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Fiat Chrysler CEO says final merger talks with Peugeot going well

BRUSSELS — Fiat Chrysler's chief executive Michael Manley said on Wednesday that merger talks with Peugeot owner PSA  to create the world's No. 4 carmaker are progressing well and he hopes to have a deal within 12-14 months. Speaking to Reuters on the sidelines of an industry meeting, he said he doesn't expect any major obstacles that could delay a final agreement. "Talks are progressing really well," Manley said about negotiations with the French carmaker ahead of a briefing by the European automotive association (ACEA), of which he is president. His comments come a month after the two carmakers agreed to a binding deal worth about $50 billion to combine forces in response to a slowdown in global demand and mounting costs of making cleaner vehicles amid tighter emissions regulations. Manley's timeline for completing the deal by early 2021 is in line with a forecast made by the companies in December. Fiat and Peugeot are now getting into the details of how the merger will work, including choosing which vehicle platforms — the technological underpinnings of a vehicle — will fit which products in a combined company. Because customers in different locations still prefer vastly different cars, there is room for multiple platforms in a combined group, Manley said. "That global platform is an elusive beast," he added. "This concept of a massive global platform in my mind is almost a myth, but that doesnÂ’t mean to say weÂ’re not going to recruit significant volume." Related Video:    

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.

The Grand Caravan, at least the name, isn't dead yet in Canada

Last week we got Stellantis. This week, we’re learning that the Grand Caravan name isnÂ’t actually dead. ItÂ’s just moved to Canada. Allow us to explain. The Dodge Grand Caravan is well and truly gone. However, FCA has decided the name is too good not to use. Therefore, FCA Canada just announced that Canadians will get the Chrysler Grand Caravan for the 2021 model year. One look at the photos will tell you most everything you need to know about the van. ItÂ’s a rebadged Chrysler Voyager, which itself is a budget Chrysler Pacifica by a different name. Basically, the U.S. gets the Voyager, and Canada gets the Grand Caravan. “WeÂ’re incredibly proud to maintain the ‘Grand CaravanÂ’ nameplate exclusively in the Canadian marketplace,” said David Buckingham, President and CEO, FCA Canada. “Particularly here in Canada, that name has become synonymous with affordable, safe and innovative family transportation that the 2021 Chrysler Grand Caravan builds upon.” Now that the Voyager and Caravan are the same again, the next logical step would be to bring back Plymouth, right? Rebadged Plymouth Hellcats wouldnÂ’t bother us. Just Â… you know, an idea. Canadian customers will have the choice of two trims for the Grand Caravan: Base and SXT. Similar to the U.S., upper trim levels of the van will be called Pacifica. The two will be sold alongside each other at Chrysler dealerships. Photos of the Pacifica with the Grand Caravan badge already have us a little weirded out, but now youÂ’ll know whatÂ’s going on during your next trip up north when you see a Chrysler Grand Caravan roll by. Related video: