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Fiat Chrysler and Peugeot boards meet to finalize merger

MILAN/PARIS — The boards of Fiat Chrysler Automobiles and Peugeot will meet separately on Tuesday to discuss finalizing an initial agreement for a $50 billion merger to create the world's number four carmaker, sources said. A source close to FCA said the two companies could announce the signing of a binding memorandum early on Wednesday, followed by a conference call to explain further details later in the day. The two mid-sized carmakers announced plans six weeks ago for a tie-up to help them deal with big challenges in the industry, including a global demand downturn and the need to develop costly cleaner cars to meet looming anti-pollution rules. Ahead of the meetings, entities representing the Peugeot family, Etablissements Peugeot Freres (EPF) and FFP, unanimously approved a proposed memorandum of understanding for the planned merger, a source familiar with the situation said. FCA and PSA have said they would seek to finalize a deal by year-end to create a group with 8.7 million in annual vehicle sales. That would put it fourth globally behind Volkswagen, Toyota and the Renault-Nissan alliance. PSA's Carlos Tavares will be chief executive and FCA's John Elkann — the scion of Italy's Agnelli family, which controls FCA through their holding company Exor — chairman of the combined company. The group will include the Fiat, Jeep, Dodge, Ram, Chrysler, Alfa Romeo, Maserati, Peugeot, DS, Opel and Vauxhall brands, allowing it to serve mass and premium passenger car markets as well as those for trucks and light commercial vehicles. Related Video:       Chrysler Dodge Fiat Jeep RAM Citroen Peugeot

Next-gen Jeep Wrangler to get 8-speed automatic and 3.0-liter EcoDiesel

Following up on previous reports, an anonymous source within FCA has confirmed to Autoblog that the next-generation Jeep Wrangler will come to market with both a 3.0-liter, EcoDiesel V6 and ZF's critically acclaimed eight-speed automatic transmission. While this pairing makes a lot of sense (we'll explain why in a minute), until now, we only had limited reports that either item would arrive in the next-generation Wrangler. This is the first time we've heard that the eight-speed automatic and the diesel would be paired together. That said, we shouldn't be surprised by this news. FCA currently sells the Jeep Grand Cherokee and Ram 1500 with the diesel/eight-speed gearbox combo, making its inclusion in the next-gen Wrangler far from an Apollo 11-caliber feat of engineering. Naturally, we reached out to Jeep for an official comment. Spokesperson Gabrielle Schulte gave us the expected response to this kind of inquiry, telling Autoblog that FCA does not comment on future product. Jeep has flirted with the idea of a diesel Wrangler for some time, with CEO Mike Manley telling Ward's Auto just over two years ago that a Wrangler diesel was "on the radar," although at that time, we weren't certain whether it'd be the 3.0-liter EcoDiesel showing up in the rough-and-tumble off-roader. As for the eight-speed, SEC filings back in November revealed that it'd be coming to the Wrangler in 2018. Our source could not confirm which model year the 8AT/diesel would arrive in. Related Video:

NHTSA boss Strickland weighs in on Jeep recall fracas

Adding yet another chapter to the ongoing Jeep recall story, the National Highway Traffic Safety Administration (NHTSA) head David Strickland has gone on record to defend the government's request that Chrysler recall 2.7 million out-of-production Jeep Grand Cherokee and Jeep Liberty vehicles after the agency investigated fiery rear-end collisions that have reportedly killed at least 51 people over the years. In statements made to The Detroit News, Strickland said, "We felt very strongly that the process that we undertook and the findings that we made and ... we made the decision to issue a recall request. We do not take that very lightly." The top US auto safety regulator stopped short of telling owners to park their cars until the automaker takes action. "They can make their own risk assessment and their own choices," he said.
Chrysler does not intend to recall the models, insisting the "vehicles met and exceeded all applicable requirements of the Federal Motor Vehicle Safety Standards, including FMVSS 301, pertaining to fuel-system integrity" when they were manufactured and sold. "The company does not agree with NHTSA's conclusions and does not intend to recall the vehicles cited in the investigation. The subject vehicles are safe and are not defective," Chrysler announced last week in a statement. "We believe NHTSA's initial conclusions are based on an incomplete analysis of the underlying data, and we are committed to continue working with the agency to resolve this disagreement."
Legally, Chrysler has until June 18 to formally respond to NHTSA's request. If the automaker does not take action, NHTSA is expected to issue a formal finding and seek a recall.