2019 Alfa Romeo Giulia on 2040-cars

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China-FCA merger could be a win-win for everyone but politicians

NEW YORK — Fiat Chrysler boss Sergio Marchionne has said the car industry needs to come together, cut costs and stop incinerating capital. So far, his words have mostly fallen on deaf ears among competitors in Europe and North America. But it appears Marchionne has finally found a receptive audience — in China. FCA shares soared Monday after trade publication Automotive News reported the $18 billion Italian-American conglomerate controlled by the Agnelli family rebuffed a takeover from an unidentified carmaker from the Chinese mainland. As ugly as the politics of such a combination may appear at first blush, a transaction could stack up industrially, and perhaps even financially. A Sino-U.S.-European merger would create the first truly global auto group. That could push consolidation to the next level elsewhere. Moreover, China is the world's top market for the SUVs that Jeep effectively invented, so it might benefit FCA financially. A combo would certainly help upgrade the domestic manufacturer; Chinese carmakers have gotten better at making cars, but struggle to build global brands, and they need to develop export markets. Though frivolous overseas shopping excursions by Chinese enterprises are being reined in by Beijing, acquisitions that support the modernization and transformation of strategic industries still receive support, and the government considers the automotive industry to be strategic. A purchase of FCA by Guangzhou Automobile, Great Wall or Dongfeng Motors would probably get the same stamp of approval ChemChina was given for its $43 billion takeover of Syngenta. What's standing in the way? Apart from price (Automotive News said FCA's board deemed the offer insufficient) there's the not-insignificant matter of politics. Even as FCA shares soared, President Donald Trump interrupted his vacation to instruct the U.S. Trade Representative to look into whether to investigate China's trade policies on intellectual property. Seeing storied Detroit brands like Jeep, Chrysler, Ram and Dodge handed off to a Chinese company would provoke howls among Trump's economic-nationalist supporters. It might not play well in Italy, either, to see Alfa Romeo and Maserati answering to Wuhan instead of Turin — though Automotive News said they might be spun off separately. Yet, as Morgan Stanley observes, "cars don't ship across oceans easily," and political considerations increasingly demand local manufacture of valuable products.

Alfa Romeo Giulia interior revealed on YouTube

When our David Gluckman reported from the Alfa Romeo Giulia reveal in Milan last month he didn't get to sit in or photograph the interior, but he wrote of it, "I liked what I saw of the interior. The center console is angled to hem the driver in a little, which works well with the canted, sweeping dash. It kind of reminds me of the look in newer Mazdas – clean and simple with a good balance of organic curves and straight edges." Now we can see what he meant because a YouTube video from user Alfa Romeo World shows off the new sedan's cabin. We're going to guess that this is a top-trim setup because there is a lot of stitched leather and carbon fiber in there. It's a good looking place for driving, and that steering wheel makes our hands want to clutch it. The infotainment area is one flush tinted screen extending from the gauge cluster and holding the line of the instrument panel, and the image appears to show up on the entire screen, not on another smaller screen mounted behind it. It's simplicity in a good way, bereft of any gimmicks that we can see, and with a six-speed manual transmission. For all the sportiness of the hard points, the seats look rather flat, especially in the back. We'll hold off on judgment until we sit in them. Have a look at it in the gallery above, there are more shots at this Facebook fan site, and we'll be lining up to take a seat in it at the Frankfurt Motor Show.

Alfa Romeo: Reports of 4C's death by 2020 aren't true

The Alfa Romeo 4C is a purpose-built sports car that hasn't put up stellar sales figures in the US. As we found out, it's an uncompromising machine, which is probably one reason why the automaker is struggling to shift a large number of units. A recent report from Autoline, citing Auto Forecast Solutions, claims that Alfa is planning to axe the 4C Coupe and 4C Spider from its lineup by 2020. The report claims that the automaker plans to cancel the next generation of the 4C to focus on manufacturing new models that would have more sales potential. Alfa only managed to sell 309 units this year – that's only 11 more units than the Dodge Viper, which will be going out of production next year. When we questioned an Alfa Romeo spokesman on whether the 4C would be discontinued by 2020, he stated that no plans had been announced yet and referred us to Fiat Chrysler Automobiles' five-year plan. The plan mentions two "specialty" models that Alfa plans to introduce between 2017 and 2020. It's not clear whether these models would be in addition to or act as direct replacements for the 4C Coupe and 4C Spider. There's also a possibility that the upcoming models would serve the same purpose as the 4C models, but carry different names. The 4C marked Alfa's return to the US since it left in the 1990s. As part of the automaker's comeback, it plans to put a sports sedan, in the form of the Alfa Romeo Giulia, up against the Mercedes-Benz C-Class and BMW 3 Series later this year. Related Video: