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Almost 70 percent of FCA-PSA Groupe models to ride on two PSA platforms

With the merger between PSA Groupe and Fiat Chrysler having been officially announced this week, we still don't know where everything will settle once the process concludes. We covered the catalog of models herded by the combined company's 12 brands, all of which will remain for now. Profound changes must be afoot somewhere, though, else there'd be no reason for the tie-up. Automotive News has a report on one of the big moves, writing that "more than two-thirds of [PSA-FCA] production would be concentrated on just two platforms." Around 2.6 million cars built by the combined company would sit on PSA's Common Modular Platform, also known as the EMP1, for B-segment city cars, entry-level and mid-range C-segment sedans, and compact crossovers. Three million vehicles would ride on the EMP2 architecture intended for C- and D-segment cars and higher-end crossovers. Those figures account for around 5.6 of the 8.7 million vehicles the combined company expects to sell annually. AN didn't mention the Giorgio platform that's already spread throughout the FCA kingdom to support numerous current and future offerings like the next-gen Jeep Grand Cherokee, but did write that "larger Jeep models will continue to use FCA underpinnings." The body-on-frame chassis' under Ram trucks and the Jeep Wrangler and Gladiator should hold pat. We'll wait for word on the fate of the Compact U.S. Wide platform carrying the Chrysler Voyager and Pacifica and Jeep Cherokee. Dodge products with questionable futures are anyone's guess; we've heard the Dodge Durango, still built on a Mercedes-derived platform it shares with the current Grand Cherokee, could go body-on-frame for the next generation, or die and have the Giorgio-based, three-row Jeep Grand Cherokee take its place. More mystery comes with the long-lived LA and LD platforms in the big sedan and coupe trio Chrysler and Dodge still milk quite successfully. And if there were ever a time for the Dodge Journey – last reported as a Giorgio recipient – to modernize or die, we don't know when that time is. Although FCA platforms have been designed with alternative powertrains in mind, AN says the PSA Groupe architectures "are more modern than FCA's equivalent platforms." After PSA acquired GM's Opel/Vauxhall division, the French company didn't waste time moving the Anglo-German products to in-house platforms, helping to put the formerly money-losing operations into the black in just 18 months.

Fiat Chrysler begins Magneti Marelli spinoff

MILAN — Fiat Chrysler has kicked off its planned spinoff of parts maker Magneti Marelli, which will be registered in the Netherlands and listed on the Milan stock exchange, a document outlining initial plans and seen by Reuters showed. The spinoff is part of a plan by FCA Chief Executive Sergio Marchionne to "purify" the Italian-American carmaker's portfolio and to unlock value at Magneti Marelli similar to his earlier spinoff of Ferrari. Analysts say Magneti Marelli could be worth between 3.6 billion and 5 billion euros ($4.2 billion to $5.8 billion). It sits within FCA's components unit alongside robotics specialist Comau and castings firm Teksid. FCA has created a separate entity called MM Srl, the document showed, into which it will fold Magneti Marelli's electronics and electro-mechanical operations related to racing motorbikes and racing cars, as well as 14 other holdings in various companies around the world, including Germany, Slovakia, Mexico and South Africa. MM will be incorporated into a Dutch holding company via a cross-border merger, it added. FCA declined to comment. The move follows a similar procedure adopted by FCA for the spinoff and listing of Ferrari as well as of trucks and tractor maker CNH Industrial, both registered in the Netherlands and listed in Milan. The Dutch holding company would allow Marchionne, known for his success in extracting shareholder value through this strategy, to introduce a loyalty share scheme to reward long-term investors through multiple voting rights, as was the case with CNH and Ferrari. That would tighten the grip of FCA's controlling shareholder Exor, the Agnelli family's investment holding company, on the parts maker. Magneti Marelli, which employs around 43,000 people and operates in 19 countries, is a diversified components supplier specialized in lighting, powertrain and electronics. The Magneti Marelli separation is expected to be completed by the end of this year or early 2019, FCA has said. FCA's advisers initially looked at a possible initial public offering for the business to raise cash to cut FCA's debt, but the Agnelli family — FCA's main shareholder — was put off by low industry valuations and did not want its stake in Magneti Marelli to be diluted, three sources close to the matter told Reuters in March. Magneti Marelli has often been touted as a takeover target, and FCA has fielded interest from various rivals and private equity firms over the years.

Fiat-Chrysler CEO: Please Don't Buy The Fiat 500e

Fiat-Chrysler's CEO had a strange request for electric vehicle shoppers on Wednesday: don't buy the all-electric Fiat 500e. While CEO Sergio Marchionne was speaking at a conference in Washington, he told the crowd he's tired of Chrysler-Fiat losing money, The Detroit News reported. "I hope you don't buy it [the 500e] because every time I sell one it costs me $14,000," he said to the audience at the Brookings Institution. "I'm honest enough to tell you that." Marchionne said federal and state fuel efficiency mandates are forcing the automaker to build unprofitable cars, according to Reuters. A normal Fiat 500 starts at $16,195, and the 500e starts at $32,650, before federal and state tax credits. There are no sales data to indicate how the 500e is performing. Related Gallery The Best Hybrids For The Money View 12 Photos Green Chrysler Fiat Car Buying Electric fiat 500e