2012 Fiat 500c Lounge on 2040-cars

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Fiat 500e will be Stellantis' EV test run in the U.S.

LOS ANGELES – While we're excited for the Fiat 500e's arrival in the U.S., and we think there's a clear niche for it, we still had loads of questions about what models were coming, if any changes would be made and what else might be coming for the Italian brand. And in a roundtable interview with Fiat Brand CEO Olivier Francois, we learned all that and more. So let's go over the fascinating electric future of Fiat in the U.S. The Future is 500 And when we say that it's 500, we mean only 500e. Francois revealed that, although it's not going away immediately, the 500X crossover will be discontinued when this generation reaches the end of its lifecycle. His reasoning for this move is that only one model really struck a chord with American buyers: the regular 500. He pointed out that it had, at once point, 60% of the ultra-small segment ahead of Mini. And it was successful because it was an iconic car that met a very specific niche for a very specific buyer: something small and stylish that worked well as a commuter and city car. He noted that the 500L, with a focus on practicality, wasn't something that a mainstream buyer was looking for, nor that niche buyer. And it's a similar case for the 500X. So the brand is shifting back to its most popular, core model, and it has no plans in the near term to expand beyond that. Exactly which 500e variants will be offered here is still being decided. There are three versions in Europe right now, the hatchback, soft-top and quirky three-door (with a half-door on the passenger side a la Mazda MX-30). They will be joined by a sporty Abarth version soon. Francois noted that they could start with one version and offer others later, or perhaps the hatch and convertible simultaneously. The three-door seems unlikely, as there isn't much demand for such a small car with a marginally easier-to-access rear seat. The Abarth is something Francois said he would like to offer here (and we would love to accept), but that will likely be determined by how well this new Fiat strategy works. He did say that any of them could be offered, but it depends on the brand's success and strategy. One interesting tidbit that could complicate the convertible is that the most successful states for the 500 were California and Florida, which are both states were convertibles don't do great.

Ferrari raises $893M, valued at $12B

Ferrari's stock is moving as quickly on the New York Stock Exchange as the brand's iconic sports cars do on the road. The company's incredibly popular initial public offering has already raised $893.1 million by virtue of 17.18 million shares sold for $52 apiece. If the deal's underwriters buy in as well, the figure would grow to $982.4 million. Plus, even after shouldering some of FCA's debt, the automaker carries an enterprise value of $12 billion, Bloomberg reports. Just as the company starts trading on the New York Stock Exchange, the share price is already racing upward, too. As of this writing, Ferrari stock, which is listed under the symbol RACE, is priced at $57.59. At its high so far today, the value reached as high as $60.95. While Ferrari is looking strong, the big winner in this success looks to be FCA because the company should raise $4 billion in the spin-off, according to Bloomberg. With nine percent of the sports car maker on the NYSE and one percent for the underwriters, another 80 percent will be distributed to FCA investors in 2016. When that's through, Exor, the holding company for the Agnelli/Elkann family, should have the largest stake at about 30 percent. Piero Ferrari holds the remaining 10 percent and has no intention to sell it. Related Video: FCA Announces Pricing of Initial Public Offering of Ferrari N.V. Common Shares Fiat Chrysler Automobiles N.V. (NYSE: FCAU/MI: FCA) ("FCA") and its subsidiary Ferrari N.V. ("Ferrari") announce today the pricing of Ferrari's initial public offering of 17,175,000 common shares at an offering price of $52 per share for a total offering size of $893.1 million ($982.4 million if the underwriters exercise the option described below in full). The shares are expected to begin trading on the New York Stock Exchange on Wednesday, October 21, 2015, under the symbol "RACE", and closing of the offering is expected to occur on October 26, 2015. In addition, the underwriters have a 30-day option to purchase an aggregate of up to 1,717,150 common shares of Ferrari from FCA. The offering is intended to be part of a series of transactions to separate Ferrari from FCA. Following completion of this offering, FCA expects to distribute its remaining ownership interest in Ferrari to FCA shareholders at the beginning of 2016. UBS Investment Bank is acting as Global Coordinator for the offering.

FCA workers get raises, health care co-op in new UAW deal

The pending labor agreement between FCA US and the United Auto Workers is now in the hands of union members to confirm. It's expected to be accepted, but a final decision could take weeks, The Detroit News reports. Employees didn't get everything they were hoping for, and contrary to earlier reports, the two-tier wage system remains in place. However, there are attempts to lessen the difference between the levels in this four-year deal. Assuming FCA US workers agree to this offer, the starting pay for tier-two workers would go up around a dollar to $17 an hour. The other level would now begin at $25.35, about a $6 increase, and they would receive 3 percent raises in the first and third year of the deal. Both groups also get $800 in profit sharing for each percent the automaker's profit margin rises above two percent. Extra money kicks in for the second tier above eight percent. Union members get a $3,000 bonus for accepting this contract, as well. The other major change under the pending agreement is the previously rumored switch to a healthcare co-op. The goal is to collect members from the Big Three together to create a huge member base for leverage to negotiate better rates with insurance companies. The UAW is promising no increase in cost to workers, according to The Detroit News. The idea was inspired by the similar structure for the Voluntary Employee Beneficiary Association for union retirees. UAW boss Dennis Williams expects the agreement to be approved. "Once the membership looks at it, hears the explanation for it, I think they'll ratify it," he said, according to The Detroit News. The next step is to craft similar deals with General Motors and Ford. Related Video: