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Fiat is quitting the minicar segment it dominates

Fiat plans to exit the minicar segment its global empire is built on. Strict safety and emissions regulations looming over the European new car market will soon make developing pocket-sized models prohibitively expensive, so the Italian firm will shift its attention to the next segment up. "In the very near future, you will see us refocus on this higher-volume, higher-margin segment, and that will involve a move away from the minicar segment," announced Fiat Chrysler Automobiles (FCA) boss Mike Manley during a recent conference call with analysts. He didn't provide a specific time frame, but industry trade journal Automotive News speculated the move will happen by 2024. The 500 and the Panda, Fiat's entries in the segment, continue to sell relatively well in spite of their age. The 12-year old 500 was the 16th best-selling car in Europe in 2018; the eight-year old Panda finished in 20th position, but it led the Italian sales chart by a significant margin. Fiat already announced the next-generation 500 -- which likely won't be sold in the United States -- will only be offered with an electric powertrain, but the current car is expected to remain in production for as long as possible. The Panda's future is murkier; the 2019 Centoventi concept hinted at an electric replacement, but Manley's statement seemingly suggests Fiat shifted the project to the back burner. The next-generation 500 will make its debut at the 2020 Geneva auto show and go on sale shortly after. While the model will live on as an electric car, Fiat will focus on slightly bigger subcompact cars that enjoy thicker profit margins, like the Renault Clio and the Volkswagen Polo, Europe's second and third best-sellers (behind the Golf) in 2018. The Italian firm left the segment when it deep-sixed the Punto in 2018; it's now looking for a way back in. The on-going tie-up with Paris-based PSA Group would give it access to the new platform found under the Peugeot 208 and the Opel Corsa. It was developed with gasoline-, diesel-, and electric-powered drivetrains in mind. Fiat's rivals on the European market have recently come to a similar conclusion. The Ford Ka+ and the Opel/Vauxhall Karl retired earlier than expected, decisions partly blamed on sluggish sales, and Volkswagen will allegedly drop the gasoline-powered variant of the Up! to focus on the electric model. Smart's ForTwo and ForFour have gone electric-only.

FCA fibbed on sales according to internal report

Following last week's news that Fiat Chrysler Automobiles (FCA) is under investigation by the Department of Justice and Securities and Exchange Commission for allegedly fudging sales figures, a new report in Automotive News says an internal investigation at FCA uncovered misreported sales. According to the AN story, 5,000 to 6,000 vehicles from various FCA brands were reported sold by dealers, but no customers existed for those cars. FCA sales chief Reid Bigland has already put a stop to the practice. One potential reason for the practice was to maintain the company's month-to-month sales increase streak, currently at 75 months. In April, FCA added a lengthy disclaimer to its sales announcements: "FCA US reported vehicle sales represent sales of its vehicles to retail and fleet customers, as well as limited deliveries of vehicles to its officers, directors, employees and retirees. Sales from dealers to customers are reported to FCA US by dealers as sales are made on an ongoing basis through a new vehicle delivery reporting system that then compiles the reported data as of the end of each month. "Sales through dealers do not necessarily correspond to reported revenues, which are based on the sale and delivery of vehicles to the dealers. In certain limited circumstances where sales are made directly by FCA US, such sales are reported through its management reporting system." FCA did not provide comment to Automotive News. Click through for the full story and more details. Related Video: Earnings/Financials Government/Legal Chrysler Dodge Fiat Jeep RAM sales Sergio Marchionne FCA USDOJ reid bigland

Fiat 500 Abarth appears in its fastest form yet

Fiat ended the Abarth-trained 500's career in the United States, but the fun-sized hot hatch is still around in Europe. It just spawned a new limited-edition model named 695 EsseEsse that's lighter and quicker than the production car. Offered exclusively as a hatchback, the 695 EsseEsse wears a redesigned hood that weighs 25% less than the standard car's because it's made out of aluminum instead of steel. If you're taking notes for a car-spotting trip to Italy, keep in mind the new-look panel features a pair of domes not found on the standard 695. Out back, the EsseEsse inherits a sizeable spoiler from the 70th Anniversary model whose angle can be manually adjusted from 0 to 60 degrees. When set to 60 degrees, the wing provides up to 93 pounds of additional downforce. Abarth made no major mechanical modifications to the 695, so power comes from a turbocharged, 1.4-liter four-cylinder engine tuned to develop 180 horsepower and 184 pound-feet of torque. It spins the front wheels via a five-speed manual transmission operated with a carbon fiber shift knob, and it exhales through an Akrapovic exhaust system that's lighter than the unit fitted to the standard 695. We're told it sounds better on and off the track, too. Hitting 62 mph from a stop takes 6.7 seconds, and Abarth quotes a top speed of 140 mph when the rear wing is set to 0 degrees. Koni shock absorbers ensure the EsseEsse is just as thrilling on a twisty road as it is in a straight line. Abarth will make 1,390 units of the 695 EsseEsse, and production will be split evenly between Scorpion Black (pictured) and Campovolo Gray. Pricing hasn't been announced yet, but it's of little interest to American enthusiasts because nothing suggests the 500 and its Abarth-tuned derivative will make a comeback in the United States. What's in a name? Rewind to 1964, when the 500 used a rear-mounted air-cooled engine and Abarth operated as a tuner rather than as a sub-brand. It transformed the tiny 500 into a sports car by increasing the two-cylinder's displacement to 690 cubic centimeters (42.1 cubic inches) and fitting it with wider wheel arches, among other modifications. The end result was a 38-horsepower pocket rocket capable of reaching 87 mph, an unbelievable speed at the time.  Abarth named its creation 695 SS, and it wrote out the acronym on the engine cover instead of using the two letters. It's like if Chevrolet had fitted "Impala EssEss" badges to the Impala SS. Production was capped at 1,000 units.