2012 Fiat 500 Gucci on 2040-cars

Auto blog

Fiat Chrysler shares get a boost after revised Stellantis merger deal with PSA

MILAN — Shares in Fiat Chrysler (FCA) rose sharply in Milan on Tuesday after the car maker and French partner PSA revised the terms of their merger deal, with FCA's shareholders getting a smaller cash payout but a stake in another business. FCA and PSA, which last year agreed to merge to give birth to Stellantis, the world's fourth largest car manufacturer, said late on Monday they had amended the accord to conserve cash and better face the COVID-19 challenge to the auto sector. Milan-listed shares in Fiat Chrysler rose almost 8% by 1000 GMT, while PSA gained 1.5%. Under the revised terms, FCA will cut from 5.5 billion euros ($6.5 billion) to 2.9 billion euros the cash portion of a special dividend its shareholders are set to receive on conclusion of the merger. However, PSA will for its part delay the planned spinoff of its 46% stake in car parts maker Faurecia until after the deal is finalized. That means all Stellantis shareholders — and not just the current PSA investors - will get shares in a company which has a market value of 5.8 billion euros. Based on Stellantis' 50-50 ownership structure, FCA and PSA respective shareholders will each receive a 23% stake in Faurecia. Analysts welcomed the 2.6 billion euros in additional liquidity for Stellantis' balance sheet as well as the increase in projected synergies to more than 5 billion euros from 3.7 billion. There was also further reassurance as the two companies confirmed they expected the deal to close by the end of the first quarter of 2021. "All told, the two players emerge as winners," broker ODDO BHF said in a note. "Of the two, FCA might be a bit more of a winner in the short term given the structure of the deal and the numerous payouts to shareholders to come in the quarters ahead (potentially close to 5 billion euros versus the current capitalization of around 16 billion euros)." The special dividend for FCA shareholders had proved contentious after Italy offered state guarantees for a 6.3 billion euro loan to the company's Italian business. "These announcements should, at last, end the debate over the financial terms of the merger, which had become a big topic and was still penalizing the two groups' share performances," ODDO BHF said. PSA and FCA said they would consider paying out 500 million euros to shareholders in each firm before closing or else a 1 billion euro payout to Stellantis shareholders afterwards, depending on market conditions and company performance and outlook.

Abarth 124 Spider is one furious Fiata

If you've been thinking of picking up a nimble new roadster, but can't decide between the Mazda MX-5 Miata and its Italian counterpart the Fiat 124 Spider, the vehicle you see here might tip the balance. It's the new Abarth 124 Spider, tuned by the Italian automaker's performance division. And it's just made its debut here on the floor of the 2016 Geneva Motor Show. The Abarth version, of course, is based on the Fiat model, which in turn is based on the Mazda. But the one with the Scorpion emblem offers a number of performance upgrades. Under the hood is still a 1.4-liter turbo four, producing the same 184 pound-feet of torque, but in Abarth spec offers a more prodigious 170 horsepower (up from 160). Buyers will still be able to choose between a six-speed manual or automatic transmission, but the rest of the components are no-brainers: Brembo brakes, Bilstein dampers, and a Record Monza exhaust. The steering is electrically assisted, but it has a proper mechanical limited slip differential, there's a Sport button, and the electronic nannies can be fully defeated for hooning around on track. The sum total is a 0-62 time quoted at 6.8 seconds and a top speed at 143 miles per hour. Bear in mind that these are specs for the European model, though, and could change if and when the Abarth spider makes its way to our shores. View 11 Photos Of course the technicians at Mirafiori didn't leave it there, equipping the Abarth 124 Spider with an array of visual enhancements as well. There's a full aero kit, larger air vents, 17-inch alloys, and a black hood to cut down on glare (and make it look more businesslike). The interior is all done up in Alcantara, with a small-diameter steering wheel, short gear lever, aluminum pedals... the works. As if all that isn't enough to get your motor running, Abarth has also worked up a rally version to recall its glory days of old. The Abarth 124 Rally is built to FIA R-GT regulations, and ditches the 1.4-liter engine for a 1.8 mounted further back and producing an impressive 300 hp. It also has a fixed roof, full roll cage, and a long list of other competition-spec upgrades that are too long to list here, but you can read all about them in the second of the two press releases below. View 17 Photos This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.

Will the Fiat 124 Spider get an Abarth model?

Fiat is finally back in the sports-car business, as evidenced by the reveal of the 2017 124 Spider at the Los Angeles Auto Show. Naturally, the next question becomes: Will Fiat do an Abarth version? "We might look at doing a tuned version, said Olivier Francois, global head of the Fiat brand. "Maybe yes, maybe no." Francois was coy as he spoke to a group of reporters minutes after the 124 debuted in LA, but performance is a part of Fiat's genetics. While Francois wasn't telling, we think those bloodlines will translate into a higher-powered Abarth version. The 2017 Spider launches next summer, so an Abarth variant could arrive about a year later as a 2018 model. We would expect it to feature a stiffer suspension, performance wheels, Abarth badging, and enhanced aerodynamics. Some carbon-fiber pieces (perhaps the hood) would complement Fiat's always interesting palette of color choices, though a rosso corsa, like the one chosen by our illustrator, would be timeless. The engine's output would be the big question mark. The likely plan would be to tune up the 124's 1.4-liter four-cylinder MultiAir turbo rated at 160 horsepower and 184 pound-feet of torque in the base model. It's the same engine used in the Fiat 500 Abarth model, though the Spider has more torque. Fiat could further goose this mill, perhaps to around 190 to 200 horses, or pluck another mill from Fiat Chrysler's vast powertrain bins. The Alfa Romeo 4C's turbo 237-hp four-cylinder might also be a candidate. Like the MX-5 Miata with which it shares a platform (albeit modified), the Spider is more about driving dynamics and style than raw power. For Fiat, the 124 will offer the allure of an Italian car to the wide range of enthusiasts who can't afford Ferraris, Alfa Romeos, or Lamborghinis. "We think we can appeal to the huge number of people who aspire to a car like this," Francois said. Obviously, an Abarth price point is far in the future, but the Fiat chief said the base 124 "will be very much in line with the segment." The 2016 Miata begins at $25,735, including destination. We estimate 124 Abarth pricing could start around $32,000. The Spider will serve as Fiat's halo. It's a true sports car with a legitimate history. "This is the quintessential Italian car," Francois said. That means it won't be a volume play. The Spider might add a modest 6,000 units per year to Fiat's sales tally in the United States and perhaps 12,000 globally, said IHS Automotive senior analyst Stephanie Brinley.