2013 Fiat 500 Abarth Turbo New on 2040-cars

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Why a Renault-FCA merger could be good news for Nissan, Mitsubishi

TOKYO — Nissan's advanced technologies including platforms and electric powertrains could give it leverage in a merger involving Renault and Fiat Chrysler, thanks to a royalty system it has with the former, two people with knowledge of the matter said. A merged Renault-Fiat Chrysler could face an extra hurdle each time it uses technology developed by Nissan or Mitsubishi Motors, while the two Japanese automakers stand to gain a client in Fiat Chrysler (FCA), one of the people said. Both sources declined to be identified because of the sensitivity of the matter. Nissan's technology, particularly in electrification and emissions reduction, could give it some sway in the $35 billion potential tie-up between Renault and FCA, even as its stake in the newly formed company would be diluted. Currently Renault SA pays less for technology developed by Nissan than the Japanese automaker pays for French technology, a third person said. This has long been a sticking point for Nissan, and an area where Nissan could seek more favorable terms. "Whenever Nissan transfers platform, powertrain or other technology to Renault, there is a margin or royalty which Renault has to pay for use of that tech," one of the people said. "In that sense, FCA, if everything went well, would become another 'client' of ours and that's good. More business for us." A Nissan spokesman declined to comment on its royalty system. The potential Renault-FCA deal has complicated the Japanese automaker's already uneasy alliance with Renault. A further deal with Fiat Chrysler looks likely at least in the near term to weaken Nissan's influence in the 20-year-old partnership. Renault owns a 43.4% stake in Nissan and is its top shareholder. Nissan holds a 15% non-voting stake in Renault and would see that diluted to 7.5% after the FCA deal, albeit with voting rights. The imbalance between the two has long rankled Nissan, which is by far the larger company. Alliance imbalance Renault had previously angled for a merger with Nissan but has been rebuffed by CEO Hiroto Saikawa. Securing benefits from the merger deal will be important for Saikawa, who is grappling with poor financial performance while he struggles to right the company after the ouster of former chairman Carlos Ghosn last year.

Don't buy a 2016 Fiat because the 2017s will be cheaper and better equipped

If you're considering the purchase of a new Fiat, you'll want to hold off for the 2017 model year. At the very least, take note of the following for haggling purposes, because the 2017 model year will bring some significant price cuts. The price cuts were first reported by Automotive News after obtaining dealer pricing information. We reached out to Fiat, and a spokesperson was able to confirm the reduced pricing. He also gave us details on trims and packages. The gist is that the 500 hatch, convertible, and 500L all see notable discounts, and the trim levels across the range have been, well, trimmed. For 2017, Fiat 500 hatchback and convertible will only be available in Pop, Lounge, and Abarth trims. This trim reduction removes the mid-level Turbo model from the lineup, and Fiat's spokesperson confirmed the model's 135-horsepower engine will disappear as well. The good news is that the remaining models all drop significantly in price, including the 160-horsepower 500 Abarth. The Abarth will get a $2,850 price cut to start at just under $21,000 with destination. The 500 Pop and Lounge will both drop $2,000, dropping the Pop to just under $15,000 before destination, and just under $16,000 assuming the destination charges remain $995. In addition, the convertible will simply become a $1,450 option for any 500 model, which will make it a much more affordable proposition than it was when offered as a separate model. The electric 500e is the only model not to see a price cut, and will remain priced at $32,795 after destination charges and excluding tax rebates. The 2017 500L, as well as the 500X, will see available trims shrink to down to Pop, Trekking, and Lounge. The 500L doesn't see price cuts as drastic as those for the smaller 500, but it offers additional content to make up for it. The new Pop gets all the features of the higher-level 2016 Easy, along with a standard automatic transmission. Comparing a 2017 Pop with a 2016 automatic-equipped Easy will show a $1,150 reduction. The Trekking only drops by $235, but it now gets standard heated leather seats, BeatsAudio sound system, satellite radio, and Uconnect. Finally the Lounge drops $1,100 and adds 17-inch wheels, BeatsAudio, Uconnect, and satellite radio. As for the 500X, in addition to the reduced trim levels, it sees additional options. However, it won't get any price cuts. Okay, technically the base 500X Pop will start at $19,995 before destination charges, which is $5 less than the 2016 model.

Continental Automotive recalls 5 million airbag control units

Takata isn't the only supplier having airbag problems. Rival manufacturer Continental Automotive Systems announced a recall of 5 million airbag control units fitted to vehicles from Honda, Fiat Chrysler Automotive, Mercedes-Benz, and even a certain Chrysler-based Volkswagen. This sweeping recall has actually been in progress for some time, although the exact scope is only now becoming evident. In October of 2015, Mercedes-Benz recalled 2008 and 2009 model year C- and GLK-Class vehicles because their Continental-made airbag control units could corrode. Such a condition could cause the airbags to deploy without cause or warning, or in the event of a crash, not deploy at all. You can read all about it in our post from last year. Now, Continental's recall is going wide. Alongside the already recalled C and GLK, you've already heard about the 2008 and 2009 Honda Accord airbag recall, which we reported on yesterday. Now, Fiat Chrysler is announcing the recall of the 2009 Dodge Journey, as well as the 2008 and 2009 Dodge Grand Caravan, Chrysler Town and Country, and their rebadged counterpart, the Volkswagen Routan. Yes, one manufacturer is recalling another manufacturer's vehicle. The models listed above only amount to about 580,000 vehicles out of 5 million bad airbag control units. And since Continental will notify manufacturers who will then issue their own recalls, it's extremely likely that more brands and vehicles will be ensnared. Stay tuned. Related Video: News Source: NHTSA via Automotive News - sub. req.Image Credit: Fabian Bimmer / Reuters Recalls Chrysler Dodge Fiat Honda Mercedes-Benz Safety Crossover Minivan/Van Sedan FCA