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CAR adds details to Alfa Romeo's five-year plan

Much of this month's issue of CAR Magazine is devoted to Alfa Romeo and what we can expect from it in the next five years. Of course, they unfortunately went to print before FCA CEO Sergio Marchionne died (and it took a while for it to land in my mail box), so certain elements are bound to change in light of new leadership. Nevertheless, there are plenty of interesting tidbits to chew on. First, there are a few more details regarding the Alfa Romeo 8C super car, which was confirmed during FCA's recent five-year plan announcement. Unlike the last front-engined, rear-drive 8C, the new one would be mid-engined with the rear wheels powered by a version of the Quadrofoglio turbo V6 brought up to the 600-horsepower range, and some amount of electrification added to the front axle. CAR indicates a total output of around 800 hp and 660 pound-feet of torque. A carbon fiber monococque would help keep the weight down, and to keep cost down, reporter Georg Kacher posits its production will be farmed out to a third party like Dallara. Both pricing and performance will be interesting with the 8C: how much does FCA want Alfa Romeo to compete with Ferrari? Without Marchionne leading both, perhaps it won't matter. View 19 Photos Then again, how much it wants Alfa to compete with Maserati might, as the future Giulia-based GTV coupe could do just that. Apparently, the coupe and convertible range is intended to compete with the entire breadth of the German two-door catalogue, from 4 Series and M4, to C- and E-Class Coupes. Presumably it'll therefore be more than just a Giulia coupe. Regular, high-performance and plug-in hybrid versions are mentioned. Finally, as was part of the previously announced five-year plan, there will be SUVs introduced on either side of the Stelvio. Apparently, it was originally thought that the smaller of the two would be produced on the cheaper Renegade/500X platform, but that has been nixed in favor of the Giulia's "Giorgio" platform to maintain a higher degree of engineering sophistication. If so, good call. The bigger of the two new Alfa SUVs would also be on the platform, and since it's been rumored that the next Jeep Grand Cherokee will be as well, it'll be interesting to see how similar those two mid-size SUVs will potentially be. There are many more Alfa insights from CAR, but as it's restricted to print and not on their website, we can only urge you to swing by your local magazine rack and pick up the latest issue. They do good stuff.

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.

Baby Jeep to join Renegade in FCA's plan for new Italian-built models

FCA is boosting its European production, introducing new models that will be built in currently under-utilized manufacturing facilities. Among the new models is a new small Jeep, smaller than the current Renegade, as Automotive News reports. FCA's Mike Manley mentioned the entry-level Jeep model earlier this year, also saying that the vehicle is targeted to European and possibly Latin American customers; in the summer, Autocar placed the launch date in 2022. The new "baby" Jeep would be made in the same factory in Pomigliano, Italy, as the small Fiat Panda, which is a top seller in Italy. The current generation Panda was introduced in 2011; if it gets a replacement in 2022, it could possibly share a platform with the Jeep model — or, the Jeep could be an eventual outright replacement for the Panda. One of Fiat's earlier core products, the Punto hatchback, was canned in August, and that production capacity will be used to make the Jeep Compass instead, at the Renegade-producing Melfi factory in southern Italy. The Compass has not previously been built in Europe. The Fiat model portfolio would be shrunk to just the 500 model family and the Panda — the 500 would also be FCA's key electric vehicle offered in Europe. It is not yet clear whether the electric 500 would be made in Turin, Italy, or in Poland; Turin might also get a Giardiniera-badged wagon version of the refreshed 500. As for the Alfa Romeo brand, it is set to gain an even bigger SUV model than the Stelvio, based on the Maserati Levante's platform. The Levante's sales have suffered recently in China, but Maserati does have light in the horizon: The Alfieri 2+2 grand tourer is still in the cards, with a launch expected for 2020 and both a convertible and an electrified version planned to follow. The Alfieri would be made in Modena, Italy, according to Automotive News' sources. None of these plans namedrop the storied Lancia brand, which has been shrunk to just the Ypsilon hatchback, based on the same platform as the current 500 and Panda. Despite that, the Ypsilon was again the second-bestselling car in Italy after the Panda in October. It is unlikely that FCA will be able to ignore this, but it is just as unlikely that any development money will be afforded to come up with a replacement for the Ypsilon, which is as similarly old as the Panda. Perhaps official announcements expected on Thursday will also clarify what will happen to Lancia.