2013 Fiat 500 2dr Conv Lounge on 2040-cars

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UAW may be key to forced FCA merger with GM

Sergio Marchionne doesn't give up on a business deal easily. While outwardly not much has recently been said about FCA's attempted merger with General Motors, Marchionne might be hoping to garner a powerful, new ally that could help break things wide open. The United Auto Workers retiree health care trust is the single largest shareholder of GM with 8.7 percent of the stock, and having its support would certainly improve FCA's position in getting a deal done. "Whatever happens in terms of consolidation, it would never be done without the consent and support of the UAW," Marchionne said when FCA recently began contract talks with the UAW, The Detroit News reports. The boss is also allegedly on good terms with the union president Dennis Williams. Still, using the organization for a hostile takeover could be very difficult because of the way its votes are structured. Other activist investors might already be on board, though. Marchionne believes that consolidation in the industry is vital because automakers are investing to create the same technologies. A GM/FCA merger still has many roadblocks, though, including the fact that Marchionne's company is smaller than GM. From a regulatory perspective, the size of the merged company could raise serious anti-trust concerns among regulators, according to The Detroit News. There's also the concern for lost jobs from redundant work with the two combined businesses. Even if the UAW angle doesn't work out, there are contingency plans afoot for other merger targets. According to The Detroit News speaking to anonymous insiders, FCA bigwigs have a meeting in London on Thursday to take a close look at other options. In addition to GM, they are investigating possible deals with Volkswagen and the Renault-Nissan Alliance. In the past, PSA Peugeot Citroen and multiple Asian automakers have also been brought up as partners, and UBS has reportedly been providing financial advice on what to do.

Mazda and Fiat finalize deal for Alfa roadster, next-gen MX-5 Miata

Although a little bit later than expected, Mazda and Fiat have signed a final agreement that will bring a next-generation MX-5 Miata to the Japanese automaker and a new roadster to Alfa Romeo. When the proposed arrangement was announced back in May, the two automakers had hoped to seal the deal last year, but it doesn't appear that the production timeline for these cars has slipped any, with both expected to start rolling off assembly lines in 2015.
Other than a shared chassis with a rear-wheel-drive layout, it sounds like the two cars are still planned to be distinct in their own ways from their styling right down to their engines. Mazda will produce both cars at a plant in Hiroshima, Japan, but it isn't clear what role each automaker will play in the cars' developmental process. The big question, of course, is what clever portmanteau name we can come up with, like Toyobaru. Mazda Romeo is the easy choice, but Alfazda might roll off the tongue a little better.
Scroll down for a brief press release from both automakers.

Will the Fiat 124 Spider get an Abarth model?

Fiat is finally back in the sports-car business, as evidenced by the reveal of the 2017 124 Spider at the Los Angeles Auto Show. Naturally, the next question becomes: Will Fiat do an Abarth version? "We might look at doing a tuned version, said Olivier Francois, global head of the Fiat brand. "Maybe yes, maybe no." Francois was coy as he spoke to a group of reporters minutes after the 124 debuted in LA, but performance is a part of Fiat's genetics. While Francois wasn't telling, we think those bloodlines will translate into a higher-powered Abarth version. The 2017 Spider launches next summer, so an Abarth variant could arrive about a year later as a 2018 model. We would expect it to feature a stiffer suspension, performance wheels, Abarth badging, and enhanced aerodynamics. Some carbon-fiber pieces (perhaps the hood) would complement Fiat's always interesting palette of color choices, though a rosso corsa, like the one chosen by our illustrator, would be timeless. The engine's output would be the big question mark. The likely plan would be to tune up the 124's 1.4-liter four-cylinder MultiAir turbo rated at 160 horsepower and 184 pound-feet of torque in the base model. It's the same engine used in the Fiat 500 Abarth model, though the Spider has more torque. Fiat could further goose this mill, perhaps to around 190 to 200 horses, or pluck another mill from Fiat Chrysler's vast powertrain bins. The Alfa Romeo 4C's turbo 237-hp four-cylinder might also be a candidate. Like the MX-5 Miata with which it shares a platform (albeit modified), the Spider is more about driving dynamics and style than raw power. For Fiat, the 124 will offer the allure of an Italian car to the wide range of enthusiasts who can't afford Ferraris, Alfa Romeos, or Lamborghinis. "We think we can appeal to the huge number of people who aspire to a car like this," Francois said. Obviously, an Abarth price point is far in the future, but the Fiat chief said the base 124 "will be very much in line with the segment." The 2016 Miata begins at $25,735, including destination. We estimate 124 Abarth pricing could start around $32,000. The Spider will serve as Fiat's halo. It's a true sports car with a legitimate history. "This is the quintessential Italian car," Francois said. That means it won't be a volume play. The Spider might add a modest 6,000 units per year to Fiat's sales tally in the United States and perhaps 12,000 globally, said IHS Automotive senior analyst Stephanie Brinley.