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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?

NHTSA is investigating FCA shifters for roll-away accidents again, this time the rotary units

It seems FCA's shifter troubles aren't over yet. Now, just a few months after issuing a recall to resolve user-related issues with its monostable shifters, the company is again under investigation by NHTSA. The issue is related to the potential for cars to roll away when the rotary-style shifter is not properly placed in park. Two FCA models are the subject of this investigation: the 2013–2016 Ram 1500 and the 2014–2016 Dodge Durango. NHTSA estimates about 1,000,000 vehicles would be affected if a recall is issued. The investigation was started following 43 complaints of vehicles rolling away while supposedly being in "park." Among the complaints were reports of 25 crashes and 9 injuries. NHTSA does point out that in every incident, the parking brake was not engaged. A representative from FCA also gave us an official statement regarding the investigation: "FCA US is cooperating fully with NHTSA's investigation, the scope of which is limited. Other vehicles equipped with rotary shifters are not included. In accordance with prudent practice, the Company joins NHTSA in urging all drivers to use their vehicles' parking brakes." View 35 Photos As mentioned above, other Chrysler products with rotary shifters, such as the Pacifica minivan and 200 sedan, are not involved in this investigation. One of the key differences, as the representative told us, is that these vehicles have electronic parking brakes that automatically engage if the driver does not select park and then opens the door with the seatbelt unbuckled. The Ram 1500 and Durango feature mechanical, manually operated parking brakes and therefore cannot activate the brake automatically. Because this is currently an investigation, an exact cause for the incidents has yet to be determined, and none of the vehicles have been recalled. It's possible there could be a mechanical defect. However, the issue could be a confusing interface causing user error, as was the case with FCA's monostable shifters, where drivers think they've put the car in park but actually haven't. Something that indicates it could be a case of confused users is that NHTSA also opened an investigation into 2012–2014 Jaguar XF and Land Rover Range Rover Evoques for similar issues. Both vehicles use a rotary shifter and have had roll-away complaints levied as well. Even if it is a case of user error, FCA and Jaguar Land Rover may still have to recall their vehicles.

Legacy Classic Power Wagon First Drive

Shortly before the US entered World War II, Dodge supplied the military with a line of pickups internally codenamed WC, those letters designating the year 1941 and the half-ton payload rating. From 1941 to 1945 Dodge built more than a quarter million of them, and even though "WC" came to refer to the Weapons Carrier body style, the WC range served in 38 different configurations from pickup trucks to ambulances to six-wheeled personnel and weapons haulers. The story is that soldiers returning from active duty badgered Dodge for a civilian version of that indefatigable warhorse, so Dodge responded with the Power Wagon in 1946. Even for those no-nonsense times the truck was so austere that the first three names Dodge gave it were "Farm Utility Truck," "WDX General Purpose Truck," and "General Purpose, One Ton Truck." "Power Wagon" was the fourth choice, not finalized until just before it went on sale. Nothing like today's Power Wagon, the original could be seen as either a glorified tractor or a slightly less uncouth military vehicle – hell-for-leather meant going 50 miles per hour. But it would go nearly anywhere. The civilian version was still built like it had to survive, well, a world war; power take-offs (PTOs) ran all manner of ancillaries; multiplicative gear ratios helped it produce enough torque to make an earthquake envious. Said to be the first civilian 4x4 truck made in America, any organization that needed a simple, sturdy mechanized draught animal knew it needed a Power Wagon. If history, the aura of war, and ruthless functionality attract you but mean comforts and 70-year-old manners don't, then you need to get in touch with Legacy Classic Trucks. If that history, the aura of war, and the ruthless functionality attract you but the mean comforts and 70-year-old manners don't, then you need to get in touch with Legacy Classic Trucks. The Jackson Hole, WY, restorer retains every ounce of the Power Wagon's orchard-work aptitude, decorated with present-day amenities and the best components. Each job starts with having to find a usable donor. The city of Breckenridge, CO, bought the red truck in our gallery in 1947 and used it as a snowplow for the next 30 years. In 1977 a log-home builder bought it from the city and used it for another decade as a company hauler. That's the kind of grueling longevity that lets Ram put a five-figure premium on the 2500 Power Wagon pickup it sells today. Legacy Classics founder Winslow S.