2024 Alfa Romeo Stelvio Quadrifoglio on 2040-cars

Auto blog

China-FCA merger could be a win-win for everyone but politicians

NEW YORK — Fiat Chrysler boss Sergio Marchionne has said the car industry needs to come together, cut costs and stop incinerating capital. So far, his words have mostly fallen on deaf ears among competitors in Europe and North America. But it appears Marchionne has finally found a receptive audience — in China. FCA shares soared Monday after trade publication Automotive News reported the $18 billion Italian-American conglomerate controlled by the Agnelli family rebuffed a takeover from an unidentified carmaker from the Chinese mainland. As ugly as the politics of such a combination may appear at first blush, a transaction could stack up industrially, and perhaps even financially. A Sino-U.S.-European merger would create the first truly global auto group. That could push consolidation to the next level elsewhere. Moreover, China is the world's top market for the SUVs that Jeep effectively invented, so it might benefit FCA financially. A combo would certainly help upgrade the domestic manufacturer; Chinese carmakers have gotten better at making cars, but struggle to build global brands, and they need to develop export markets. Though frivolous overseas shopping excursions by Chinese enterprises are being reined in by Beijing, acquisitions that support the modernization and transformation of strategic industries still receive support, and the government considers the automotive industry to be strategic. A purchase of FCA by Guangzhou Automobile, Great Wall or Dongfeng Motors would probably get the same stamp of approval ChemChina was given for its $43 billion takeover of Syngenta. What's standing in the way? Apart from price (Automotive News said FCA's board deemed the offer insufficient) there's the not-insignificant matter of politics. Even as FCA shares soared, President Donald Trump interrupted his vacation to instruct the U.S. Trade Representative to look into whether to investigate China's trade policies on intellectual property. Seeing storied Detroit brands like Jeep, Chrysler, Ram and Dodge handed off to a Chinese company would provoke howls among Trump's economic-nationalist supporters. It might not play well in Italy, either, to see Alfa Romeo and Maserati answering to Wuhan instead of Turin — though Automotive News said they might be spun off separately. Yet, as Morgan Stanley observes, "cars don't ship across oceans easily," and political considerations increasingly demand local manufacture of valuable products.

2018 Alfa Romeo Stelvio is like a taller, more practical Giulia

With the Giulia on its way to dealers in the coming months, Alfa Romeo's third current model for the US market is close behind. The 2018 Stelvio will give the company an offering in the ever-popular crossover SUV segment, and should bring Alfa's signature style and driving dynamics to the party. On paper, the Stelvio seems capable of delivering on classic Alfa fun. For starters it shares engines with the Giulia sedan, starting with a turbocharged 2.0-liter four-cylinder in the standard Stelvio and Stelvio Ti models making 280 horsepower and 306 lb-ft of torque. Alfa will offer a Quadrifoglio model as well, which has the same twin-turbocharged 2.9-liter V6 as the Giulia Quadrifoglio that pumps out 505 horsepower and 443 lb-ft of torque. The company claims that the Stelvio Quadrifoglio will get to 60 mph in 3.9 seconds, just a tenth behind the Giulia. View 11 Photos Regardless of trim level, every Stelvio sends power through an 8-speed automatic transmission connected to Alfa's Q4 all-wheel-drive system. A mechanical limited-slip rear differential is available, and the Quadrifoglio adds a torque-vectoring rear differential. The drivetrain propels an aluminum-intensive chassis. The doors, fenders, front and rear frame assemblies, and various suspension components are all made of the lightweight metal, contributing to a near 50/50 weight distribution front and rear. Suspension is independent all the way around, and the Quadrifoglio gets a sportier, adaptive version. Styling-wise, the Stelvio also lives up to the Giulia. In fact, it looks more or less like a tall Giulia wagon. The front fascia is roughly the same, just with a taller center grille and slightly more swept back lower sides. The slope of the nose is much less raked, too. The character lines along the flanks and even the rear bumper are all very similar to the Giulia Quadrifoglio. The one part that isn't as successful, though, is the tail end. It appears Alfa tried to give the Stelvio a gently sloping hatch, but the result is a bulbous backside with lot of sheet metal. Inside, the Stelvio again echoes its sedan sibling, though in this case the top of the dash peaks above the center screen and slopes down to the right vent. In the Giulia, the top of the dash drops down immediately from the gauge cluster, and only rises again at the right vent. Speaking of gauges, the Stelvio features a 7-inch screen nestled between the tach and speedometer, the latter reading up to 200 mph in the Quadrifoglio.

Just 45% of Fiat dealers are profitable, and they're angry about it

<
On average, Fiat dealers have only been selling about 17 cars a month.
We've been wondering for some time how Fiat dealers in North America have been getting along with just one model range in their showrooms up until recently. Franchisees spent millions building, stocking and manning sleek new 'studio' showrooms, only to have but a single model to sell, the cherubic 500. And even with its many derivatives, the Cinquecento is still an inexpensive model with its attendant lower margins. Perhaps it should come as no surprise then, that just 45 percent of US Fiat dealers are said to be profitable.