1959 Alfa Romeo Spider on 2040-cars

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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.

Slow Chinese market delays Maserati and Alfa Romeo models

We already told you that Alfa Romeo was delaying the Giulia sedan and an unnamed CUV, but now things are getting worse. According to Bloomberg, Maserati has delayed the Alfieri sports car. And it's all China's fault. The faltering Chinese domestic market, which is experiencing its slowest period of growth in nearly three decades, is forcing Fiat Chrysler to rethink its plans for its Italian models, Bloomberg reports. Rather than going for models that would likely be popular in China, including the Alfa CUV and a larger sedan, the company will shift its focus and bring out updated MiTo and Giulietta hatchbacks, both of which would play better in Europe, an unnamed source within FCA told Bloomberg. This news is notable because it shows that FCA boss Sergio Marchionne's ambitious product transformation is not progressing as smoothly as planned. In the MiTo's case, the company is willing to go back on its original strategy. The subcompact hatch wasn't supposed to survive beyond 2016, but Bloomberg is reporting an update is due by the middle of next year. As for Maserati, well, there's not much to say. The Alfieri was supposed to go on sale next year, and now it's not. There's no word on how (or even if) Maserati's priorities will shift to another vehicle, or if this is simply a matter of money being distributed away from one of FCA's brands and toward another. Related Video: News Source: BloombergImage Credit: Andy Wong / AP Alfa Romeo Maserati Sergio Marchionne FCA alfa romeo giulia alfa romeo mito alfa romeo giulietta maserati alfieri

Alfa Romeo 4C production to continue until at least late 2020

Maserati will end production of the GranTurismo and the GranCabrio in November 2019, and it will retool the historic Modena, Italy, factory that makes both models in preparation for a new sports car due out in 2020. But Autoblog learned production of the Alfa Romeo 4C made in the same facility will continue even after the retooling, debunking rumors of the model's immediate demise. "Production of the 4C will continue in the same production plant/line until late 2020 for the NAFTA and APAC regions," an Alfa Romeo spokesperson told us via email. The factory will close during the retooling, so "there will just be some weeks of technical interruption" during the process, according to the same spokesperson. Production will resume as soon as the overhaul is completed, and Alfa's carbon fiber-intensive two-seater will be built alongside Maserati's next sports car. North American enthusiasts still have time to put a new 4C in their garage. Available only as a convertible, the 4C recently entered the 2020 model year with a limited-edition model named Italia that gains an array of visual add-ons, like piano black trim on the front end. Just 15 Italias will be built, but the standard 4C remains available as a regular-production model. It's powered by a mid-mounted, 1.75-liter four-cylinder engine turbocharged to 237 horsepower and 258 pound-feet of torque. The engine's displacement wasn't chosen at random; Alfisti will know right off the bat that it echoes the 1750 engine Alfa offered in the late 1960s and the early 1970s. European enthusiasts aren't as lucky. Autoblog also confirmed an earlier report claiming 4C production for the European, Middle Eastern, and African markets ended in August 2018. While the GranTurismo will be replaced by a new model in 2021, what the future holds for the 4C is up in the air. Alfa Romeo's product plan doesn't currently include a second-generation 4C, which is too bad. It's one of the purest, most undiluted sports car on the market; may it live long. Featured Gallery 2020 Alfa Romeo 4C Spider Italia Auto News Alfa Romeo Convertible