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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.

Daily Driver: Long-Term 2014 Jeep Cherokee

As a fan of the boxy Jeep styling of old, I was disappointed when photos first leaked of Jeep's revived Cherokee in early 2013. Then the midsize crossover arrived in Autoblog's longterm garage in May of 2014 and my opinion did a 180. I was prompted to rethink the exterior design of the vehicle after reading our reviewer's interview with head Jeep designer Mark Allen. "The previous, blocky Cherokee was so aerodynamically inefficient, it would be wrong to do it," Allen told Autoblog's Jonathon Ramsey. That made sense. After all, Jeep is a brand associated with the outdoors, so its only natural that they seek to produce efficient, yet capable vehicles. It was then I began reconsidering the sleek lines of the new Cherokee. What once seemed bland and rounded now appeared streamlined and purpose-built. I also give Jeep credit for the slim headlamp silhouette, which look like no other SUV on the market – a far cry from the distinct circular lamps on Wranglers or squared headlights of past XJs. As I drove our long-term Jeep Cherokee Trailhawk on a few road trips, my affinity for the vehicle's comfortable interior grew as well. The seats held up to a nine-hour trek to Montreal, and the Chrysler Uconnect system made navigating the roads and the radio a breeze. Above you'll hear my early impressions of the Cherokee, and below you'll find a previous long-term update featuring Autoblog's Steven Ewing and Chris McGraw. UPDATE: The video mistakingly indicates that the Jeep Cherokee features LED headlights. The Jeep Cherokee, in fact, has daytime running lamps with LED accent lighting. Related Video:

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.