Forbes is reporting that Chrysler and notorious industry-alliance slut Fiat are discussing terms of an agreement that could bring Fiat products back to America. Chrysler could lease North American production capacity and share retail space with the Italian automaker say enigmatic "people briefed on the talks." But Chrysler isn't in this just to have another competitor hocking its wares next door, luring the crowds away from Sebrings and Journeys. No, the Auburn Hills crowd has a cunning plan, and it involves Fiat's other, other squeeze: Tata Motors. Chrysler thinks the Wrangler would do well in India and other Asian markets, and talks with Tata are already underway. Since Fiat and Tata are becoming increasingly joined at the hip, Chrysler seems to be imagining a global triumvirate of second-tier automakers. Oh yes, and as one (again with the anonymity) investment banker puts it " "You could definitely see this evolve into something. It would make sense for Tata to buy Jeep if this partnership went through … and Chrysler could really do with selling a brand and getting some cash." So Fiat gets US market access, Chrysler gets a buyer for Jeep (and sweet, sweet cash), and Tata gets an armor-ready platform (Wrangler J8) to sell to the Indian military. Meanwhile Fiat has, quite by coincidence, agreed to finance all of Tata's Jaguar and Land Rover sales in Europe. This is starting to get kinky.
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Hmm, I thought Tata already made 4wd vehicles. I don’t see why they’d need Jeep, and I don’t see selling a lot of US made Jeeps, built at UAW wages, in India.
I also don’t really see the wisdom of Cerberus selling the only Chrysler division that’s worth anything – unless they just want to try to stem their losses and get out of the car business.
“notorious industry-alliance slut Fiat” ???
Since when does partnering with other companies make one a whore? What do you call MB and BMW’s alliance? S&M?
This is the end game for Cerberus: Tata gets Jeep, Nissan gets Dodge trucks and Fiat gets (some of) Chrysler’s dealers.
The list of who Fiat hasn’t tried to partner with is very short…
I do, however, like what they’ve done with the $2B Red Ink Rick gave them. That’s real business acumen in action there!
I think letting Fiat build them a Panda/500 variant would make more sense in return for shipping some oversized Wranglers to India. Something that gets decent mileage.
Actually the Nash/AMC nameplates that are still hanging around in Chrysler’s pocket have to be worth something?? Or just make some small retro cars, Gremlin, Metropolitan
Hello!
Chrysler+ Fiat= AMC + Renault?
windswords,
You’re right. Don’t forget BMW’s alliance with Renault on I-4 engines, which replaced their alliance with Chrysler. Not to mention their alliance with Fiat to develop the next mini/Panda.
The plain truth is that economies of scale are critical in this industry, and midsized players have difficulty offering a full product line without alliances.
Honda is relatively unique in bucking this trend.
I hope it gets kinky enough that I can go down to my local chrysler dealer and drive a fiat 500
Honda is relatively unique in bucking this trend.
Bingo! I’ve also read several posts suggesting that Honda would be a possible buyer for Chrysler, when in fact Honda (and Toyota, for that matter, too) has never jumped onto the merger bandwagon. While both of these companies have entered into limited collaborations with other companies (Honda with Isuzu, Toyota with NUMMI), you get the feeling that they avoid situations that would possibly muddy their corporate cultures.
@SherbornSean
Honda is relatively unique in bucking this trend.
They had the Rover alliance before BMW took over.
Chrysler can’t sell JEEP!
*Jeep seems to be the only decent Vehicle that Chrysler can make!!! EXCLUDING the Patriot, Liberty and Compass…
So i guess that means that the Wrangler, Grand Cherokee, and Commander are keeping Chrysler alive, along with that DODGE RAM 3500 (That thing is a luxo-tank)
Beware of the witch! beware of this slut with rolled up tights, her gnashing smile conceals AIDS for anyone who shoves his stock portfolio in her slimy tentacles. Her sweet lips of former legends and chrome carnucopia hides viruses of rust and desolation through all her DNA. Like a giant squid she grabs you for the last dance, and pulls you down to the abyss and stripping you of of every new platform and every fresh breath of air of R&D, she weaves a net of death for the working middle class, for the sweat of factory workers, who being not orchestrated by musicians of metal , spread corrosion and smell of alchocol through all her veins, until the wide gaps of finishes and lacerations of beancounting claim victory on dead carcasses of both dizzy parties involved in the last waltz to rustbelt coffins.I curse your parachutes! And the reserve ones too!
windswords :
July 31st, 2008 at 4:37 pm
“notorious industry-alliance slut Fiat” ???
Since when does partnering with other companies make one a whore?
When they start charging for it. Just ask GM.
Ok this is all interesting, but where do I go to pick up my new Alfa?
(BTW, great picture and caption!)
Why would Tata want Jeep when they already have Land Rover? I had read somewhere that M&M was considered a front runner for purchasing JEEP with financing being the only issue.
Rust? Oh you must mean that 3 year old PT Cruiser the girl at the daycare we use drives. Heck nothing rusts that quickly in TN!
“You’re right. Don’t forget BMW’s alliance with Renault on I-4 engines, which replaced their alliance with Chrysler”
Actually, their I4 engines aliance is with Peugeot-Citroen (unless BMW decided to switch partners in the meantime)
Merger shmerger, who cares, bottom line, will I be able to get a 500 or not?
My comment in general about theses deals: You read alot of commentary about quality of Fiat based on history in the U.S.
The weird thing about U.S. consumers, they will reject autos based on irrational criteria. People did not buy the Pacifica-Mercedes. Because the car was ridiculously big? No,
I see people driving all kinds of ridiculous cars.
All my cars last way over 10 years. My current car is a 1997 Volkswagen Passat Turbo Diesel (TDI), with only one big repair in 12 years, the injection pump. Still gets in mid-forties mpg.
I also own a “Chevrolet” Aveo, which is a nice little Korean car. I have had it for four years now. It gets good gas mileage, the tires wear evenly, original battery, original brakes.
When I hear people gripe about Fiat, I think they are the average dummy that doesn’t have the slightest idea how what they’re driving works. Or they are the gas-pedal stomping, brake slamming goons that make foreign automakers afraid to give us the same small engines everybody else uses.