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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.

Chinese Jeep production confirmed with Fiat, Guangzhou agreement

Fiat has just finalized a deal originally set up in January between it and China's Guangzhou Automotive Group to bring Jeep production to China. It remains unclear which models will be built, although we're wagering that it'll be the 2014 Cherokee. What we do know, now, is where production will take place.
According to Automotive News, Guangzhou originally wanted production to take place in its home assembly plant in its namesake city. Fiat has battled to send production to a joint venture facility established between Guangzhou and Fiat in the town of Changsha. The joint facility won out, and now the factory, originally built in 2010 with a 140,000-unit capacity, will see Jeeps rolling out of it.
Currently, the GAC-Fiat factory produces the Fiat Viaggio, a jointly developed product that is closely related to America's Dodge Dart. And while it remains unclear as to which model will join the Viaggio on the assembly line, that model is understood to ride on Fiat's Compact platform. The only Jeep to share those underpinnings is the new Cherokee, so there's not much connecting of dots needed to see why this scenario would make sense.

Jeepster name may be used for Fiat-based baby Jeep

In 1948, Willys-Overland, the forbearers of Jeep, built a vehicle called the Jeepster. It was a funky little thing, designed as a mix of the more rugged Jeeps that came before with what was then a modern car, which arguably makes it the world's first crossover. The name was later revived from 1966 to 1972, which means for Jeep enthusiasts, it has some history.
Now, the modern Jeep brand may revive the Jeepster name for a new product, likely based on Fiat bones, that will slot in at the bottom of the brand's range underneath the soon-to-depart Compass and Patriot. The report comes from Australia's Drive, which cites a dealer source that has seen the vehicle.
That same dealer confirmed there is a link between the Jeepster and the rumored Fiat 500X, and that the former will be available in both front and all-wheel-drive variants. The source also claims both gas and diesel engines will be available, although as this is an Aussie site, we shouldn't take that to mean we'll get a diesel Jeepster in the US.