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How Fiat explains its disastrous J.D. Power quality scores

Back in the '60s and '70s, Fiat didn't exactly have an enviable reputation for quality. Of course, lack of quality and a tarnished brand reputation eventually saw the Italian automaker flee the market, only to return with the 500 and the larger 500L in the last few years. However, if J.D. Power's Initial Quality Survey for 2014 is to be believed, modern Fiat products haven't improved quite as much as we might have hoped. Fiat thinks that there is a very simple explanation for its poor performance on the annual list, though.
J.D. Power's IQS looks at flaws among autos in the first 90 days that customers own their new vehicles. In 2014, Fiat wasn't only dead last, it was at the back of the pack by a significant margin. The company's cars tallied 206 problems per 100 vehicles (PP100) compared to a national average of 116 PP100. Even Jeep, the survey's second-to-last finisher, had 146 PP100. Fiat's performance was pitiful.
However, it can all be explained, at least according to US Fiat boss, Jason Stoicevich, who spoke with Ward's Auto. He qualifies the results by stating that the survey came at a particularly bad time for the brand. It produced very few 2014 500 models to allow extra time to introduce the updated 2015 version. That meant that about 91 percent of its vehicles surveyed were examples of the 500L, "which is a new car where there are always quirks to work through," said Stoicevich to Ward's. With only one model providing data, it skewed the results. Of course, that's all well and good, but it suggests that the larger 500L is even more problematic than the overall brand's 206 problems per 100 vehicles.

VW, Fiat deny merger talks

All parties involved are actively denying a potentially Earth-shattering shakeup in the automotive universe, as a German business publication claimed that Volkswagen and Fiat have been discussing the possibility of a merger.
The magazine, Manager Magazin, claimed that Fiat was looking to ditch its volume automotive business in order to focus even more heavily on Ferrari, according to Automotive News Europe. The report claims that the merger would allow Chrysler to help bolster the Volkswagen brand in the United States.
Not surprisingly, Volkswagen, Fiat and the Agnelli family (which owns a 30-percent stake in FCA) have all denied this report. VW has said it's focusing on efficiency within its own group, and isn't looking at any takeover plans, according to AN. The Agnelli family, meanwhile, has also denied talks, while Fiat officials say are unaware of any talks.

Fiat-based baby Jeep spotted testing in US and Europe

Details remain scarce, but our spy photographers have managed to capture the upcoming Jeep B-segment crossover for the first time, testing in both the Alps and in the US. Shown here as a cobbled-together Fiat 500L mule, the new Jeep model is expected to arrive for the 2015 model year and act as a replacement for the current Compass and Patriot models.
According to our shooter, the new "baby Jeep" will share a platform with the Fiat 500X, and both models will be built on the same assembly line in Turin, Italy. We can't tell much from these images, but the added length apparent on this 500L mule would seem to dispel the recent speculation that the new entry-level Jeep model would be sized closer to the Ford Fiesta - since the 500L is already considerably larger than the Fiesta. Powertrain options will likely mirror other Fiat/Chrysler collaborative vehicles like the Dodge Dart, but this Jeep will also try to live up to its off-road roots with an optional all-wheel-drive system.