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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.

2018 Jeep Wrangler spied looking more aerodynamic

We're getting an early look at one of the most anticipated vehicles from Jeep: the next-generation Wrangler. We expect it to arrive for the 2018 model year and be aluminum-intensive for purposes of weight savings, which will improve fuel economy. The platform is expected to remain a traditional body-on-frame setup, and manufacturing will remain at its longtime Toledo, OH, factory. The design appears true to the Wrangler's heritage, though the windshield is raked back more to make it less brick-like when cutting through the air. From some angles, the front end appears longer if you squint properly, and the front fenders seem wider and squatter than the current model's. There's probably more in store for the new Jeep, but this prototype is under such heavy cladding it's impossible to tell what. Kudos to the folks who make those vinyl coverings. Look for the powertrain to again include a Pentastar V6, this time paired to an eight-speed automatic transmission – again for fuel economy, but also to improve the powertrain's flexibility. A V6 turbo diesel and a mild- hybrid variant are also expected. Even with all these departures from the long-running Wrangler playbook, the off-road capability will remain the vehicle's calling card. The current Wrangler will also be built concurrently with this next-gen model for a time in Toledo, Automotive News reports, giving enthusiasts and traditionalists the best of both worlds. Jeep will also add a pickup based on the Wrangler's underpinnings to its portfolio in a move to capitalize on the resurgence of smaller trucks. The Wrangler is both the halo and centerpiece of the remade Jeep lineup, which quickly is becoming one of Fiat Chrysler's pillars for sales and prestige around the world. Jeep hopes to sell 2 million vehicles globally by 2018. Related Video:

Dodge and Jeep recalling 895k SUVs for possibility of headliner fires

Dodge and Jeep are announcing recalls of a total of 895,000 Durango and Grand Cherokee models worldwide from the 2011 through 2014 model years. There's a possibility that the wiring in the sun visor can short circuit and cause a fire. It specifically affects vehicles built between January 5, 2010, and December 11, 2013, and there are approximately 651,000 of them in the US, 45,700 in Canada, 23,000 in Mexico and 175,000 outside of North America.
Screws that fasten the sunvisor to the headliner may pierce wires in the visor, if the part has been removed or serviced, potentially causing a fire risk. If the wires short circuit, they could overheat and potentially combust. The automakers report three injuries caused by this defect, and according to the investigation by the National Highway Traffic Safety Administration, "there may be a total of 52 unique fire incidents."
To fix the problem, Dodge and Jeep will inspect the vehicles for suspect wiring, and all of the models, whether damaged or not, will get a new sun visor spacer with a wire guide to stop the possibility of short circuits. According to the automakers' announcement, "this condition is not present in vehicles which have not had the headliner or vanity mirror serviced." They will notify affected owners, and repairs will begin in August.