APRIL 27, 2016

GOOGLE IN FINAL NEGOTIATIONS WITH FIAT CHRYSLER ON AN ADVANCED TECHNICAL PARTNERSHIP.

By Peter M. De Lorenzo

©2016 Autoextremist.com, Inc.

April 28, 2016, 10:30 a.m., Detroit. Google, the all-seeing and all-knowing technical juggernaut, is in the late stages of negotiating an advanced technical partnership with Fiat Chrysler, according to a source with direct knowledge of the ongoing discussions. John Krafcik, CEO of Google's Self-Driving Cars operation and Sergio Marchionne, CEO of FCA, began talks not long after the Consumer Electronics Show in Las Vegas back in January, and have been in final negotiations over the last three weeks.

On the surface, this is a puzzling development, as FCA is the least technically savvy company in the car business by far. But that may be exactly what Krafcik wants. Why? Though the deal in the short term is said to include development of an autonomous version of FCA's new Pacifica minivan, it's the longer-term prospects that are of particular interest to Krafcik. It means that Google will have access to manufacturing capability and an existing dealer network for the distribution of its future vehicles, something the tech icon has clearly lacked.

Krafcik, a savvy industry veteran, has gone on record in recent weeks about this very subject. He is acutely aware that despite Google's flashy, "we can do anything we want" arrogance, without having the serious capability to build the cars and somewhere to service them, Google's Self-Driving Car program is going nowhere, fast. Lending gravitas to the proceedings is the fact that Google is planning to build a major technical center just west of Novi, a suburb of Detroit.

For Marchionne's part, this is almost the Hail Mary pass he was looking for. As I commented two weeks ago, in my column entitled "The Fools On The Hill", Marchionne and FCA are completely out of options, and without a key technical partner going forward FCA is facing the prospect of making the Jeep and Ram Truck franchises available to the highest bidder, in effect "parting out" the company in desperation.

But almost is the operative word here, because no matter how encompassing this linkup is with Google, I have serious doubts that it will be enough to keep FCA afloat, unless, of course, Marchionne and FCA Chairman and Fiat heir, John Elkann, are devising a plan to cede control of FCA in the U.S. to Google and cashing out for a huge dollar figure - somewhere in the neighborhood of $12-$14 billion - so that they can return to Italy, wallets overflowing.

FCA would not comment on this story. And Johnny Luu, Communications, Self-Driving Cars, had this obligatory response, "... we have a policy to not comment on rumor or speculation."

Editor's Note: Normally, this would appear in our Reader Mail section, but we thought it would be more appropriate for "On The Table" this week. -WG

Little Red Corvette.

Peter, I was wondering your thoughts on Chevrolet's “little red Corvette” Prince tribute ad? My modern political correctness compliance filter strained long moments as to why not do this, however, creativity fortunately triumphed. I thought it was probably one of the most brilliant ideas I have seen from GM marketing in perhaps decades. Simple, elegant, iconic. Opportunistic.

Given the dismal automotive marketing and advertising campaigns, perhaps it is worth mentioning.

David M.
Brighton, Michigan

Editor-In-Chief's Note: I thought the print ad was brilliantly conceived and elegantly rendered, certainly the best thing to come out of a Chevrolet advertising agency in years. I actually found it to be puzzling, however, because the current Chevrolet work that exists now - especially the excruciatingly tedious "clinic/focus group" TV spots - is so incredibly uninspired and tedious, that I am shocked the agency could muster the creativity to pull it off. But, that said, it was a superb effort, no matter how it came about. -PMD

Brian France, NASCAR. Editor-In-Chief's Note: After completely blowing the Tony Stewart comments about fundamental racing safety - and fining him $35,000 to boot - and then, walking back on the subject by agreeing with Stewart and clarifying the rules, while refusing to rescind the fine levied on Stewart, Brian France has distinguished himself as a clueless, tone-deaf overlord who is squandering his family's legacy. I will have more, much more to say on this subject next week. -PMD

(Images courtesy of Porsche)
Hard on the heels of the heavily revised 718 Boxster, Porsche has announced the impending arrival of the new 718 Cayman. Key differences? Besides the engines and the exterior tweaks, the third generation of the mid-engine sports coupe is priced below the Boxster for the first time.
As with the 718 Boxster, the big news with the 718 Cayman is the new turbocharged flat-four cylinder engines. The 2.5-liter engine in the S model produces 350HP and 309 lb.-ft. of torque, while the 2.0 liter engine in the 718 Cayman delivers 300HP and 280 lb.-ft. of torque. Each model has 25HP more than their respective predecessors. Both engines used in the 718 Cayman models are equipped with an integrated wastegate to optimize boost pressure across driving scenarios. The 718 Cayman with PDK and optional Sport Chrono Package reaches 60 miles per hour in 4.5 seconds. The 718 Cayman S is able to accelerate from 0 to 60 in just 4.0 seconds. The top track speed of the 718 Cayman is 170 mph, and the 718 Cayman S can reach a top track speed of 177 mph. The 718 Cayman uses the brakes from the previous Cayman S, while the 718 Cayman S is equipped with the four-piston calipers of the 911 Carrera combined with six millimeter thicker front brake rotors.
The 718 Cayman and 718 Cayman S are on sale now and will reach U.S. dealers in late November 2016. The 718 Cayman has a starting MSRP of $53,900, and the 718 Cayman S starts at $66,300, excluding the $1,050 delivery, processing and handling fee.

(Audi)
Audi has introduced a revised TT RS Coupé and TT RS Roadster. The particulars? The turbocharged, 2.5-liter five cylinder engine how has an aluminum block and produces 394HP and 354 lb-ft. of torque. It's quick, too. 0 to 62.1 mph (100 km/h) in 3.7 seconds and a top speed of up to 174 mph (280 km/h). And it comes with OLED rear lights (a first in a series-production Audi.

(Images courtesy of Audi)
The Audi museum mobile is presenting 12 coupes dating from the 1930s to the present, in an exhibition entitled “Dynamic Sculpture – the Tradition of Sportiness and Elegance at Audi.” Its thematic focus is on the special coupe body form. With origins that can be traced back to coach making, when vehicles with this body type first appeared on the scene they were often known as “Les Désobligeantes” (the unobliging ones). The style takes its name from the idea to “cut” (“couper/coupé” in French) a four-seater coach body to create a two-seater. One machine on display is the DKW Monza from 1956 (above) shown at the Mille Miglia in Italy. A remarkable highlight is a replica of the “Manuela,” a unique coupé version of the Horch 853 (below). The car was specially built for Bernd Rosemeyer - the most successful and extremely popular Grand Prix driver for Auto Union - in 1937. It is believed the original coupe disappeared without a trace during World War II.The new special show will run from May 3 to September 18.

(Photo by Bret Kelley/IMS for Chevrolet)
Roger Penske will drive a special 2017 Camaro SS 50th Anniversary Edition pace car to lead the field for the 100th running of the Indianapolis 500 at the Indianapolis Motor Speedway in Indianapolis, Indiana. Penske, who is celebrating 50 years in racing and is by far the most successful team owner in American racing history, has sixteen wins in the Indy 500, a record that may never be broken. “Chevrolet and the Indianapolis 500 have a long, storied history and it’s an honor to mark the respective milestones of the Indy 500 race and the Camaro simultaneously,” said Mark Reuss, executive vice president of Global Product Development and Global Purchasing and Supply Chain. “It’s also a privilege to have Roger Penske perform the driving duties, as his team has helped Chevrolet earn four consecutive IndyCar manufacturer titles since 2012.” Four identically prepared pace cars will support the race, all with exclusive Abalone White exteriors featuring “100th Running of the Indianapolis 500” graphics on the doors and the iconic Indianapolis Motor Speedway wing-and-wheel logo on the quarter panels. They also incorporate the exterior cues and graphics that are unique to the Camaro 50th Anniversary package that goes on sale this summer (although those production vehicles will only be available in Nightfall Gray Metallic). And with 455 horsepower on tap, the Camaro SS pace cars will require no performance modifications to lead the racing field. It will be the ninth time a Camaro has served as the pace car and the 27th time for Chevrolet, dating back to 1948.

Editor's Note: Ford has just released “The Cutting Edge” - the second of five chapters in “The Return,” which is a long-form documentary that follows the development of both the street car and race car versions of the Ford GT from the decision to build the cars to the return to the 24 Hours of Le Mans. Watch chapter one, "The Decision," here. (FYI: The Autoextremist makes a cameo appearance in chapter one.) -WG