1967 Fiat 850 Spider on 2040-cars

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FCA: PSA deal terms still intact despite dividend cut report

MILAN - Fiat Chrysler (FCA) said the terms of its merger with France's PSA had not changed after an Italian newspaper report that it was looking to spin off assets to reduce a planned 5.5 billion euro ($6.2 billion) cash pay-out to its shareholders. FCA said on Friday that it was sticking to the deal agreed with PSA in December before the coronavirus crisis hit demand for cars. "The structure and terms of the merger are agreed and remain unchanged," a spokesman for the Italian-American automaker said. FCA and PSA plan to finalise their merger by the first quarter of next year. PSA declined to comment. Italian business newspaper Il Sole 24 Ore said that FCA could conserve cash by reducing the special dividend, possibly by handing shareholders assets as compensation. Il Sole reported that talks were at a very early stage and no decision had been taken, adding the that aim was to keep the 5.5 billion euro value of the special dividend but to turn its "nature" from cash to assets. FCA, has just agreed a 6.3 billion euro state-backed loan to help its Italian unit and the whole country's automotive industry to weather the crisis. Although this does not bar FCA from paying the dividend, as it is not due until 2021 and would be paid by Dutch parent company Fiat Chrysler Automobiles NV, Italian politicians have called into question such a large cash pay-out. Options being considered include spinning off the Sevel van business, a 50-50 joint venture between the two groups, or FCA's Alfa Romeo and Maserati brands, Il Sole said. Sevel, which produces vans in Atessa's plant in central Italy, Europe's largest van assembly facility, could be valued between 2.5 and 3 billion euro, Il Sole said. Its spin-off to FCA shareholders could also help address European Union concerns about the merger's consequences on competition in the van segment. This option looks however complicated, Il Sole said, as it would require PSA transferring its 50% stake in Sevel to FCA. Another option is scrapping a planned spin-off of PSA's controlling stake in parts maker Faurecia, Il Sole said. A source close to the matter said that PSA could instead sell its Faurecia stake before the merger and keep the cash proceeds of the sale within the new merged company. ($1 = 0.8899 euros; additional reporting by Sarah White in Paris; editing by Alexander Smith)

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:

Alfa Romeo to launch eight new products by 2018, increase sales to 400K units

Alfa Romeo will go back to being the brand people admire, according to CEO Harald Wester.
After a few streams of news on the various brands in the Fiat Chrysler family, here's the deluge we've been waiting for - Alfa Romeo. The legendary Italian brand is being pointed towards a renaissance, as shown by the brand's five-year plan.