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GM says it favors fuel-efficiency rules based on historic rates

WASHINGTON — General Motors backs an annual increase in fuel-efficiency standards based on "historic rates" rather than tough Obama era rules or a Trump administration proposal that would freeze requirements, according to a federal filing made public on Monday. The largest U.S. automaker said the Obama rules that aimed to hike fleet fuel efficiency to more than 50 miles per gallon by 2025 are "not technologically feasible or economically practicable." The Detroit automaker said that since 1980, the motor vehicle fleet has improved fuel efficiency at an average rate of 1 percent a year. Fiat Chrysler Automobiles NV said in separate comments that the auto industry is complying with existing fuel efficiency requirements by using credits from prior model years. As a result, even if requirements are frozen at 2020 levels, "the industry would need to continue to improve fuel economy" as credits expire, it added, warning if the government hikes standards beyond 2020 requirements "the situation worsens ... without some significant form of offset or flexibility." Fiat Chrysler and Ford urged the government to reclassify two-wheel drive SUVs as light trucks, which face less stringent requirements than cars. A four-wheel drive version of the same SUV is considered a light truck. Ford backs fuel rules "that increase year-over-year with additional flexibility to help us provide more affordable options for our customers." GM's comments said it was "troubled" that President Donald Trump's administration wants to phase out incentives for electric vehicles. The Trump plan's preferred alternative freezes standards at 2020 levels through 2026 and hikes U.S. oil consumption by about 500,000 barrels per day in the 2030s but reduces automakers' collective regulatory costs by more than $300 billion. It would bar California from requiring automakers to sell a rising number of electric vehicles or setting state emissions rules. The administration of former President Obama had adopted rules, effective in 2021, calling for an annual increase of 4.4 percent in fuel-efficiency requirements from 2022 through 2025. GM has been lobbying Congress to lift the existing cap on electric vehicles eligible for a $7,500 tax credit. The credit phases out over a 12-month period after an individual automaker hits 200,000 electric vehicles sold, and GM is close to that point.

The Fiat 500 hatchback and cabrio have been discontinued

The Fiat that brought the brand back to America is going away after this year. All forms of the 2019 Fiat 500 — hatchback and convertible — are being discontinued with the current 2019 inventory being sold off through 2020. This includes the electric, standard turbo and the Abarth iterations. Once the little 500 is gone, Fiat's lineup will consist of the 500X crossover, 124 Spider sports car and the 500L micro-minivan thing. The decision to cut the little 500, easily Fiat's most identifiable model, strikes us as a bit strange. Certainly it has drawbacks, and it's still basically the same car that was introduced in Europe over a decade ago. Its small size and two-door form factor also aren't particularly popular in today's crossover-consumed market, but the 500 wasn't Fiat's worst seller. In fact, as of June, the most recent month for sales data available, it was leading the Italian brand's sales. And the year before, it was the Fiat's best seller over the same time frame. The 500L has actually been the worst seller so far this year, with only 399 being sold through June, which is a drop of 56% versus last year. The 500X, a crossover, is trailing the 500 and the 124 with 1,484 sales, a drop of 54% compared to last year. Even if other models were selling better, it would seem like a decent car to still have around to show how the bigger models got their designs. And at the very least, the 500 Abarth presented a cheaper halo option to the 124 Spider. No announcements of a 500 replacement have been made. There are rumors of a next-generation model, and it might be previewed at Geneva as a full EV. It could use the modular battery system that was featured in the Fiat Centoventi concept from the last Geneva Motor Show. Having seen the Honda E and Mini Cooper SE retro chic EVs, this could be a smart decision for Fiat and give the little hatchback some fresh relevance.

Fiat Chrysler execs, salaried employees taking pay cuts during coronavirus pandemic

Fiat Chrysler Automobiles' top executives and salaried workers around the globe will take pay cuts in an act of "shared sacrifice" brought on by the coronavirus pandemic that has shuttered the automaker's plants in Europe and North America, according to a company memo seen by Reuters. Chief Executive Officer Mike Manley said in the memo he will take a 50 percent pay cut for three months starting April 1, while Chairman John Elkann and FCA's board of directors will forego the remainder of their 2020 compensation. FCA said most global salaried employees will be asked to take a temporary 20 percent pay cut. "Protecting the financial health of the company is everyone’s responsibility and naturally starts with myself and the leadership of FCA," Manley wrote. Members of the automaker's group executive council will also take a 30 percent pay cut, according to the memo. Last week, No. 1 U.S. automaker General Motors said it planned to keep its plants closed indefinitely and was reducing the pay of salaried employees and executives and suspending some future product programs to conserve cash. GM's chief executive and chief financial officer issued a stark warning to company employees in an internal video, saying that "significant austerity measures" were needed to preserve the companyÂ’s long-term viability. Ford also said it was temporarily cutting top executivesÂ’ salaries.