2012 Fiat 500 Sport Edition on 2040-cars

Auto blog

Fiat teases upcoming new 124 roadster

Enthusiasts have been waiting for some time for the debut of the Fiat 124. And we've had some pretty good glimpses at what to expect along the way. But now Fiat has dropped the first official teaser images to prepare us for the arrival of its upcoming new roadster. The model tipped to revive the number 124 represents Fiat's version of the program that has already given us the new Mazda MX-5 Miata. The Italian counterpart was originally slated to wear the Alfa Romeo badge, but concerns that customers wouldn't welcome an Alfa made in Japan led FCA to repurpose the program as a Fiat. That brand already produces its vehicles in locations around the world, including the 500 in Poland and Mexico, the 500L in Serbia, and the upcoming Tipo in Turkey. Another Fiat made in Japan, then, wouldn't be as much of a stretch as it would be for Alfa Romeo, which manufactures exclusively in Italy. As we were able to see from the most recent spy shots, the Fiat 124 will adopt similar (if not identical) proportions and layout to the MX-5, but with its own unique sheetmetal. And that, as you can see from these line drawings, will include a prominent belt line melding into a muscular rear haunch. Expect FCA's own engines to slot in under the hood, including the turbo four from the Fiat 500 Abarth and the more potent one from the Alfa Romeo 4C. Given Fiat's timing in releasing these teasers, we have a good feeling the 124 could debut at the LA Auto Show later this month. The SoCal auto expo always proves a good setting at which to unveil a new convertible – especially one as vital to a brand's US presence as the 124 will be for Fiat. So watch this space.

Analysts wary over FCA lawsuit but say emissions not as bad as VW

MILAN - Any potential fines Fiat Chrysler (FCA) may need to pay to settle a US civil lawsuit over diesel emissions will unlikely top $1 billion, analysts said, adding the case appeared less serious than at larger rival Volkswagen. The US government filed a civil lawsuit on Tuesday accusing FCA of illegally using software to bypass emission controls in 104,000 vehicles sold since 2014, which it said led to higher than allowable levels of nitrogen oxide (NOx) that are blamed for respiratory illnesses. FCA's shares dropped 16 percent in January when the U.S. Environmental Protection Agency (EPA) first raised the accusations, adding the carmaker could face a maximum fine of about $4.6 billion. The stock has been under pressure since. Volkswagen agreed to spend up to $25 billion in the United States to address claims from owners, environmental regulators, U.S. states and dealers. FCA, which sits on net debt of 5.1 billion euros ($5.70 billion), lacks VW's cash pile but analysts said its case looked much less severe. While VW admitted to intentionally cheating, Fiat Chrysler denies any wrongdoing. Authorities will have to prove that FCA's software constitutes a so-called "defeat device" and that it was fitted in the vehicles purposefully to bypass emission controls. Even if found guilty, the number of FCA vehicles targeted by the lawsuit is less than a fifth of those in the VW case. Applying calculations used in the German settlement, analysts estimate potential civil and criminal charges for Fiat Chrysler of around $800 million at most. Barclays has already cut its target price on the stock to take such a figure into account. Analysts also noted that FCA's vehicles are equipped with selective catalytic reduction (SCR) systems for cutting NOx emissions, so it is likely that any problem could be fixed through a software update. "Should this be the case, we estimate a total cost per vehicle of not more than around $100, i.e. around $10 million in aggregate," Evercore ISI analyst George Galliers said in a note. The estimates exclude any additional investments FCA may be asked to make in zero emissions vehicles infrastructure and awareness as was the case with VW. FCA said last week it would update the software in the vehicles in question, hoping it would alleviate the regulators' concern, but analysts said it may have been too little too late. The carmaker is also facing accusations over its diesel emissions in Europe.

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.