VENTURE CAPITAL POST

Chrysler Group will begin replacing potentially defective air bag inflators made by Takata Corp in more than 371,000 U.S. vehicles in early December, according to documents filed by the automaker with U.S. safety regulators.

Chrysler Group LLC, a unit of Fiat SpA (FIA.MI), said it will recall about 350,000 vehicles from the 2008 model year because of a condition that may cause the ignition key to get stuck or inadvertently move.

An Acura RLX sedan demonstrated an unusual way to tow another car this week: the vehicles were not physically attached. The second car drove itself, following instructions beamed over by the first in a feat of technology that indicates a new stage in automation is happening faster than many expected.

New orders for U.S. factory goods posted a record gain in July and auto sales last month accelerated to their highest level in 8-1/2 years, offering further bullish signals for the economy.

2013 had been the best sales year for the auto industry as US consumers bought 15.5 million vehicles. Ford Motor Co., Honda Motor Co. and Chrysler Group posted single-digit percentage gains, while General Motors Co. and Toyota Motor Corp. sales declined.

Chrysler Group LLC appointed Barclays Plc, Goldman Sachs Group, Morgan Stanley and UBS AG to help underwrite its proposed initial public offering slated in December. Chrysler filed for an IPO in September.

Fiat SpA and Chrysler Group LLC chief executive Sergio Marchionne had filed an IPO on behalf of the latter to end the stalled merger of both carmarkers.

Fiat SpA chief executive officer Sergio Marchionne told reportersthat the merger between Italian automaker Fiat SpA and US automaker Chrysler Group LLC might be delayed because of a disagreement over the valuation of shares a retiree trust holds in Chrysler.

The rejection of Fiat SpA's request to value 54,000 Chrysler shares by the Delaware Chancery Court allowed the United Auto Worker's retiree trust case to go to trial but Fiat remained unfazed.