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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.

Prosecutors indict three FCA employees in alleged emissions-cheating case

Federal prosecutors indicted three Fiat Chrysler Automobiles (FCA, now Stellantis) employees as part of an investigation into alleged emissions cheating. Charges unsealed on April 20, 2021, accuse the defendants of helping rig the emissions control system fitted to the 3.0-liter turbodiesel V6 used in some models during the 2010s. Prosecutors claim Emanuele Palma, Sergio Pasini, and Gianluca Sabbioni played a determining role in developing a defeat device that allowed the V6 to obtain certification from the Environmental Protection Agency (EPA) while polluting too much in normal driving conditions. Jeep and Ram began making the engine available in the Grand Cherokee and the 1500, respectively, in 2014, but the charges state plans to game the EPA started in 2011. Palma, Pasini, and Sabbioni knowingly mislead federal regulators, the charges claim; they called it "cycle beating," according to The Detroit News. While the three men were part of FCA's research and development department, they started the project while working for an Italian supplier named VM Motori, which FCA purchased in 2013. Pasini and Sabbioni are each charged with one count of conspiracy to defraud the United States and to violate the Clean Air Act, one count of conspiracy to commit wire fraud, and six counts of violating the Clean Air Act. They could spend several years behind bars if they're found guilty. Both are currently in their home country of Italy. Palma's legal troubles are more serious. He was charged with several counts in September 2019, though four wire fraud charges were dropped in November 2020. He lives in Bloomfield Hills, a city located on the far outskirts of Detroit. Prosecutors claim motorists spent over $4 billion on over 100,000 trucks and SUVs fitted with the non-compliant engine between January 2013 and September 2017. FCA has already agreed to pay $800 million to resolve civil claims from the Justice Department, state officials and customers, though it significantly has not admitted guilt. It stressed that "it did not engage in any deliberate scheme to install defeat devices to cheat emissions tests."

Autoblog sell-it-yourself highlight: 2004 Chrysler Crossfire

Chrysler's Crossfire was the most fortuitous product of the Chrysler and Daimler-Benz merger when it launched, but also the most tormented. Clothed in Chrysler sheetmetal, the Crossfire sat atop a Mercedes platform and was propelled by an M-B drivetrain. The upscale vibe was obvious, while its outlier status on a Chrysler showroom dominated by minivans, was preordained. As Autoblog reported in May 2006, "production of the Crossfire [fell] from a peak of 35,700 in 2003 to just 12,500 last year. Introduced in 2003, the Crossfire managed about 28,000 sales in 2004, but less than 10,000 in 2005. Chrysler was so desperate to move Crossfires in late 2005 that it even engaged in a marketing stunt when it attempted to sell units on Overstock.com." Most specialized two-seaters (or 2+2 coupes) invariably run into marketing reality; once the novelty wears off, there is little sustained support for a small, impractical vehicle in modern America. Conversely, if looking for a recreational vehicle with a possible upside as an investment, you'll be hard pressed to find a more accessible example than the Crossfire. Our for-sale example, located in Randleman, NC, looks to be well maintained and has the preferred manual transmission. There are few credible guides for evaluating the price, but the $3,750 ask falls in line with a decent Miata of the same vintage and mileage. A buyer should remember that the Mercedes-sourced drivetrain of this era can be a financial swamp, but with a clean Carfax and pre-purchase inspection, Chrysler's Crossfire can provide real driving enjoyment. Related Video: Chrysler Car Buying Used Car Buying Ownership Coupe Luxury Performance chrysler crossfire