1994 Alfa Romeo 164 Ls on 2040-cars

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China-FCA merger could be a win-win for everyone but politicians

NEW YORK — Fiat Chrysler boss Sergio Marchionne has said the car industry needs to come together, cut costs and stop incinerating capital. So far, his words have mostly fallen on deaf ears among competitors in Europe and North America. But it appears Marchionne has finally found a receptive audience — in China. FCA shares soared Monday after trade publication Automotive News reported the $18 billion Italian-American conglomerate controlled by the Agnelli family rebuffed a takeover from an unidentified carmaker from the Chinese mainland. As ugly as the politics of such a combination may appear at first blush, a transaction could stack up industrially, and perhaps even financially. A Sino-U.S.-European merger would create the first truly global auto group. That could push consolidation to the next level elsewhere. Moreover, China is the world's top market for the SUVs that Jeep effectively invented, so it might benefit FCA financially. A combo would certainly help upgrade the domestic manufacturer; Chinese carmakers have gotten better at making cars, but struggle to build global brands, and they need to develop export markets. Though frivolous overseas shopping excursions by Chinese enterprises are being reined in by Beijing, acquisitions that support the modernization and transformation of strategic industries still receive support, and the government considers the automotive industry to be strategic. A purchase of FCA by Guangzhou Automobile, Great Wall or Dongfeng Motors would probably get the same stamp of approval ChemChina was given for its $43 billion takeover of Syngenta. What's standing in the way? Apart from price (Automotive News said FCA's board deemed the offer insufficient) there's the not-insignificant matter of politics. Even as FCA shares soared, President Donald Trump interrupted his vacation to instruct the U.S. Trade Representative to look into whether to investigate China's trade policies on intellectual property. Seeing storied Detroit brands like Jeep, Chrysler, Ram and Dodge handed off to a Chinese company would provoke howls among Trump's economic-nationalist supporters. It might not play well in Italy, either, to see Alfa Romeo and Maserati answering to Wuhan instead of Turin — though Automotive News said they might be spun off separately. Yet, as Morgan Stanley observes, "cars don't ship across oceans easily," and political considerations increasingly demand local manufacture of valuable products.

Share price falls on skepticism of Chrysler-Fiat five-year plan

Following this week's Fiat Chrysler extravaganza, where the Italian-American manufacturer announced its plans for the next five years, the Autoblog staff was cautiously optimistic of the company's future. Investors? Not so much.
Fiat saw its shares tumble 12 percent in Wednesday's trading, falling from 8.67 euros ($12.06 at today's rates) to 7.44 euros ($10.35) as of this writing, with blame partly going to the Italian half of the FCA marriage, which recorded a pretty significant drop in profits during the first quarter of this year.
The plan, which will cost around $77 billion over the next several years, is facing criticism from investors thanks in part to a 1.4-percent drop in Fiat's first-quarter profits, to 622 million euros ($862 million). That figure is also short of Bloomberg analysts' projections, which predicted $1.18 billion in profits before taxes, interest and one-time items.

Alfa Romeo's next GTV could arrive as an electric flagship sedan

Like every brand under the Stellantis umbrella, Alfa Romeo has until 2030 to prove it deserves to live. It's reportedly planning a major overhaul that could bring the well-known GTV nameplate back to the range on an electric sedan. Newly-minted company boss Jean-Philippe Imparato recently said he's "very interested" in making a modern-day GTV, though he significantly warned nothing was set in stone yet. British magazine Autocar understands that all options remain on the table, and one of them is putting the GTV emblem on a battery-powered sedan with a coupe-like roof line. Simultaneously GT and EV, it would be the Italian firm's answer to the BMW i4, among other sedans. It would slot at the very top of the lineup, at least in terms of price and probably in terms of performance. If the rumor is accurate, it would mark the first time the GTV nameplate appears on a four-door in the Alfa Romeo portfolio. It's been used on a number of models since its introduction on a gorgeous, Bertone-designed coupe in 1965, and they've all had two doors. Alfa Romeo came close to dusting off the GTV nameplate on a two-door version of the Giulia which would have been aimed at the BMW 4 Series and Audi's A5 line. While this strategy would have followed tradition (the original GTV was closely related to the original Giulia), the project was canned at an advanced stage due to a perceived lack of demand. Had it been launched, it would have offered a 50/50 weight distribution and about 600 horsepower. Alfisti who find the idea of an electric, four-door GTV unpalatable shouldn't worry yet. Insiders told Autocar that the nameplate might alternatively make a comeback on hybrid coupe; its fate hasn't been decided yet. Of course, it could also not return and remain in the history book, where it's been since the last GTV retired in 2004. What's seemingly certain is that new Alfa Romeo models are around the corner. One is the production version of the Tonale concept, which was reportedly delayed by Imparato earlier in 2021 due to issues with the hybrid system that will be available at launch. Replacements for the Giulia and the Stelvio are said to be in the pipeline, too.  Related Video: Green Alfa Romeo Electric Future Vehicles Performance Sedan