Skip to main content
Sister Publication Links
  • Automotive News
  • Automobilwoche
  • Automotive News Canada
  • Automotive News China
Subscribe
  • Subscribe
  • Newsletters
  • Login
  • HOME
    • Latest news
    • Automakers
    • Suppliers
    • New Product
    • Environment/Emissions
    • Sales By Market
    • On The Move
    • Auto Shows
    • Nissan to pause UK production line due to supply disruption
      VW faces EU fine for missing 2020 emissions targets
      VW brand's Trinity EV flagship will have three key innovations
      Lotus could share with other automakers EV platform developed with Renault's Alpine
    • Nissan to pause UK production line due to supply disruption
      VW brand's Trinity EV flagship will have three key innovations
      Lotus could share with other automakers EV platform developed with Renault's Alpine
      Alfa Romeo starts life in Stellantis with a promise of growth
    • Suppliers to the new Audi A3
      Suppliers to the new Toyota Supra
      Thyssenkrupp weighs steel-unit spinoff as alternative to sale
      How Marelli aims to become a 'Tier 0.5' supplier
    • VW brand's Trinity EV flagship will have three key innovations
      Decision to build Renault 5 EV in France boosts French workers
      Citroen turns to SUV cues for new C4 compact
      Skoda adds hybrid to strong-selling Octavia RS family
    • UK's plan to ban combustion cars threatens Astra factory
      Mercedes badge_1.jpg
      Mercedes meets European CO2 target with late-year surge in EV sales
      EV-only future looks closer than ever in Europe
      VW to link bonuses to social targets
    • Europe sales fell 4% in December; 2020 worst year on record
      Stellantis seeks new joint venture in China, reports say
      Russia car sales forecast to rise 2.1% in 2021
      FCA-PSA merger adds uncertainty to Peugeot's return to U.S., brand chief says
    • PSA veteran Norman will head Opel sales and marketing
      Alfa Romeo starts life in Stellantis with a promise of growth
      Volvo purchasing boss who led sustainability push resigns
      Vauxhall's new boss is former VW, Nissan executive Willcox
    • Geneva Auto Show
    • Frankfurt Auto Show
    • Paris Auto Show
    • Beijing Auto Show
    • Shanghai Auto Show
  • Features
    • Long Read
    • Interview of the Month
    • Supplier Spotlight
    • Focus on Electrification
    • Latest Launches
    • Analyst's View
    • Segment Analysis
    • Europe By The Numbers
    • EV-only future looks closer than ever in Europe
      European car retailing poised for shake-up as 'agency' model gains support
      How Europe will become an EV battery powerhouse
      VW, Ford stumbles force rethink of how to best use social media
    • Nvidia CEO says software will soon define the car, drive profit
      Tavares: Keeping PSA, FCA merger on track an 'incredible' achievement
      Renault CEO outlines ambitious revival plan
      Why Rolls-Royce boss expects to be profitable despite COVID
    • Marelli CEO expects e-powertrains to provide long-term boost
      Veoneer boss expects to reach key milestone this quarter
      How Faurecia aims to become a hydrogen leader
      How Yanfeng gave the car interior a brain
    • Arrival Van.jpg
      How Arrival intends to disrupt the delivery van market
      Polestar 2's performance, convenience offset range anxiety
      Chinese EV maker Xpeng outlines Europe rollout plan
      Nio ET7-MAIN.jpg
      Nio debuts first electric sedan
    • Fiat aims high-riding Tipo Cross at frugal adventure lovers
      Citroen turns to SUV cues for new C4 compact
      BENTAYGAHYBRID-MAIN_i.jpg
      Bentley freshens Bentayga Hybrid
      BMW 4-Series Coupe breaks free from sedan sibling
    • Pandemic forces automakers to focus on brand, conserve cash
      Why prospects for dealer mergers have improved
      Dacia-level price discipline needed to end margin slump in Europe, expert says
      How infotainment systems are taking over the vehicle cockpit
    • Wagons hold market share, but costly EV shift looms
      Electrification gains speed in Europe's key compact segment
      Hybrids beat the market; sales expected to top 1 million in 2022
      Plug-in hybrids set for rapid rise but trouble looms
    • Europe sales fell 4% in December; 2020 worst year on record
      Russia car sales forecast to rise 2.1% in 2021
      France overtakes UK as Europe's No. 2 market
      Europe sales by model, Nov. and 11 months: Audi A3, Jeep Compass rise; Toyota Yaris surprises
  • Opinion
    • Blogs
    • Commentary
    • Guest columnists
    • Renault, Ford, Honda look to the past for EV inspiration
      Polestar 2's performance, convenience offset range anxiety
      Bosch, Continental battle to supply the brain of the connected car
      Why the ID5 is VW's true rival to the Tesla Model Y
    • Understanding the impact of design on marketing, brand and user experience
      Ex-Aston Martin CEO Palmer calls on UK to intensify battery commitment
      Why Apple must target the $230B luxury car market
      Apple car: Who will build it? Magna Steyr possible candidate
  • Photos
    • Photo Galleries
    • Geneva Photo Gallery
    • Beijing Photo Gallery
    • Frankfurt Photo Gallery
    • Paris Photo Gallery
    • Shanghai Photo Gallery
    • view gallery
      15 photos
      Mercedes-Benz EQA compact crossover
      view gallery
      8 photos
      Dacia Bigster
      view gallery
      8 photos
      Renault 5 concept
      view gallery
      15 photos
      Toyota Mirai 2021
    • koenigsegg-gemera-front-quarter-passenger-01.jpg
      view gallery
      14 photos
      Koenigsegg Gemera
      view gallery
      21 photos
      Fiat New 500
      view gallery
      11 photos
      Aston Martin V12 Speedster
      view gallery
      13 photos
      Audi A3 Sportback 2020
    • At the Beijing show, sales rebound and EV boom mix with murky outlook
      3BEIJING-MAIN_i.jpg
      Beijing show to highlight competition for local EV makers
      Beijing auto show delayed due to coronavirus
      Maserati will unveil Ghibli hybrid at Beijing show
    • view gallery
      11 photos
      Mercedes-Benz Vision EQS
      view gallery
      11 photos
      Renault Captur
      view gallery
      5 photos
      Mercedes-Benz AMG GLB 53
      view gallery
      10 photos
      Mercedes-AMG GLE 53 Coupe
    • view gallery
      8 photos
      VinFast Lux A2.0 sedan
      view gallery
      8 photos
      VinFast Lux SA2.0 SUV
      view gallery
      9 photos
      Seat Tarraco
      view gallery
      7 photos
      Toyota Corolla station wagon
    • view gallery
      4 photos
      Nio ET Preview
      view gallery
      7 photos
      Infiniti Qs Inspiration concept
      view gallery
      5 photos
      BMW 3-series LWB
      view gallery
      9 photos
      Mini Clubman
  • Maps
    • E-Car & Component Map of Europe
    • Powertrain Map of Europe
    • Assembly Plant Map of Europe
  • Car Cutaways
  • EVENTS
    • ANE Congress Conversations
    • ANE Shift
    • ANE Rising Stars
    • ANE Eurostars
    • ANE Leading Women
    • Watch Again
      • July 9: EU green deal in the COVID-19 new normal
      • July 16: Assisted or Autonomous Driving
      • July 23: Challenges in Electrification
      • July 30: The Road Ahead for Europe
    • Meet the 2020 winners
    • Watch the 2020 Rising Stars awards again
  • More
    • Publishing Partners
    • Social Media
    • Contact Us
    • Media Kit
    • About Us
    • Toyota Europe
    • UFI Filters
    • Facebook
    • Instagram
    • LinkedIn
    • Twitter
MENU
Breadcrumb
  1. Home
  2. FCA-PSA MERGER
August 28, 2020 02:08 AM

Fiat Chrysler's small cars to switch to PSA architecture

Luca Ciferri
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print

    Fiat's future small cars will use the same platform as the Peugeot 208, pictured.

    TURIN – Fiat Chrysler Automobiles has told its suppliers that its next-generation of small cars will use a platform from PSA Group.

    The two companies are in talks to combine into a new automotive group that will be known as Stellantis. The merger's completion is expected in the first quarter of next year.

    In a letter sent in late July and obtained by Automotive News Europe, FCA asked its suppliers to immediately stop any research, development and tooling construction activities on future B-segment (small/subcompact) cars.

    FCA had already told suppliers in March to temporarily suspend the development of five small cars for the Alfa Romeo, Fiat, Lancia and Jeep brands because of the COVID-19 pandemic.

    FCA had updated its small-car platform so that it could be used by a new family of small cars with gasoline and diesel engines and battery-power. The Fiat New 500 full-electric minicar, which arrives in European dealerships in October, is underpinned by the platform. The New 500, which is built in Turin, will not be offered in North America.

    FCA’s new small cars will switch to PSA’s Common Modular Platform (CMP) small-car architecture. The platform underpins the Peugeot 208 and 2008, the Opel/Vauxhall Corsa and new Mokka, and DS3 Crossback. All these models have internal combustion engine as well as full-electric variants.

    In its note to suppliers, FCA said it will build CMP-based small cars in its plant in Tychy, Poland. The factory currently makes the Fiat 500 and Lancia Ypsilon. Italian press reports suggest FCA will build up to 400,000 units a year of CMP-based models in Tychy.

    FCA and PSA must continue to behave and act as competitors until the merger is completed to avoid any possible antitrust issues. To avoid legal problems, FCA told its suppliers that it has created a standalone cooperation with PSA for development, production and assembly of vehicles based on PSA’s CMP platform.

    Minicar exit

    FCA’s decision to use PSA’s CMP architecture is consistent with its decision to abandon selling minicars and concentrate on small cars.

    In October, FCA said it plans to quit Europe's minicar segment, where it is the leader, joining other automakers in axing their smallest cars because of increasing development costs so the models meet tougher emissions limits.

    FCA traditionally dominates minicar sales in Europe with the Fiat 500 and Panda, that alternate at the top of the segment. Last year Fiat sold 183,322 units of the Panda and 175,566 units of the 500, well ahead of the Toyota Aygo at No. 3 with sales of  97,944. The Panda and 500 had a combined one third share of minicar sales in Europe, according to JATO Dynamics data.

    FCA aims to try to shift Fiat’s minicar customers to the small-car segment.

    "In the very near future you will see us refocus on this higher-volume, higher-margin segment, and that will involve a move away from the minicar segment,” FCA Mike Manley told analysts on FCA's third-quarter earnings call on Oct. 31.

    Fiat plans to win back customers in the small-car segment it exited in 2018 when the Punto hatchback was discontinued, Manley said. The Punto was Fiat's best-selling car in Europe for a long time but former FCA CEO Sergio Marchionne said its sales were not large enough to build a successor profitably.

    The Punto was once Fiat's best-selling car in Europe but sales declined and the model was axed in 2018.

    Fiat will aim to shift loyal minicar customers to subcompact cars while also keeping customers who still own a Punto, Manley said. The small-car segment is Europe's biggest and is "a much higher profit pool than the A (minicar) segment," he said.

    Manley did not give the timing of the move away from the minicar segment, but industry insiders say it would be a midterm plan that will happen by 2024.

    Moving to a PSA platform for its new generation of small cars will give FCA higher economies of scale, cutting development costs. FCA plans to build only the New 500 hatchback and its convertible variant on its revised small car platform on an 80,000-units a year line at its Mirafiori plant in Turin.

    PSA last year built about 161,000 vehicles underpinned by its CMP architecture. On Dec. 18, in a joint presentation to outline the benefits of the proposed merger, the two companies said the CMP platform could underpin 2.6 million units by 2025, reaching “industry benchmark levels.”

    RECOMMENDED FOR YOU
    Nissan to pause UK production line due to supply disruption
    Recommended for You
    Nissan to pause UK production line due to supply disruption
    Nissan to pause UK production line due to supply disruption
    VW faces EU fine for missing 2020 emissions targets
    VW faces EU fine for missing 2020 emissions targets
    VW brand's Trinity EV flagship will have three key innovations
    VW brand's Trinity EV flagship will have three key innovations
    Sign up for free newsletters
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    Get Free Newsletters

    Sign up and get the best of Automotive News Europe delivered straight to your email inbox, free of charge. Choose your news – we will deliver.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    SUBSCRIBE TODAY

    Get 24/7 access to in-depth, authoritative coverage of the auto industry from a global team of reporters and editors covering the news that’s vital to your business.

    SUBSCRIBE NOW
    Connect with Us
    • Twitter
    • Facebook
    • LinkedIn
    • Instagram

    Founded in 1996, Automotive News Europe is the preferred information source for decision-makers and opinion leaders operating in Europe.

    Contact Us

    1155 Gratiot Avenue
    Detroit MI  48207-2997
    Tel: +1 877-812-1584

    Email Us

    ISSN 2643-6590 (print)
    ISSN 2643-6604 (online)

     

    Resources
    • About us
    • Contact Us
    • 2020 Media Kit
    • Advertise with Us
    • Ad Choices Ad Choices
    • Sitemap
    Awards
    • Rising Stars
    • Eurostars
    • Leading Women
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Automotive News Europe
    Copyright © 1996-2021. Crain Communications, Inc. All Rights Reserved.
    • HOME
      • Latest news
      • Automakers
      • Suppliers
      • New Product
      • Environment/Emissions
      • Sales By Market
      • On The Move
      • Auto Shows
        • Geneva Auto Show
        • Frankfurt Auto Show
        • Paris Auto Show
        • Beijing Auto Show
        • Shanghai Auto Show
    • Features
      • Long Read
      • Interview of the Month
      • Supplier Spotlight
      • Focus on Electrification
      • Latest Launches
      • Analyst's View
      • Segment Analysis
      • Europe By The Numbers
    • Opinion
      • Blogs
      • Commentary
      • Guest columnists
    • Photos
      • Photo Galleries
      • Geneva Photo Gallery
      • Beijing Photo Gallery
      • Frankfurt Photo Gallery
      • Paris Photo Gallery
      • Shanghai Photo Gallery
    • Maps
      • E-Car & Component Map of Europe
      • Powertrain Map of Europe
      • Assembly Plant Map of Europe
    • Car Cutaways
    • EVENTS
      • ANE Congress Conversations
        • Watch Again
          • July 9: EU green deal in the COVID-19 new normal
          • July 16: Assisted or Autonomous Driving
          • July 23: Challenges in Electrification
          • July 30: The Road Ahead for Europe
      • ANE Shift
      • ANE Rising Stars
        • Meet the 2020 winners
        • Watch the 2020 Rising Stars awards again
      • ANE Eurostars
      • ANE Leading Women
    • More
      • Publishing Partners
        • Toyota Europe
        • UFI Filters
      • Social Media
        • Facebook
        • Instagram
        • LinkedIn
        • Twitter
      • Contact Us
      • Media Kit
      • About Us