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Sergio Marchionne says hybrids will replace small diesel Fiats

FCA's Sergio Marchionne is convinced diesel is dead when it comes to small city cars. That means the upcoming new generation Fiat 500 will lose its 1.3-liter MultiJet diesel and gain a 48-volt hybrid powertrain. Nitrogen oxide emissions are something you want to get rid of in city use, where the 500 and its competitors shine. It seems only the brave will continue selling diesel cars in this class. In an interview with AutoExpress, Marchionne says he's certain about diesel's fate. "There are very few things that are certain in this market - apart from one, and that is that small displacement diesels are dead. I think everything else is fair play, so we'll experiment," says Marchionne. In the city car class, manufacturers will have to reach a purchase price for hybrid tech that's similarly as low as gasoline and diesel powered small cars. But creating full hybrids out of the 500 and the Panda would render them so expensive, it would be lethal for Fiat. The solution will most likely be a 48-volt "mild" hybrid system, which can create some of the mileage gains of a full hybrid system but at much less cost. "I think hybrids are inevitable," Marchionne says. "The question is not the technology, it's a question of the cost and whether the consumer will pay. We will have to play with a variety of solutions." Among that variety: Could replacing the diesel model in Europe with the 48-volt system lead to sales of that system in the US, as an alternative or even replacement for the all-electric Fiat 500? All we know is, Marchionne in the past has bemoaned the EV model as a loss leader. The next-generation Fiat 500 is expected to reach production in 2019.

The Fiat 500 hatchback and cabrio have been discontinued

The Fiat that brought the brand back to America is going away after this year. All forms of the 2019 Fiat 500 — hatchback and convertible — are being discontinued with the current 2019 inventory being sold off through 2020. This includes the electric, standard turbo and the Abarth iterations. Once the little 500 is gone, Fiat's lineup will consist of the 500X crossover, 124 Spider sports car and the 500L micro-minivan thing. The decision to cut the little 500, easily Fiat's most identifiable model, strikes us as a bit strange. Certainly it has drawbacks, and it's still basically the same car that was introduced in Europe over a decade ago. Its small size and two-door form factor also aren't particularly popular in today's crossover-consumed market, but the 500 wasn't Fiat's worst seller. In fact, as of June, the most recent month for sales data available, it was leading the Italian brand's sales. And the year before, it was the Fiat's best seller over the same time frame. The 500L has actually been the worst seller so far this year, with only 399 being sold through June, which is a drop of 56% versus last year. The 500X, a crossover, is trailing the 500 and the 124 with 1,484 sales, a drop of 54% compared to last year. Even if other models were selling better, it would seem like a decent car to still have around to show how the bigger models got their designs. And at the very least, the 500 Abarth presented a cheaper halo option to the 124 Spider. No announcements of a 500 replacement have been made. There are rumors of a next-generation model, and it might be previewed at Geneva as a full EV. It could use the modular battery system that was featured in the Fiat Centoventi concept from the last Geneva Motor Show. Having seen the Honda E and Mini Cooper SE retro chic EVs, this could be a smart decision for Fiat and give the little hatchback some fresh relevance.

Fiat Chrysler Australia executive in trouble over misuse of company funds

While the merger to create FCA was coming together, its managing director for Australia, Clyde Campbell, was allegedly racking up 30 million Australian dollars ($23.1 million) in spending for himself, family, and friends. Now, the former boss is facing a court case from the automaker's legal team for the purported misappropriation. Among the more opulent expenses that Campbell allegedly put on Chrysler's tab included a 40-foot yacht worth the equivalent of $308,000 and lavish Christmas parties for workers, according to The Age. Despite being required to only travel in economy class and get permission for international travel, he also reportedly racked up the equivalent of over $413,000 travel expenses. "The more we dug, the more we found," said an unnamed source to The Age. Campbell came to power in Australia as a general manager for DaimlerChrysler, and became managing director in October 2010. He was reportedly a close friend with former Mercedes-Benz USA CEO Ernst Lieb. After Lieb lost his wrongful dismissal lawsuit, Campbell allegedly helped his friend's partnership in an Aussie auto dealer by using FCA funds for financial support totaling the equivalent of about $3 million. All of this came to light when Pat Dougherty came over from the US to be president and CEO of FCA Australia in December 2014. The staff spilled the full story on Dougherty's first day. "I walked into his office and let it all out. I don't think he knew what hit him," another source said to The Age. A team of forensic accountants was brought in to investigate. The reason that this took so long to discover was that no one was paying attention. First, sales in Australia were growing under Campbell. Also, "in my opinion, back in Michigan, head office didn't have its eyes on the road. They only had eyes on the Fiat deal," an insider said to The Age. That confluence essentially provided the perfect storm for this huge spending. News Source: The AgeImage Credit: Giuseppe Cacace / AFP / Getty Images Government/Legal Chrysler Fiat lawsuit FCA