2015 Fiat 500 Pop Hatchback on 2040-cars

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Why FCA-PSA merger is no quick fix for their China problem

BEIJING — Fiat Chrysler and Peugeot owner PSA's merger is unlikely to provide a quick fix to their problems in China, as both companies have long struggled to find the right products at the right price for the world's top car market, analysts say. The companies said on Thursday they aimed to reach a binding deal in the coming weeks to create the world's fourth-biggest automaker by production volume. But scale alone will not make Italian-American Fiat Chrysler Automobiles (FCA) and France's PSA Group more competitive in a market where they have been slow to adapt to trends and win over consumers, leading their sales to lag far behind foreign rivals such as Volkswagen and General Motors. PSA does not have enough competitive SUV models, and neither company has enough electric and plug-in hybrid vehicles, or enough cars packed with hi-tech features for Chinese tastes, analysts say. In a market where 28 million cars were bought in 2018, FCA sold just 155,215, while PSA sold 257,723, according to consultancy LMC Automotive. At the end of September, FCA had a market share of 0.5% in China's passenger car market, while PSA's was 0.6%. Analysts say they have been squeezed by Japanese and local brands, which have product line-ups better suited to Chinese tastes at cheaper prices. "Both companies are very home-market centred and have failed to adapt to shifts in Chinese market preferences," said Bill Russo, head of Shanghai-based consultancy Automobility Ltd and a former senior Asia-based Chrysler executive. "Neither company has recognized and delivered on the trends of shared, connected and electric vehicles,” Russo said. That makes them ill-prepared to deal with further shifts in the Chinese market, which saw annual sales contract for the first time since the 1990s last year and is expected to see another drop this year. "China's overall market is experiencing a transmission and adjustment period," said Alan Kang, a Shanghai-based senior analyst at LMC Automotive. "It is very hard for these two companies, which do not have enough competitive up-to-date products, to quickly recover with the merger." FCA has a partnership in China with Guangzhou Automobile Group, which said on Thursday it backed the merger. PSA has been trying to reboot its operations in China.

Abarth trim of Fiat 124 Spider reportedly debuts in Geneva

Keep your eyes open for the possible debut of the high-performance Abarth version of the Fiat 124 Spider at the Geneva Motor Show, which opens March 1. Alfredo Altavilla, FCA's chief operating officer for Europe, told Italian newspaper Corriere Della Sera the hotter droptop would debut in Switzerland, according to Road & Track. Unfortunately, he simply said the convertible would be there and didn't offer any details about its upgrades. Rumors paint a fairly complete picture about what to expect from the Abarth 124. European models would likely make 170 horsepower from a tuned version of the regular one's 1.4-liter turbocharged engine. However, there would also be an even hotter EsseEsse trim, which the US would get, with around 220 horsepower. Achieving that much power might require a new engine, and it's possible the convertible could borrow the 1.75-liter turbo unit from the Alfa Romeo 4C. Spy shots show the Abarth has a more aggressive look to match its extra performance. The body features larger front takes, bigger side sills, and dual-exit exhausts at each corner of the rear. Reports also suggest Fiat would borrow from the classic 124 Spider by offering options like a removable hardtop and blacked-out hood. During the standard 124 Spider's debut at the LA Auto Show, Olivier Francois, global head of the Fiat brand, said the company plans to market the new convertible as a relatively affordable but distinctly Italian sports car. A Ferrari might be out of a buyer's reach, but a Fiat is attainable. The Abarth's extra performance seems like a perfect way to further that message, and we can't wait to see it. Related Video:

Fiat reveals updated 500 overseas

See that Fiat 500 up above and in the rather large accompanying gallery? Look closer. It's new, or at least pretty comprehensively refreshed. The biggest updates that Fiat has grafted into its diminutive 500 hatchback are under the skin and inside its interior. Perhaps the most notable update is the inclusion of a proper infotainment system with a five-inch display, in this case, the well-received Uconnect tech borrowed from its corporate siblings under the Chrysler umbrella. In Europe, the refreshed Fiat 500 will launch with a 0.9-liter TwinAir engine with either 85 or 105 horsepower. A 1.2-liter engine with 69 horsepower will also be on offer, and an ultra-low emissions version of that engine will join a 1.3-liter 16v Multijet II turbocharged diesel unit that grunts out 95 horsepower sometime after, in certain markets. On the outside, the most notable updates are redesigned lighting clusters front and rear, but there are detail enhancements elsewhere, including to the hood and a new beltline that appears to sweep upward as it moves forward. We suggest you see for yourself in our high-res image gallery above, and if you want all the details, to read through the press release below. Keep in mind, this is all for Europe, so we'll just have to wait and see how many of these updates we get Stateside. NEW FIAT 500 REVEALED - New FIAT 500 unveiled with new exterior and interior style - Highlights include revised front designed with new headlamps, grills, chrome brightwork and LED daytime running lights - Rear enhancements include innovative new 'empty' light clusters - Interior revisions include new Uconnect™ infotainment systems, enhanced comfort and numerous detail improvements - Engine range enhanced for more efficiency and eco-friendliness - High standard safety specification includes seven airbags and a full suite of active safety systems - On Sale in September priced from GBP10,890 In Brief July 4 has always been a red-letter date for the FIAT 500. A symbol of mass motorisation in Italy, of which almost 3.8 million were sold, the original FIAT 500 was introduced on this day in 1957. Exactly fifty years later, on July 4 2007, FIAT chose to celebrate that heritage by introducing the New FIAT 500, a car which embodied the same spirit and personality as the original and which has also enjoyed phenomenal success all over the world.