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PSA reportedly ditching its two tiny gasoline city cars ahead of merger

The Peugeot 108.   PARIS — PSA is ending the production of Peugeot and Citroen small city cars, three sources told Reuters, withdrawing from an increasingly unprofitable market as its starts a strategic review ahead of its planned merger with Fiat Chrysler. While PSA had already agreed to sell its stake in its Czech joint venture with Toyota where the Peugeot 108 and Citroen C1 models are made, the decision to stop selling the gasoline cars altogether has just been taken, the sources said. Carmakers are reviewing the production of vehicles with combustion engines as they need to fit costly exhaust filtering systems to meet tighter emissions laws. That's pushing up the cost of some so-called entry-level A segment cars to the point where they are hard to justify economically. "PSA is getting out of both the factory and the A segment business, as it is offered today, and on which manufacturers have arguably lost the most money in Europe," one of the sources familiar with the matter said. PSA declined to comment on the future of the two small cars. It said it was reviewing which products would best meet customer expectations in the A segment and cope with European carbon emissions targets. "This means a reflection with fresh and disruptive ideas," a spokesman for the French carmaker said. The European Commission is planning to tighten its emissions limits for cars under new proposals designed to cut the bloc's greenhouse gas output further by 2030. PSA's merger project with FCA has also increased the options available, two of the sources said, as the Italian-U.S. company has no intention of abandoning its small best-selling Panda and 500 models. Both already have hybrid versions and the 500 is also available in full electric mode. "Current projects could be replaced by new ones made possible by the merger with FCA", another source said. "The merger is turning all the cards around, especially when you consider that the A segment, from the very first 500 to the Panda, is inseparable from Fiat history". FCA declined to comment. PSA and FCA aim to finalize their merger in the first quarter next year to create a new company called Stellantis, which will be the fourth-biggest automaker in the world. Market contraction The European market for frugal city cars has been shrinking for several years.

All 2018 Fiat 500s will get turbocharged engines

For 2018, every basic Fiat 500 is getting a healthy horsepower increase thanks to a standard turbocharged 1.4-liter four-cylinder making 135 horsepower and 150 pound-feet of torque. That's a big increase over the current model's naturally aspirated 1.4-liter engine that makes just 101 horsepower and 97 pound-feet of torque. The newly available turbo engine can also be fitted to either a 5-speed manual or a 6-speed automatic. Fiat 500 fans may also find the new turbo engine's specifications familiar, and that's because they're identical to the old Fiat 500 Turbo that was introduced a few years ago. That car was introduced as a sort of happy medium between the standard 500 and the Abarth. The Turbo disappeared for a little while, but will be resurrected as 2018's entry model. Fiat also says the new turbocharged 500 Pop and Lounge (the basic models) get sportier suspension and brakes than the old one, again similar to the discontinued 500 Turbo. The exterior also becomes more aggressive on both trim levels looking a bit like a toned-down Abarth. And if you've picked up on the theme here, the exterior looks much like the old 500 Turbo's. Mind you, we're not complaining about Fiat bringing back the Turbo as the entry-level 500. It brings the car closer in parity to the base Mini Cooper, effectively matching it for power, and coming up just 10 pound-feet of torque short in the twist department. And while we didn't find the old 500 Turbo to be nearly as fun as the Abarth, the extra power did make for a better basic Fiat – and so should the 2018s. Related Video: Featured Gallery 2018 Fiat 500: Chicago 2018 View 12 Photos Related Gallery 2018 Fiat 500 View 14 Photos Image Credit: Live photos copyright 2018 Drew Phillips / Autoblog.com Chicago Auto Show Fiat Convertible Hatchback Economy Cars Performance turbo 2018 Chicago Auto Show fiat 500 turbo

2013 Fiat Panda Antartica is crossover dressed as a penguin in a tuxedo [w/video]

If the results of our totally informal, completely unscientific poll are anything to go by, Americans are eager to get their hands on small utility vehicles like the Fiat Panda. And it's easy to see why - accessibility, relatively low price and 4x4 capability are traits that ought to work in America just as in the rest of the world. Indeed, Fiat has sold 500,000 or so Panda models over the past 30 years all across Europe.
Based on the Panda 4x4 Rock and updated with a special white, black and orange color scheme (called a tuxedo and inspired by a Penguin, apparently), fog lights and 15-inch alloy wheels, the Panda Antartica will soon hit European dealerships in limited quantities powered by either an 85-horsepower 900cc TwinAir engine or a 75-hp 1.3-liter diesel.
Take a look at it in our high-res gallery above, and be sure to scroll down below for a press release and the complete Fiat press conference from Frankfurt on video.