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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.

Fiat Chrysler target 850k sales in China by 2018

Behind the vanguard of numerous Jeep models, two Chryslers, a smattering of Fiats and Alfa Romeos and local production through a joint venture with Guangzhou Automotive Group (GAG), Fiat Chrysler wants to increase sales in China more than six-fold by 2018. The group sold 130,000 cars in China in 2013, the aim for 2018 being 850,000 cars.
Ultimately it's expected that the Jeep Grand Cherokee, Cherokee, Wrangler, Renegade, the coming Grand Wagoneer and a sub-Renegade-sized crossover will either be built in or exported to the People's Republic. The Chrysler Town & Country and 300 will join the export list in 2016 and 2018 respectively, according to a report in Automotive News.
With a number of those vehicles not in production or perhaps even envisaged yet, and others not due on the local market until 2018, it will be interesting to see how Fiat Chrysler plans to achieve the target in the specified timeframe. The joint venture with GAG builds two products now, the Dodge Dart-based Fiat Viaggio launched two years ago - supposedly designed just for China - and the just-launched Fiat Ottimo, a hatchback version of the Viaggio. Fiat projected 300,000 Viagio sales in its first two years, that number has been adjusted downward to 94,000 and there doesn't appear to be an analyst alive that sees a good future for Fiat in China's overrun mainstream market. Still, last year's 130,000 group sales in China is a huge jump from 2012 sales of 66,000 units, but less than half the 300,000 units it projected.

Autoblog Minute: Wrangler production to remain in Toledo, pickup may come

Jeep seems to be changing its production strategy, with Wrangler to remain in Toledo but Cherokee slated to leave. Autoblog's Mylencia Gillenwaters reports on this edition of Autoblog Minute.Wrangler to remain in Toledo but Cherokee is slated to leave. Autoblog's Mylencia Gillenwaters reports on this edition of Autoblog Minute. Show full video transcript text [00:00:00] Jeep seems to be changing its production strategy. Wrangler to remain in Toledo but Cherokee is slated to leave. I'm Mylencia Gillenwaters and this is your Autoblog Minute. According to a report from the Automotive News production of the Jeep Cherokee will be moved to another state. To fill the void, Jeep might develop a pickup that would be built alongside Wrangler at the Toledo, Ohio plant. A Wrangler pickup is an exciting prospect [00:00:30] for Jeep fans ever since the Jeep Gladiator concept was first introduced in 2005. Jeep officials declined to comment on its production and future vehicle development plans. We will most likely get an official statement from the automaker when they wrap up negotiations with the UAW. Leave us a comment below. Would you buy a Wrangler pickup? For Autoblog, I'm Mylencia Gillenwaters. Autoblog Minute is a short-form video news series reporting on all things automotive. Each segment offers a quick and clear picture of what's happening in the automotive industry from the perspective of Autoblog's expert editorial staff, auto executives, and industry professionals.