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Fiat Chrysler, Peugeot announce merger as world's No. 4 carmaker

MILAN  — Fiat Chrysler and France's PSA Peugeot said Thursday they have agreed to merge to create the world's fourth-largest automaker with enough scale to confront big shifts in the industry, including a race to develop electric cars and driverless technologies. Italian-American Fiat Chrysler brings with it a strong footprint in North America, where it makes at least two-thirds of its profits, while Peugeot is the No. 2 automaker in Europe. Both lag in China, however, despite the participation of Peugeot's Chinese shareholder, Dongfeng, and are playing catching up in developing electric vehicles. Fiat Chrysler shares were trading up 9% at 14 euros in Milan, while PSA Peugeot shares were down 3.2% to 22.84 euros. The 50-50 merger is expected to offer savings of 3.7 billion euros ($4 billion), which the automakers expect to achieve without any factory closures — a concern of unions in both France and Italy where the carmakers have more overlap. Fiat Chrysler's strongest brands are Jeep SUVs and Ram trucks and it is focusing on relaunching its premium and luxury brands, Alfa Romeo and Maserati, with a focus on hybrid engines. It still makes smaller cars under the Fiat marquee, mostly for the European and Latin American markets. PSA Peugeot makes mostly small, city-friendly cars, family sedans and SUVs under the nameplates of Peugeot, Citroen and Germany-based Opel, which it bought in 2017. That is where the companies can expect to have the most overlap. The new company would be worth $50 billion, with revenue of 170 billion euros ($189 billion). It would produce 8.7 million cars a year — still behind Toyota, Volkswagen and the Renault-Nissan alliance, which make over 10 million each. Once a merger is finalized, PSA Peugeot CEO Carlos Tavares will be chief executive of the new company, with Fiat Chrysler Chairman John Elkann becoming chairman. Fiat Chrysler CEO Mike Manley will have a senior executive role. "This convergence brings significant value to all the stakeholders and opens a bright future for the combined entity," Tavares said in a statement. Manley called it "an industry-changing combination," and noted the long history of cooperation with Peugeot in industrial vehicles in Europe. The 11-member board will be made up of five members from each company plus Tavares, who is locked in as CEO for five years.

2016 Fiat 500X configurator is live, $20,000* to start

Fresh off an entertaining commercial during the 2015 Super Bowl, Fiat has unleashed the configurator for its all-new 500X CUV. And like its brother, the Jeep Renegade, the 500X starts cheap, but can get expensive in a hurry. Prices for the base 500X start at an even $20,000, not counting a $900 destination charge. That'll get you the front-drive-only, base-level Pop trim, with a 1.4-liter, turbocharged four-cylinder, six-speed manual transmission, 16-inch steelies with wheel covers, a four-speaker stereo and unlike its Jeep-branded sibling, standard air conditioning. Next up is the $22,300 Easy, and its standard nine-speed automatic transmission and 2.4-liter four-cylinder. 17-inch wheels come standard, as does a 5.0-inch touchscreen infotainment system with six-speaker stereo and Bluetooth connectivity, a Dynamic Selector Traction Control system, cruise control and remote start. For those that want to butch up the 500X's cutesy interior, the $23,100 Trekking trim adds a more aggressive front fascia with integrated fog lights and brawny 17-inch wheels. In the cabin, "premium" cloth seats replace the standard thrones. The luxurious Lounge trim starts at $24,850 and adds a 6.5-inch touchscreen with navigation, standard heated and powered cloth seats, optional leather seats, a heated steering wheel, an auto-dimming rear-view mirror, a 3.5-inch color display in the instrument cluster, a rear-view camera and four different interior color options. At the very tip-top of the range, we have the Trekking Plus, starting at a lofty $28,100. Adding basically everything from the Lounge trim with the aesthetics of the Trekking, if you really want the best 500X available, this is your CUV. This was the priciest model we could configure, hitting $33,500 with all-wheel drive, the $2,600 Trekking Plus Collection 2 (forward collision warning, auto high beams, lane departure warning and a dual-pane sunroof) and the stylish, $1,000 Giallo Tristrato paint. The prices listed above are for front-wheel drive only – adding all-wheel drive bumps up the 500X's price by $1,900. Beyond that, there are a plethora of option packages available on everything from the Easy to the Trekking Plus, meaning you'll be able to drive your out-the-door price beyond even what's listed here. These packages, like on the Renegade, will add everything from luxury features, like a heated steering wheel/seats and a panoramic sunroof, to safety items, like blind-spot monitoring and a rear-view camera.

Strike looms for FCA workers as soon as Wednesday night

A strike is on the very near horizon for at least some United Auto Workers members at FCA US. On October 6, the union sent a letter to the automaker that officially announced the termination of its agreements with the company as of 11:59 PM on Wednesday, October 7. Assuming that a deal or extension hasn't happened by that time, workers could hit the picket line. While neither side is talking much publicly, it does appear that negotiations are still underway. In a very brief statement, the automaker simply says: "FCA US confirms that it has received strike notification from the UAW. The Company continues to work with the UAW in a constructive manner to reach a new agreement." The UAW seems equally receptive, and it says in a post on Facebook: "Negotiations with FCA continue. Your bargaining team is hard at work and we will continue to post updates when there is more to report." If a strike happens, it could put a serious financial burden on FCA US. Economist Sean McAlinden from the Center for Automotive Research estimates the cost at as much as $40 million per week, according to Reuters. The union hasn't clarified at this time whether all of its workers with the automaker would stop working or if the picket lines would only be at specific plants. The first tentative agreement posted to UAW members working with FCA US utterly failed in voting. Raises and a healthcare co-op would have been among the new benefits. However, the employees were upset that the proposed deal retained a two-tier wage structure, and they also didn't like the lack of details about rumors of major production changes.