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Fiat/PSA's dominance in small vans hangs up EU's merger approval

BRUSSELS — EU antitrust regulators are concerned about Fiat Chrysler and Peugeot / PSA's combined high market share in small vans and may require concessions to clear their $50 billion merger, people familiar with the matter said. The companies, which are seeking to create the world's fourth biggest carmaker, were told of the European Commission's concerns last week. If Fiat and PSA fail to dispel the European Commission's doubts in the next two days and subsequently decline to offer concessions by Wednesday, the deadline for doing so, the deal would face a four-month-long investigation. The EU competition enforcer, which has set a June 17 deadline for its preliminary review, declined to comment. Fiat was not immediately available for comment while PSA had no immediate comment. Hiving off overlapping businesses, usually a regulatory demand to ensure more competition, could prove tricky for the carmakers because of the technicalities. Fiat and PSA are looking to merge to help offset slowing demand and shoulder the cost of making cleaner vehicles to meet tougher emissions regulations. The deal puts under one roof the Italian carmaker's brands such as Fiat, Jeep, Dodge, Ram, Maserati and the French company's Peugeot, Opel and DS. Related Video: Government/Legal Chrysler Dodge Fiat Jeep Maserati RAM Citroen Opel Peugeot

Jeep Wrangler's shift to aluminum could see production leave Toledo

The Jeep Wrangler may be a timeless design, but sooner or later, time will run out and Chrysler will have to replace it with a newer model more friendly towards the earth it's designed to traverse. That will, it seems, mean a shift to aluminum construction (whether just for the body or for the entire structure) - but what will that mean for the Wrangler's long-time home of Toledo, OH?
According to the latest pronouncements from Fiat Chrysler chief Sergio Marchionne, the shift to an aluminum Wrangler would likely mean moving production out of Toledo. "If the solution is aluminum," Marchionne told Automotive News, "then I think unfortunately Toledo is the wrong place, the wrong setup to try and build a Wrangler, because it requires a complete reconfiguring of the assets that would be cost-prohibitive."
Marchionne also indicated that, were Wrangler production to move elsewhere, it would find another line to take its place in Ohio. "One of the thing that we are dealing with now is what else we do with Toledo that fulfills our commitment to the city and to Ohio. I don't have a doubt that there will be zero impact on head count and employment levels and anything else." Jeep has built the Wrangler in Toledo since World War II, with the exception of six years starting in 1986 when it was built in Brampton, Ontario. The complex dates back to 1910 and currently produces the Wrangler and Cherokee. Past products have included the Wagoneer and Commanche as well as the Dodge Dakota and Nitro.

Marchionne wants to nearly double Jeep sales by 2018

Jeep just keeps breaking its own sales records. A couple of weeks ago, the off-road brand announced its worldwide sales exceeded one million units for the first time, marking its third consecutive global record and the fifth straight year of sales increases here in the US. But FCA isn't about to stop there. TheDetroitBureau.com reports that chief executive Sergio Marchionne, speaking to the media at the Detroit Auto Show, has announced a new sales target for the Jeep division: By 2018, he wants to see Jeep sell 1.9 million units in a single year, nearly doubling its all-time record. The expansion will surely encompass new products, with the all-new Renegade just warming up, a next-generation Wrangler on the way and a reborn Grand Wagoneer in the pipeline, as well. But the focus of FCA's preparations to reach the new target is on production capacity. While it's not clear whether the Toledo, OH plant where half of all the Jeeps sold around the world are currently built will continue to host the next Wrangler, FCA is expanding production overseas. The Renegade is already being built alongside the Fiat 500X in Italy, where another 1,000 workers are being re-hired and where another factory is set to start producing Jeeps, as well. A Renegade-based variant for the South American market will soon be built in Brazil, and by the end of this year, Jeep aims to start local production in China.