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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.

Fiat-Chrysler alliance in jeopardy due to Pentastar's IPO filing?

The four-year relationship between Fiat and Chrysler has thus far been beneficial for both automakers, but it has also proven to be a complicated battle between Sergio Marchionne and the United Auto Workers - the latter controlling the remaining 41.5 percent of Chrysler. With the recent filing for a US IPO, it looks like Marchionne and the UAW appear to be playing a billion-dollar game of chicken, with both sides far apart on how much the union's shares are worth. If it comes down to Chrysler's remaining stake being publicly traded, it could act to drive a wedge between the two companies.
According to Bloomberg, Fiat's chairman John Elkann says "if the IPO will take place, there will be two companies, and that's different than having a single one." Now, we're not great at math, but this sounds like the complete opposite of the full merger that Marchionne has been pushing for since taking the helm at Chrysler. Bloomberg notes that the UAW's shares should be worth around $5.6 billion, but Fiat could end up paying as little as $4.9 billion for Fiat to gain full control of Chrysler. A story by The Detroit News points out that Marchionne's "alleged low-balling" is just the latest hurdle the Auburn Hills-based automaker must overcome as its ownership is being fought over for the fourth time in 15 years.

Renault delays decision on merger with Fiat Chrysler

PARIS — Renault has delayed a decision on whether to merge with Fiat Chrysler Automobiles, a deal that could reshape the global auto industry as carmakers race to make electric and autonomous vehicles for the masses. The deal still looks likely, but faced new criticism Tuesday from Renault's leading union and questions from its Japanese alliance partner Nissan. The French government is also putting conditions on the deal, including job guarantees and an operational headquarters based in France. The French carmaker's board will meet again at the end of the day Wednesday to "continue to study with interest" last week's merger proposal from FCA, Renault said in a statement. A Renault board meeting Tuesday to study the deal was inconclusive. The company didn't explain why, but a French government official said board members don't want to rush into a deal and are seeking agreement on all parts of the potential merger. The official, who spoke on condition of anonymity in line with government policy, told The Associated Press the conditions outlined by France's finance minister still "need to be met." France and Italy are both painting themselves as winners in the deal, which could save both companies 5 billion euros ($5.6 billion) a year. But workers worry a merger could lead to job losses, and analysts warn it could bog down in the challenges of managing such a hulking company across multiple countries. And a possible loser is Japan's Nissan, whose once-mighty alliance with Renault and Mitsubishi is on the rocks since star CEO Carlos Ghosn's arrest in November. Nissan CEO Hiroto Saikawa cast doubt Tuesday on whether his company will be involved in a Renault-Fiat Chrysler merger — and suggested adding Fiat Chrysler to the looser Renault-Nissan-Mitsubishi alliance instead. Saikawa said in a statement that the Renault-Fiat Chrysler deal would "significantly alter" the structure of Nissan's longtime partnership with Renault, and Nissan would analyze its contractual relationships to protect the company's interests. If Renault's board says "yes" to Fiat Chrysler, that would open the way for a non-binding memorandum of understanding to start exclusive merger negotiations. The ensuing process — including consultations with unions, the French government, antitrust authorities and other regulators — would take about a year. A merger would create the world's third-biggest automaker, worth almost $40 billion and producing some 8.7 million vehicles a year.