1978 Fiat 124 Spider on 2040-cars

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Fiat set to invest $12B on new models, stop Euro losses in 3 years

Naturally, you'd expect a massive automaker like Fiat to have an in-depth plan to exit the current European-market doldrums, and you'd expect that plan to include plenty of new vehicles to attract those precious buyers that still remain despite the financial downturn. And you'd be right, though Fiat does seem to have a few unexpected twists up its corporate sleeve.
Perhaps the biggest shocker is a report that Fiat will completely drop the Punto, a car with mass-market appeal aimed at small-car buyers cross-shopping the popular Volkswagen Polo. Its replacement will be a five-door Fiat 500 aimed at upmarket buyers (sounds awfully similar to the 500L) that will be built in Poland. Lower-end customers will reportedly be served by variants of the Fiat Panda.
Borrowing a page from the BMW, Daimler and Volkswagen playbook, reports Automotive News, Fiat is said to have plans to reignite production at its Italian factories by retooling them to build high-end vehicles from Maserati and Alfa Romeo. These will be marketed as premium products, built by skilled Italian workers (who are paid wages that are 75-percent higher than those building Fiats in Poland), and will be sold around the world.

Strains between France and Italy risk Renault-FCA merger

PARIS/ROME — Fiat Chrysler's proposed $35 billion merger with Renault has cheered investors, won conditional support from Paris and Rome and even earned cautious backing from trade unions. Beneath this veneer, however, the bold attempt to create the world's third-largest carmaker risks becoming rapidly embroiled in the fraught relationship between France's europhile President Emmanuel Macron and Italy's euroskeptic leaders. For while Deputy Prime Minister Matteo Salvini hailed the proposal as a "brilliant operation," Italy's creaking, state-subsidized Fiat factories are likely to bear the brunt of any production-related cost savings. FCA and Renault said this week that more than 5 billion euros ($5.6 billion) of annual savings would come mainly from combining platforms, consolidating powertrain and electrification investments and the benefits of increased scale. Salvini and France's Finance Minister Bruno Le Maire, who called the deal a "good opportunity" to build a European industrial champion able to compete with China and the United States, have both said they want guarantees on local jobs. "It's not every day that I agree with Salvini," said Le Maire, whose government appears to hold the trump cards. When it comes to where any job cuts fall, France will be helped by its existing 15 percent holding in Renault, whose superior efficiency at its five French plants makes it better placed to handle a supply glut, the demise of the petrol engine and the investments needed for electric and autonomous vehicles. "It will take many, many years to find real savings, and ugly political and operational realities can often swamp the potential of such new entities," Bernstein analyst Max Warburton said of the FCA-Renault plan to rival Japan's Toyota and Germany's Volkswagen. Advantage France? As well as Italy's government having to cope with the aftermath of European elections, which coincided with news of the FCA-Renault plans, political leaders in Rome were only informed shortly before the deal was made public, an FCA source said. This contrasted with the way the French government was treated, with Fiat Chrysler Chairman John Elkann, a fluent French speaker, letting it know of his merger proposal to Renault weeks ago, a French government official said.

2016 Fiat 500X First Drive [w/videos]

Fiat's return to the US market four years ago is already cooling off. Neither the Lilliputian 500 or its larger sibling, the 500L, have caught on with mainstream customers. Both were designed years ago for European roads, which are tight and crowded. That's the antithesis of America's driving ethos. Fiat knows this, and its answer is the 2016 500X. It lays the brand's curvy design over a crossover-style package with available all-wheel-drive. There's more room for cargo to suit our national preference for extra space. The 500X still has Italian charm, but it feels more at home on US roads than other Fiats. Put simply, the 500X isn't a transplant, it's made for American buyers (even if it's assembled in Italy, alongside the Jeep Renegade). We were skeptical that the 500X could turn around Fiat's fortunes, but this cute crossover had a way of winning us over. Maybe it was the bright arancio paint (Italian for "orange") of our test car, the most expressive of the 12 exterior hues. Even in the shadowy indoor setting where our test drive begins, in Culver City, CA, this car stands out. In stark contrast, the black and grey interior is subdued and tasteful. Out test car is a Trekking model, the middle of five trim levels, fitted with the optional 2.4-liter engine. This naturally aspirated four-cylinder is a 'free' upgrade from the standard 1.4-liter turbo, but mandates the addition of a nine-speed automatic transmission for $1,500. Taking off through morning traffic, we head for the Santa Monica Freeway. At the entrance we're pitted against an older Toyota Camry in an on-ramp drag race. We lay on the throttle to put the Tigershark engine's 180 horsepower and 175 pound-feet of torque into full use, and leave the Camry in the dust. As we head north toward Malibu, we can already tell that the 500X feels like a different kind of Fiat, more substantial. It fills the lane. There's an upright driving position, and we feel confident cruising along at 70 miles per hour. Okay, so the 500X can handle an interstate, but what about an open road? We make our way to the Pacific Coast Highway, California's State Route 1, a logical place to test Fiat's claim of being more in step with American buyers. There are stoplights. People wander across the street towards the beach. Cars pass us and we pass them. Subtract the ocean air and surfers, and this road is what a lot of US motorists deal with every day. The 500X is all up for it.