1970 Dodge Challenger on 2040-cars

Auto blog

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.

121k Dodge Darts being investigated over braking problem

The National Highway Traffic Safety Administration is investigating the Dodge Dart due to reports of braking problems. Some 121,000 cars are possibly affected, all from the 2013 model year. According to The Detroit News, NHTSA received 18 complaints about the brake pedal becoming hard to depress on these cars, increasing stopping distance. Drivers reported hearing a "pop noise or an air hissing noise when applying the brake pedal, followed by a hard pedal feel and reduced brake effectiveness," NHTSA told the News. In a particularly terrifying incident, one driver says the Dart's braking system shut down while driving at 50 miles per hour. "I feared for my life. It is one of the scariest things I have ever dealt with," the complaint said, according to The Detroit News. A Fiat-Chrysler spokesperson said the automaker is "fully cooperating" with this investigation.

Travis Pastrana signs with Dodge for another year, brings partner Bryce Menzies [w/video]

Dodge and SRT Motorsports announced that the Dodge Dart will be returning for its sophomore season of the Global Rallycross Championship with a two-car team fielded by Pastrana Racing. Travis Pastrana drove his GRC Dart to victory lane in the fourth race of the car's inaugural season, and his race team is looking for even more success with the addition of off-road racer Bryce Menzies behind the wheel of the second car.
The 2013 GRC season kicks off on April 21 in Brazil with plenty of dirt-spewing, ramp-jumping action. Scroll down for a video from the cars' main sponsor, Red Bull, and a press release from Chrysler.