealers from marking up the Challenger SRT, but the strategy certainly discourages it.

FCA recalling 63k Jeeps, Vipers and Ram ProMaster City vans

Fiat Chrysler Automobiles has announced a pair of recalls cover nearly 63,000 vehicles. The bigger of the two actions covers manual-transmission-equipped vehicles from 2006, including the Jeep Liberty and Wrangler, as well as the Dodge Viper. FCA engineers uncovered that the clutch ignition interlock switches use a kind of wire that was part of a previous recall campaign. Because of this, the company said that affected vehicles may not start, although in rare cases, "if recommended starting procedures are not followed," the affected vehicles may lurch forward after turning the key. Those recommended starting procedures "include activating the parking brake, placing the shift lever in neutral and pressing the clutch pedal before turning the vehicle's ignition key." Recall number two affects the company's 2015 Ram ProMaster City cargo and passenger vans. Owners will need to report to dealers to have a piece of tape removed from the side-curtain airbags. The tape is added during assembly and in some cases, may not have been removed. That could prevent the airbags from deploying in the event of a crash. Just under 59,000 vehicles are included in the first recall, including 43,874 in the United States, 11,309 outside of North America, 2,944 in Canada and 706 in Mexico. The ProMaster City recall includes just over 3,900 vehicles. FCA claims it's unaware of any injuries, fatalities or accidents related to either recall and will perform repairs free of charge. Scroll down for the official press release on both campaigns. Related Video: Statement: Clutch Ignition Interlock Switch April 23, 2015 , Auburn Hills, Mich. - FCA US LLC is launching a voluntary recall of an estimated 43,874 older-model U.S.-market cars and SUVs equipped with manual transmissions. The Company will replace their clutch ignition interlock switches at no charge to customers. The action follows an investigation by FCA US engineers that discovered these vehicles are equipped with switches that contain a certain type of wire implicated in a previous campaign. The wire, which was temporarily substituted by a supplier for the specified material, may break. As a result, the vehicles may not start, and in rare cases – if recommended starting procedures are not followed – a vehicle may exhibit unintended movement when its ignition key is turned. FCA US is unaware of aware of any related injuries or accidents involving this population of vehicles.