Fiat Chrysler will join an alliance led by BMW to develop self-driving cars, intensifying a race by carmakers and technology companies to develop ‘robotaxis’ which can be called up via smartphone and paid for by the minute.

Ferrari is considering adding a roomy four-seat “utility vehicle” as part of a major expansion push beyond its traditional supercar niche in a bid to double profit by 2022, sources said.

As Germany tries to exert more authority over the widening car industry emissions’ scandal that began in the country, it is finding not all car makers are so keen to co-operate.

A round-up of all the biggest stories in the motor industry this week

Fiat Chrysler Automobiles (FCA) chief Sergio Marchionne reportedly said last weekend that seeking a merger with General Motors was a “high priority” and such a deal would also be the best strategic option for the Detroit rival.

Marco Mattiacci has been axed as Ferrari team principal.

By David Rocks and Tommaso Ebhardt

While rivals roll out new models and concept cars, Fiat has little to show at the Paris auto show besides another variant of its retro-styled 500 compact car, in what is starting to look like a worrying trend for its namesake brand.

Ferrari chairman Luca Di Montezemolo will step down next month and Fiat chief executive Sergio Marchionne is set to take on the role.

Luca Cordero di Montezemolo, chairman of Italian luxury sports car maker Ferrari, is quitting to be replaced by the boss of parent group Fiat after the two men clashed over strategy and the Formula One team’s poor results.

Fiat’s €3.18bn deal to gain full control of Chrysler Group sent its shares to a near two-and-a-half-year high yesterday, despite doubts over whether the Italian carmaker could use the merger to cut losses in Europe.

General Motors vice chairman Steve Girsky said the company will not sell Opel, its struggling European brand.

Fiat will not attend today talks with the German government about its offer for Opel, blaming Berlin’s “unreasonable” funding demands.