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PSA reportedly ditching its two tiny gasoline city cars ahead of merger

The Peugeot 108.   PARIS — PSA is ending the production of Peugeot and Citroen small city cars, three sources told Reuters, withdrawing from an increasingly unprofitable market as its starts a strategic review ahead of its planned merger with Fiat Chrysler. While PSA had already agreed to sell its stake in its Czech joint venture with Toyota where the Peugeot 108 and Citroen C1 models are made, the decision to stop selling the gasoline cars altogether has just been taken, the sources said. Carmakers are reviewing the production of vehicles with combustion engines as they need to fit costly exhaust filtering systems to meet tighter emissions laws. That's pushing up the cost of some so-called entry-level A segment cars to the point where they are hard to justify economically. "PSA is getting out of both the factory and the A segment business, as it is offered today, and on which manufacturers have arguably lost the most money in Europe," one of the sources familiar with the matter said. PSA declined to comment on the future of the two small cars. It said it was reviewing which products would best meet customer expectations in the A segment and cope with European carbon emissions targets. "This means a reflection with fresh and disruptive ideas," a spokesman for the French carmaker said. The European Commission is planning to tighten its emissions limits for cars under new proposals designed to cut the bloc's greenhouse gas output further by 2030. PSA's merger project with FCA has also increased the options available, two of the sources said, as the Italian-U.S. company has no intention of abandoning its small best-selling Panda and 500 models. Both already have hybrid versions and the 500 is also available in full electric mode. "Current projects could be replaced by new ones made possible by the merger with FCA", another source said. "The merger is turning all the cards around, especially when you consider that the A segment, from the very first 500 to the Panda, is inseparable from Fiat history". FCA declined to comment. PSA and FCA aim to finalize their merger in the first quarter next year to create a new company called Stellantis, which will be the fourth-biggest automaker in the world. Market contraction The European market for frugal city cars has been shrinking for several years.

Fiat showed off the 500 Electric in New York, should sell it here too

The New York Auto Show was pretty predictable for the most part; lots of model refreshes, trim lines and new engines. The stuff you would expect from a lot of auto shows. But there was one truly bizarre, inexplicable appearance: the Fiat 500 Electric. For reasons unknown to us, or even to a Stellantis PR representative, the Fiat booth was not adorned with just one lonely 500X — which is currently the brand's entire U.S. lineup — but there was also a pomodoro (tomato) red 500 Electric convertible and a pale pink metallic 500 Electric hatchback. Two cars that Stellantis has, since the model's introduction a couple of years ago, said will not be coming to the United States. They weren't roped off or on any fancy display. They just sat on the carpet like any other regular Stellantis product. And of course, we had to check them out. And ... they're pretty great! We think Fiat should sell the 500 Electrics here. Here's why: First off, they're wonderful designs. They're still just as cute and retro as the 500's gas-powered (and electric) predecessor, but with far more attention to detail. The headlights intersect with the hood, and the turn signals pop out from the belt line. Nifty recessed door handles sit below that line. Little tabs with the model name bump down from the window trim. The retro, grille-less fascia is natural and practical, and the whole car has subtly athletic curves. Plus, you can get it as a convertible, something the competition doesn't offer. The excellent detailing continues inside. The materials are certainly cheap (and admittedly, the doors sound a little flimsy on closing), but it pulls the same tricks that the Ford Maverick does. It has fun with the colors, materials and shapes to make it pleasant. It has a soft, curvy dash panel that can be covered in cool fabric or painted to match the body. The seats are available with the "FIAT" wordmark stitched all through the upholstery. And it has convenient controls to go with the bright and responsive touchscreen. Furthermore, that rear half-door on the hatchback is great for rear seat access. The rear seat is still tight, but you can get three adults into the car in a pinch (mind your heads and knees). Basically, it's an extremely stylish and chic machine, something that the electric car market could use more in the low-end segment. And it likely would sell at the low end.

Listen to the 2019 Fiat 124 Spider Abarth's gravelly growl

While they share most of the same underpinnings, there's more to differentiate the 2019 Fiat 124 Spider Abarth from the Mazda MX-5 than just styling. It features a Fiat-designed and built turbocharged 1.4-liter four-cylinder instead of the Mazda's naturally-aspirated 2.0-liter engine. And for the Abarth specifically, it has an amazing exhaust note courtesy of a Record Monza exhaust system. The upgraded exhaust is a standard feature on 2019 Abarth models, and it alone is worth considering the more aggressive-looking performance-oriented 124 variant. It gives the roadster an angry burble at idle, that turns into a gravelly growl as the revs rise. It's not quite as rorty as the straight-pipe system in the 500 Abarth hatchback, but it's close. The volume is pretty loud, but not so much that you'll set off car alarms. You can hear the various sounds in the video above that features start-up, idle, acceleration and free-revving.