Fiat could do more if it could cut off Italy

Having been handed a bankruptcy-rinsed Chrysler by the American government, Fiat’s Canadian-born CEO Sergio Marchionne is beginning to see Italy as nothing more than aging, uncompetitive factories and troublesome unions. And now he’s not just telling the Italian media that not only would Fiat be better off without the country that birthed it. According to Reuters

The CEO added that not a single euro of the 2 billion euros ($2.8 billion) of trading profit that Fiat is targeting for 2010 will come from Italy, where all Fiat car passenger plants are loss-making.

The funny part: Chrysler still holds a value of precisely zero dollars on Fiat’s balance book. And with the Fiat and Alfa-Romeo brands headed to the US, Italian-ness is still an important element of Fiat’s identity. But until Marchionne’s Chrysler revival and Italian invasion take hold stateside, and as long as mother Italia is a drain on its resources, Fiat might be best described as a Brazilian company.

Italian speakers can enjoy Marhionne’s interview here.

The early eighties was the most revolutionary and unique time in the American automobile industry ever. Thanks to exploding oil and fuel prices, and with the expectation that the increases would continue indefinitely, for the only time ever Americans embraced radical downsizing with a fervor. It was as if the US was finally joining the rest of the world. Of course, it didn’t last; as soon as oil prices started dropping, everyone quickly forgot the whole episode, and the truck/SUV boom soon exploded. But for a few short years, it was out with the big, in with the small. The little relics from that era are becoming hard to find: K-Car limousines, Chevy Sprints, Diesel Rabbits (no worries; I have). And some of them I’d forgotten ever existed, like this tiny FWD diesel KubVan. (Read More…)

First things first: having stuck my neck out a quite a bit with a piece I wrote last year The Truth About Why Chrysler Destroyed The Turbine Car, I approached this book with a mixture of eagerness and trepidation to find out if my own theory held any water. It does (whew!). This well researched book by Steve Lehto confirms it: the myth that Chrysler had the bronze beauties scrapped because of import duties that needed to be paid is utter junk and a baseless urban myth. It even confirms my speculation that the Ghia bodies cost about $20k each, and therefore any import duties would have been insignificant: (Read More…)

Carmakers around the world are falling into each others arms faster than after a speed-dating session. Some are more promiscuous than an avowed wife swapper. What is Honda, the #2 in Japan, up to? Especially after seeing a 35 percent drop in October, and that may just be the beginning of it.  Are they looking for some corporate nookie? Or will they remain celibate? The Nikkei [sub] had an interview with Honda CEO Takanobu Ito. Here are his most salient points, without any comments. (Read More…)

Despite government witch hunts (recently cancelled, supposedly) and subsidized competitors, Toyota is holding its own. Just. But like Toyota said, they’re going on the offensive. They’ve upped the incentives (but are still below industry average) and launching new warranties to confirm their commitment to their products. But they’re also pushing into new markets to offset their reliance on the North American market (and also to make more money). Now one of those markets is India. The formula is very simple there. Cheap, reliable, safe, and cheap. And that’s what Toyota is trying to do. About time. Suzuki is eating everybody’s lunch in India. (Read More…)

Ur-Turn is your weekly opportunity to contribute to TTAC. Every Saturday we select a different piece submitted to our contact form, and publish it as a showcase for the diverse perspectives of TTAC’s readers. Today’s contribution comes from TTAC commenter Rob Finfrock, and it tells the story of how one car-buying decision might have made the difference in his battle with cancer.

I’d planned to buy a new car on August 26, 2006. A loaded Mazda6S Grand Touring with the 6-speed manual, Dark Cherry Red over beige leather, with in-dash CD changer and moonroof. I justified the extravagance as a reward to myself for getting through the last seven months following a health scare. Diagnosed with testicular cancer that January, I had been extremely fortunate in the time since the initial surgery. Monthly observation scans had shown no additional tumors, which meant no radiation or chemo.

The deal wasn’t done that Saturday, though. The dealer’s numbers were still a bit too high for my tastes, so I left that day in my Grand Am. I wasn’t too worried, as I expected the dealer to come around in a day or two. The plan changed two days later, during the monthly consult with my oncologist.

I was still a nervous patient, and sweated each CT, X-ray, blood test, and follow-up. Dr. Bhogaraju was extremely understanding of that fear, and it was his custom to greet me with the statement ”you’re OK.” He didn’t say it that day.

(Read More…)

Want a free car? Threaten to burn a Quran, the holy book of Muslims around the world. It also helps if you are a Christian pastor, and you threaten to do it on the anniversary of 9/11. (Read More…)

When I embarked on the Volt press launch, I made a public promise to keep my impressions of the car itself separate from concerns about its overall viability. My review of the Volt is coming on Monday, but a new issue is already raising its head to confront GM’s extended-range electric car. The Volt’s home charger costs $490 on top of the Volt’s $41,000 (pre-tax credit) price, and costs another $1,500 to install. But, according to BNet’s Jim Motavelli, money isn’t the only obstacle to obtaining the home charger that’s necessary to tap the Volt’s 40 miles of electric range. EV advocate and Volt Customer Advisory Board member Chelsea Sexton, of “Who Killed The Electric Car? fame, is one of the first Americans to live with the Volt, and despite enjoying the backing of GM, she’s run into a problem that she and other EV advocates worry will blunt enthusiasm for home-charged EVs like the Volt: she needs a “time of use” meter.

(Read More…)

While we are all waiting for Ed’s report on the Volt, let me waste some of your time by mentioning that GM will introduce  the thing in China some time in the second half of 2011. They already concede that it will be a flop. (Read More…)

The Federal Highway Administration recently held out $10.5 million to bribe states into turning freeways into toll roads through fiscal 2011. As part of the so-called Value Pricing Program, which Congress introduced in 1991, the agency will take taxes paid by drivers at the pump and underwrite projects designed to charge motorists more for driving on existing roads or increase other fees imposed on drivers.

“These projects show that states are developing new ways of thinking about how to manage congestion,” Transportation Secretary Ray LaHood said in a statement on projects selected in August.

(Read More…)

The Freep reports that Ford is allocating an extra 250 workers to its Dearborn plant in Michigan. Why? Well, because the Dearborn plant makes the F-150 and because sales are rising. Ford can’t make them fast enough. According to Autodata, Ford’s share of the pick-up market has risen 4.2 percent this year. This is great news, Ford is getting more Americans back into work, right? Not quite. (Read More…)

Dad! Would you come and check out a car I might want to buy?

Sure Will; what is it?

A Deawoo Leganza.

Oh, Um, Ah, Hm; you’re sure that you might want to buy that?

Yeah; it’s got leather, sunroof, and a great sound system.

What’s wrong with it?

The electric window switches are wackky. I don’t care.

Are you sure that’s all?

(Read More…)

Everybody, please help me out here and look out of the window: Is the sun rising in the west? No? Are clocks running backwards? No? Then WTH is going on? NHTSA Chief David Strickland praised, yes praised automakers for their dispatch on recalls, and wait until you hear this: Strickland gave a gold star to Toyota for its improvements. (Read More…)

The world of business all has their fair share of career bullshitters, and the car industry is no different. So this week’s Weekend Head Scratcher is this: Who do you think was the worst car executive ever? (Read More…)

TTAC’s Michael Karesh inspired a good deal of jealousy in his Editor-in-Chief a few nights ago by describing his forthcoming RX-8 roadtrip into the hill country along the Blue Ridge Parkway. A zinging rotary engine in a legendarily well-sorted chassis simply screams (literally) for these kinds of driving adventures, and I’d be lying if I said I didn’t briefly donsider ditching my editorial responsibilities and inviting myself along. After all, the RX-8 has been marked for death in Europe and the USA, thanks to the glorious amounts of C02 emitted by its rev-happy rotary mill. This, I thought, is a truly unique car with an engine that might well never be seen again in civilized auto markets. Best to enjoy one while you can, right?

Maybe not. Mazda says that even though its latest 1.6 liter rotary engine is years away from hitting its emissions goals, the brand will never stop trying  to bring it to market. Because when it comes to rotary engines, drivetrain boss Mitsuo Hitomi tells Automotive News [sub],

We will never give up

It may not be the most pragmatic approach for a tiny automaker facing independence in a scary-competitive global market, but dammit, you have to respect Mazda’s dedication.