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Will Alfa Romeo be allowed to live under the new FCA+PSA merger?

The new company formed by the merger of Fiat Chrysler Automobiles (FCA) and the PSA Group will see 14 brands – mainly European – coming under one group. That’s a lot of brands to manage and in an age when economies of scale are paramount, there’s the big question mark of whether some brands will be discontinued. Or if they are retained, will they lose their uniqueness and be just badge-engineered products that are needed for certain regions where the brand has been popular?

Carlos Tavares (currently PSA’s chief), who will be the CEO of the new combined company, has said that no brand will be axed while acknowledging that it will be a challenge to manage so many brands. But these are early days and the new company has not even started business; once the new management starts to look at the numbers and formulates long-term plans, it may be necessary to make the hard decisions and cut off some brands that just cannot deliver revenues.

A struggle to be kept in existence
One brand that many worry about is Alfa Romeo. The sporty Italian brand has a history spanning over 100 years and has a strong following of alfisti all over the world. Fiat acquired it in 1986 but struggled to get it to make money for the past 20 years. When former FCA CEO Sergio Marchionne was alive, he tried to boost the brand but three efforts still failed. His successor, Mike Manley, was less sentimental about the brand and had announced decreased investments for it.

There is a glimmer of hope for Alfa Romeo though, simply because 61-year old Tavares is a true car guy. His first job after university was as a test driver at Renault and apart from a strong personal interest in cars, he also goes racing on many weekends (though that may have to be sacrificed in future). So while he is also known as a cost-cutter like his former boss (Carlos Ghosn), he may well make a decision ‘from the heart’ and keep the Italian brand going somehow.

*Carlos Tavares, who will be the CEO of the new combined company, is a real car-guy. And like Akio Toyoda, he also goes racing!*

Trying unconventional ideas like the SZ
He may look at unconventional ideas to breathe new life into Alfa Romeo, as Vittorio Ghidella, President of Fiat in 1986, did when he initiated the ‘Experimental Sportscar, 3.0 litre engine (ES30) project. Ghidella specified a puristic coupe with the sporty performance and sensational design as the target for the development contract.

Three teams took care of the second point of the task description in parallel – the Alfa Romeo design department, Fiat Centro Stile and design studio Zagato (responsible for some of the most spectacular and most successful models from Alfa Romeo in racing). This team of three was also given a low weight and the most efficient aerodynamics including ground effect possible, as in a Formula 1 racing car, which was supposed to suck the finished model onto the road through the wind.

The result was an avant-garde design with narrow, square triple headlights, a distinctive wedge shape with a high beltline and a short hatchback. The ES30 was undoubtedly the most radical thing there was at the time as a production vehicle. The coupe corresponded entirely to the aesthetics at the time of Italian design in furniture and fashion.

The elaborate body was made of a glassfibre-reinforced synthetic resin. A new process ensured a particularly smooth surface. A steel skeleton served as the load-bearing structure, which, in addition to high torsional rigidity, also guaranteed low weight. The light metal aluminium was used for the roof skin. The finished car would finally weigh a comparatively low 1,256 kgs.

The drag coefficient of 0.30 was also excellent for the time. Wind tunnel tests indicated a top speed of 245 km/h and a time of 7.5 seconds for the sprint from 0 to 100 km/h. In order to achieve the required ground effect, however, the body had to have such a low ground clearance (around 6 cm) that it would have led to problems with, for example, driveways. The solution was an electrical level control, with the help of which the body could be raised by 5 cm when necessary.

Alfa Romeo 75 technology
As the other requirement was to keep the development costs low, the team used the proven technology of the Alfa Romeo 75. However, the chassis with the gearbox on the rear axle (transaxle design) was in some places know-how the Alfa Romeo racing department adapted to the desired performance. The torsion spring bars on the front axle gave way to conventional McPherson struts, stiff Uniball joints instead of the conventional rubber elements, eliminating inherent movements in the chassis.

The technicians selected the V6 petrol engine with 3 litres displacement from the 75 America model as the drive source. They increased its output to 210 bhp through sharper camshafts and newly programmed engine electronics (Bosch Motronic).

Zagato even developed a racing version of the ES30, which appeared in its own one-make cup in 1993 as part of some Formula 1 races. But the comfortable driving behaviour also proved itself in everyday life, even long tours were a pleasure in the two-seater coupe.

After just 19 months of development, just in time for the planned world premiere at the Geneva Motor Show in March 1989, the ES30 project was ready for production. Since production at Zagato was to take place in the Milan suburb of Rho, the company remembered a legendary combination of letters – SZ for ‘Sprint Zagato’. Despite the relatively high base price, 1,036 cars were sold between 1989 and 1993.

Fiat Chrysler Automobiles and Groupe PSA to merge and become 4th largest global automotive manufacturing group

Just as in the late 1990s when the changing business environment forced companies to merge or form alliances to be more competitive, the same thing is happening as this decade ends. Groupe PSA and Fiat Chrysler Automobiles (FCA) will enter a 50:50 merger of their businesses which will create the 4th largest global automotive manufacturing group (by volume) and 3rd largest by revenue.

The new combined company will have annual unit sales of 8.7 million vehicles, with revenues of nearly 170 billion euros, recurring operating profit of over 11 billion euros, and an operating profit margin of 6.6%, all on a simple aggregated basis of 2018 results. At present, the combined balance sheet is strong and therefore provides significant financial flexibility and ample headroom both to execute strategic plans and invest in new technologies throughout the cycle.

Broad-based brand portfolio
The combined entity will have a balanced and profitable global presence with a highly complementary and iconic brand portfolio covering all key vehicle segments from luxury, premium, and mainstream passenger cars through to SUVs and trucks and light commercial vehicles. This will be underpinned by FCA’s strength in North America and Latin America and Groupe PSA’s solid position in Europe.

The new Group will have much greater geographic balance with 46% of revenues derived from Europe and 43% from North America, based on aggregated 2018 figures of each company. The combination will bring the opportunity for the new company to reshape the strategy in other regions.

Sharing platforms will be key to efficiency
As has been the case with mergers of other groups, sharing platforms will be key to efficiency. The efficiencies that will be gained from optimizing investments in vehicle platforms, engine families and new technologies while leveraging increased scale will enable the business to enhance its purchasing performance and create additional value for stakeholders. More than two-thirds of production volumes will be concentrated on 2 platforms, with approximately 3 million cars per year on each of the small platform and the compact/mid-size platform.

While mergers often see downsizing exercises in facilities and manpower, it has been stressed that this one will not see plant closures or losses of jobs. In a letter to employees, Mike Manley, Chief Executive Officer of FCA, said: “The success of this merger will be underpinned by the history of our companies – a history where we have shown our leadership ability to deliver the successful integration of multiple cultures, passionate care for our iconic brands and a smart, tough, creative determination to succeed.”

About FCA and Groupe PSA
FCA was established in October 2014 when Fiat and Chrysler merged into a new holding company with two main subsidiaries – FCA Italy (previously Fiat Group Automobiles SpA) and FCA US. The portfolio of vehicle brands includes Abarth, Alfa Romeo, Fiat, Fiat Professional, Lancia, and Maserati from the Fiat side, and Chrysler, Dodge, Ram, Jeep from the Chrysler side. In 1998, as Chrysler Corporation, the company had merged with Daimler AG in what was the first of ‘mega-mergers’ in the auto industry. Described as a ‘merger of equals’, it never worked out and the two companies separated in 2007.

Groupe PSA, earlier known as PSA Peugeot Citroen (between 1991 and 2016) has brands with a very long history, notably Peugeot which was founded over 200 years ago and Citroen which celebrated its 100^th anniversary in March this year. The Group currently has 5 vehicle brands – Peugeot, Citroen, DS Automobiles, Opel and Vauxhall, the last two brands having been acquired in 2017.

Maserati allows the world to look inside its top secret Innovation Lab

Some of the most secret areas in a car company are those where future products are planned and new technologies developed. These are the R&D facilities where, in some cases, even the employees are subjected to security checks every day. At one company, they are allowed to bring in handphones but these must be very old models that have no cameras and recording capability.

So it’s a surprise move that Maserati has opened the doors of its Innovation Lab which is usually off-limits. Of course, this look inside the Innovation Lab is not going to be on the list of tourist tours in Modena!

The brand’s engineering hub, inaugurated in September 2015 and located in Modena, Italy, has the fundamental role of driving research technology, development and planning. At this facility, the digital processes support the product development, applying the exclusive Maserati formula which, by means of an integrated approach, prioritizes the human factor right from the initial phases. Concern with customer needs has been scrupulously incorporated into the virtual simulation process thanks to an exclusive mix of hardware and software.

The Product Development hub (or Technical Department) employs more than 1,500 technicians (including those at other locations in Italy). The majority are engineers of some 17 different nationalities and it is a very young and dynamic workforce with an average age of around 37 years. Almost half of the employees are under 35 and 20% are under 30. The organization has grown considerably in recent years, attracting top graduates from the best Italian universities, including those that collaborate with Maserati.

Static Simulator
The Static Simulator is the starting point for every experience in the Maserati realm of simulation. The system is composed of a cockpit, three projectors and high computational power. It is a simple system that helps engineers, from the very initial phase of the development process, obtain immediate feedback from the driver, and makes a major contribution to new model validation.

In particular, Maserati engineering ensures a driver-centred strategy even during virtual development, by creating a link between the Hardware In the Loop (HiL) methodology and the simulator. Using this approach, real subsystems such as steering and braking, ABS and ESC can be added in, to create tests that connect physical and simulated components to provide a test-bed for developing all the characteristics of a new vehicle.

Last, but not least, driver assist systems can be developed, trialled and validated in a safe environment by reproducing the complex scenarios which may arise anywhere in the world.

DiM (Driver-in-Motion) technology
The Dynamic Simulator featuring latest generation DiM (Driver-in-Motion) technology is the most modern and advanced found in Europe. It is extremely valuable in the development of all the new models. The Dynamic Simulator incorporates state-of-the-art technology and enables full exploitation of systems’ integration thanks to the evolution of proprietary control strategies, cutting development times and costs. It also helps to reduce the number of prototypes and ensures that the Virtual Sign-Off is very close to the final product.

With various directions of movement, this tool generates an effective driving experience in a virtual environment that emulates the driving dynamics of a car in the real world. Numerous environments can be programme with a wide variety of road surfaces or contexts, including the world’s top international racing circuits. The simulator makes it possible to test cars on various racetracks on the same day. Modifications to the vehicle can be made with a few simple clicks and this greatly simplifies the analysis of the data gathered.

The majority of simulators utilize six actuators in order to offer six “degrees of freedom”. The innovative dynamic simulator used at the Innovation Lab takes full advantage of 9 actuators, thanks to which it can utilize 3 degrees of freedom with the lower platform and 6 with the upper one. In this way, it can offer in total 9 degrees of freedom to accurately reproduce the driving characteristics of a car. All of this enables the engineers to precisely analyse the dynamics of the car, in addition to driving performance and comfort, all on the same moving platform.

Another particularly interesting characteristic is a very thin cushion of air which makes the entire platform float over the pavement, enabling dynamic, silent and continuous movement thanks to the electric actuators.

The Dynamic Simulator featuring latest generation DiM (Driver-in-Motion) technology offers tried and tested technology that makes it possible to achieve a 50% reduction in time-to-market for new cars, to carry out 90% of all development on the simulator and to reduce by 40% the use of physical prototypes.

Using the simulator makes it possible to study and emulate the electrified vehicles included in Maserati’s future plans even before physical tests become possible. Thus, the new opportunities offered by this different propulsion method can be analysed and explored in ways that keep the Maserati DNA absolutely intact.

The User eXperience development labs
These labs are fundamental in the design of the human-machine interfaces, one of the major challenges of the latest Maserati development projects. The rapid evolution of connectivity and the use of driver assist systems, combined with electrification, generate a vast number of scenarios for multisensorial interaction with the vehicle.

The Maserati driver simulator hub includes a lab dedicated to vehicle ergonomics, enabling accurate reproduction of driving posture, visibility and interactions with the on-board controls and displays, and where the vehicle under development can be driven in any scenario with the utmost realism.

The skylight simulator, for example, is designed to reproduce lighting conditions at all times of day, at any point in the year and at any latitude. Here there is an in-depth focus on reflection problems, to avoid disturbance at the wheel while still providing solutions with attractive shapes, materials, finishes and colours.

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BREAKING: Sergio Marchionne, CEO Of FCA Has Passed Away [+Videos]

Sergio Marchionne, the CEO of Fiat Chrysler Automobiles (FCA) who was very recently replaced by Mike Manley due to failing health, has died. He was 66.

WXYZ-TV Detroit shares this video report.

Another report from CNBC Television honours the man that brought FCA back from the brink…

Rest in Peace Sergio, thank you for all you’ve done.

BREAKING: Sergio Marchionne’s Health Worsens, FCA Appoints New CEO

In its entirety with no editing, this is the news Piston.my received today.

London, 21^st July 2018 – With reference to the health of Sergio Marchionne, Fiat Chrysler Automobiles N.V. (“FCA”) (NYSE: FCAU / MTA: FCA) communicates with profound sorrow that during the course of this week unexpected complications arose while Mr. Marchionne was recovering from surgery and that these have worsened significantly in recent hours.

As a consequence, Mr. Marchionne will be unable to return to work.

The Board of Directors of FCA, meeting today, firstly expressed its closeness to Sergio Marchionne and his family and underlined the extraordinary contribution, both human and professional, that he has made to the Company in these years.

The Board resolved to accelerate the CEO transition process that has been proceeding over the past months and named Mike Manley as CEO. The Board will therefore propose to the next Shareholder Meeting, to be called in the coming days, that he be elected to the Board and serve as an executive director of the Company.

In the meantime, in order to provide for his full authority and operational continuity for the company, the Board has with immediate effect granted Mr. Manley all the powers of CEO. He will also assume responsibility for the NAFTA region.

Mr. Manley and his management team will proceed with the implementation of the 2018 – 2022 Business Plan as presented on 1 June this year, a plan that will further assure FCA’s strong and independent future.

Featured Image from F1 Undercover.com

FCA invests RM925,999 on grants for robotics

Fiat Chrysler Automobiles or FCA, has invested some serious dough into the future of robotics. The FCA Foundation, its charitable arm has announced more than $228,000 (RM925,999) in grants to 51 US-based FIRST Robotics Competition (FRC) teams.

This will ease the burden on teams competing in the upcoming 2018 FIRST® POWER UP challenge. FIRST or (For Inspiration and Recognition of Science and Technology) is an international non-profit organisation founded to inspire young people’s interest and participation in science and technology.

“We are proud to partner with an organization that is committed to inspiring the next generation of science, technology, engineering, and math (STEM) professionals,” said Phil Jansen, Head of Product Development, FCA – North America.

This year alone, FCA has awarded more than $400,000 (RM1,624,560) to student robotics programmes, including FIRST Tech Challenge, First in Michigan and 2018 FIRST Championship. The automaker is banking on these young minds to create and innovate at an early age, in order to make a much bigger impact later in their professional lives.

Dodge Carryall is a WWII heavyweight

An unusual vehicle has managed to find it’s way into Jay Leno’s garage this Christmas. Purposefully built as a troop carrier in its previous life, this 1942 Dodge Carryall has been restored and modified to a level that will make it the envy of the restomod fraternity. It was part of Dodge’s light military vehicle line-up that included weapon carriers, mobile workshops and several other applications.

Built to support the allied efforts in World War II, more than 255,000 such vehicles were produced in the span of about 5 years. It’s not known how many of them are still on the road today, many have probably ended up in salvage yards or live on as parts of other similar vehicles.

In this episode of Jay Leno’s garage, the former Tonight’s Show host gives this custom creation a once over, and speaks with the owner about its history. Like other guests on the show, this particular Dodge has an important story to tell. Since it rolled off the production line, the Carryall has seen it’s fair share of action, and since its been given a life lane, that should continue for the foreseeable future.

Check out the latest video and let us know if the Dodge Carryall deserves to be celebrated for it’s place in history, and as one of the nicest restomoded vintage trucks that currently roam the public roads.

Chrysler 300 is the most wanted vehicle in the US

Modern muscle cars do not get the respect that they deserve because many prefer to ogle at their ancestors, specifically those from the 1960s and 1970s. Thankfully, the Chrysler 300, considered by many as a wolf in sheep’s clothing, has been recognized for all the right reasons.

The car has emerged as the winner of the Large Car segment in Edmunds’ Most Wanted awards. This competition recognizes vehicles that are the most in-demand based on sales, days-to-turn and shopper interest data.

Winners of each of the 17 categories are determined by analyzing data from the first nine months of 2017 for all models on sale during that period. Edmunds tabulates its site data and traffic to gauge, which vehicles garnered the most attention.

The rankings for each of these data sets were weighted equally to determine the winners in each segment. Unlike many other automotive competitions, Edmunds’ is based on pure data alone and not the subjective input of a panel of judges.

“Bold and aggressive, the Chrysler 300 stands out in a class of largely look-alike sedans, and its originality makes it one of the most popular large cars on the market,” said Jessica Caldwell, executive director of industry analysis, Edmunds.

The Chrysler 300 is said to offer world-class performance, efficiency and quality. It is also equipped with cutting edge tech that include a sophisticated entertainment system. That said, its main party piece has to be its sweet sounding 5.7-litre HEMI V8 engine.

It isn’t the only powerplant offered however, there’s a more docile 3.6-litre Pentastar V6 available that produces decent amount of power. But it’s no match for its bigger and power powerful brother. The Chrysler 300 is a fan-favourite in the US and should continue to be that for quite a while.

Jeep make subtle changes to new 2018 Wrangler

Jeep has updated its stalwart, the Wrangler, for the 2018 model year. Though the automaker touts that the changes are quite extensive, many of them aren’t as obvious as they may seem. Both the two and four door versions largely resemble their predecessors with the exception of certain tweaks done here and there.

The vehicles get refined styling that maintain the look of the original but improved further. The Wrangler’s unique elements include a keystone-shaped grille, iconic round headlamps and square tail lamps, improved aerodynamics as well as a fold-down windshield that should appease off-road purists.

These vehicles have been made available with a number of different door, top and windshield combinations. Jeep has also loaded them with the latest safety features and advanced technologies. This should make them enticing vehicles for those looking for an SUV that offers bang for their buck but also offers a certain level of individuality.

One of the oldest SUV manufacturers to date, Jeep has been in the business for more than 75 years. It’s been at the forefront of developing very capable offroading vehicles that can handle the toughest terrain. The automaker is owned by FCA or Fiat Chrysler Automobiles and is a major player in the SUV market especially in North America.

Vintage Fiat to celebrate the automobile on heritage drive

One of the oldest Fiat cars in existence will make its way from Hyde Park in London down to Madeira Drive in Brighton, as part of the notorious heritage trial on 5th November, 2017. This 1899 Fiat 3½hp is owned by FCA UK Ltd, and is on permanent display at the National Motor Museum, Beaulieu.

The car can seat two adults and two small children facing the driver – not very comfortable but it works. Powering this vehicle is a horizontal two-cylinder engine of 697cc that is mated to a three-speed (no reverse) gearbox. This Fiat can reach a top speed of 34km/h and return a fuel consumption figure of 14.9km/L.

FIAT or Fabbrica Italiana Automobili Torino, was founded by Turin investors in July 1899. It initially operated out of a temporary factory but moved into a purpose-built one in March 1900. The company benefited greatly from the acquisition of two businesses, one of them being a bicycle manufacturer.

This company had a prototype car called the Welleyes, which Fiat used to derive its own car. From there, Fiat grew to an industrial giant and is now, one of the world’s largest automotive manufacturers.

The automobile has come along way since its humble beginnings, and this 1899 Fiat 3½hp is a testament to that. Many of the creature comforts and technology that we take for granted today came about out of necessity as a result of attempts of modernizing early vehicles to suit customers’ needs.