[UPDATE: Fiat press release outlining the complete new management structure added]

The awaited consolidation of Fiat and Chrysler operations is complete, reports Bloomberg, and CEO Sergio Marchionne is taking the North American job for himself. Joining Marchionne at the top of the company’s new regionally-based divisions, are Gianni Coda, former head of purchasing at Fiat and now the boss of European, African and Middle East operation; Cledorvino Belini, erstwhile head of Fiat in Brazil is now in charge of all of South America; Michael Manley, previously boss of the Jeep brand, will be leading the firm’s effort Asia. These four regional bosses will be part of a 22-member “group executive council” which will manage all of Fiat and Chrysler’s operations. The details of the council’s makeup still haven’t been released, but the big news is well encapsulated by a quote from Gianluca Spina, chairman of the business school at Polytechnic University of Milan.

Marchionne’s decision to keep the role of overseeing the business in North America shows that the center of gravity of the combined entity will be in the U.S… The integration process is going extremely fast, as is Marchionne’s style.

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In fulfillment of my paparazzo duties, I stalked Nissan’s and Renault’s CEO all the way to China today. Easy for me to do: I could walk from where I live in Beijing. The walk was worth it. In the Grand Ballroom of the China World Tower 3, Ghosn and his Chinese joint venture partners announced an aggressive five year plan. Nissan and Dongfeng want to nearly double Nissan sales in China from 1.3 million in 2010 to 2.3 million in 2015. Read More >

Video from Chrysler’s last “new day,” shortly after being bought by Cerberus in 2007

According to Chrysler Group’s latest 8K, filed with the SEC today

On July 21, 2011, Fiat North America LLC, a wholly-owned subsidiary of Fiat S.p.A. (collectively, “Fiat”), acquired beneficial ownership of the membership interests in Chrysler Group LLC (the “Company”) held by the U.S. Department of the Treasury (“U.S. Treasury”) and the Canadian government’s special purpose entity, the Canada Development Investment Corporation (“Canadian government”). Fiat acquired 98,461 Class A membership interests in the Company from the U.S. Treasury, representing approximately 6 percent of the fully-diluted ownership interest in the Company for cash consideration of $500 million. Pursuant to a separate agreement, Fiat paid $125 million to acquire 24,615 Class A membership interests in the Company from the Canadian government, representing approximately 1.5% of the fully-diluted ownership interest.

Pursuant to these self-funded transactions, Fiat became the owner of a majority of the membership interests in the Company. Fiat now holds 55.3% of the Company’s outstanding equity, or 53.5% on a fully-diluted basis, taking into account the occurrence of the third and final Class B Event described in the LLC Operating Agreement which is expected to occur by the end of 2011. The remaining equity in the Company is owned by the UAW Retiree Medical Benefits Trust, a voluntary employees’ beneficiary association trust (the “VEBA”).

That’s right, the United States taxpayers are now fully-divested from their “investment” in Chrysler, which is now a majority-owned division of Fiat. Once the EPA certifies that Dodge’s new Fiat-based compact car gets 40 MPG unadjusted combined (about 30 MPG in “window sticker” EPA mileage), Fiat will get another 5% of Chrysler’s equity, bringing its stake in the company to 58.3%. In a statement, the Treasury estimated the final cost of the bailout to be $1.3b (as it does not expect any meaningful recovery from Old Chrysler’s liquidation), although that does not include several taxpayer outlays, without which the rescue of Chrysler would not have been possible. By our math, the total bill for Chrysler’s rescue is closer to $4.7b.

So, after all the drama was it worth it? For now I’ll leave that one to the comment section… and history.

Tesla will begin supplying Toyota with components for its electric RAV4 a year earlier than previously planned, reports Bloomberg, a move that will have Toyota paying $100m for the drivetrains rather than the previously-agreed-upon $60m. According to a Tesla SEC filing, the EV specialist firm will supply Toyota with

a validated electric powertrain system, including a battery, charging system, inverter, motor, gearbox and associated software which will be integrated into an electric vehicle version of the Toyota RAV4. Additionally, Tesla will provide TMC with certain services related to the supply of the Tesla Battery and Powertrain.

There’s still no word about how many of these RAV4s is Toyota planning on selling over those two years, or where will they be assembled, but it sounds like Toyota isn’t trying to launch quite the EV offensive that some green car blogs seem to be hoping for. As one analyst puts it to Bloomberg, $100 million “isn’t a huge amount for Toyota, so this allows them, with only modest downside risk, to participate in what Tesla is doing.” That sounds about right…

Things are not going well between Volkswagen and Suzuki. In 2009, Volkswagen invested $2.5 billion for a 19.9 percent share in Suzuki. Suzuki sent $1.13 billion back and bought 2.5 percent of Volkswagen. Suzuki netted $1.37 billion, domo arigatou gozaimasu, but then nothing happened. End of last year, Ferdinand Piech became impatient. Volkswagen stockholders asked discomforting questions at the annual meeting. Now, it turned into a war of the words. Volkswagen uses old media. The octogenarian Osamu Suzuki drops a massive blog bomb on Wolfsburg. Read More >

Smell that? It’s the gathering scent of a new industry trend towards natural gas. Honda’s expanded its pioneering Civic GX to 50 states, Sergio Marchionne wants to replicate his Italian CNG success at Chrysler (eventually), and now GM is jumping on the bandwagon while it’s still relatively uncrowded. The Winnepeg Free Press reports that GM has signed a development deal with Vancouver, B.C.-based Westport Innovations which could see a prototype light-duty natural gas-powered engine completed “within 18 months” if preliminary study proves promising. A Westport spokesman boasts

If both parties agree to move ahead with commercialization this would be one of the first pure OEM [natural gas-powered] products

You know, except the Civic GX which has been prowling American streets since 1998. Still, with Chrysler targeting CNG commercialization no earlier than 2017, GM could have a strong head-start on a fuel technology that promises to be a viable and promising gasoline alternative, especially if the NatGas Bill [PDF] passes, expanding $7,500 plug-in tax credits to natural gas vehicles. And GM’s got a strong partner in Westport, which has heavy-duty commercial deals with Cummins and Caterpillar. With Nissan all-in on EVs and years ahead of the competition in terms of global EV production capacity, look for other competitors to hedge their alt-energy bets… and natural gas is rapidly becoming the most popular alternative.

Eight percent global market share. Eight percent operating profit. And all of that by 2016 – two times eight, get it? In Nissan’s glitzy waterfront headquarters in Yokohama, CEO Carlos Ghosn today presented a six year plan, called “Power 88.” The plan is audacious and auspicious at the same time.

Let’s do the auspicious part first. Read More >

Before Fiat snapped up Chrysler from the US taxpayers for a song, it saw the Indian firm Tata as another logical partner for a long-term alliance. After Tata bought Jaguar/Land Rover, the auto media was awash in rumors that the British brand would share components with Fiat’s Alfa-Romeo brand. When Tata came out with the Nano, there was speculation that Fiat’s dealers in Europe and Latin America could be used to sell the low-cost car, even rumors of a Fiat-branded version were floated. Fiat even tried to sell Tata on one of its notoriously nasty Italian plants. What did surface from Fiat and Tata’s flirtations: a joint venture in India that, by all accounts, is going not well at all. And now, with Fiat distracted by its Chrysler rebuilding project, Ratan Tata is expressing his displeasure with his firm’s Fiat tie-up, telling The Hindu Businessline

I have to admit that so far, the venture with Fiat has not been as active as we had thought… I think that Fiat has to launch more models into the market to keep dealers interested. It also has to look at its cost structure in terms of parts and components. So the joint venture needs to be looked at quite critically and until that happens, it’s not going to be optimised… As far as what else we can do with Fiat, I think Sergio Marchionne and I can really talk to each other. However, at the working level, it hasn’t quite been that way. We have looked at Latin America to do something together, but things haven’t moved as they should have done

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Strap on the man-pants, Saab fans, because there’s another heaping load of bad news for the Swedish brand this morning. First off, Saab’s mysterious Russian backer Vladimir Antonov has backed out of a deal in which he was to buy property at Saab’s Trollhättan plant and lease it back to the company, stabilizing its short-term cash position. Automotive News [sub] quotes an Antonov rep as saying

The property sale is now being discussed with external investors

Apparently the Swedish real estate investor Hemfosa has stepped into the breach and sources say a deal could happen quickly. Antonov’s man added that his boss was still interested in securing a shareholding in Saab, a move that has been awaiting approval by the European Investment Bank for some time now. But despite Antonov’s insistence that he’s not going anywhere, the real estate deal pullout is troubling. After all, if Antonov were really the Saab zealot he claims to be, willing to support and revamp the brand at any cost, wouldn’t he want to own the Trollhättan plant? Wouldn’t he want deed to the factory in case Saab, as it exists now, goes into bankruptcy? This is the first indication that Antonov is treating his Saab involvement as an investment rather than a crusade, which is frankly a bad sign for what’s left of the Swedish brand. On the other hand, with Chinese firms chopping up Saab, what’s a businessman to do?

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With €30m from PangDa and €30m from Gemini Investments, Saab restarted production today at its Trollhättan factory. According to SaabsUnited, the line will run at 80% speed today and Monday, before moving to 100% (over 200 cars per day) by the middle of next week. Speaking at a press conference, CEO Victor Muller reflected:

It’s been an interesting lesson. A company like Saab, that lives in a glass house, should never be caught in a situation where there is not enough cash to withstand the storm as the one we have seen now. What happened seemed like a very insignificant situation became a very significant situation, and next thing you know, you are losing six weeks of production… it was very, very tough and we’ve had some very adverse circumstances that we’ve had to live with, but we got out of it. I think that if you got through 2009-2010 as Saab has been, anything else is relatively easy. We will definitely ensure that this will not happen again. This means that we will be on a quest to ensure that we have sufficient funds at all times to overcome adveersities like this because we can’t afford to have another production stoppage with all the relating downsides, such as disappointed customers, upset suppliers and media attention… that is definitely not in our interests.

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We still have not heard from Saab and there have been six weeks without production. It eventually reaches a point when you have to make a decision

Johan Andersson of the Swedish unit of supplier giant Lear in the WSJ, on why his employers just laid off all 160 workers of its Trollhättan-based Saab workforce. Apparently Mr Andersson and Lear aren’t any more encouraged by Saab’s PangDa deal than TTAC. And considering that the Chinese dealer group is telling Gasgoo that “production has already restarted” at Saab, the fleeing suppliers who haven’t even heard from Saab yet create some credibility problems for the PangDa-Saab alliance (even if PangDa was referencing GM production of the 9-4X at Ramos Arizpe). Which makes the dire rumors that the deal has not, nor will be, blessed by the Chinese government a little more worrying. Sounds like the rotund lady is warming up her vocal cords…

When we heard that Saab’s deal with the Chinese automaker Hawtai had fallen through, our initial reaction was a complete lack of surprise. My take was that Saab’s attempts to seek Chinese White Knight from the ranks of that country’s smaller automakers was doomed to fail, as the Chinese government has made it clear that it would like to see its auto industry consolidate. As with all things Chinese, however, I should have consulted more closely with Bertel before writing. Our man in China was quick to point out that the Beijing scuttlebut blamed Saab’s lack of intellectual property, rather than government consolidation rules, was to blame for the collapse of the Saab-Hawtai deal. And sure enough, Automotive News [sub] reports today that

Sweden’s Saab Automobile failed to secure investment from Hawtai Motor Group because of “commercial and economic realities,” not a lack of government approval

And, it turns out that’s the nice way of putting it…

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Saab’s deal with the Chinese automaker Hawtai has failed in a predictable manner, as the struggling Chinese partner apparently didn’t receive government approval for the deal. Saab-Spyker’s announcement of the deal’s collapse explains [via AN [sub]]

Since it became clear that Hawtai was not able to obtain all the necessary consents, the parties were forced to terminate the agreement with Saab Automobile and Spyker with immediate effect. The parties will continue their discussions about a possible cooperation, however now on a non-exclusive basis

This isn’t the first time that the Chinese takeover of a Western brand failed due to the Chinese government’s insistence on industry consolidation, as the Hummer-to-China deal failed for similar reasons. Meanwhile, we should have seen this coming a mile away…

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Saab and the Chinese automaker Hawtai will announce “an exciting strategic partnership between both parties” at a press conference scheduled for tomorrow, reports MarketWatch. According to Saab/Spyker CEO Victor Muller,

the deal involves “investing in Spyker.”

Hawtai was previously a joint venture partner of Hyundai, and had been approached by Chrysler as a possible partner. The firm reportedly has an annual production capacity of 350k vehicles, 450k automatic transmissions and 300k (Euro IV and V-compliant) diesel engines built under license from VM Motori. The B11 (above) is the firm’s first own-brand sedan, although over the next three years the firm has “plans to launch six more diesel or diesel-electric hybrid passenger cars.” According to chinaautoweb, Hawtai’s gamble on its giant diesel engine plant, the largest and most sophisticated in Asia, may not be panning out as diesel availability has been an issue in the Chinese market, due to high demand from the trucking industry.

Saab’s got a new short-term lease on life, as Automotive News Europe [sub] reports that the Swedish brand has secured a €30m, six-month convertible loan from Gemini Investment Fund. Saab is also requesting a €29.1 drawdown of its EIB loan, and when that is approved next week, Saab will reach the €59.1m in liquidity it needs to restart production. According to another piece by Automotive News [sub], Saab is still in talks with the Chinese automakers Great Wall Motor Co., China Youngman Automobile Group Co. and Jiangsu Yueda Group Co. in hopes of securing an additional investment in the struggling Swedish automaker, as well as a joint venture for Chinese production of the next-generation 9-3, and a possible Chinese market distribution deal.

Meanwhile, Saabsunited reports that several companies have been told to stop development on that next-gen 9-3 while the company gets back on its feet, meaning it could be delayed into the 2013 timeframe. And while Saab sacrifices long-term development for short-term survival, the recent production shutdown is taking its toll: Swedish sales of the 9-3 are up, but the new 9-5 is falling off (128 sold last month) as stocks dry up. The drama continues…