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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.

Merged PSA and Fiat would retain all brands, Tavares says

By Elisa Anzolin and Gilles Guillaume PARIS/TURIN, Italy (Reuters) - Peugeot maker PSA Group and Fiat Chrysler would retain all of their car brands if their planned $50 billion merger goes ahead, the would-be chief executive of the combined group said on Friday. PSA CEO Carlos Tavares, seen as the architect of PSA's turnaround and in line to take the operational helm in the Fiat tie-up, said in a TV interview that the companies complemented each other well geographically and in terms of technology and brands. FCA derives 66% of its revenue from North America compared with only 5.7% for PSA, Refinitiv Eikon data shows. Europe remains the main revenue driver for PSA. "There's no doubt it's a very good deal for both parties. It's a win-win," Tavares told France's BFM Business, in his first interview since the French and Italian companies announced plans to create the world's fourth-largest auto maker last week. Fiat Chrysler (FCA) Chairman John Elkann, who would chair the combined group, said on Friday at an event in Turin that the 50-50 share merger would help the Italian carmaker "seize great opportunities." The deal, which would help the firms pool resources to meet tough new emissions rules and investments in electric and self-driving vehicles, as well as counter a broader downturn in car markers, is still at an early stage. PSA and Fiat have said they aim to reach a binding outline in the coming weeks, but still face questions over potential job losses, as well as scrutiny over whether the transaction favors one party more than the other. Tavares said the brands that would come under the combined group's umbrella — PSA's five passenger car nameplates include Citroen, Vauxhall and Opel, while FCA has nine, including Fiat, Alfa Romeo, Maserati, Chrysler, Dodge and Jeep — were all likely to survive. "As of today, I don't see any need to scrap any of the brands if the deal came to pass. They all have their history and their strengths," Tavares said. Few carmakers have as large a portfolio, with German rival Volkswagen Group counting 10 passenger brands, if newer Chinese ones such as electric vehicle label Sihao are included. The merger will also require approval from anti-trust authorities. Tavares said he did not expect the companies to have to make major concessions to meet competition rules, but added they were ready to do so, without giving details.

Fiat Chrysler recalls 1.33 million vehicles over fire, air bag risks

WASHINGTON - Fiat Chrysler Automobiles NV said on Friday it is recalling 1.33 million vehicles worldwide in two separate campaigns for potential fire risks and inadvertent airbag deployments. The Italian-American automaker said it is recalling about 770,000 sport utility vehicles because of a wiring issue that may lead to inadvertent deployment of the driver-side air bag and is linked to reports of five related minor injuries, but no crashes. The company said wiring could chafe against pieces of steering-wheel trim, potentially causing a short-circuit and ultimately leading to an inadvertent air bag deployment. The issue could also cause unintended windshield wiper operation or inoperable switches. The recall covers 538,000 2011-2015 Dodge Journey vehicles in North America and 233,000 2011-2015 Fiat Freemont crossovers sold elsewhere. Dealers will inspect and replace the wiring, as needed and equip it with additional protective covering. The automaker is also recalling 565,000 vehicles to replace their alternators because of fire risks. The company said hot ambient temperatures could lead to premature diode wear, may result in a burning odor or smoke, could impact the anti-lock braking system or lead to engine stalls. The company said it is aware of two potentially related accidents but no injuries. The recall covers 2011-2014 model year Chrysler 300, Dodge Charger and Dodge Challenger cars and Dodge Durango SUVs and 2012-2014 Jeep Grand Cherokee SUVs. In October, Fiat Chrysler recalled about 86,000 Ram 2500 and 3500 pickup trucks, 3500, 4500 and 5500 chassis cabs from the 2007-2013 model years and 2011-2014 Dodge Charger Pursuit sedans for the same alternator issue. Fiat Chrysler said at the time one minor injury was related to the recall. Dealers will replace the alternators. By David ShepardsonRelated Video: Auto News Chrysler Fiat RAM Safety Coupe SUV Sedan FCA dodge journey fiat chrysler automobiles fiat freemont