2006 Dodge Ram 2500 Slt on 2040-cars

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China-FCA merger could be a win-win for everyone but politicians

NEW YORK — Fiat Chrysler boss Sergio Marchionne has said the car industry needs to come together, cut costs and stop incinerating capital. So far, his words have mostly fallen on deaf ears among competitors in Europe and North America. But it appears Marchionne has finally found a receptive audience — in China. FCA shares soared Monday after trade publication Automotive News reported the $18 billion Italian-American conglomerate controlled by the Agnelli family rebuffed a takeover from an unidentified carmaker from the Chinese mainland. As ugly as the politics of such a combination may appear at first blush, a transaction could stack up industrially, and perhaps even financially. A Sino-U.S.-European merger would create the first truly global auto group. That could push consolidation to the next level elsewhere. Moreover, China is the world's top market for the SUVs that Jeep effectively invented, so it might benefit FCA financially. A combo would certainly help upgrade the domestic manufacturer; Chinese carmakers have gotten better at making cars, but struggle to build global brands, and they need to develop export markets. Though frivolous overseas shopping excursions by Chinese enterprises are being reined in by Beijing, acquisitions that support the modernization and transformation of strategic industries still receive support, and the government considers the automotive industry to be strategic. A purchase of FCA by Guangzhou Automobile, Great Wall or Dongfeng Motors would probably get the same stamp of approval ChemChina was given for its $43 billion takeover of Syngenta. What's standing in the way? Apart from price (Automotive News said FCA's board deemed the offer insufficient) there's the not-insignificant matter of politics. Even as FCA shares soared, President Donald Trump interrupted his vacation to instruct the U.S. Trade Representative to look into whether to investigate China's trade policies on intellectual property. Seeing storied Detroit brands like Jeep, Chrysler, Ram and Dodge handed off to a Chinese company would provoke howls among Trump's economic-nationalist supporters. It might not play well in Italy, either, to see Alfa Romeo and Maserati answering to Wuhan instead of Turin — though Automotive News said they might be spun off separately. Yet, as Morgan Stanley observes, "cars don't ship across oceans easily," and political considerations increasingly demand local manufacture of valuable products.

Chrysler recalls 350k vehicles over ignition switches

Chrysler has announced a recall covering 349,442 vehicles due to ignition switches that can either become stuck or move without warning. All of the affected vehicles are from the 2008 model year, and were built before May 12, 2008.
The automaker has learned that ignition keys on some vehicles "may not fully return to the 'ON' position after rotation to the 'START' position during engine-startup," the company said in a statement. Additionally, "an ignition key may not fully return to the 'ON' position after rotation to the 'START' position and may inadvertently move through the 'ON' position to 'ACCESSORY' or 'OFF.'"
Chrysler says it is unaware of any related injuries, and notes that while reduced braking, engine or steering power is possible in such instances, the airbags are not affected. The later stands in contrast to General Motors' recent rash of high-profile recalls, and it's an important distinction that Chrysler (understandably) felt necessary to call out in bold print in its press release.

Chrysler almost smothered the Hellcat before it lived

Chrysler's 6.2-liter supercharged Hellcat V8 was an absolute sensation from the very moment it was announced, and honestly, how could it not have been? Packing 707 horsepower and 650 pound-feet of torque, its numbers immediately put every other production muscle car (and many supercars) to shame. Plus, we soon learned that would be wrapped in a package retailing for around $60,000 - a pittance compared to other vehicles offering similar grunt. However, the Hellcat almost never got the chance to rumble under the hood of the Challenger and Charger.
The Hellcat was initially proposed back in 2011, back when Fiat was deciding its future strategy for Chrysler Group, according to Automotive News. At the time, the company was just emerging from its bankruptcy doldrums, and an ultra-high-performance V8 wasn't exactly a must-have item. The program didn't move forward. However, SRT engineers kept fighting, according to AN, and four months later, they received the green light to pull the project off the shelf and continue developing the Hellcat. The muscle car world is certainly better for that decision.
The work of those engineers focused on taking Chrysler's standard 6.2-liter V8 and making it reliably handle all of the extra power from the supercharger. "It came down to micron levels of changes in the crank to be able to withstand the pressures of the engine," said Chris Cowland, director of advanced and SRT powertrain, to Automotive News. The changes amounted to switching out about 91 percent of the parts to make the Hellcat, including some quite minuscule alterations. For example, the washer holding the supercharger pulley is embedded with industrial diamonds to keep it from slipping.