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Will the Fiat 124 Spider get an Abarth model?

Fiat is finally back in the sports-car business, as evidenced by the reveal of the 2017 124 Spider at the Los Angeles Auto Show. Naturally, the next question becomes: Will Fiat do an Abarth version? "We might look at doing a tuned version, said Olivier Francois, global head of the Fiat brand. "Maybe yes, maybe no." Francois was coy as he spoke to a group of reporters minutes after the 124 debuted in LA, but performance is a part of Fiat's genetics. While Francois wasn't telling, we think those bloodlines will translate into a higher-powered Abarth version. The 2017 Spider launches next summer, so an Abarth variant could arrive about a year later as a 2018 model. We would expect it to feature a stiffer suspension, performance wheels, Abarth badging, and enhanced aerodynamics. Some carbon-fiber pieces (perhaps the hood) would complement Fiat's always interesting palette of color choices, though a rosso corsa, like the one chosen by our illustrator, would be timeless. The engine's output would be the big question mark. The likely plan would be to tune up the 124's 1.4-liter four-cylinder MultiAir turbo rated at 160 horsepower and 184 pound-feet of torque in the base model. It's the same engine used in the Fiat 500 Abarth model, though the Spider has more torque. Fiat could further goose this mill, perhaps to around 190 to 200 horses, or pluck another mill from Fiat Chrysler's vast powertrain bins. The Alfa Romeo 4C's turbo 237-hp four-cylinder might also be a candidate. Like the MX-5 Miata with which it shares a platform (albeit modified), the Spider is more about driving dynamics and style than raw power. For Fiat, the 124 will offer the allure of an Italian car to the wide range of enthusiasts who can't afford Ferraris, Alfa Romeos, or Lamborghinis. "We think we can appeal to the huge number of people who aspire to a car like this," Francois said. Obviously, an Abarth price point is far in the future, but the Fiat chief said the base 124 "will be very much in line with the segment." The 2016 Miata begins at $25,735, including destination. We estimate 124 Abarth pricing could start around $32,000. The Spider will serve as Fiat's halo. It's a true sports car with a legitimate history. "This is the quintessential Italian car," Francois said. That means it won't be a volume play. The Spider might add a modest 6,000 units per year to Fiat's sales tally in the United States and perhaps 12,000 globally, said IHS Automotive senior analyst Stephanie Brinley.

Fiat and PSA predicted to be Europe's biggest losers in 2013

Industry observers are expecting Europe's new vehicle sales to fall to lows not seen in decades, with Fiat and PSA/Peugeot-Citroën sitting in the lead car of the plummeting coaster. Both of those automakers traditionally count on the southern part of the continent for sales, yet consumers in that region have slowed spending due to the financial crisis.
Compounding the problem for Fiat is a lack of new product, as CEO Sergio Marchionne has stalled development to conserve cash during the downturn. PSA has invested in new vehicles, but aggressive price wars have forced it to sell its product with steep discounts. Making matters even more difficult, both companies may have their credit ratings cut this year. That would raise borrowing costs and only deepen the wounds.
The news isn't just bad for Fiat and PSA. Analysts are predicting that volume automakers in Europe lost 8 billion euros (about $10.68 billion in today's rates) overall in 2012, and they won't break even until mid-decade.

FCA under investigation for fraud by FBI, SEC, and DOJ

The US Justice Department is currently in the initial stages of investigating Fiat Chrysler Automobiles for fraud, according to two anonymous sources that spoke with Bloomberg. According to the unnamed sources, prosecutors are examining whether FCA violated US securities laws. As part of a coordinated investigation into FCA's sales reporting practices, investigators from the Federal Bureau of Investigation and the Securities and Exchange Commission visited the automaker's field staff in their offices and homes earlier this month, reports Automotive News. According to an anonymous source that spoke to Automotive News, federal staff attorneys visited FCA's US headquarters in Auburn Hills, MI on July 11. The unnamed source told the outlet that employees were advised to seek counsel before speaking with investigators. Investigators also visited the automaker's offices in Dallas, California, and Orlando, the unnamed source told Automotive News. The investigation comes after FCA claimed it had recorded the best month of sales in the US in the automaker's history in December with a total of 217,527 vehicles sold, reports Bloomberg. The claim now seems untrustworthy. According to a previous report from Automotive News, a Chicago-based dealership group filed a lawsuit against FCA earlier this year. The suit accused the automaker of paying dealers to fake new-vehicle sales. At the time, the automaker claimed the allegations were baseless and had no merit. After the lawsuit, FCA started to add an extended disclaimed at the end of its monthly sales reports, according to Automotive News. In a statement, FCA claimed that the automaker is cooperating with the SEC investigation and pointed out that it records "revenues based on shipments to dealers and customers, not on reported vehicle unit sales to end customers." We'll have more on the investigation as it unfolds. Related Video: News Source: Automotive News-sub.req., Automotive News-sub.req, Bloomberg, GIUSEPPE CACACE/AFP/Getty Images Government/Legal Chrysler Fiat FCA USDOJ investigation