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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.

2020 Alfa Romeo Stelvio Review & Buying Guide | Small but significant changes

The 2020 Alfa Romeo Stelvio is a luxury SUV aimed at folks who want something different – not necessarily to be flashy, but just to stand out in a crowd of grey Audis and black BMWs. Besides its badge and decidedly un-German styling, the Stelvio drives like no other luxury SUV. It has quick steering with great feel and excellent road holding that provide the sort of involved driving experience you probably don't expect from a high-riding crossover – and that goes triple for the outrageous, 505-horsepower Quadrifoglio that is without question the most desirable and competitive Stelvio. However, to this point, choosing the Stelvio also meant putting up with some overtly cheap interior pieces, an arcane infotainment system, few accident avoidance technologies and a poor reliability reputation. As you'll read below, all but the reliability issue have been addressed for 2020 – and only time will tell if the reliability's been improved. These changes are welcome and make the Stelvio much easier to make a case for getting something different. What's new with Stelvio for 2020? The interior's cheap and wobbly switchgear, which so obviously stood out in the 2019 Stelvio, gets a welcome upgrade for 2020. The electronic shifter is a little more solid in action, it's now covered in stitched perforated leather and surrounded by a metallic housing festooned with a little Italian flag. The electronic parking brake has been relocated to the left of it. The center console has also been redesigned to accommodate a wireless charging pad. Knobs for the "dna" drive mode selector, volume/track and the infotainment control knob feel more solid, while the latter is ringed by a nice knurled metal finish. That knob, however, has become a redundant control interface as the 8.8-inch infotainment display is now touch-operated as well. It also has new graphics and a new interface with a configurable home screen. It's a definite improvement over what was there before. The Stelvio also gets more advanced accident avoidance tech, most of which are among the best-executed on the market. The base price has also gone down by about $1,000 for 2020 despite these upgrades. That's rare. What's the Stelvio's interior and in-car technology like? Despite its many worthwhile upgrades for 2020, the Stelvio's interior still doesn't possess the same luxurious look and feel you'll find in an Audi, BMW, Mercedes, Porsche or Volvo.

Alfa Romeo Tonale is the last new gas-powered Alfa for U.S.

Speaking to journalists yesterday, Vincent Noirbent, vice president of marketing and product for Alfa Romeo North America, talked about Alfa's electrification plans for the U.S. He confirmed the brand's plans to go to only electric introductions for 2025 and beyond. And he also revealed that the plug-in hybrid Tonale is the last new gas-powered model for America. We take that to mean the last new mainline model, since Zagato teased a special Giulia coupe that might be available to America that's slated to come out in 2023. That's undoubtedly going to be a very limited-production vehicle and could be regarded as just another version of the existing Giulia. But that aside, the Tonale is the last new internal combustion Alfa for the U.S. And that also makes it the last major model introduction until the first of the EVs is introduced for 2025. Apparently there's a smaller internal-combustion Alfa coming for Europe between now and 2025. But Noirbent said that it wouldn't be a good fit for the U.S. Apparently it will be a smaller model than the Tonale, and we would be inclined to agree with Alfa's decision. Vehicles the size of Tonale are about as small as any of the major premium car companies go in this country. Following the introduction of the 2025 Alfa EV, the brand will have additional models released every year through 2030. So Alfa's electric lineup will grow impressively quickly. The brand will still have a few gas-powered models overlapping, though, as existing vehicles won't be discontinued immediately. So Tonale, and likely Giulia and Stelvio, will stick around for a few years during the transition. Related video: A Night With Giulia