#Italy

Should things go as planned, China National Chemical Corp. — ChemChina — will buy into Pirelli in a €7.1 billion ($7.7 billion USD) deal.

Just as Fiat Chrysler Automobiles left Italy to escape the tax man, Ferrari is considering the same as it moves closer to leaving the nest by next October.

Notably absent from FCA’s 5-year plan was Lancia. The Italian brand known for iconic models like the Aurelia, Fulvia and Delta Integrale will be pared down to one model that will be sold in Italy only.

While autonomous vehicles are still in the early stages of testing, a few of the European members of the United Nations have laid the groundwork for the self-driven future to come sooner than later.

Via Zero Hedge, we have a listing put up by the Italian government of 1,500 luxury cars that are being auctioned off. Italy, which is deep in the throes of austerity, is doing the wise thing from an optics perspective, as the cars have come to symbolize government waste and unnecessary opulence.

The European automobile market may be pulling out of its six year sales slump, according to Automotive News, with new car registrations in Germany up 7% in January from last year, joined by France, Italy and Spain reporting year to year increases for the month. German new car sales for the month were 206,000, the third monthly gain out of the past four months and the best monthly percentage improvement since September 2011. Analysts caution, though, that the growth in the German market was in part due to discounting.

However, industry executives and analysts warned that underlying demand may not be robust as Germany’s growth was in part attributable to generous price discounts. Ernst-Robert Nouvertne, who operates two Volkswagen stores near Cologne, said “Incentives are the name of the game. Headline sales are looking good but profit per car is crumbling. The (German) market is still pretty strained.”

Fiat Punto, not long for this world.

Sources tell Bloomberg News that Fiat Spa will spend as much as 9 billion euros ($12 billion) over the next three years developing new models for for the European market. The Italian automaker hopes the strategy will end losses on the continent and restore drastically underutilized Italian factories to profitability. Many of the new models will be based on either the Fiat 500 subcompact or the small, low cost Panda. A five door version of the 500 will replace the Punto. The Punto, last restyled in 2005, has long been a fixture in Fiat showrooms and as recently as 2007 it accounted for almost a third of the Fiat brand’s sales in Europe.

Though Fiat wants to use its Italian factories better, the Punto’s replacement will be built in Poland to save on costs. Sergio Marchionne believes that “made in Italy” works with upscale brands like Maserati and Alfa Romeo. The upcoming Maserati Levante SUV will be made in Fiat’s Mirafiori factory.

If you were hoping to celebrate an early Christmas in Milan with Signore Marchionne next year, you’re out of luck: Fiat has declined an invitation to show at the 2014 Milano Auto Show in light of the weakened local market.

I have to admit, I’m a fan of the Fiat 500. Yes, I know it’s just a Fiat Panda with bubbly sheetmetal. Yes I know it’s a little peculiar. Yes I know it’s trying to ride on MINI success. It doesn’t matter, the wee Fiat makes me grin every time I drive one. Whether it’s the slow-as-dirt standard 500, the ludicrously loud Abarth, the almost-convertible 500c or the totally impractical 500e, the Cinquecento knows how to brighten my day. I was therefore excited when Fiat announced the 500’s success would spawn a four door stable-mate for 2014. Is the 500L 40% more smiles for 20% more cash?

Another day, another flip-flop on future product plans over at Casa di Marchionne. The latest news comes from Italian unions, who claim that the Maserati Levante will be built at the Mirafiori plant in Italy, rather than at Jeep’s plant in Detroit.

Fiat launched a seven-seat version of its Fiat 500, a car that used to be known for its cramped space in the original model. Called the 500L Living (as in Living Room …), the seven seater “is about a meter longer than the classic 500,” writes Reuters.

Buyers hankering for a more macho alternative to the Buick Encore won’t have to wait too long for something to fill that void. According to Edmunds, an all-new Jeep, similar in size to the Encore, will debut next year.

Says Reuters:

“Italian Industry Minister Flavio Zanonato said he asked automaker Fiat to stay in Italy after its planned merger with Chrysler, which has led labor unions to fear it plans to move its headquarters to the United States.”

VW and Fiat are in talks regarding a possible sale of Alfa Romeo. The sale of Alfa Romeo to Audi would also include the Pomilgiano assembly plant in Naples, which once made Alfas, but currently produces the Fiat Panda. Magnetti Marelli, Fiat’s famed parts maker, may also be included in the deal, as Fiat looks to raise cash so it can buy the remaining shares of Chrysler off the UAW’s Voluntary Employee Benefits Association.