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Fiats built in Morocco seized by Italian police in flag dispute

MILAN — Italian fiscal police seized more than 130 Fiat cars imported from Morocco this week on the grounds that a sticker with the colors of the Italian flag on their doors could give a false indication of their origin, a spokesman for Stellantis Italia said on Saturday. The spokesman confirmed a local media report that 134 Topolino mini-cars produced by Stellantis brand Fiat had been seized temporarily at the Italian port of Livorno on arrival from the north African country, where they were made. "The sole purpose of the sticker was to indicate the entrepreneurial origin of the product," the spokesman said, adding the group believed it had operated in full compliance with the rules. He said the design of the new Topolino — a historic model for Fiat since 1936 — was conceived and developed in Italy by a team at Centro Stile FIAT, part of Stellantis Europe, which is an Italian company. The decision to produce the new Topolino in Morocco had been clear since the new model was announced. "In any case, to resolve any issues, it was decided to intervene on the vehicles with the removal of the small stickers, subject to the green light by the authorities," the spokesman said. Italy's right-wing government and Stellantis have been at odds over the group's production choices for months, with Rome saying cars marketed as Italian products should be produced domestically. Last month, Stellantis brand Alfa Romeo said it would change the name of its new "Milano" to "Junior" to end a row with the government, which criticized the choice of an Italian name for a vehicle made in Poland. Government/Legal Fiat

Marchionne on Alfa's US return, Dodge Dart's powertrain weakness and minivan plans

As a reporter covering an auto show, the one opportunity you never want to miss is going to the Sergio Marchionne press briefing.
"This undertaking to bring Alfa back is a one-shot deal... We are not going to do this twice."
There just aren't that many real characters left in the auto industry. Marchionne, who sits atop both Chrysler and Fiat, is not only one of the smartest execs in the business, but also the most frank. Herein, a sample of the quotable always-sweatered executive:

Fiat Chrysler and PSA boards sign off on merger

MILAN — The boards of French carmaker PSA, the owner of Peugeot, and Fiat Chrysler in separate meetings on Tuesday approved a binding agreement for a $50 billion merger, sources said. The two midsized carmakers announced plans six weeks ago for a tie-up to create the world's No. 4 carmaker and reshape the global industry. A merger is seen helping them deal with big challenges in the industry, including a global downturn in demand and the need to develop costly cleaner cars to meet looming anti-pollution rules. Both companies declined to comment. A source close to FCA had said earlier the two companies could formally announce the agreement early on Wednesday, followed by a conference call to explain further details later in the day. China's Dongfeng Motor Group, which now has a 12.2% equity stake in PSA, will have a reduced stake of around 4.5% in the merged group, two sources said, in a move that could help make regulatory approval easier. According to the deal approved by PSA's board on Tuesday, FCA's robot unit, Comau, will remain within the combined group rather than be spun off as was originally planned in October, the sources said. The new group will evaluate how to extract value from Comau. Ahead of the meetings, entities representing the Peugeot family, Etablissements Peugeot Freres (EPF) and FFP, unanimously approved a proposed memorandum of understanding for the planned merger, a source familiar with the situation said. FCA and PSA are expected to finalise a deal by the end of 2020 to create a group with 8.7 million annual vehicle sales, a source said. That would put it fourth globally behind Volkswagen AG, Toyota and the Renault-Nissan alliance. It was only six months ago that FCA abandoned merger talks with PSA's French rival Renault. FCA would gain access to PSA's more modern vehicle platforms, helping it meet tough new emissions rules, while Europe-focused PSA would benefit from FCA's profitable U.S. business featuring brands such as Ram and Jeep. However, the deal could still face close regulatory scrutiny, while governments in Rome, Paris and unions are all likely to be wary about potential job losses from a combined workforce of around 400,000. PSA's Carlos Tavares will be chief executive and FCA's John Elkann — the scion of Italy's Agnelli family, which controls FCA through their holding company Exor — chairman of the combined company.