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Mopar unveils Dodge Challenger Drag Pak [w/video]

Dodge is going drag racing, and it's doing it with an all-new version of the Challenger for NHRA's Sportsman class. FCA's Mopar parts and performance arm announced the new Challenger Drag Pak Friday, showing off a version with a 354-cubic-inch (that's a 5.8-liter, by the way), supercharged V8 and a 426-ci (7.0-liter), naturally aspirated V8 – both Hemis, of course – that can get the big coupes through the quarter-mile in "the eight-second range." While the two engines deliver similar performance, at their base, they're quite a bit different. The supercharged model uses a cast-iron block, while the 426 has aluminum for both the block and head. That said, both models get customized engine calibrations, and are mated to unique, race-spec automatic transmissions. But drag racing is about far more than just outright power. Mopar significantly updated the four-link rear suspension, adding a four-inch rear axle from Strange Engineering, along with an aluminum, nine-inch third member, while the rear-axle housing has been strengthened in general. Both the rear shocks and front struts can be adjusted for rebound and compression, too. Lightweight 15-inch wheels, meanwhile, are shod in super-sticky Hoosier drag radials, with nine inches of tread in back and 4.5 inches in front. The new Challenger Drag Pak should run the quarter-mile in "the eight-second range." In the cabin, there's an NHRA-spec roll cage, a Racepak gauge cluster, and a handsome pair of Sparco racing seats. Outside, supercharged models get blue decals, while naturally aspirated varieties get black stickers, although there's more to the new Challenger dragster's exterior than just its decals. Mopar tweaked the big-scoop hood, promising it's easier to get up to check on the engine, and the designers also added trailer tie-down straps in both the front and rear. While the dragster was the big news today, Mopar officials also announced the two enhanced Scat Pack kits for both the Dodge Charger and Challenger R/T. The 5.7-liter Hemi models gain an extra 56 horsepower and 30 pound-feet of torque in the Scat Pack 2 thanks to a new cam, valve springs, pushrods, and gaskets. The Scat Pack 3, meanwhile, adds 75 hp and 44 lb-ft, on top of the gains from the lower packages. That should be perfect for drivers who wish to snort in the face of their SRT 392-driving friends. The third stage adds a ported cylinder heads, as well as high-flow manifolds and catalysts.

Marchionne says no offers are on the table for Fiat Chrysler

MONZA, Italy (Reuters) - Fiat Chrysler (FCA) has not received any offer for the company nor is the world's seventh-largest carmaker working on any "big deal", Chief Executive Sergio Marchionne said on Saturday. Speaking on the sidelines of the Italian Formula One Grand Prix, Marchionne said the focus remained on executing the company's business plan to 2018. Asked whether FCA had been approached by someone or whether there was an offer on the table, he simply said: "No." The company's share price jumped to record highs last month after reports of interest for the group or some of its brands from China. China's Great Wall Motor Co Ltd openly said it was interested in FCA, but had not held talks or signed a deal with executives at the Italian-American automaker. The stock move was also helped by expectations that the company might separate from some of its units. Marchionne reiterated on Saturday that FCA was working on a plan to "purify" its portfolio and that units, such as the components businesses, would be separated from the group. He hopes to complete that process by the end of 2018. "There are activities within the group that do not belong to a car manufacturer, for example the components businesses. The group needs to be cleared of those things," he told journalists. Asked whether an announcement could come this year, Marchionne said it was up to the board to decide and that it would next meet at the end of September. He said the time was not right for a spin-off of luxury brand Maserati and premium Alfa Romeo and the two brands needed to become self-sustainable entities first and "have the muscle to stand on their feet, make sufficient cash". "The way we see it now, it's almost impossible, if not impossible, to see a spin-off of Alfa Romeo/Maserati, these are two entities that are immature and in a development phase," he said. "It's the wrong moment, we are not in a condition to do it." He said the concept of separating the two brands from FCA's mass market business made sense and did not rule out this happening in future, but not under his tenure, which lasts until April 2019. "If there is an opportunity in future, it would certainly happen after I'm gone. It won't happen while Marchionne is around," he said.

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.