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FCA to pay buyers $1,700 to swap out of scandal-mired VWs

FCA is trying to gain some sales from arch-rival VW in the competitive European market by offering potential buyers in Italy up to $1,700 to swap into an FCA group car. While the promotion isn't specifically targeted at TDI owners affected by the emissions scandal, it is clearly intended to turn dissatisfaction with VW's defeat device cheat into additional sales, Bloomberg reports. The 500-1,500 euro incentive (roughly $560-1,700, depending on vehicle) stacks on top of any other rebates or deals applicable, and applies if a buyer brings in any of Volkswagen Group's cars – including Audi, Skoda, and SEAT, among (many) others. As Bloomberg notes, it's normal for automakers to offer "conquest" deals – giving a buyer cash for trading in a competitor's vehicle. Those deals aren't usually limited to one company's products, however; FCA's program looks specifically to take advantage of VW's legal and public relations nightmare. FCA isn't the only automaker trying this trick in Italy. Automotive News Europe also reported that Ford is offering approximately $840 in incentives across its entire range to owners of VW vehicles seeking to trade in for a Ford. No word of yet as to whether these incentives will spread beyond Italy or to other automakers.Related Video:

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.

Fiat Chrysler and Renault are in advanced partnership talks

Fiat Chrysler Automobiles and Renault are in advanced discussions about a possible alliance, according to a report from the Financial Times citing an anonymous "person familiar with the matter." The news isn't particularly surprising, as FCA has been a constant subject of merger and alliance talks for as long as many of us can remember. We've reported on a potential tie-up between these two automakers several times, as far back as 2008 and as recently as two months ago. FCA CEO Mike Manley has mentioned the company's openness to merging with another automaker. At the Geneva Motor Show a few months back, he said, "We have a strong independent future, but if there is a partnership, a relationship or a merger which strengthens that future, I will look at that." It's no secret that FCA is much stronger in the United States than it is in Europe. For its part, Renault has basically zero presence in the United States. A partnership or potential alliance between the two could shore up each automaker's weak spots and allow the group to split investment money into new technologies, including electric vehicles and autonomy. Of course, Renault is already tied up with Nissan and Mitsubishi, but that partnership has been a little tattered since the arrest of former Nissan and Renault CEO Carlos Ghosn on charges of financial misconduct in Japan. And in addition to Renault, FCA is understood to have discussed various partnership strategies with the PSA Peugeot Citroen group. What a final agreement – if there's any agreement at all – could look like between the two global automakers remains to be seen, and the report from Financial Times cautions that many different options for FCA and Renault are currently on the table. In other words, stay tuned.