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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.

2014 Jeep Cherokee dreams of Moab, crawls on stage [w/video]

The all-new 2014 Jeep Cherokee inched its way onto the stage at the New York Auto Show today, proving that at least the "Trail Rated" version of the SUV is more than just a controversial unique odd fresh face in the mid-size segment. After the short, simulated Moab run by the Trailhawk model, the gray four-door was joined on the stage by a burgundy Limited model - the luxurious highway variant.
As a recap, the all-new 2014 Cherokee rides atop a modular Alfa Romeo-derived platform (we know it from the Dodge Dart) and will be offered in both front- and all-wheel drive models with a choice between a 2.4-liter four-cylinder (rated at 184 horsepower) and a new 3.2-liter Pentastar V6 (developing 271 horsepower) engine. A nine-speed automatic is standard and no less than three different all-wheel drive systems are available.
Of the four different models (Sport, Latitude, Limited, and Trailhawk), we like the rugged looks and capabilities offered by the Trailhawk the best. Overlook the red tow hooks and check out its more aggressive wheel/tire package, flared fenders, reduced breakover angle and lack of brightwork in our gallery of live images from the New York show. Skid plates and off-road capable tires round out the package. Read all the details in the official press release below.

Jurassic Park made a big impact on these Jeep drivers

For a certain cohort of young folks, Jurassic Park is a touchstone film from their childhood. Not only did it play into practically every little boy's love of dinosaurs, the movie included some great action scenes and special effects that still hold up today. In its latest video, The Aficionauto takes a look the Jurassic Park Motor Pool, a California car club with over 40 fans who created replica vehicles from the iconic film.
The club is made up of an interesting cross-section of people. Many of them were Jeep Wrangler fans that already loved off-roading and Jurassic Park, and liked the idea of bringing them together. Like any close-knit club, it ends up being about community and people coming together to share their interests. It's quite a heartwarming video. Also, be sure to stay until the end because The Aficionauto teases a future Jurassic Park-themed vehicle. Scroll down to check out the motor pool.