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FCA and Peugeot reportedly agree on merger

Citing a Wall Street Journal report, the Detroit Free Press says "Fiat Chrysler and PSA Groupe have agreed to merge." The Journal reported on talks between the two car companies only yesterday. It's said that Peugeot's board met yesterday to approve the deal, FCA's board met today, and an announcement could come as soon as tomorrow, Thursday. Both automakers have released statements, but neither company has released any information beyond admitting to ongoing talks. If the merger happens, the combined entity would become the world's fourth-largest carmaker with a $50 billion valuation, slotting in behind Toyota, the Volkswagen Group, and the Renault Nissan Mitsubishi alliance. Among the merger options possible, "an all-stock merger of equals" is the one analysts and Moody's seem to give the best grade. The reported merger would come about four months after FCA walked away from merger talks with Renault. FCA said the French government scuppered those talks over the role of Nissan in a reformed entity, but there were also brewing issues with French unions, and ongoing turmoil among Renault and Nissan leadership thanks to continuing fallout from ex-CEO Carlos Ghosn's arrest last year. FCA makes most of its revenue in the U.S. and rules Italy, while Peugeot is the second-best-selling automaker in Europe with its own brand in France and Opel in Germany. The two companies already have a partnership in Europe making vans, one that FCA CEO Mike Manley has spoken highly of. Among the list of obvious benefits in a potential merger, FCA would get access to Peugeot's small, modern platforms, $10.2 billion in cash, and electrified and hybrid architecture developments, the latter especially important to FCA as those are fields where it lags. Peugeot would get much easier access to the U.S. market, and the money-printing brands Jeep and Ram. A merged carmaker would have combined sales of nearly 9 million a year, based on 2018 results. By comparison, both Volkswagen and Toyota sell over 10 million cars a year, while the Renault-Nissan-Mitsubishi alliance almost 11 million. Peugeot CEO Carlos Tavares has proved he knows how to do turnarounds and mergers. After leaving a position as Carlos Ghosn's right-hand man in 2012, Tavares took over Peugeot in 2014, navigated a bailout from the French government and China's Dongfeng Motors in 2015, and turned PSA into a regional powerhouse.

Peugeot's American future looks dead, but Stellantis intends to keep all brands alive

The years-old promise of a Peugeot return in the U.S. is looking bleaker by the second. Peugeot said the French brand would come back to sell cars in the U.S. five years ago, but now that FCA and PSA have transitioned to one Stellantis, that promise is looking a lot shakier. This news comes via a report from Car and Driver. When queried about Peugeot, Carlos Tavares, Stellantic CEO, offered this in response: “For the time being, I don't think that is part of the things that we want to prioritize for the next time window," Tavares said. "I think it's better that we funnel the talent, the capital, and the engineering capability of our Stellantis company to the existing brands to improve what needs to be improved and to accelerate where we need to accelerate, because we already have a very strong presence in this market." Tavares hasnÂ’t ruled it out entirely, but any kind of a Peugeot American renaissance is being pushed onto the backburner.  In good news for American brands, though, Tavares expressed great interest in keeping them all. Chrysler was the most worrisome of the bunch, as it only sells the aging 300 sedan and Pacifica minivan variants. Nevertheless, Tavares sees Chrysler as one of the “three historical pillars of Stellantis” and is eager “to give this brand a future.” Specifically, Tavares sees a high-tech future for the once-great American car company. Motor Trend reported on what Tavares spoke about in a call with the media. "It needs to rebound,” Tavares said. “We could think about what could be the next technologies in the automotive industry.” The obvious hint here is electrification and greater autonomy. Chrysler could theoretically become StellantisÂ’ electric showcase brand. ItÂ’s partway there with the Pacifica Hybrid PHEV minivan, but thereÂ’s still a long way to go for it to become the conglomerate's tech pillar. And then thereÂ’s Dodge and its powerful but emissions-heavy lineup. "We have the technology to deliver the torque, dynamics, and acceleration feeling, while also dramatically reducing the emissions," Tavares said. The Hellcat canÂ’t have a window-shattering 6.2-liter supercharged V8 forever, but it looks like Stellantis is at least committed to keeping the performance of DodgeÂ’s current lineup. Related video:

An inside look at Mopar's SEMA fleet

Mopar is heading to the SEMA show in Las Vegas with a fleet of customized vehicles that appeal to enthusiasts of all stripes. There's a Dodge Viper ACR concept that follows in the lineage of the supercar's great road racing past, and a custom Ram ProMaster that might just be the ultimate outdoor party machine.
We got an inside look at Mopar's cars that will be on display at the show, which also include a Dodge Challenger T/A concept, two crazy Jeeps and a Ram 2500 Outdoorsman that could change the way you camp. While these are some of our favorites, Mopar is bringing plenty to SEMA, so let us know your top choices in the comments section.