For me if the 500 and Panda still making money just make them. If they're not I fear the worst.
I don't think it's a simple as that.
Sure they might make money and sell well, but the Panda has already been retested by NCAP and scored 0, how long can they go on before they need major work just to be able to sell them.
As standards have risen they have being left behind, how long is it until they no longer meet minimum standards to be able to sell them in their biggest/only market?
By the looks of things, not long.
The 500 has been around since 2008 and the current Panda since 2012. (but the platform under both dates to 2003)
They are nearly 12 and 8, that's pretty old by car standards and the latest versions only seem to be getting new engines and trim.
It's hard to see them lasting much longer and it does appear Fiat is dragging them out due to the fact they are their biggest sellers.
In Europe the Panda is Fiats best seller, 19th on the list with around 143,000 (sales actually up from 2018) last year, the 500 21st with 130,000 (though this is dropping).
The answer probably will come with a merger.
Same can be said for perhaps another Fiat shortfall, since the demise of the Punto, there's no supermini in their showrooms.
Out of the top 11 biggest sellers in Europe, they haven't a model to compete with 6 of those cars.
2, Clio
3, Polo
5, Corsa
6, C3
8, Fiesta
9, Sandero (beautiful)
11, 208
You'd think with a merger the 208/Corsa might end up with cheaper trim and a Punto sticker on it.