2017 Fiat 124 Spider Lusso on 2040-cars

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Fiat Chrysler and Peugeot boards meet to finalize merger

MILAN/PARIS — The boards of Fiat Chrysler Automobiles and Peugeot will meet separately on Tuesday to discuss finalizing an initial agreement for a $50 billion merger to create the world's number four carmaker, sources said. A source close to FCA said the two companies could announce the signing of a binding memorandum early on Wednesday, followed by a conference call to explain further details later in the day. The two mid-sized carmakers announced plans six weeks ago for a tie-up to help them deal with big challenges in the industry, including a global demand downturn and the need to develop costly cleaner cars to meet looming anti-pollution rules. Ahead of the meetings, entities representing the Peugeot family, Etablissements Peugeot Freres (EPF) and FFP, unanimously approved a proposed memorandum of understanding for the planned merger, a source familiar with the situation said. FCA and PSA have said they would seek to finalize a deal by year-end to create a group with 8.7 million in annual vehicle sales. That would put it fourth globally behind Volkswagen, Toyota and the Renault-Nissan alliance. PSA's Carlos Tavares will be chief executive and FCA's John Elkann — the scion of Italy's Agnelli family, which controls FCA through their holding company Exor — chairman of the combined company. The group will include the Fiat, Jeep, Dodge, Ram, Chrysler, Alfa Romeo, Maserati, Peugeot, DS, Opel and Vauxhall brands, allowing it to serve mass and premium passenger car markets as well as those for trucks and light commercial vehicles. Related Video:       Chrysler Dodge Fiat Jeep RAM Citroen Peugeot

Dealer chain accuses FCA of paying dealers to pad sales [UPDATE]

UPDATE: The story has been updated to include a full press release from Fiat Chrysler Automobiles on the Napleton Automotive Group's allegations. A Chicago-based dealership group has filed an explosive lawsuit against Fiat Chrysler Automobiles accusing the company of paying dealers to fake new-vehicle sales, Automotive News reports. Edward Napleton, president of the Napleton Automotive Group, filed the suit on Tuesday. It claims that FCA offered Napleton money to fudge end-of-month sales figures. According to the filing, dealers would report false transactions, only to "back out" at the start of a new month "before the factory warranty on the vehicles could be processed and start to run." According to Automotive News, FCA was aware of the false reports and rewarded dealership managers for hitting sales targets. The lawsuit cites one example at Napleton Arlington Heights Chrysler Jeep Dodge Ram where an FCA business center manager offered Napleton $20,000 "to falsely report the sales of 40 new vehicles." The payment would be disguised "as a co-op advertising credit to the dealer's account." Such a move would prevent a sales audit, AN reports. Napleton rejected the deal, telling FCA it was illegal. He later learned a similar arrangement was made with a competing dealer to falsify the sale of 85 vehicles. They were given "tens of thousands of dollars as an illicit reward for their complicity in the scheme." FCA has vehemently denied the accusation in a statement obtained by Automotive News. "While the lawsuit has not yet been served on FCA US, the company believes that the claim is without merit and was filed by internal counsel to the dealer group as FCA US has concurrently been discussing with the dealer group the need to meet its obligations under some of its dealer agreements," the statement said. "The company is confident in the integrity of its business processes and dealer arrangements and intends to defend this action vigorously." There are additional allegations, as well, claiming FCA "strong-armed its dealers to achieve sales numbers" and accusing the company of maintaining a "pattern of conduct towards its dealers [that] has been one of coercion and threats of termination having nothing to do with the actual performance of its dealers." FCA is riding a wave of 69 consecutive months of year-over-year sales gains. More on this one as it becomes available. FCA Strongly Rejects Allegations by Two U.S.

Fiat preparing to say 'ciao' to the 500X in the United States

Fiat's 500X crossover will enter the pantheon of automotive history without a successor. Ending years of rumors and speculation, the company confirmed that the soft-roader will not be replaced in the United States once production of the current-generation model ends.  As we reported from the L.A. Auto Show, the 500X will be discontinued after it reaches the end of its lifecycle. "When it dies, it dies. We will not replace it," Fiat boss Olivier Francois confirmed to Motor Trend.  With the Mazda MX-5 Miata-based 124 Spider and the 500L people-mover out of the picture, the 500X is the last Fiat standing in the United States. Its demise hardly comes as a surprise: Fiat sold merely 1,181 units in 2021, an 18% drop compared to 2020. Given those anemic numbers and the fact it debuted at the Paris Auto Show of 2014, the end of its lifecycle might not be that far off — 2023 might be its final model year. Francois' comments douse cold water on rumors claiming Fiat planned to merge the 500X and the 500L into one model tentatively called 500XL. When it does sail off into the history book, the Jeep Renegade's Italian cousin will pass the torch to the electric 500e, which has been on sale in Europe since 2020 but won't land in the United States until early 2024. Market-specific details will be announced in 2023. Fiat seems content with offering a one-model range in the United States. "We have a clear plan not to do anything besides the 500. It's the one model people like," Francois candidly admitted. "Fiat is not here to be everything to everyone everywhere," he added. And, the company knows a tiny EV with a range rating of under 200 miles will be a tough sell. Francois predicted American sales will be "a rounding error." European motorists see more of the Fiat iceberg. The Turin-based company notably still sells the last-generation 500 and its Abarth-tuned derivatives, which both left American showrooms in 2019. Its range also includes the massively popular Panda city car and the Tipo.