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Second-generation Fiat 500 grows up, goes electric, gets posh

Going to the design well to reinvent an icon is difficult, especially when it's one of your greatest hits, so Fiat walked a thin line as it developed the first new 500 since 2007. Unveiled online, the hatchback is just as huggable as its predecessor — which is sticking around — and it honors tradition while embracing cutting-edge technology. Motorists long nourished on a diet of value-packed, bargain-priced Fiat models are in for a rude surprise. The new 500 rubs elbows with respected luxury cars, at least on paper, and it has morphed into more of an Instagram-friendly fashion statement than a genuine people's car. Stylists brought its retro-inspired design into the 2020s without completely reinventing it. It's still shaped like the 500 you're familiar with, though it's a little bit longer and wider than before and its wheelbase gains about an inch. Its front fascia wears a unmissable 500 emblem flanked by bright trim, its headlights are mounted higher and integrated into the hood, and its door handles are chiseled into the body. Out back, the vertical lights return with a more sculpted design. The line-up will ultimately include the quasi-convertible shown here, a hardtop, plus a wagon called Giardiniera and envisioned as a modern interpretation of the eponymous long-roof sold from the 1950s to the 1970s. Bigger changes welcome the passengers into the cabin. The driver sits behind a two-spoke steering wheel and a configurable, 7.0-inch digital instrument cluster, while a 10.25-inch touchscreen propped up on the dashboard displays a new version of the well-regarded Uconnect infotainment system. It looks decidedly more upmarket than the 500 it replaces, though it's difficult to tell without seeing in person and sitting in it — thanks, coronavirus. Fiat made the new 500 all electric, all the time. It's built on a 42-kilowatt-hour lithium-ion battery pack that zaps a 118-horsepower electric motor into motion. Its maximum driving range checks in at 199 miles, though the Italian firm obtained that figure by putting its city car through the optimistic WLTP testing cycle. It takes nine seconds to reach 62 mph from a stop, it has a 93-mph top speed, and plugging it into an 85-kilowatt charger fills 80% of the battery in 35 minutes. Alternatively, you'll need to wait 14 hours for a full charge if you plug it into the same household-spec outlet you use to keep your phone and your laptop juiced up.

New auto loans could soon extend out to 84 months

Cars and trucks are more expensive than ever before. In order to boost sales and help consumers afford new vehicles, automakers are offering longer and longer terms for auto loans. This past week, Bloomberg reported that FCA's Ram Trucks division is currently offering the longest loans. Some stretch to 73 months. Jeep, Fiat and Chevy aren't far behind. More noteworthy is that we'll likely soon see lenders moving from 73-month to 84-month loans. That's seven years worth of interest. More than two-thirds of US auto sales come from light trucks like the Ford F-150, Chevy Silverado and Ram 1500. The average transaction price of a new vehicle is well over $30,000. It's not difficult to spec out a heavily-optioned truck up to $60,000. Vehicles depreciate from the moment they roll off a dealer lot, and these six or seven-year loans could hurt consumers and lenders both in the long run. The U.S. Senate voted last week to kill rules that would prevent discriminatory auto lending. These Obama-era guidelines were meant to curtail lenders who offered higher loans based on race, religion, sex or national origin. Related Video: News Source: Bloomberg Chevrolet Fiat RAM Car Buying car loan car values

Former Fiat Chrysler VP pleads guilty in UAW corruption probe

Former Fiat Chrysler Automobiles executive Alphons Iacobelli pleaded guilty on Monday in connection to allegations that he made at least $1.5 million in improper payments to senior union officials, the U.S. attorney's office in Detroit said. Iacobelli, 58, a former Fiat Chrysler vice president of employee relations, was charged in July in U.S. District Court in Detroit with taking part in a conspiracy to pay prohibited money and gifts to United Auto Workers union officials. Sentencing was set for May 29. Iacobelli faces a statutory maximum of eight years in prison, and prosecutors said he will be required to repay $835,000. A lawyer for Iacobelli did not immediately comment on Monday. Iacobelli pleaded guilty to conspiracy to violate the Labor Management Relations Act and to filing a false tax return based on his failure to report hundreds of thousands of dollars in income that he illegally diverted, the government said. Iacobelli reportedly made some lavish purchases with money taken from the UAW-Chrysler National Training Center — a 2013 Ferrari 458 Spider and two solid-gold Mont Blanc pens costing $37,500 apiece. He reportedly sold the sports car at a discount when news broke of the investigation. The government said Iacobelli conspired to make illegal payments in an effort to obtain concessions and advantages for Fiat Chrysler "in the negotiation, implementation and administration of the collective bargaining agreements between FCA and the UAW." Monica Morgan, the wife of former UAW Vice President General Holiefield, who died in March 2015, is also expected to plead guilty, Reuters reported last week, citing a person briefed on the matter. She faces a plea hearing on Feb. 6. Morgan was charged with conspiring with Iacobelli to violate federal labor law. Morgan's lawyer, Steve Fishman, declined comment. Jerome Durden, a former Fiat Chrysler official whom the government charged with conspiring to divert over $4.5 million in UAW training center funds, pleaded guilty in August. The Justice Department has a wide-ranging investigation under way. In November, General Motors and Ford confirmed they were cooperating with the investigation into alleged misspending at UAW union training centers funded by U.S. automakers. It was not clear if Iacobelli is cooperating in the ongoing investigation. General Motors is conducting an internal investigation into the matter. The UAW said in a statement Monday that it is "appalled at these charges.