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Marchionne now considering 'Plan B' partners for FCA merger

Okay Sergio, just stop. With the sting of rejection from General Motors CEO Mary Barra still fresh, Fiat Chrysler Automobiles CEO Sergio Marchionne is moving on and trying to find another automaker to merge with. FCA may not be giving up hope on a merger with GM, but that doesn't mean it isn't at least considering alternatives. Sergio's so-called "Plan Bs" include the Volkswagen Group, as well as smaller Asian outfits, like Mazda, Honda, Suzuki, and Hyundai. Bloomberg reports that France's beleaguered PSA Peugeot Citroen could as a sort of "fallback" option due to its relative lack of volume, an unidentified source claimed. There are, of course, problems with each option. According to Bloomberg, Volkswagen expects complete control of a company, but the Agnelli family, which holds a large portion of FCA stock, is loathe to relinquish its stake in the company. On top of that, VAG just isn't looking to make a deal right now. Mazda, meanwhile, is enjoying a new partnership with Toyota and Suzuki is partially owned by VW. Honda and Hyundai have never expressed any interest in a partnership with a western automaker. That kind of just leaves the French then, but even that remains a long shot. As Bloomberg tells it, PSA boss Carlos Tavares is still working on a turn-around plan, and would want at least another six months to execute before even considering a deal with FCA. And even then, Tavares hasn't given any indication that he's considering a pairing. News Source: BloombergImage Credit: Paul Sancya / AP Chrysler Fiat GM Honda Hyundai Mazda Suzuki Citroen Peugeot Sergio Marchionne FCA Mary Barra psa peugeot citroen

Mazda's EV resistance may mean CAFE trouble ahead

Is Skyactiv the limit for Mazda? The Japanese automaker has ridden its gas-powered engine technology platform to the upper end of fleetwide fuel economy among automakers in the US. But the company's lack of electrification, either hybrids of plug-in vehicles, combined with increasing sales of crossovers, may limit future fuel-efficiency gains, Automotive News reports. Mazda has no plans to add battery-electric variants across its product line, the publication says, citing comments from Mazda North America CEO Masahiro Moro. So far, the dependence on Skyactiv has worked well, as Mazda was the second automaker - after electric-vehicle maker Tesla Motors – to meet the US fuel-economy mandate of 34.1 miles per gallon for 2016. Additionally, Mazda plans to unveil the second-generation version of Skyactiv next year. Using a technology called "homogenous-charge compression ignition" (HCCI), Mazda's gas-powered engines will approximate the compression in diesel engines, boosting fuel economy accordingly. Because of that development, Mazda's Moro is "very confident" that the company will meet the US Corporate Average Fuel Economy (CAFE) mandate for 2021. With no plans for US plug-ins or hybrids (Mazda's only hybrid, a variant of the Mazda3, is sold in Japan), Moro is not so sure about meeting the 2025 CAFE mandate of 54.5 mpg (which equates to a "real world" fuel economy of about 40 mpg). Additionally, Mazda's "biggest regulatory headache" will be meeting California's mandate that 15 percent of the state's new-vehicle sales be zero-emissions within the next decade. In 2011, Mazda laid out its strategy of leaning on its Skyactiv technology instead of moving to drivetrain electrification as a way to boost fleetwide fuel economy, saying at the time that "you can't out-Toyota Toyota and you can't out-Honda Honda." The company also took a strong stance against even the idea of electrification in vehicles. According to the US Environmental Protection Agency (EPA), Mazda's model-year 2015 vehicles averaged 30.1 mpg, beating out Honda's 28.9 mpg, Subaru's 28.7 mpg, and Nissan's 28.3 mpg. Mazda's fleetwide fuel efficiency increased from 29.4 mpg for the 2014 model year, and from 28.1 for the 2013 model year, according to the EPA. Related Video: Featured Gallery Mazda3 SkyActiv-Hybrid View 21 Photos News Source: Automotive News-sub.req. Green Mazda Fuel Efficiency Green Automakers Electric Hybrid skyactiv mazda hybrid mazda electric car

Weekly Recap: Diesel scandal continues to fuel VW's woes

Volkswagen's woes continued this week when it was delisted from the Dow Jones Sustainability Index and stripped of awards. Senators are also lining up to advocate for criminal and civil action against the automaker, and its consumer reputation is in tatters. Put simply, it's been another rough period for VW. Despite this, the company eked out a sales gain of less than one percent in September, though that was well behind the overall market's performance. Sister brand Audi, which sells a diesel A3, was less affected, posting a 16-percent gain in September. Revelations that Volkswagen rigged millions of diesel-powered cars around the world didn't surface until September 18, so the full sales impact of the ongoing scandal won't likely be felt until October. Meanwhile, VW's image continues to take a beating, and an AutoPacific survey found only one in 14 vehicle owners have a positive opinion of the company. Before the scandal broke, three-quarters of respondents had a positive view of VW. The survey also found 64 percent don't trust Volkswagen, though the same number believe other companies are or may also be using cheating devices to pass emissions tests. "The reputation of diesels has been severely damaged, at least for the short term," Ed Kim, AutoPacific's vice president of industry analysis, said in a statement. Despite the lingering malaise, experts believe VW will recover, just as Toyota and General Motors eventually emerged from their own high-profile controversies. "Consumers have proven through numerous recalls that they are resilient and quickly return to their buying habits," Kim said. OTHER NEWS & NOTES Mazda to reveal sports car concept in Tokyo Mazda will bring a curvy sports car concept to the Tokyo Motor Show in October. The automaker is being especially coy with the details, only releasing the dark teaser shot that you see to the right and a cryptic statement that suggests the concept "condense[s] Mazda's entire history of sports-car development into a single model." Immediately, speculation abounded this is an RX-7 and RX-8 successor, though Mazda didn't specify what engine the concept will have. Reportedly, the company is still working on rotary engines. Mazda will have a Cosmo Sport 110S on its stand in Tokyo, which pioneered rotary technology in 1967. Read into that what you will. The Rock pitches Ford service Dwayne Johnson, also known as The Rock, is the new frontman for Ford service.