2012 Fiat 500 Sport Auto Sunroof Alloy Wheels 14k Miles Texas Direct Auto on 2040-cars

Auto blog

FCA revises Renault merger offer in a bid to persuade French government

PARIS – Fiat Chrysler is discussing a Renault special dividend and stronger job guarantees in a bid to persuade the French government to back its proposed merger between the carmakers, sources close to the discussions said. The improved offer, if formalized and accepted, would also see the combined company's operations headquartered in France and the French state granted a seat on its board, two people with knowledge of the matter told Reuters on Sunday. FCA spokeswoman Shawn Morgan declined to comment. The French government, Renault's biggest shareholder with a 15 percent stake, also declined to comment. A Renault spokesman did not return calls and messages seeking comment. Italian-American FCA is engaged in intensive discussions with Renault and the French government over the $35 billion merger proposal it pitched last Monday to create the world's third-biggest carmaker. The concessions being discussed are not definitive and depend on other aspects of an emerging compromise deal, both sources cautioned. They nonetheless increase the chances that the merger plan will be approved by Renault's board, on which the French state has two seats. The board meets again on Tuesday. Some analysts and French industry leaders had voiced doubts about the 5 billion euros ($5.6 billion) in claimed cost and investment savings, and whether the proposal represents a fair deal for Renault shareholders. A Renault dividend would improve the valuation in their favor, balancing a 2.5 billion euro proposed dividend to FCA shareholders. The sources did not elaborate on the potential size of a Renault payout. The merger plan presented on Monday would see the two carmakers acquired by a listed Dutch holding company whose ownership would be split equally between current FCA and Renault shareholders, after special dividend payments. FCA had proposed locating the combined group's operational head office in a neutral city, most likely London, but has now indicated readiness to base it in the greater Paris area, meeting a key French government demand, both sources said. The French government is also likely to be granted a seat on the board to reflect its 7.5 percent stake in the merged company, the people said. Nissan, whose matching 15 percent stake in its French alliance partner will also be diluted to 7.5 percent of the new group, receives a board seat under the plan unveiled on May 27.

Junkyard Gem: 1978 Fiat X1/9

Fiat did pretty well selling cars in the United States during the 1970s, especially after the 1973 Oil Crisis made fuel economy a very persuasive selling point. While sales of the larger 131/Brava and weird-looking Strada never amounted to much here, 128s, 124 Sport Spiders and X1/9s were all over American roads during the Malaise Era. Today's Junkyard Gem is one of those X1/9s, found in a boneyard near Pikes Peak in Colorado. The design of the X1/9 was inspired by the 1969 Autobianchi A112 Bertone concept car, and it featured the engine/transaxle assembly and front suspension from the Fiat 128 mounted just behind the seats. A bit more than a decade later, GM copied that idea by using Chevrolet Citation running gear and front suspension in the back of the Pontiac Fiero. The result was a lightweight, nimble mid-engined targa convertible that achieved excellent fuel economy and looked far quicker than it actually was. The X1/9 was available in the United States from the 1973 through 1987 model years. Because Fiat fled the United States in 1982, the 1983-1987 X1/9s were imported by Malcolm Bricklin (yes, at the same time he was the Yugo King) and sold with Bertone badging. The Bricklin-imported 124 Sport Spider was available here during that period as the Pininfarina Azurra. The MSRP for the '78 X1/9 was $5,445, or about $26,804 in 2023 dollars. Meanwhile, the 124 Sport Spider listed at $6,495 ($31,973 after inflation), though it had quite a bit more horsepower (90 versus the X1/9's 67). The next-cheapest mid-engined Italian two-seater Americans could buy that year was the Ferrari 308, which started at an eye-watering $28,580 ($140,692 today); the '78 Maserati Bora cost $29,800 ($146,698 now). A year earlier, there would have been a bit of competition with the Lancia Scorpion, but the last model year here for that somewhat cheap machine was 1977. The U.S.-market X1/9 was underpowered, no getting around that, but it managed to be fun to drive. Install a quad-cam Alfa Romeo V6 from a 164 in one, though, and you get a terrifyingly fast track machine. I used X1/9 side scoops on the hood of my 1965 Impala sedan project, back in the 1990s. The little access hatch to the distributor, located behind the passenger seat, is a thoughtful touch by Fiat. Its final parking space has a good view of Pikes Peak (the snow-covered mountain behind the Xterra), at least.

Audi rumored to buy Alfa Romeo, officials deny it

For more than two years, Volkswagen has been making public statements about its willingness to buy Alfa Romeo and quadruple the Italian brand's sales, and for just as long, Fiat CEO Sergio Marchionne has replied with some version of "Mr. Piëch, drop it." According to a report in Ward's Auto, all that jousting might be over: it claims that sources close to both Marchionne and Audi CEO Rupert Stadler admit that the two are in talks for Audi to buy not just Alfa Romeo, but a production plant in Italy. In fact, a final deal could possibly include partsmaker Magnetti Marelli.
Against that backdrop, a report by German news weekly Stern quotes a Fiat spokesmen as saying it doesn't comment on rumors and an Audi rep has said flatly that "There is no substance in the news." If a sale is being arranged, the timing would seem to point to how eager Fiat is to raise cash to complete its major initiatives. Even though Alfa Romeo continues to delay its return to the US, it just showed off the production version of the 4C at the Geneva Motor Show (shown above) and said that preferred Fiat dealerships here would get them. Then there's Alfa's recently concluded deal with Mazda to develop a roadster based on the next generation MX-5 Miata - a deal that would seem to help both the Italian and Japanese brands.
The monetary issues are troublesome, though. Fiat is taking a beating in the European market and its weak-kneed balance sheet is delaying gotta-have-it products like the Jeep Cherokee. Fiat has been talking to banks about getting money to buy the rest of Chrysler and those financial institutions have also raised issues about debt and cash reserves, and the nasty game of chess Fiat is playing with the United Auto Workers (and now the court system about the portion of Chrysler it doesn't own) could end up blowing another hole in Marchionne's plans. It is possible that this could finally have convinced Fiat to at least see how serious Audi's parent company, Volkswagen, is about buying Alfa Romeo. Or it could be just another rumor.