Future small cars from Fiat Chrysler Automobiles will not be using an updated version of their small car platform. Instead, they'll be underpinned by PSA Group's Common Modular Platform (CMP).

Automotive News obtained a letter sent by FCA to suppliers in July stating "to immediately stop any research, development and tooling construction activities on future B-segment (small/subcompact) cars." These include the Fiat 500 and Jeep Renegade to give some context. The letter goes on to say it is moving to CMP and that vehicles based on this will be built at the company's Tychy, Poland plant - home to 500 and Lancia Yplilon production. 

FCA had already put a stop, albeit a temporary one on developing parts for the five new small cars that were destined to use this platform due to COVID-19. There will be one model that will move forward on this orphaned platform - the upcoming 500 electric for Europe.

As for CMP, this underpins the Peugeot 208 and 2008; Opel/Vauxhall Corsa, Mokka; and the DS3 Crossback. It allows for both combustion and electric powertrains.

Moving to CMP is another step towards FCA and PSA Group's merger to become Stellantis. It is unclear whether or not the U.S. will see any of the new models that will use CMP from FCA's brands.

Source: Automotive News (Subscription Required)

Fiat's future is uncertain in North America as the brand struggles to find sales.  Already, the Fiat 500 has been dropped from the lineup in North America, and that was one of the better sellers.  The Fiat 500X is more of a crossover hatchback. It shares its platform with the fantastically more popular Jeep Renegade.  Still, even in spite of its sales troubles, Fiat is releasing a refresh of the 500X Sport for 2020.

The new 500x Sport gets new front and rear fascia designs, a black roof option, dark finished headliner and pillars, new sport seating, an updated version of uConnect with a 7-inch display including navigation, Apple CarPlay, and Android Auto. A new exterior color "Rovente Red" is being added. 

The 500X Sport is powered by a 1.3-liter turbocharged MultiAir III engine. The engine produces 177 horsepower and an impressive 210 lb.-ft of torque while also delivering 30 mpg highway.  Fiat points out that this is the only car in the class to have AWD standard and also get 30 mpg highway.

The 2020 Fiat 500X Sport starts at $26,895 before destination charges and will be available in the first quarter of 2020. 

The Fiat 500 that helped re-launch the brand in North America has been dropped from the 2020 Fiat lineup according to FCA. The 500 has lingered on with poor sales for years, selling just 1,692 copies in the first six months of 2019. Existing supplies of the Fiat 500 will sustain what demand there is for the little car for months. Continuing on, though unsure as to why, will be the 500X, 500L, and 124 Spider. Why any of those vehicles are continuing while the 500 gets the scythe is unknown... all of them sell even worse than the 500 does. 

The 500 first came to the US in 2011 when gas prices were in the $4.00 range in certain parts of the country.  It initially enjoyed a bit of a sales rush with over 43,000 sold in 2012, the first full year on the market. That year, however, also turned out to be the best year as sales have been downhill since. We think this announcement, along with the fact that there is unlikely to be a followup to the 124 Spider, could be the beginning of the end of Fiat in the U.S..... again. 

SMART just recently announced they will be leaving the U.S. and reorienting towards China.  Could Fiat be throwing in the towel in the U.S.?   It could be if the signal of investment location is the tea leaf to be read. While the Fiat brand has nearly disappeared in China and rapidly fading in the US, they are targeting the Brazilian market, Europe, and emerging markets in their new 5-year plan. 

Fiat has been struggling in the U.S. for year, and in spite of fielding 4 models, Fiat moved just 15,521 vehicles in the U.S. in 2018, a decline of 41% over 2017. Sales continue to fall in 2019, down another 42% YTD as of April 2019. 

According to a report in Bloomberg, Fiat is investing $4 billion in South America to expand and build two new SUVs for the South American market. The money will go towards expanding capacity at a Jeep factory in Pernambuco to 350,000 from 250,000 per year as well as building a new factory to build engines.  Fiat plans to release 15 new, refreshed, or special series vehicles in Latin America by 2024.  Jeep and Ram will get an additional 10. 

Latin America is the only region other than North America where FCA made money in first quarter 2019, however Fiat's market share has been falling from first place in 2015 to third place today. At the same time, Jeep has been expanding in South America from near 0% share as recently as 2014.  Fiat brand is most popular in Brazil. 

While the 5-year plan does not yet signal an exit from the U.S. market, the reorientation of resources to markets other than the U.S. could be a signal that the end could be near for Fiat brand in the U.S. 

Back in October, the rumorpile brought to light plans at Fiat Chrysler Automobiles for a new straight-six engine to replace the Pentastar V6. This engine would be based on the new four-cylinder Global Medium Engine (GME) currently used in the Alfa Romeo Giulia and Jeep Wrangler. Max displacement is expected to be around 2.9L due to European taxes. We have some new details on this engine.

Allpar is reporting this engine is likely not going to be based on GME due to size concerns. Instead, it will be a new design that will be featuring small bores that are closely spaced, and aluminum hardening instead of steel cylinder linings. The goal is to have the engine be three-inches longer than the 2.4L four-cylinder at most. 

The engine is also being designed with turbocharging, with plans to have it either match or exceed the output of the 5.7L HEMI V8. Its speculated that Jeep and Ram models would use a twin-scroll setup, while Alfa Romeo and Maserati models will use a twin-turbo setup. A set of Ferrari-designed heads are expected to appear on Alfa Romeo and Maserati models.

Allpar speculates this engine could appear in the upcoming Wagoneer or the next-generation Grand Cherokee, putting a possible timeframe of 2020 or 2021.

Source: Allpar

Fiat Chrysler Automobiles is considering replacing the Pentastar V6 with a brand new straight-six engine. A source tells Allpar the new engine will be based on their new four-cylinder Global Medium Engine (GME) - what is found under the hood of the Jeep Wrangler and Alfa Romeo Giulia. This will allow FCA to build the engine alongside the four-cylinder variant.

Not many technical details are known about the engine aside from it being pegged around 2.9L to avoid taxes in certain European countries. We might expect larger displacements for trucks and SUVs. Production could take place at FCA's Dundee and Trenton, Michigan plants. It is expected that Ferrari will use a variant of this engine for Maserati vehicles. No timeframe as to when this new engine could debut.

Allpar also mentions in their report that FCA was considering adding some sort of boost to the Pentastar, but ran into issues with the size and power constraints.

Source: Allpar

Fiat Chrysler Automobiles' new CEO Mike Manley has a lot on his plate. He has address multiple challenges in the U.S. that were left by the passing of Sergio Marchionne last month - moving forward with the five year plan, figuring out the future of Chrysler and Dodge; and getting new vehicles out the door. But that doesn't compare to the challenges in Europe.

The Wall Street Journal reports that Manley has a number of issues that need be addressed. The biggest one is improving the overall profitability in the region. Last year, FCA had an operating profit of $5.96 billion in the U.S. In Europe, only $840 million. A key reason for this is that three-quarters of FCA's European sales are made up of Fiat models that have razor-thin profit margins. Each Fiat sold makes an operating profit of €250 ($288), compared to the average of €2,850 ($3,274) for every Jeep and Ram model sold. Alfa Romeo was seen as a possible way to help boost profits, but sales have fallen very short of targets in a market where the likes of the Audi, BMW, Lexus, and Mercedes-Benz dominate.

“FCA would need a merger to improve the profitability in Europe,” said Martino De Ambroggi, an analyst with Equita told the journal.

Marchionne tried his best to court FCA to other automakers such as GM, but to no avail. Earlier this year, FCA said the search for a possible partner was taken off the table and that it could survive on its own.

There is also the question as to whether FCA has too many workers in Europe. The region makes up about 36 percent of FCA's workforce, but only  a tenth of its profit. A key example is FCA's Mirafiori plant which employs 13,000 people, but is on track to build 50,000 vehicles this year. In 1997, the plant produced 463,000 vehicles. 

Source: Wall Street Journal (Subscription Required)

Sergio Marchionne, the former head of Fiat Chrysler Automobiles who is credited for saving Chrysler and Fiat has passed away today at age 66 due to complications from shoulder surgery. 

“Unfortunately, what we feared has come to pass. Sergio Marchionne, man and friend, is gone,” said FCA Chairman John Elkann in a statement this morning.

Marchionne came into the spotlight back in 2004 when he was named CEO of Fiat. He was Fiat's fifth CEO in less than two years and had a big task ahead of him. The Italian automaker was struggling as it had lost more than 6 billion Euros (about $7 billion) the year before. Marchionne was somehow able to pull Fiat from the brink by closing various plants, laying off thousand of workers, getting a $2 billion payment from General Motors to settle past contractual obligation, and expanding the company's car lineup. It worked as Fiat would become profitable a year later.

In 2009, Marchionne led Fiat to acquire a 20 percent stake into beleaguered Chrysler following the 2008 financial crisis. Only a few years later, Fiat would buy up the rest of Chrysler and become Fiat Chrysler Automobiles. He would oversee the reinvention of Alfa Romeo, expand Jeep into other markets, and spin off Ferrari into its own separate company. Other parts of FCA haven't quite worked out, most notably Chrysler and Dodge which has seen both of their lineups shrink.

Marchionne was not like your normal CEO. He was known for wearing black pullover sweaters and jeans which made him stand out at various events. Marchionne was also known for being direct and speaking his mind (for better or worse).

Next April, Marchionne was planning to step down as CEO and announce his replacement. But health complications over the weekend caused FCA to decide his successor. That person would be Mike Manley, head of Jeep and Ram Trucks.

Source: Automotive News (Subscription Required), Bloomberg, Fiat Chrysler Automobiles

*UPDATE* Automotive News Europe is reporting that Jeep and Ram Trucks head Mike Manley will become Marchionne's successor as FCA CEO. We'll have more in an upcoming news story.

The era of Sergio Marchionne leading Fiat Chrysler Automobiles and Ferrari is seemingly coming to abrupt end. Last night, both Bloomberg and Reuters reported that Marchionne would not return as CEO of the two companies due to complications from surgery. Earlier this month, FCA said Marchionne would be going on medical leave for shoulder surgery. Sources tell Reuters that since the operation, the CEO has been experiencing “massive” and serious complications.

The boards of FCA and Ferrari are meeting today to decide possible successors. According to one source, the new CEO of Ferrari is expected to be Louis Carey Camilleri - currently a board member and former chairman of Philip Morris International. At FCA, there are three people up for consideration - CFO Richard Palmer, Europe chief Alfredo Altavilla, and head of the Jeep and Ram Mike Manley.

Spokespeople for both FCA and Ferrari declined to comment.

In addition to his roles at Ferrari and FCA, Marchionne is the Chairman of CNH Industrial, an agricultural and construction equipment manufacturer. According to sources, the board is expected to meet today to discuss a succession plan.

Source: Automotive News (Subscription Required), Bloomberg, Reuters

Rumors of a possible buyer for Fiat Chrysler Automobiles have popped up again. Late last week, the Asia Times learned from sources that Hyundai Motor Group CEO Chung Mong-koo is waiting for "an expected decline" in shares of FCA before launching a takeover bid attempt. This is expected to launch sometime between the summer and "prior to the Fiat-Chrysler annual shareholders’ meeting in May 2019."

Reportedly, FCA CEO Sergio Marchionne drew Hyundai's attention by using interest from Great Wall Motor.

The deal is being spurred by Paul Singer, the principal of Elliott Management. Singer made headlines in April by pressuring Hyundai to merge with Mobius, their parts' division to create a new holding company and demanded the company to pay investors more than $10 billion in “excess cash.”

Marchionne has been trying his damnedest to try and find a merger partner for the past few years.

• Tried to work with General Motors CEO Mary Barra about possibly merging the two companies in 2015, but was turned down.
• Rumors about possibly merging with Volkswagen, but was told no.
• Various Chinese automakers considered bidding on FCA, but most deny it.
• Great Wall was considering only purchasing Jeep. However, plans for this were put on ice

Here is the question we find ourselves wondering about, why would Hyundai consider buying FCA? Aside from getting their hands on Jeep and Ram Trucks (FCA's money makers), FCA would be gaining the most from this possible deal.

To throw another wrench into this, Hyundai is currently in the midsts of a reorganization effort and part of that includes possibly replacing Mong-koo who is 80 years old.

Both FCA and Hyundai declined to comment.

Source: Asia Times
Thanks @regfootball for the news tip

Fiat Chrysler Automobiles announced their latest five-year plan at an investor meeting in Italy. This is important as it will be the final plan presented by CEO Sergio Marchionne who will retire next year. Aside from news about Sergio actually wearing a tie (I'm being completely serious here -WM), there were some interesting bits to come out. We're going to breaking down what is in store for each brand along with intriguing information that was presented.

Jeep:

• Four new models are expected to launch by 2022. They include the Wrangler pickup, Wagoneer/Grand Wagoneer, a smaller model to sit underneath the Renegade, and a three-row crossover to sit next to the Grand Cherokee.
• By 2021, Jeep is planning to have an electrification option on each nameplate by 2021, along with Level 3 autonomous capability - basically a car can drive itself in limited situations, but requires a driver to jump in at a moment's notice.
• Diesels will be gradually dropped from the various models, but no timetable was provided.
• A new 'hawk will be joining the Jeep family. Deserthawk will be models setup for "high-speed sand running". Think Ford Raptor as an SUV. This will launch in the first quarter of 2020.
• Production capacity will increase to keep up with the demand for SUV and crossovers around the world.
• Jeep will also introduce Jeep Wave. It's part 'loyalty program' and connected car services, and part subscription service.
  • The loyalty part grants owners of the Hawk models and Wranglers 'Jeep Coins' when purchasing. The coins can be used to borrow other FCA products. Additional coins will be available for purchase. A pilot program will begin in 2019.
  • A more traditional subscription service will launch in 2019. Subscribers pay a monthly fee for access to a fleet of FCA vehicles. Three tiers - Good, Better, and Best - determines vehicle selection, insurance, and concierge services.
  • Jeep will also launch a in-car payment pilot program in 2019 as part of Wave.

Ram Trucks:

• A new Ram Heavy-Duty will be arriving in 2019.
• By 2022, Ram will have three new/redesigned models: A midsize pickup, redesigned ProMaster City, and the high-performance Ram 1500 TRX. The TRX will compete against the Ford F-150 Raptor.
• Both the Ram 1500 and redesigned ProMaster City will come with Level 2 autonomous capability in 2021.

Maserati:

• The Alfieri, which was first shown in 2014 as a concept will finally launch it as the replacement for the GranTurismo by 2022. The platform has been designed in such a way that allows for three different powertrains - including a plug-in hybrid and fully-electric version. Maserati claims a 0-100 kph time of two seconds for the electric version.
• The Alfieri EV will serve as the flagship for Maserati's new Blue lineup. This is the designation for any Maserati model equipped with a fully-electric powertrain comprised of three motors, new battery tech, and all-wheel drive with torque vectoring. The Levante, Ghibli, and Quattroporte will also have Blue models.
• Redesigns of the Ghibli, Levante, and Quattroporte will arrive by 2022. All of them will have a plug-in hybrid option.
• A new, smaller crossover will sit alongside the Levante. It is expected to possibly use the platform that underpins the Stelvio.
• Maserati is hoping to sell 100,000 vehicles by 2022, double the current sales volume.

Alfa Romeo:

• Remember those rumors about the Giulia Coupe? It is real and will be named GTV. Alfa is promising more than 600 horsepower thanks to electric boost, all-wheel drive with torque vectoring, and 50:50 weight distribution.
• 8C will also be making a comeback as a mid-engine coupe. With a twin-turbo gas engine and electric drive system for the front axle, the combined output will be 700 horsepower. It will also feature a carbon fiber monocoque chassis.
• Alfa looks to getting out of the subcompact game as there is no product listed for 2022. They'll be sticking in the compact realm with a new Giuletta.
• Two new crossovers will be joining the lineup. One will sit underneath the Stelvio and the other will sit above. We know a little bit more about the larger model as it will be the first model to debut a new mild-hybrid system. It will be underpinned by a stretched version of the Giulia's platform.
• Also in the cards are long-wheelbase variants for the Giulia and Stelvio (most likely for China) and plug-in hybrid models.

Other Details:

• Fiat got a brief mention during the meeting. There will be a new 500e and a wagon variant known as Giardiniera. Both models will get a new electric powertrain built for small vehicles. The 500L and 500X will come with hybrid powertrains. No time frames were revealed.
• "Chrysler is going to continue to be a relevant brand in the United States," said Marchionne when asked about the brand. No mention of Dodge during the conference.
• FCA will be working a number of partners on developing autonomous vehicles. This includes an expanded partnership with Waymo, along with new partnerships with Aptiv and BMW.
• Diesel will be phased out from all passenger cars in Europe by 2021.

Source: Fiat Chrysler Automobiles

Tomorrow will be Fiat Chrysler Automobile's final five year plan being presented under current CEO Sergio Marchionne. We reported on what is expected to be talked about yesterday in the rumor pile. Today, we have gotten a clear picture of what will be presented in the plan.

Automotive News found the schedule for the five-year presentation on a company website before being taken down. The schedule features sections for Jeep, Ram, Maserati, Alfa Romeo, Autonomous Driving and Connectivity, and CO2 reduction. Not listed on the schedule were Chrysler, Dodge, and Fiat. This unsurprisingly sent a number of people into a tizzy as they see this as a possible hint that these brands are going bye-bye. An FCA spokeswoman said Chrysler and Dodge will be talked about in other presentations "as appropriate." We're not sure this inspires confidence.

Source: Automotive News (Subscription Required)

Friday will mark the end of an era as Fiat Chrysler Automobiles CEO Sergio Marchionne will present his final five-year plan before he retires next year. Bloomberg has gotten a possible preview of what to expect from various sources.

The overall plan will see FCA focus their resources on "promising niches" instead of competing against such brands as Volkswagen and Toyota in the mass-market. This is possibly seen as a possible plus if FCA was somehow able to partner/merge with another automaker.

Jeep is expected to be the focal point of the new five-year plan. Currently, the brand makes up 70 percent of FCA's profits according to estimates from analysts. Marchionne wants to double the sales of brand by 2022 from 1.4 million vehicles sold last year. To do this, Jeep will expand its presence in Asia, Brazil, and Europe. The lineup will also expand with hybrid models arriving next year. Ram Trucks will also be expanded to other markets around the world. There is also talk about possibly combining Alfa Romeo and Maserati as "a single division in FCA's financial reports." Investors could see as a possible first step to a spinoff.

Meanwhile, Fiat's lineup is expected to be cut down to just 500 and Panda, with sales limited to Europe, Brazil, and emerging markets. This could mean Fiat withdrawing from the U.S. and China due to poor sales. The former could be problem due to dealer contracts. There is also talk about shrinking Chrysler, though we don't know how much smaller it could get aside from just disappearing.

We'll find out more details later this week.

Source: Bloomberg via Automotive News (Subscription Required)

Fiat Chrysler Automobiles finds itself in a fair amount of hot water over the use of defeat devices in the 3.0L EcoDiesel used in the Ram 1500 and Jeep Grand Cherokee with various lawsuits. But that water could become hotter as newly unsealed documents reveal FCA's suppliers discussed the use of illegal software back in 2010.

Sergio Pasini, the controls and calibration director at supplier VM Motori wrote in an email that FCA wanted to use software in their diesel engine that could detect when a vehicle was undergoing emission tests and activate emission controls. 

The software known as 't_engine' "is, no matter what Fiat says, a cycle detection," Pasini wrote in the email.

The lawsuit also alleges that another supplier, Robert Bosch GmbH, warned VM Motori about 't_engine' and that they could face “serious penalties” if it was discovered by regulators. Bosch it should be noted is under investigation for its involvement in the Volkswagen diesel emission scandal.

The documents are part of a proposed class-action lawsuit filed against FCA in San Fransisco which alleges the company misled buyers of the EcoDiesel by "touting the fuel economy and performance of its EcoDiesel engines while cheating on emissions tests to win regulatory approval."

“We continue to cooperate with various governmental investigations related to diesel emissions, and emails such as those referenced have been previously provided to the agencies. It is inappropriate to draw conclusions from isolated communications and internal deliberations, without the more detailed context that is part of the reviews FCA is conducting as part of the investigation process,” FCA wrote in an email statement.

Source: Automotive News (Subscription Required)

Fiat Chrysler Automobiles' CEO Sergio Marchionne will be making one final move before his retirement - ending production of mass-market vehicles in Italy.

Sources tell Bloomberg that on June 1st, Marchionne will unveil a plan that will see the end of production for the Alfa Romeo MiTo and Fiat Punto to make way for more upscale models. Fiat's historic plant in Turin will be retooled to build a new smaller Maserati SUV alongside the Levante. Another plant nearby Naples will be home to a small Jeep SUV after production of the Fiat Panda moves to Poland. It should be noted that the plan isn't finalized and details could change. FCA declined to comment when reached by Bloomberg.

Part of the reason for the change comes down to Marchionne's belief that there is no future in building affordable cars in high-wage European countries. 

The report also mentions that FCA will be cutting Fiat's lineup to just the 500 and Panda in the future

Source: Bloomberg

Lawsuits are fun as they bring forth documents that reveal the internal workings of a company. Case in point is a securities case against Fiat Chrysler Automobiles. Earlier this week, lawyers filed excerpts of an email from CEO Sergio Marchionne to Gualberto Ranieri, the company’s U.S. spokesman sent in 2015. According to Reuters, the email reprimanded Ranieri for making comments about how the company doesn't use defeat devices in their vehicles.

“Are you out of your goddam mind?” wrote Marchionne in the email.

Marchionne also wrote that Renieri's actions were “utterly stupid and unconscionable” and that he should be fired.

In a statement provided to Reuters, FCA said it was “understandable that our CEO would have a forceful response to any employee who would opine on such a significant and complex matter, without the matter having been fully reviewed through its appropriate channels.”

The statement goes onto say the Ranieri's comments come only a few days after it was revealed Volkswagen used defeat devices in their diesel vehicles “and before a comprehensive internal review and discussions with component suppliers was possible.”

The lawsuit against FCA was filled back in 2015 over allegations of defrauding investors by overstating its ability to comply with vehicle safety laws. The company downplayed various safety problems that helped inflate their stock price from October 2014 to October 2015. However, FCA would be fined by the National Highway Traffic Safety Administration over lapses in various vehicle recalls. 

An amended version of the lawsuit that claims the company did not fully comply with emission laws was filed last year.

Source: Reuters

More and more automakers are beginning to turn away from diesel due to demand for the fuel dropping and the rising costs of making engines compliant. The latest automaker that could be leaving the diesel fraternity is Fiat Chrysler Automobiles.

The Financial Times has learned from sources that FCA plans on eliminating diesel engines from their passenger vehicles by 2022. This will be announced during the reveal of FCA's new four-year plan expected to take place on June 1st. FCA will continue to utilize diesel engines in commercial vehicles (including Ram Trucks), though it is unclear for how long.

FCA declined to comment on this report when asked by Reuters.

Source: Financial Times (Subscription Required), Reuters via Automotive News (Subscription Required)

Fiat Chrysler Automobiles pushed out over-the-air update for the UConnect system on Friday and it is causing numerous problems. Jalopnik reports that the update is causing the UConnect system in 2017 and 2018 FCA models to constantly reboot every 45 seconds or so. Owners took to Twitter to vent their frustrations to the UConnectCares account saying how they lost audio, navigation, climate controls, and even the backup camera.

Usually, a prompt would come up when an update is sent out with the ability to choose yes or not. But some owners tell Jalopnik they did not get a prompt, the update automatically installed.

UConnectCares has acknowledged the problem and said there is a fix coming, although when it will come out is up in the air. 

It is unclear how many vehicles have this issue. Both Jalopnik and The Verge have reached out to FCA to get an official comment - we'll update you if and when they get it.

In the meantime, there is a temporary solution. The Hooniverse reports that if you input a location into the navigation and mute the audio, the rebooting will stop. 

"As per Mister Mailman’s direction, this temporary fix does work well. It’s not perfect because when the system talks, even thought it is muted, it still mutes the driver’s speakers. It also constantly displays directions in the gauge cluster. But both of these are heck of a lot less annoying than constant system reboots," writes Kamil Kaluski on Hooniverse.

Source: Jalopnik, The Verge, Hooniverse

The U.S. Justice Department has offered Fiat Chrysler Automobiles a possible settlement over its emissions-cheating EcoDiesel engine. But it will likely cost FCA a large chunk of cash.

Bloomberg obtained a copy of the settlement offer that was sent to FCA's lawyers. The key detail of the proposed settlement says the settlement “must include very substantial civil penalties” that discourage others future violations and that “adequately reflect the seriousness of the conduct that led to these violations.” The proposed settlement doesn't mention an end of the criminal investigation by the Justice Department.

Spokespeople for FCA did not respond for comment.

Bloomberg also obtained a term sheet sent by FCA to Government lawyers back in December. In the sheet, FCA acknowledged that the final settlement would include "civil penalties, an emissions fix for the diesel vehicles and environmental mitigation efforts." The mitigation efforts could include "projects to promote low- or zero-emissions “mobility projects”."

The saga of FCA's EcoDiesel mess dates back to last January when the Environmental Protection Agency (EPA) accused the automaker of having multiple defeat devices installed on the 3.0L EcoDiesel V6 - used in the Ram 1500 and Jeep Grand Cherokee. Since then, FCA has been working with the EPA and Justice Department on trying to clear this mess up. The automaker has also brought their 2017 and 2018 models equipped with the EcoDiesel into compliance via new software and hopes to do the same for the older models.

Source: Bloomberg

Fiat Chrysler Automobiles is trying to put the past behind them with the 3.0L EcoDiesel emission mess. The company has restarted production of the engine for the 2017 Ram 1500 and Jeep Grand Cherokee, and is in the process of getting a fix out there for older models. Now, talks about a possible settlement for owners of the 3.0L EcoDiesel are making some significant progress.

At a hearing yesterday in San Fransisco, court settlement master Ken Feinberg said that proposed settlement documents have been passed between lawyers for FCA and owners of the 3.0 EcoDiesel. The proposal was also discussed at a meeting where the lawyers for both groups were joined by the Justice Department, California Air Resources Board, and supplier Bosch.

“We’re looking for different substantive ways to secure an early comprehensive settlement,” Feinberg said.

“Everybody in good faith is certainly trying to figure out how we might achieve a comprehensive settlement.”

An agreement on a settlement could happen before tests of the proposed fix are finished in March.

Source: Reuters
Pic Credit: William Maley for Cheers & Gears

Seven years ago, Chinese automaker Guangzhou Automobile Group (GAC) entered into a joint venture Fiat Chrysler Automobiles. Currently, the joint venture locally builds the Cherokee, Compass, and Renegade. The venture also imports the Grand Cherokee and Wrangler for Chinese buyers. It has proven to be successful as the venture saw its sales triple to nearly 150,000 vehicles in 2016. Because of this, GAC wants to strengthen their ties with FCA.

"GAC has a real interest in deepening relations with Fiat Chrysler to expand outside China, especially in the U.S. Fiat hasn’t been able so far to catch up with competitors in China, so there is much room to improve," said Vincenzo Longo, a strategist at IG Markets in Milan.

In an interview with Bloomberg, GAC President Feng Xingya said the two automakers are in discussions about deepening their partnership. The key items being focused in the discussions include models, production, and sales targets. Xingya also hinted that GAC wanted to work FCA in the U.S. when it plans to launch their unfortunately named Trumpchi brand by 2019.

 “We are very satisfied with our cooperation with FCA. We have yet to reach a conclusion on how to cooperate with FCA when we begin manufacturing in the U.S., and we have also not begun discussions with other Chinese automakers on whether to make cars together in the U.S,” said Xingya.

Source: Bloomberg

Fiat Chrysler Automobile has quietly ended production of right-hand drive models from Chrysler and Dodge. According to South Africa's Wheels24, the announcement comes as FCA drops Chrysler and Dodge from their South Africa lineup.

"FCA will say a fond farewell to two of the mainstay car brands, with the Chrysler and Dodge vehicle ranges no longer being available locally. This unfortunate situation has arisen from our principals in the USA no longer building Chrysler or Dodge vehicles in Right Hand Drive configuration," the company told Wheels24.

According to Allpar, FCA built RHD variants of 300 and Charger in Brampton, Ontario, and Pacifica and Grand Caravan in Windsor, Ontario. It is unclear if this move will affect other markets where FCA sells RHD models such as Australia, New Zealand, and Indonesia. When reached for comment by Australia's CarAdvice, FCA Australia's manager of public relations Alessia Terranova said,

“I am not at liberty to comment on South Africa’s decision. What I can tell you is that Australia will continue to sell the right-hand drive Chrysler 300 as an ongoing product in our lineup. In relation to Dodge, at this stage, this brand is represented as a parts and service operation only.”

We'll keep you posted on this story.

Source: Wheels24, Allpar, CarAdvice

If there is one thing the Fiat Chrysler CEO Sergio Marchionne has been consistent on aside from changing his mind on a number of things is his dislike on electric vehicles.

Speaking to reporters this week at the New York Stock Exchange, Marchionne said there isn't a viable economic model for electric cars.

"We still don't have a viable economic model for delivering an electric car. As much as I like Elon Musk, and he's a good friend and actually he's done a phenomenal job of marketing Telsa, I remain unconvinced of a ... economic viability of the model that he's pitching," said Marchionne.

Marchionne believes the costs for batteries and the various technologies need to come down to make them viable. Otherwise, automakers should focus on developing hybrid and plug-in hybrid powertrains. 

"So how do we find a convergence of technology bringing prices of components down and allows us to price accordingly — or we need to navigate through this process in a combined way between combustion and electrification to yield at least a minimum of economic returns that allows for our continuity? The last thing you want is me to be successful selling cars for 24 months and then go bust. That's not a good story. Especially in a place like this which rewards economic success. Let's not sit here and design our own future in the tank. Let's try and do it properly. We will do all the right things. We are investing without making a lot of noise on electrification. We will combine it with combustion to yield the right level of CO2. But we're not betting the bank on going fully electric in the next decade. It won't happen," said Marchionne.

Source: The Street

Only a month ago, the automotive world was abuzz when a rumor came out that a Chinese automaker had a put in a bid for Fiat Chrysler Automobiles. We also learned about four possible Chinese automakers that were supposedly interested. But after this rumor came out, most of the Chinese automakers stepped back and said they were not interested. The only one that expressed some interest was Great Wall, but only for Jeep. Since then, they have taken a few steps back.

It seems no one is interested in FCA, a fact that was confirmed by CEO Sergio Marchionne.

According to Reuters, Marchionne said no when asked about if FCA was approached by someone or there was an offer on the table. Lord knows that Marchionne has tried to get someone interested in picking up FCA with such attempts as trying to sell GM's CEO Mary Barra on the idea or Volkswagen. Still, Marchionne isn't giving up. He said the company is working on a plan to “purify” (or streamline) its portfolio.

“There are activities within the group that do not belong to a car manufacturer, for example, the components businesses. The group needs to be cleared of those things,” Marchionne said.

What will not be leaving FCA's portfolio is Alfa Romeo and Maserati. Last month, a rumor came out that FCA was considering spinning off Alfa Romeo and Maserati into their own separate company. 

“The way we see it now, it’s almost impossible, if not impossible, to see a spin-off of Alfa Romeo/Maserati, these are two entities that are immature and in a development phase,” said Marchionne.

“It’s the wrong moment, we are not in a condition to do it.”

That last line might be the understatement of the decade.

Source: Reuters

The relationship between Fiat Chrysler Automobiles and Volkswagen has been frosty, to say the least when it comes to a possible merger - Volkswagen has said no to this idea. But it appears the two have been talking about possible alliance when it comes to certain light utility vehicles.

The Wall Street Journal has learned from a source that the two companies held discussions on producing some light-duty vehicles such as the Caddy van (Transit Connect and ProMaster City sized) and Amarok pickup. The source said the talks are still at an early stage.

"It's still very vague, we have to see if this will be pursued," said the source.

If these discussions do go somewhere, it might give Ram something it badly needs in the U.S.; a midsize pickup.

Also, sources tell the paper that Volkswagen "isn’t currently eyeing the Jeep unit itself, or considering a takeover bid for Fiat Chrysler." They're still dealing with the fallout from the diesel emission scandal.

Source: The Wall Street Journal (Subscription Required)

Ever since the rumor of a major Chinese automaker possibly buying Fiat Chrysler Automobiles broke earlier this week, a number of them are coming out and saying it's not us. Geely was the first to come out on Wednesday and we have learned about two others.

Yesterday, a spokesperson for Dongfeng told Reuters the company has no plans to buy FCA. Then today, Guangzhou Automobile told Reuters the same thing.

"Currently, we don't have plans to acquire Fiat Chrysler," said Wu Yunchong, spokeswoman for Guangzhou Automobile.

That now leaves Great Wall and other Chinese automakers that we don't know about.

Source: Reuters, 2

Monday saw a major bombshell report come out stating that multiple Chinese automakers were considering buying Fiat Chrysler Automobiles. In fact, a well-known automaker put out a bid earlier this month, which was subsequently turned down. Today, one of the Chinese automakers rumored to buy FCA said they did place an offer on the table.

According to Reuters, Geely Automobile’s executive director Gui Shengyue rebutted claims that his company was the one to place the bid.

"We don't have such plan at the moment," said Shengyue.

He would go on to say that "a foreign acquisition would be complicated," but did not elaborate. Sources tell the news service some of the complications would deal with the current political climate in the U.S. and regulations.

Geely and FCA held initial talks late last year according to a source, without going into detail what the talks dealt with. The source goes on to say that Geely is no longer interested in FCA, noting that the company had purchased a significant stake into Malaysian automaker Proton a few months ago.

That possibly leaves three automakers that we know of in the running - Dongfeng, Great Wall, and Guangzhou.

Source: Automotive News (Subscription Required), Reuters

It is no secret that Sergio Marchionne has been looking for a buyer to take on Fiat Chrysler Automobiles for the past two years. But no one seemed seriously interested.

That has changed.

Automotive News has learned from various sources that a number of Chinese automakers are conducting appraisals into FCA, with some meeting with representatives of U.S. retail groups about a potential acquisition last week. One source revealed that FCA executives have traveled to China to meet with Great Wall Motor Co. and that Chinese delegations were at FCA's HQ. AN also reports that a well-known Chinese automaker has put forth an offer this month for the company, but was turned down as it wasn't enough money to do a sale.

It is unclear which Chinese automakers are looking at FCA. Aside from Great Wall, sources say Dongfeng Motor Corp., Zhejiang Geely Holding Group, and Guangzhou Automobile Group (FCA's joint venture partner in China) are interested. Unsurprisingly, FCA and the Chinese automakers are keeping their mouths shut.

Why are Chinese automakers suddenly interested in FCA? Part of it comes from the government putting pressure on companies to expand beyond China. A government directive called China Outbound is pushing Chinese companies "to acquire international assets from their industries and operate them "to make their mark."

"Right now, Chinese automakers enjoy the full support of the leadership in Beijing to go and make it happen. That's something brand new, and it's really picked up since 2015,"  said Michael Dunne, president of Dunne Automotive based in Hong Kong.

A key example is Geely acquiring Volvo back in 2010.

Also, FCA provides Chinese Automakers wanting to enter the U.S. something akin to a turnkey operation. FCA has about 2,600 dealers in the U.S., along with extensive networks in Canada and Mexico. Worldwide, FCA has 162 manufacturing operations and 87 research and development centers - something that would appeal to Chinese Automakers.

So if a deal was worked out, what would a Chinese Automaker be getting? According to a source, the sale would include Jeep and Ram Trucks - FCA's profit makers, along with Chrysler, Dodge, and Fiat. Alfa Romeo and Maserati would be spun off to maximize returns for Exor - holding company controlled by Agnelli family which holds a controlling interest in FCA.

Source: Automotive News (Subscription Required)

It seems the EPA has had its eye on Fiat Chrysler Automobiles and their EcoDiesel V6 for quite a while.

Jalopnik and Reuters obtained emails from the EPA via the Freedom of Information Act that revealed the government agency had suspicions about possible cheating at FCA back in November 2015 - almost two months after the EPA announced Volkswagen's cheating with its diesel engines.

In an email sent on January 7, 2016 to Vaughn Burns, FCA North America’s head of vehicle emissions, certification, and compliance, director of the EPA's Transportation and Air Quality compliance division Bryon Bunker expressed concerns about FCA's slow response to explaining why their EcoDiesel engine was producing excess nitrogen oxide (NOx) emissions.

“I am very concerned about the unacceptably slow pace of the efforts to understand the high NOx emissions we have observed from several [redacted] vehicles with the [redacted],” said Bunker in his email.

Bunker also noted at meeting with FCA back on November 25, 2015 that at one of the auxiliary emission control devices used possibly violated EPA regulations.

A few days later, FCA’s head of vehicle safety and regulatory compliance, Mike Dahl sent an email to Christopher Grundler, director of the EPA’s office of transportation and air quality saying that he wanted to discuss the issues brought up by the EPA. Dahl noted that the company was hard at work investigating the issue.

There is also this tidbit from Dahl's email.

Quote

As I am sure you can appreciate, conclusions regarding possible noncompliance of FCA’s engine design, as violating EPA’s “defeat device” regulations, are conclusions of a legal nature with potentially significant regulatory and commercial consequences. We believe the best course is for both FCA and your team to reserve conclusions on that question until we both are comfortable that we fully and fairly have a mutual understanding of the complex technical facts of our emissions control strategy, of FCA’s rationale for the strategies, and a full and complete mutual understanding of your views. At that point, FCA is committed to cooperating with you to address any issues in an appropriate manner.

 

The emails between the EPA and FCA go back and forth throughout 2016 talking about the possible violations and additional testing. Jalopnik notes that the EPA was planning to make an announcement in December, but it is unclear whether it was to deal with the violation.

Source: Jalopnik, Reuters

Last month, Fiat Chrysler Automobiles announced that it had submitted certification paperwork for the 2017 Jeep Grand Cherokee and Ram 1500 EcoDiesel. The 2017 models come with new software that should hopefully get the approval of the EPA and be installed on older models. But at a court hearing yesterday, the brakes were put on FCA's hopes of a quick approval.

Leigh Rende, a Justice Department lawyer, said at a hearing in San Francisco federal court hearing "there is uncertainty" about whether the fix will be approved by the EPA.

"It could be weeks or months away. This is really a technical decision," said Rende.

FCA's lawyer Robert Giuffra told the court the company is optimistic that regulators will approve the proposed fix for the 2017 models, which in turn would be installed on 2014 to 2016 EcoDiesel models.

As we reported last month, the Justice Department sued FCA for using “defeat device” on 104,000 Jeep Grand Cherokee and Ram 1500 EcoDiesel models built between 2014 to 2016.

Source: Reuters

As if Fiat Chrysler Automobiles didn't have enough things on its plate, there is talk about the U.S. Justice Department readying a lawsuit over alleged violations of U.S. clean-air rules with their diesel vehicles

Bloomberg learned from two sources that the Justice Department is preparing a lawsuit against FCA alleging the company used illegal defeat devices on models equipped with the 3.0L EcoDiesel V6. The defeat devices in question disable emission controls to improve performance. Sources go on to say the lawsuit could be filed this week if negotiations between FCA and the U.S. Government fail to resolve the differences.

Back in January, the EPA accused FCA of violating diesel emission standards on 104,000 Jeep Grand Cherokee and Ram 1500 models equipped with the 3.0L EcoDiesel from 2014 to 2016 model years. The company did not disclose eight different software programs installed on the 3.0L EcoDiesel, which is a violation of the Clean Air Act.

Since then, the two have been in negotiations to try and resolve these issues according to a source.

“In the case of any litigation, FCA US will defend itself vigorously, particularly against any claims that the company deliberately installed defeat devices to cheat U.S. emissions tests. The company believes that any litigation would be counterproductive to ongoing discussions with the U.S. Environmental Protection Agency and the California Air Resources Board,” FCA said in a emailed statement.

Spokespeople for the EPA and Justice Department declined to comment.

Source: Bloomberg

Fiat Chrysler Automobiles' CEO Sergio Marchionne has a track record of saying things that make jaws drop everywhere. Case in point comes to us from The Detroit Free Press. During the company's first-quarter earnings call, Morgan Stanley analyst Adam Jonas asked Marchionne if there was a possibility of spinning off Jeep and/or Ram Trucks into a separate, standalone company.

"Yes," said Marchionne.

The Free Press notes that Jonas dropped this subject and moved on to another question. It needs to be noted that this isn't the first time that Jonas has brought this idea up. Back in January, Jonas estimated Jeep's value on a standalone basis would be $22 billion. Ram Trucks isn't far behind with an estimated value of $11.2 billion.

There is also precedent for this idea. Marchionne has a history of spinning off brands while keeping them under the FCA corporate umbrella. Last year, Ferrari was spun off to its own standalone company and now trades on the New York Stock Exchange. It currently generates more than $3.4 billion in annual revenue and close to $435 million in net income. Marchionne serves as the chairman and CEO of the company.

But if such a move was to happen, it would take a fair amount of time for this changeover to take place. 

Source: Detroit Free Press

You have to admire Fiat Chrysler Automobiles' CEO Sergio Marchionne for still hanging onto the dream of FCA and General Motors merging, despite being told repeatedly that isn't going to happen. At the Geneva Motor Show this week, Marchionne put out there that he is still interested in getting together with GM.

"I never close any doors. I may shamelessly try and knock again ... on the GM door or any door if I thought it was a good thing for the business. Absolutely, without even blinking. The desirability of GM as a potential merger candidate remains untouched," said Marchionne.

Unsurprisingly, GM shot down Marchionne's dreams.

"We weren't interested before and we're even less interested now," said GM President Dan Ammann.

Marchionne isn't one to give up however, he has a plan B: Volkswagen. As he told Bloomberg, with PSA Group becoming the second largest automaker in Europe with the acquisition of Opel/Vauxhall, this could put Volkswagen in a vulnerable position. He sees the company possibly looking for a partner.

“I have no doubt that at the relevant time VW may show up and have a chat” about a merger, said Marchionne.

Volkswagen CEO Matthias Müller slapped down that idea when asked.

“We are not ready for talks about anything. I haven’t seen Marchionne for months,” said Müller.

“We have other problems.” 

Source: Bloomberg , Reuters, (2)

From the 'how does this make sense' file, Fiat Chrysler Automobile is planning to expand its dealer network in the U.S. by adding around 380 new dealers. This news first came to light last week as Automotive News learned from two dealers and a source at FCA about the plans. The goal of this expansion is to try and expand market share. But there are a number of issues. For one, FCA has been seeing its sales and market share drop in the past few months due to a thinner product lineup.

Second, some of the locations that FCA is planning to put new stores are within a few miles of existing stores. For example, two dealers in Louisana have filed protests with Louisiana Motor Vehicle Commission for a proposed dealer in Kenner, LA. One of the dealers notes in their protest that the location is less than five miles from where they are. As they say in their protest, "will either be closer to Bergeron or, worse, must drive by Bergeron, if they are going to do business with the new point." A number of dealers in Texas have also filed complaints on new dealerships in their respective areas.

Finally, an internal FCA source tells Automotive News that the company's dealership location consultant, Urban Science doesn't agree with the expansion plans. The data from the consultant "does not support these additional points."

Fiat Chrysler Automobiles and Urban Sciences were unable to comment.

Source: Automotive News (Subscription Required), 2

A few weeks after the EPA accused Fiat Chrysler Automobiles of violating the Clean Air Act with the 3.0L EcoDiesel V6, CEO Sergio Marchionne said they hope to resolve this issue very soon.

The Detroit Free Press reports FCA has been in discussions with the EPA and California Air Resources Board over this issue. Part of those discussions includes a possible fix - reflash the EcoDiesel's ECU to make them legal.

“I think discussions are proceeding well, and I think they are a confirmation of the, certainly the goodwill that’s been established with the regulatory agencies now for a number of years, and it's something I expect that will continue," said Marchionne.

Marchionne also said the Justice Department is assisting the EPA in their investigation, something we first reported in the rumorpile last month .

Source: Detroit Free Press

The relaunch of Alfa Romeo has cost Fiat Chrysler Automobiles dearly. Speaking with analysts during the company's fourth-quarter earnings call, CEO Sergio Marchionne said the relaunch cost "in excess" of 2.5 billion euros (about $2.7 billion) so far. Back in 2014, FCA said it would invest 5 billion euros through 2018 to relaunch Alfa, though the timeframe has been pushed back to 2020. Alfa Romeo has also been losing money and will continue to do so until the full benefit of the Giulia and Stelvio hit.

To help curb costs, Marchionne told analysts that Alfa's Giorgio platform will be shared with other FCA brands; primarily Dodge, Jeep, and Maserati. 

"The investment in Alfa Romeo and certainly the technical investment in the architecture was something that was designed to benefit more than Alfa. I'm happy that we have finally found clarity of thought in the extension of these architectures well beyond Alfa," said Marchionne.

Marchionne said Giorgio would underpin "the whole Maserati development beyond 2018," along with large Jeeps and the next-generation of Dodge's rear-drive models. As we have we reported previously, Giorgio will underpin the next-generation Charger and Challenger. Automotive News learned from a source that the platform will underpin the next Journey and Durango crossovers, and possibly a new midsize sedan. No information was given about Jeep, but it seems the next-generation Grand Cherokee is a safe bet.

Source: Automotive News (Subscription Required)

A day after the EPA announced an investigation into possible emission violations with Fiat Chrysler Automobiles' 3.0L EcoDiesel V6, the Department of Justice has now opened its own investigation.

Bloomberg has learned from sources that the U.S. Justice Department has opened a criminal investigation into FCA's possible violations of the Clean Air Act. As we reported yesterday, the EPA said FCA did not disclose eight different software programs used on the 3.0L EcoDiesel V6. In lab tests, the engine used in the Jeep Grand Cherokee and Ram 1500 exceeded more emissions when driven at high speeds or for extended periods.

We should note this isn't the only investigation being done by the DOJ into FCA. Last year, the DOJ started investigating the company over possible fraud for inflating sales numbers.

FCA did not respond when asked by Bloomberg for a comment. A DOJ spokesman declined to comment.

Source: Bloomberg

Sales of Fiat vehicles in the U.S. have been tanking and FCA is making a drastic change to try and reverse this. Automotive News got their hands on documents revealing a new pricing structure that will see Fiat cut the prices on some of their models.

The base 500 will see a price cut of $2,000 ($14,995 from $16,995). The price doesn't include a $995 destination charge. The big price cuts will come to the 500C lineup as there will now be a $1,495 difference between the cabrio and regular hardtop. A key example is the 500C Abarth which sees its price drop from $26,695 to $21,490 for 2017. Prices for the 124 Spider and 500X remain unchanged.

A Fiat spokesman declined to comment.

Source: Automotive News (Subscription Required)
Pic Credit: William Maley for Cheers and Gears

If you think the Fiat Chrysler Automobiles' sales probe couldn't take an unexpected turn, then you would be wrong. The Wall Street Journal reports that federal investigators are asking questions about a phrase that was used by various executives to dealers and regional sales managers.

According to sources, executives at FCA would use the phrase “unnatural acts department” during conference calls and one-on-one conversations. This phrase was to convey to dealers and regional sales managers to get more sales before the end of the month. Such solutions included selling vehicles at a loss or asking dealers to buy a number of vehicles that would be used for test-drives with customers. Investigators are trying to figure out if the phrase was used a way to rally the troops to meet sales targets or a key piece of evidence of whether or not FCA executives deceived the public by using this phrase to tell dealers to falsify sales numbers.

As we reported back in July, FCA is currently under investigation by the U.S. Department of Justice and Securities and Exchange Commission over their sales reporting practices. The investigation stems from dealers in Florida and Illinois suing the company for falsifying sales numbers. In the same month, FCA admitted the sales streak that supposedly lasted for 75 months only lasted for 40 months. The company also changed how it reported sales numbers.

Source: The Wall Street Journal

Fiat is possibly adding another derivative of its Miata-based 124. Autocar has learned from sources that the Italian automaker is working a coupe variant. Unlike the retractable hardtop used on the MX-5 Miata RF, Fiat is keeping it simple by designing a regular coupe. It would also give a bit more differentiation between the 124 and Miata.

We have a possible idea of where Fiat could go with the 124 coupe by looking at Abarth 124 Rally concept that appears to have a hardtop fitted permanently. Some sources say Fiat could change the design of the rear to better integrate the coupe roofline. 

Power is currently undecided at the moment. Certain markets could get a 1.4L four-cylinder with 138 horsepower, while others may get the turbocharged 1.4L with 158 horsepower. There is talk about an Abarth model with 178 horsepower and limited-slip differential.

Autocar says the 124 Coupe could be shown as soon as next year. 

Source: Autocar

Fiat Chrysler Automobiles surprised everyone last month when they announced a partnership with Google concerning autonomous vehicles. It seems that FCA wants to do something similar with another company.

Bloomberg has learned from sources that FCA is currently in talks with Uber Technologies to strike a similar partnership concerning autonomous vehicles. At the moment, the talks between the two companies are at the preliminary stage. Unsurprisingly, both FCA and Uber declined to comment.

Another source tells Bloomberg that Uber is in talks with other automakers. Not a big surprise as Uber already has announced a partnership with Toyota concerning the ride-service section of the business.

Why would FCA be talking with Uber? FCA doesn't have the money/resources to develop their own technology. By partnering with various technology, this allows FCA to catch up in terms of autonomous tech.

Source: Bloomberg

Fiat Chrysler Automobiles currently finds itself in hot water with the German transport ministry (KBA) for missing a meeting last week to talk about the use of software that turns off emission controls. Then word came out from the KBA that FCA declined to cooperate with the investigation, saying their vehicles meet emission standards. Because of that move, the KBA is considering banning the sale of FCA vehicles.

Reuters cites a report from German newspaper Bild am Sonntag where sources said the KBA could threaten the company with a sales ban if they don't comply with emission rules. Not good news since the country is FCA's second biggest European market.

How did FCA end up here? Bild am Sonntag explains that the KBA found evidence of the exhaust treatment system turning off after 22 minutes in some of FCA's models. A regular emission test takes about 20 minutes.

After this news came out, shares in FCA dropped five percent in European stock trading.

What happens next? Italian regulators and the European Commission will look at the data from the KBA before deciding the next move.

FCA isn't the only automaker currently in hot water with the KBA. Last week, Opel met with officials to discuss software that turns off emission controls in the Zafira.

Source: Reuters

Alphabet Inc. - Google's parent company - wants to find automotive partners to use their autonomous technologies. Fiat Chrysler Automobiles is looking for partners to help offset costs of development and production. In fact, CEO Sergio Marchionne has hinted that he is open to working with a technology company.

Chocolate, meet peanut butter.

The Wall Street Journal has learned from a source that Alphabet and FCA are in the late stages of talks about a technology partnership. These talks have been ongoing for a few months explained the source.

But why Fiat Chrysler Automobiles? Compared to other automakers, they are way behind in a number of key technology areas. The AutoExtremist, who first reported the rumor, explained FCA has a couple key items that interest Alphabet Inc. First is the upcoming Pacifica minivan which could be developed into a fully autonomous vehicle. The second is that FCA has the manufacturing capability and dealer network, something Alphabet lacks.

Source: The AutoExtremist, The Wall Street Journal

Fiat Chrysler Automobile's CEO Sergio Marchionne is someone who speaks his mind - for better or worse. Speaking with Automotive News Europe, Marchionne expressed his skepticism on the recently unveiled Tesla Model 3, specifically on how they can make a profit.

"I'm am not surprised by the high number of reservations but you have then to build and deliver them and also be profitable," Marchionne said.

The Model 3 is Tesla entry into the mass-market EV segment with a $35,000 pricetag. At the moment, reservations for the new model are nearing 400,000. Marchionne doesn't see how Tesla could make money on it.

But Marchionne went on to say if Tesla's Elon Musk "can show me that the car will be profitable at that price, I will copy the formula, add the Italian design flair and get it to the market within 12 months."

Considering this is the same person who railed against EVs for years, it is a bit of a shock. Asked if he thinks the company is arriving late to the EV party, Marchionne said: “better late than sorry.”

Source: Automotive News Europe (Subscription Required)

Alfa Romeo and Maserati are in a bit of a mess. Product launches for both brands have been pushed back again and again for various technical challenges. FCA has decided to bring back a former employee to help straighten out this mess.

According to Automotive News, FCA has lured former Ferrari chief engineer Roberto Fedeli from BMW to become the chief technical officer for Alfa Romeo and Maserati. His new position will have him overseeing the r&d for the two brands. Fedeli spent 26 years at Ferrari in various roles before becoming the head of r&d for production cars in 2007. He is one the major players in the creation of the brand's hybrid supercar, the LaFerrari. Fedeli joined BMW back in 2014.

Fedeli has his work cut out in trying to get Alfa Romeo and Maserati back on track. Supplier sources tell Automotive News that the most recent delay for the Giuila was due to the model failing to pass internal front, side, and rear crash tests. This resulted in an additional six months in development time to re-engineer the vehicle.

A spokesperson from FCA told Road & Track the report is "not accurate or representative at all." The spokesperson went on to say that the Giulia is still on track to be launched in "late 2nd quarter 2016." We'll believe it when we see it.

Over at Maserati, the Levante SUV was supposed to debut last year but is now scheduled to go on sale this summer. This delay was due to Maserati scrapping the Grand Cherokee platform and going with the Quattroporte/Ghibli platform for their first SUV.

Source: Automotive News (Subscription Required), Road & Track

Fiat's performance arm, Abarth, looks to be working their magic on the Fiat 500X. Motor Trend got their hands on some new spy shots of a 500X mule sporting some interesting hardware.

First off, the 500X is riding on some very unique wheels. If you're wondering why they look familiar, this same wheel design has been used on various Alfa Romeo models. Behind the wheels are a set of red-painted calipers and larger discs. The big giveaway is around back where there are two exhaust tips.

As we reported last summer, the 500X could get the turbocharged 1.7L four-cylinder from the Alfa Romeo 4C. It is unclear if it will retain the 237 horsepower rating found in the 4C or be slightly detuned. All-wheel drive is expected to be standard. Abarth will also make tweaks to the chassis and suspension.

No word as to when Fiat will revealed the 500X Abarth.

Source: Motor Trend

The times we have seen the upcoming Fiat 124 Spider in spy photos, they have been under many layers of camouflage. But a new set of shots have come in, showing off the new spider completely uncovered.

Now as we have previously reported, the Fiat 124 Spider is based on the new Mazda Miata and you can see some it in the 124 Spider's overall profile. Fiat has made some changes to make it their own with longer and squarer front end. The back is also square-ish and slightly taller than the Miata. The interior is mostly Miata, aside from the Fiat steering wheel.

Powertrains for the 124 Spider are expected to a be a turbocharged 1.4L four-cylinder with 180 horsepower and a 1.75L turbo four-cylinder with 240 horsepower for the Abarth.

We're expecting to see the Fiat 124 Spider at the LA Auto Show in November, with sales beginning sometime next year.

Source: Auto Guide

Fiat's performance arm, Abarth is currently deciding what vehicle they should tackle next. We have reported that Abarth will be working on hotted-up version of Fiat's upcoming roadster, but they have their sights set on other models as well.

“Besides the 124 and 500, we are thinking about an all-new addition to the line-up. The 500X is one of the options being considered,” said Alfredo Altavilla, Fiat Chrysler Group chief operating officer to Auto Express.

Now if Fiat does give Abarth the green light to do a performance-oriented version of the 500X, it could borrow the turbocharged four-cylinder from the Alfa Romeo 4C. It would likely be detuned to produce somewhere around 200 horsepower. That puts it in the league of the Mini Countryman JCW (208 horsepower) and Nissan Juke Nismo (215 for the front-wheel drive model, 211 for the all-wheel drive).

Source: Auto Express

We know that Fiat will be getting a new Spider courtesy of the folks from Mazda and might be shown later this year at either Frankfurt of LA. Now some new information shines a light on a possible performance version.

Speaking with Auto Express, Fiat's COO Alfredo Altavilla said there will be two variations of the Fiat Spider - a 'comfortable' Fiat version and a “extreme” Abarth version.

“You like performance? There will be an Abarth version,” said Altavilla.

The Abarth version will get more aggressive styling, retuned suspension, and a set of larger brakes. Power is expected to come from a detuned version of the Alfa Romeo 4C producing 200 horsepower.

Source: Auto Express

FCA CEO Sergio Marchionne is quite serious on this consolidation of the automotive industry. Last month, it was reported that Marchionne emailed General Motors CEO Mary Barra about a possible tie up and wanting to meet back in March. Barra rejected this idea outright. But this isn't stopping Marchionne.

The Wall Street Journal reports Marchionne is turning to activist investors to compel GM into this idea. There is prescient for this idea as earlier in the year, a group of investors approached GM to buy back $8 billion of their stock. Through negotiation, GM agreed to buy back $5 billion of stock.

The other prescient goes back to 2006 when Nissan CEO Carlos Ghosn teamed up with activist investor Kirk Kerkorian to have GM join the alliance with Nissan and Renault. After weeks of discussion, GM declined to join.

If this idea goes no where, Marchionne has a Plan B. Bloomberg has learned from sources that there is a fallback option where Marchionne could talk to other automakers. Such automakers include Volkswagen, Mazda, and PSA Peugeot-Citroen.

Source: The Wall Street Journal (Subscription Required), Bloomberg

The Miata-based Fiat Spyder will soon make an appearance. Edmunds has learned from industry sources that the Spyder will debut at the Frankfurt or LA Auto Show this year. The sources go onto say that the new Spyder will boast a 1.4L four-cylinder engine and be built at Mazda's Hiroshima plant.

Jason Stoicevich, head of Fiat Brand for North America wouldn't confirm a date for when we'll see it, but did say the Spyder "is a logical car for our brand."

"There is a ton of heritage behind that. I think that just kind of puts the bow on the showroom for us and fills it out completely," said Stoicevich.

Source: Edmunds

Sergio Marchionne is planning on stepping down as head of Fiat Chrysler Automobiles in 2018. But before he says good-bye, he wants to do one more big deal to help plug up holes in FCA and expand into other markets.

Reuters reports that Marchionne has been putting out feelers for the past year to try and jumpstart consolidation in the industry to help share costs and bring out new technologies. But an alliance would help FCA as they have one the largest piles of debt in the industry, along with a number of other problems such as an over-reliance on a North American market and missing a good amount of the Asian marketplace.

"The U.S. is where FCA is focusing now. Marchionne is doing a lot of work on his last deal and something will happen before 2018." said a source to Reuters.

Several sources say Marchionne and the Agnelli family - the founders of Fiat - have their eyes on General Motors as they have a strong presence in both the U.S. and Asia. Also, GM wants to get back on the right track in Europe after the mess with PSA Peugeot Citroen went no where. But a source at a U.S. bank says GM isn't interested.

This isn't the first time that FCA has put feelers out. Last year, there were reports of FCA speaking with both PSA Peugeot Citroen and Volkswagen. These reports were denied.

Source: Reuters

The Fiat roadster (formally the Alfa Romeo roadster) that is being developed with a bit of help from Mazda has gotten a name. Automotive News Europe reports that the upcoming roadster will wear the 124 Spider name when it launches. This comes from Fiat Chrysler CEO Sergio Marchionne who revealed the name to reporters at the Geneva Motor Show this week.

The name can trace it roots back to 1966 when it was used on a 2+2 convertible based on the Fiat 124. The original 124 Spider was designed by Pininfarina and come equipped with a variety of engines throughout its life including a 1.4L four-cylinder and 2.0L.

Marchionne went onto say that the model would be sold worldwide, but didn't reveal a launch window.

Source: Automotive News Europe (Subscription Required)

When was the last time you ever heard the CEO of a major automaker say don't buy our car? Never? Well Fiat Chrysler Automobiles' CEO Sergio Marchionne may be the first one.

Reuters reports that Marchionne told an audience at the Brookings Institution in Washington D.C. last week that anyone considering the Fiat 500e should not buy it.

"I hope you don't buy it because every time I sell one it costs me $14,000. I'm honest enough to tell you that," said Marchionne. "I will sell the (minimum) of what I need to sell and not one more."

So why did FCA build the 500e in the first place then? It comes down to the California Air Resources Board mandate which requires the six automakers selling the most cars in the state to sell vehicles with no tailpipe emissions at all from 2012 through 2017. Vehicles such as the 500e are known as compliance vehicles.

Source: Reuters

William Maley is a staff writer for Cheers & Gears. He can be reached at william.maley@cheersandgears.com or you can follow him on twitter at @realmudmonster.

Fiat is planning to expand their 500 lineup once again by introducing a larger five-door model that will replace the aging Punto.

Auto Express reports that Fiat engineers will use the Punto's platform as the base for the larger 500 and not use the current 500's platform. As for the design, the new model will retain many of the cues found the normal 500 such as the two-part headlights and short hood length.

The new model could arrive in 2015 and slot in between the standard 500 and 500L.

Source: Auto Express

William Maley is a staff writer for Cheers & Gears. He can be reached at william.maley@cheersandgears.com or you can follow him on twitter at @realmudmonster.

William Maley

Staff Writer - CheersandGears.com

October 29, 2013

Fiat has become the sole owner of VM Motori after paying General Motors 34.1 million Euros ($47.1 million) to buy out its stake in the company. A Chrysler spokesman tells Automotive News that the transaction was completed yesterday. VM Motori currently supplies diesel engines for the Jeep Grand Cherokee and Ram 1500.

VM Motori manufactures approximately 90,000 engines per year for automotive, marine, industrial and other uses. The company employs around 1,150 people.

Chrysler executives have said they'll be watching how consumers react to the new diesels and make decision on whether to expand diesels to other models.

Source: Automotive News (Subscription Required)

William Maley is a staff writer for Cheers & Gears. He can be reached at william.maley@cheersandgears.com or you can follow him on twitter at @realmudmonster.

William Maley

Staff Writer - CheersandGears.com

October 8, 2013

Fiat dealers have been feeling the strain since the brand started selling vehicles in 2011 and it appears that it is only going to get worse. Automotive News reports that only 45 percent of the 2010 Fiat dealers in the U.S. are making a profit. Moreover, the majority of those dealers happen to be tied in with other Chrysler dealerships. This means other dealers are losing their shirts if they don't have any other storefronts.

"I think most dealers have been disappointed in the performance of their Fiat dealerships," said Alan Haig, president of automotive services for Presidio Group.

Making the matters even worse is the large 24 percent decline in sales Fiat saw in September sales. This means sales so far for the year stand around 33,000 units, the same number as last year. Most of decline can be attributed to 500. As for the 500L, it still is too early to tell as it went on sale back in the summer.

"It's sad to say, but it's become a stepchild. Chrysler doesn't want to hear that, but that's the reality," said an unnamed Chrysler dealer.

Many Fiat dealers were counting on Alfa Romeo to help bring more people in. But a recent report says that the Alfa Romeo 4C will will instead be sold in Maserati stores. Add in the fair number of delays for other Alfa Romeo models, and many dealers are left wondering if they'll ever see the brand.

Now Fiat has said there is a new model that will help dealers "take the next step", but that will not happen till 2015.

Source: Automotive News (Subscription Required)

William Maley is a staff writer for Cheers & Gears. He can be reached at william.maley@cheersandgears.com or you can follow him on twitter at @realmudmonster.

William Maley

Staff Writer - CheersandGears.com

July 2, 2013

The California-only Fiat 500e has been a resounding success for the brand. So much so that according to Jason Stoicevich, president and CEO of the Fiat brand in North America says they have sold out the production run of the 500e for the remainder of the year.

“We’re pretty much sold out for the year,” said Stoicevich.

Source: Wards Auto

William Maley is a staff writer for Cheers & Gears. He can be reached at william.maley@cheersandgears.com or you can follow him on twitter at @realmudmonster.

By William Maley

Staff Writer - CheersandGears.com

May 13, 2013

Despite rising sales of Fiat 500 in the past few months, some Fiat dealers are finding it difficult to break even.

"I'm struggling to break even. With the one car in a small (volume) segment, it's a tough go right now," said Gary Brown, owner of a Fiat dealer on Long Island and chairman of the Chrysler Dealer Council.

Dealers are very antsy get to new products such as the new 500L later this year as it should help bring more people into Fiat dealers.

"The four-door (500L) is really going to be a shot in the arm. It will put a franchise on more people's radar as they are shopping for a small car," Brown said.

But the one product lineup Fiat dealers are still wondering about is Alfa Romeo. The 4C sports car is due in the U.S. later this year or early next year. After that, who really knows. Several Fiat dealers told Reuters that Fiat has postponed a meeting discussing new products twice and that a new date hasn't been set.

When asked about the meetings, a Fiat spokesman declined to comment.

Source: Reuters

William Maley is a staff writer for Cheers & Gears. He can be reached at william.maley@cheersandgears.com or you can follow him on twitter at @realmudmonster.

By William Maley

Staff Writer - CheersandGears.com

April 22, 2013

Fiat and Chrysler CEO Sergio Marchionne disclosed during a speech at SAE World Congress in Detroit last week that for every Fiat 500e sold, the company expects to lose around $10,000.

“For every 500 electric that we produce even after all the subsidies we will lose about $10,000 bucks a car. Doing that on a large scale would be masochism to the extreme,” Marchionne said.

Marchionne disclosed the figure to make a point. He believes that electric vehicles won’t be enough for automakers to meet the new ambitious fuel economy regulations set for 2025 by the U.S. Government. The regulations say automakers have to reach a fleet average of 35.5 MPG by 2016 and then reach an average of 54.5 MPG by 2025. Automakers can earn government credits, which help get an automaker closer to the average, by building hybrids, plug-in hybrids and electric vehicles. Marchionne sees this as a problem since the Government is saying hybrids, plug-in hybrids and electric vehicles are the only solution to this problem.

“A number of governments around the world including the U.S. have provided incentives for consumers to purchase plug-in electric vehicles and have provided direct incentives to manufacturers.My fear is that regulators are rushing precipitously into embracing electric vehicles as the only technological solution,” Marchionne said.

Instead, Marchionne is urging for “technological neutral” regulation should be encouraged.

Source: Detroit Free Press

William Maley is a staff writer for Cheers & Gears. He can be reached at william.maley@cheersandgears.com or you can follow him on twitter at @realmudmonster.

By William Maley

Staff Writer - CheersandGears.com

April 11, 2013

Fiat is planning to add the option of an automatic transmission into the Abarth lineup.

"We're not opposed to doing it. We just didn't think there would be consumer requests for it, and there is," Fiat's North American president, Tim Kuniskis told Wards Auto.

The reason for this? To bring in more buyers, specifically women. With the new Abarth version of the 500C just around the corner, Kuniskis says that the company is expecting a few more women buyers to opt for the more potent version of the cabriolet.

"I think when we'll see more women is when we have the automatic, and we're planning to add the automatic in the Abarth at some point, only because we're getting that feedback from customers," said Kuniskis.

We don't know when the Abarth will be getting the automatic at this time.

Source: Wards Auto

William Maley is a staff writer for Cheers & Gears. He can be reached at william.maley@cheersandgears.com or you can follow him on twitter at @realmudmonster.

By William Maley

Staff Writer - CheersandGears.com

March 25, 2013

Fiat's brand chief Gianluca Italia said to Autocar that after the 500X crossover, Fiat will not expand the 500 lineup anymore.

“We’re talking about a few models with 500 that leverage on the asset, not several. Mini is a brand, 500 isn’t. Fiat is the brand so the 500 does not need to be. There is a limit.”

Fiat's 500 lineup is currently made up of

• 500
  
• 500C
  
• 500 Abarth
  
• 500C Abarth
  
• 500L
  

Fiat will also be adding a seven-seat version of the 500L and a crossover 500X.

Source: Autocar

William Maley is a staff writer for Cheers & Gears. He can be reached at william.maley@cheersandgears.com or you can follow him on twitter at @realmudmonster.

By William Maley

Staff Writer - CheersandGears.com

February 10, 2013

The new 500T offers some of the performance of the hotted up 500 Abarth at a somewhat lower price - if you don't mind having the manual transmission only. Those who wanted the automatic with the turbo were just out of luck. However, Fiat North America's head would like to change that.

“The T with an automatic would be great. I want to do it. A lot of people think it’s wrong, like an automatic Abarth.” said Tim Kuniskis, head of Fiat North America. “I need it yesterday. There are so many people [who] want that car.”

There's a reasoning behind Kuniskis statements. The chief competitor to the 500, the Mini Cooper, offers the option of an automatic transmission across the range. Yes, that does include the John Cooper Works model. Offering the 500T with the option of automatic transmission would likely bring more sales to the brand.

Source: Motor Trend

William Maley is a staff writer for Cheers & Gears. He can be reached at william.maley@cheersandgears.com or you can follow him on twitter at @realmudmonster.

William Maley

Staff Writer - CheersandGears.com

October 31, 2012

Bloomberg is reporting that earlier this month, Fiat CEO Sergio Marchionne sat down with PSA-Peugeot/Citroen GM earlier this month about creating an alliance that would become the largest automaker in the region.

Marchionne's proposal was to have the three companies form an alliance in exchange for stock. Marchionne also had another proposal on the table where Fiat would take Opel off GM's hands if the company was given between $5 to $7 billion in cash for restructuring costs.

PSA-Peugeot/Citroen passed on the alliance because it favors its partnership with GM. Also, if PSA-Peugeot/Citroen went ahead with this idea, this would have complicated a $9.1 billion guarantee from the French government.

“It’s an indication that it’s getting increasingly difficult, especially for the southern European carmakers. Marchionne seems to be afraid to go under in the wave of joint ventures in Europe,” said Frank Schwope, an analyst with Norddeutsche Landesbank Girozentrale.

“Don’t read anything into having a coffee at the bar. There are other things than combinations and mergers that people talk about from time to time,” said Marchionne when asked about this.

General Motors and PSA-Peugot/Citroen declined to comment.

Source: Bloomberg

William Maley is a staff writer for Cheers & Gears. He can be reached at william.maley@cheersandgears.com or you can follow him on twitter at @realmudmonster.

William Maley

Staff Writer - CheersandGears.com

July 6, 2012

During the recent press launch of the new Fiat 500L, Fiat previewed a new member of the 500 family called the 500X. The 500X is a crossover and will take the place of Fiat Sedici (Suzuki SX4 in Fiat clothing).

Styling is a mix of hatchback and SUV cues and come with the choice of front-wheel and all-wheel-drive. The 500X will be the longest model in the 500 lineup, measuring around 13.7 feet.

The 500X is also the likely canditate for the compact Jeep that we've been reporting for the past year. The major difference between the the two will be the Jeep will have a trail-rated model.

The 500X will go into production next year, with the Jeep following sometime in 2014.

Source: Autoweek

William Maley is a staff writer for Cheers & Gears. He can be reached at william.maley@cheersandgears.com or you can follow him on twitter at @realmudmonster.

William Maley

Editor/Reporter - CheersandGears.com

June 5, 2012

If you were thinking about purchasing a 2012 Fiat 500 Abarth, you're out of luck for the time being. The Detroit News reports that Chrysler is telling dealers that it's no longer accepting wholesale orders for the new 2012 500 Abarth.

When the Abarth went on sale in late April, over a thousand customers had put a deposit down. Fiat decided to up the amount from thousand to 3,000 Abarths to help with increased demand. Sources say the Toluca, Mexico plant building the 500 Abarth has reached its limit.

So what does this mean for customers who place an order for Abarth now? They'll be waiting for the 2013 500 Abarths to roll off the line.

"The Fiat 500 Abarth is unstoppable. Dealer orders for the Abarth dramatically exceeded the number of units we had scheduled for production. We had to schedule additional production to try and keep up with the demand. Most Abarth units are sold within one day," said Tim Kuniskis, Head of Fiat Brand.

Source: The Detroit News

William Maley

Editor/Reporter - CheersandGears.com

April 10, 2012

Car & Driver has found some new documents filed by Chrysler with NHTSA and the California Air Resources Board (CARB) showing two new Fiat 500 models.

The first model is the 500T Sport. In documents filed with NHTSA, the 500T Sport appears on Fiat's 2013 model-year offerings. The 500T will only come in a two-door hatchback offering.

As for powertrain, a CARB filing shows a turbocharged 1.4L engine being used several Dodge Dart models, the Fiat 500 Abarth, and another Fiat 500. Officially, we know the Dart and 500 Abarth to use the turbo 1.4L. The other 500 is presumed to be the 500T.

The second model is the 500 Abarth Convertible. Currently sold in Europe and other places, Fiat hasn't said if it would make its way to the states. The 500 Abarth Convertible is expected to share to the Abarth's 1.4L turbo four producing 160 HP and 170 lb-ft.

Source: Car & Driver

William Maley

Editor/Reporter - CheersandGears.com

March 30, 2012

The Fiat 500 lineup is currently made up of three models; the regular 500, 500C, and the new 500L crossover. Autocar is reporting there could be a fourth model on its way.

The fourth model is expected to be the replacement to the Fiat Sedici (Suzuki SX4) and carry the nameplate of the 500X. The 500X will combine the styling of a SUV and hatchback.

The 500X will use Fiat's small vehicle architecture with the 500L and Punto and come equipped with the 900cc TwinAir unit, a 1.4L four-cylinder, and a diesel. It will come with either front-wheel or four-wheel drive.

The 500X is expected to be also sold as a Jeep in North America and China.

The 500X will come out sometime next year with the Jeep model following a year after.

Source: Autocar

William Maley

Editor/Reporter - CheersandGears.com

March 19, 2012

Fiat's U.S. lineup is only made up of one vehicle, the 500 and its variations. That will soon grow to two when the 500L makes its Atlantic crossing next spring. But Fiat U.S. chief Tim Kuniskis revealed to the Detroit Free Press there could be three Fiats.

Kuniskis wouldn’t go detail what the third model could be, but he did say that styling will always be their emphasis and that “any car we sell has got to be different.”

So, what could be the third vehicle? Well, it could be either the Panda, Punto, or a unknown vehicle.

Source: Detroit Free Press

William Maley

Editor/Reporter - CheersandGears.com

February 23, 2012

The Fiat 500. A car that was given an ambitious sales goal of 50,000 vehicles during its first year and missed by a long shot - only selling 17,945 vehicles between March and December of 2011. Everyone, including yours truly has said that's a failure. But, some new analysis from Polk says the 17,945 isn't really a failure.

Polk compared the 500 to other three-door subcompacts and found out the 500 captured 25.71% of the market. That puts it behind the Mini Copper, but well ahead the Hyundai Accent and Toyota Yaris.

Still, Polk points out that three-doors only make up 16% of the subcompact market.

Source: Polk

William Maley

Editor/Reporter - CheersandGears.com

January 29, 2012

Fiat has finally come up with a name for their new five-door 500 - the 500L. The new 500L will make its official debut at March’s Geneva Motor Show.

The 500L will be wider and about 2.4 inches longer than the regular the 500. That’s due to the 500L being based on Fiat’s Punto subcompact..

The 500L will be offered in two models; a five-seat and seven-seat model. The U.S. will get the five-seat model only.

Fiat will begin sales of the 500L in Europe beginning in July. The U.S. sales will begin sometime next year.

Source: Autoweek

William Maley

Editor/Reporter - CheersandGears.com

January 17, 2012

You have to wonder what Sergio Marchionne was thinking when he set a goal of 50,000 500s to be sold for 2011. Marchionne said he was "incredibly naive" to pick that goal.

Fiat only sold 19,769 500s for 2011 (39.5% difference). So what was Marchionne thinking when he came up with that number. In a interview with CNN Money, Marchionne said the goal wasn’t based on anything but wanting to beat Mini, noting sales for the Mini brand totaled 45,644 vehicles.

“It was a number that we said would be in excess of what Mini was selling in the United States. It was that simple,” Marchionne said.

Critics point out that Fiat's first-year goal was ambitious to a fault and that Mini was able to reach their 40k+ vehicles sold thanks to the brand being sold in the U.S. for 10 years. Marchionne said "we set ourselves up for a fall," but insists that the future of Fiat in the U.S. is still very strong.

Source: CNN Money

William Maley

Editor/Reporter - CheersandGears.com

January 2, 2011

If there is one thing Fiat needs in the US besides sales is another model. And if a report from Inside Line is to be believed, we could be seeing a new model next year.

Inside Line reports that Fiat is readying a new small crossover code-named Ellezero. Ellezero will be based on Fiat's SUSW (Small U.S. Wide) platform, which also will underpin a new compact Jeep crossover. Design will borrow from the 500 with it's rounded look. Power will come from the 1.4L engine found in the 500.

The new crossover will make it's debut at the Geneva Motor Show in March.

Source: Inside Line