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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.

MotorWeek reviews '83 American Motors lineup

The 30th anniversary of American Motors' 1987 sale to Chrysler by Renault is just a few years away. AMC is long dead, but for its latest peek in the archives, MotorWeek winds back the clock to somewhat happier times. Take a look at the entire AMC lineup from 1983, including its models from Jeep and Renault. The Jeeps, and to a lesser extent, the AMC Eagle, enjoy a cult following today, but it's amazing how many of these other vehicles are now practically forgotten. Even the big debut in '83 of the Renault Alliance is largely ignored. Although with a ludicrous amount of body roll and a 55-horsepower 1.4-liter engine, it's probably rightly buried. Related Video: News Source: MotorWeek via YouTube Design/Style Chrysler Jeep Renault Classics Videos amc

Jeep rocks the Wrangler Red Rock concept in Vegas [w/video]

The SEMA show may have once been all about dropping rides to the floor, but these days it's at least as much about jacking them up on lifted suspensions. And few show cars – or trucks, we should say – managed to embody that spirit at this year's tuner exposition quite as well as the Jeep Wrangler Red Rock you see here. The concept started out life as a Wrangler Unlimited, but instead of four doors, it has none. Or any roof, for that matter. Just a roll cage and a windscreen. What it does have are 17-inch wheels wearing 35-inch BF Goodrich tires and fitted to a suspension lifted by two inches. It also has a reinforced tailgate, power winch, tow hooks... everything, in short, that you could want or need for off-roading, and little more. As you can see, it also looks the business, with a custom hood, body-color grille, matte-finish bumpers, and a brown leather interior. Handsome as it is, though, its rugged beauty runs more than skin deep: lift off the sheetmetal and you'd find electronic locking differentials, a transfer case, and solid axles fore and aft. A more extreme take on the existing Jeep Wrangler Unlimited Rubicon Hard Rock edition, the Red Rock show truck was done up to honor the organization behind the Easter Jeep Safari that's a favorite among the legions of the Jeep faithful. And while it remains a concept only for the time being, a production version is slated to follow in time to celebrate the event's 50th anniversary next year. Related Video: