2013 Fiat 500 Lounge on 2040-cars

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FCA and PSA sign merger agreement

Confirming an earlier rumor, PSA Group and Fiat-Chrysler Automobiles (FCA) signed a binding merger agreement to create the world's fourth-largest automaker. The partners hope to leverage the benefits of economies of scale as they develop new technologies and expand their global presence. The announcement ends FCA's years-long search for a partner, which nearly ended earlier in 2019 when it came close to merging with Renault, PSA's rival. It brings Fiat, Chrysler, Dodge, Ram, Jeep, Alfa Romeo, Maserati, Lancia, Peugeot, Citroen, DS, and Opel/Vauxhall under the same roof. That's a huge portfolio of brands that often overlap, but executives pledged to keep them all open, as well as all their respective factories as a result of the transaction. They're committed to making this big family of automakers work by building on each one's strengths, whether they're technical or regional. FCA and PSA jointly predicted they'll sell about 8.7 million cars annually around the globe, while posting an ˆ11 billion (about $12.2 million) profit. North America, a strong market for FCA, will provide 43% of its revenues, and 46% will be generated in Europe, where Peugeot's brands are doing better than ever. Together, they plan to achieve ˆ3.7 billion (about $4.1 million) in annual run-rate synergies. They'll notably have the purchasing power to negotiate a better price with suppliers, and they'll merge their research and development efforts where it makes sense to do so. Over two thirds of the group's annual volume will be built on two shared platforms. One will underpin about three million small cars annually, and the other will serve as the foundation for approximately three million compact and mid-sized cars. Details about these architectures haven't been made public yet, but a quick look at both companies' product portfolios reveals the small car will very likely come from Peugeot. Recent additions to its range, like the second-generation 208, are built on a new architecture named Common Modular Platform (CMP) developed with electric powertrains in mind. Meanwhile, Fiat is still making the cheeky 500 on an evolution of the platform found under the second-generation Panda released in 2003. The bigger architecture could come from FCA, however. The group's brands will share engines, transmissions, electric powertrains, infotainment systems, various sensors used to power electronic driving aids, and other components like wiring looms, but each one will retain its own identity.

Likely Fiat 500X replacement caught in new spy photos

Fiat is testing a new baby crossover that will likely be the replacement for the 500X crossover. The 500X never set the American market on fire despite its attractive styling and nimble handling, sadly, and suffice it to say that Fiat noticed. It's likely we won't see whatever this is come stateside, at least not in the near-term. Fiat has made it clear that its future in America is limited to the electric 500e in all of its (yet to be enumerated) forms. Those who want a baby Fiat crossover will have to settle for Jeep's more rugged interpretation of the same platform, the Renegade, which seems to sell well enough to justify its continued existence even in Europe, where they've made an even smaller one they're calling "Avenger." As you can see above, this prototype screams "500X;" The ride height and proportions are dead-on. It's expected to be sold with both ICE and EV powertrains initially, but if previous Fiat efforts are any indication (the current 500X went into production in 2007; the 500x in 2014), it could very well remain in circulation long enough to still be on the market when Europe's mandate for 100% electric new-vehicle sales kicks in in 2035. That means we're likely to see the petroleum-based models phased out over the course of its lifespan.  It might seem premature to dismiss this new model as a Europe-only venture considering that the car it is expected to replace (500X) was itself branded as an offshoot of the 500. Could we not see a 500Xe? Well, that train goes off the rails in the face of information provided by our spy photographer, who says this is likely to be sold as a revival of the long-departed Fiat 600 nameplate, rather than the 500. A rose by any other name might smell as sweet, but a model number starting with a "6" appears to be where Fiat has chosen to draw the line, at least for now.  Related video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.

The troubled Alfa Romeo Giulia needs serious help [UPDATE]

UPDATE: An Alfa Romeo US spokesman responded to this article with the following statement: The safety concerns expressed in the story are false. The all-new 2017 Alfa Romeo Giulia is designed and engineered to meet or exceed all federal safety regulations. The Alfa Romeo Giulia will begin production for the North American market in the late second-quarter of this year. Alfa Romeo will have a full product portfolio of premium vehicles that includes plans for (8) all-new Alfa Romeo vehicles by 2020. The product launches are prioritized by segment volumes starting this year with the Alfa Romeo Giulia production for North America starting in late Q2, followed by the Midsize-UV – the 2nd largest premium segment in North America. Even on the day you dragged them kicking and screaming and gesticulating wildly to a table full of concrete evidence, Alfa Romeo executives will never admit the Giulia program is going through a tough patch. But it is. Reports say the Giulia, on the eve of production, didn't just fail one internal crash test, but failed the front, side and rear impact tests. Alfa denies it. Automotive News published a report last week saying two suppliers had insisted the Giulia, on the eve of production, didn't just fail one internal crash test, but failed the front-, side-, and rear-impact tests. A third supplier source told us the same thing. Alfa is denying it. It was due on sale in Europe late last year and was supposed to be here in the next month or two. But it wasn't, and it won't. It was to be headlined by a twin-turbo V6 that reportedly howled its way around the Nurburgring 14 seconds faster than the BMW M3 could manage. That second part is only true if you believe it's fair to compare a full lap in a standard BMW M3 with a favorable accumulation of sector times to a development prototype Giulia with 220 pounds stripped out of it and rolling on hand-cut racing slicks. No, me neither. A Promising Start The Giulia's all-new architecture was developed in just two years by a skunkworks of young engineers headed by Fiat's engineering prince, Philippe Krief, and (bafflingly) sited inside Maserati's headquarters complex in Modena, about three hours from Alfa Romeo's own Turin HQ.