2008 Jeep Wrangler Rubicon on 2040-cars

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Federal investigations about safety of rear-mounted gas tanks is nothing new

The National Highway Traffic Safety Administration and Chrysler are currently making waves in our daily news feeds due to a disagreement over the safety of a few million Jeep Liberty and Grand Cherokee models. Specifically, NHTSA has asked Chrysler to recall the SUVs because of the location of their fuel tanks, but you may be interested to know that requests such as this are nothing new.
Besides the two Jeep models, NHTSA has launched investigations over the years in such models as the Ford Crown Victoria (and its police-car counterpart), GM pickups built between 1972 and 1987, and rather famously the Ford Pinto.
Understanding how automakers and NHTSA have dealt with fuel-tank-safety concerns in the past may offer a better understanding of how Chrysler and the government agency will settle their current dispute. Check out the complete article from The Detroit News here.

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.

Jeep gunning to build 250,000 Cherokees a year

Contrary to what a certain politician may have said last year about Jeep moving to China, the automaker is in fact doing the opposite, with plans to greatly increase the production capacity at its Toledo North Assembly plant in Ohio. The Detroit Free Press is reporting that there are big plans for the 2014 Jeep Cherokee and Toledo North, as a local union president has informed the newspaper that Chrysler is planning to produce around 250,000 examples of the new midsize utility per year.
To put this number into context, 250,000 units is more than what Jeep Liberty sales totaled here over the last three years combined. Even taking into consideration that the 250,000 units will be distributed beyond US borders, that's an ambitious volume figure full-stop - and that's without taking into consideration the new Cherokee's love/hate design. In its favor, though, Jeep is making remarkable inroads globally as of late, and the Cherokee's size could work well in emerging markets. To get that kind of output from Toledo's Cherokee assembly line, Chrysler will reportedly hire 1,105 new workers - that's in addition to the 200 workers already being hired to build the popular Jeep Wrangler, which is itself expected to top 220,000 units this year.