That was an easy call: Car sales in Europe will decline again this year, Fiat CEO Sergio Marchionne told his assembled shareholders at a meeting in Turin. Fiat, caught with pants and sales down in Europe’s teetering south, would be in much worse shape without Chrysler, Marchionne thinks:

“This was the only way to preserve Fiat’s future. It does not make sense anymore to talk about Fiat as an Italian or European company… With Chrysler we have fixed our excessive dependence on Europe and have the tranquility to overcome the market’s fluctuations.”

Chrysler surprised again in March with a 34 percent gain and the best monthly result in four years. Back home in Italy, Marchionne already preannounced “horrible sales” for Fiat and March.

Reuters says that the shareholder meeting approved the conversion of Fiat’s preference and savings shares into ordinary shares, which makes it easier for Fiat to buy the 41.5 percent of Chrysler it does not yet own.

Chrysler most likely will announce record growth in  market share for March. No such luck for Chrysler’s owner FIAT. Again, Fiat’s Sergio Marchionne is getting in front of a horrible story in order to soften its inevitable blow. Sergio told Italy’s newswire AGI that “March will be a terrible year for the Italian market.” Read More >

If you sell anything, a house, a car, a company, you always appreciate a good bidding war. Rivals Audi and Daimler could be in such a bidding war, if Italy’s Corriere della Sera is correctly informed. They are feuding over a troubled maker of motor cycles, Ducati. Read More >

Following up on the good news of sister Chrysler in America, Fiat do Brasil has some good news of their own to send embattled Turin’s way. As of March 20, the Uno has officially pushed ahead of the VW Gol and has taken the sales crown in Brazil. According to Brazilian car site webmotors.com.br, this is the first time the Uno has been ahead of the Gol for an extended period of time. Hitherto, the Uno had threatened VW’s pride and joy a month or another, then lagged behind.

But wait, there’s more! Read More >

A year ago nearly to the day, I was investigating the connection between Libyan dictator Muammar Gaddafi and Fiat. With an American-led intervention in Libya underway, Reuters had reported that a Wikileaked State Department document revealed that the Libyan Government owned a two-percent stake in the automaker Fiat as recently as 2006. When I contacted Fiat’s international media relations department for comment, I received this response:

Dear Mr Niedermeyer,

Further to your email, I would mention that the Reuters report you refer to is incorrect. As too are other similar mentions that have appeared recently in the media concerning the LIA’s holdings in Fiat.

The LIA sold all of its 14% shareholding in Fiat SpA in 1986 – ten years after its initial stake was bought.  It no longer has a stake in Fiat SpA.

I trust that this clarifies the matter.

It didn’t, actually. In fact the matter remained as clear as mud to me until just now, when I saw Reuters’ report that Italian police have seized $1.46 billion worth of Gaddafi assets, including “stakes in… carmaker Fiat,” under orders from the International Criminal Court.
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Unions in the U.S. are happy with Chrysler’s resurgence. Meanwhile in Italy, unions are being blamed for the woes of Chrysler’s parent. Read More >

Chrysler’s owner Fiat is in trouble. Fiat has a (declining) market share of 28.3 percent in its home market Italy, a market that had tanked 19 percent in February, and 18 percent in the first two months of the year. Fiat’s sales in Italy, down 20 percent in February, slowed more than the floundering market. Fiat’s southern exposure to the ailing parts of Europe is disproportional. Fiat’s top executives will now have an emergency meeting with Italy’s Prime Minister Mario Monti, Reuters reports. Possibly on the agenda: A closure of another Italian factory, and a cutback on investments in Italy. Read More >

When I started working for (not at) Volkswagen in the 70s, they talked about adding many brands, all the way “from MAN trucks to a motorcycle.” 40 years later, Volkswagen finally has MAN. And it might soon have that motorcycle wish fulfilled. Read More >

As dark clouds bunch up over Europe the less healthy of the many European carmakers frantically look for friends that help them get through the hard times ahead. Fiat-Chrysler is “talking to everyone,” CEO Sergio Marchionne told Reuters. Marchionne isn’t picky when it comes to corralling companions: “We can be an active partner everywhere around the world.”

“Roughly, we’re looking at a number in the neighborhood of 20 percent of installed capacity that may be viewed in terms of being structurally redundant,” Marchionne said. I guess he wants (but does not dare) to say that every fifth car plant in Europe should be closed and its workers fired.

How does Marchionne want to do this? The American way: Read More >

Chrylser’s U.S. plants are working flat-out, and reopening closed plants is not an option, Fiat & Chrysler CEO Sergio Marchionne tells the Milan daily Corriere della Sera in a wide-ranging interview. Plants and workers in other countries, such as Mexico, Canada or Europe will have to fill a third of the U.S. demand for Chryslers. Marchionne thinks that “demand  for cars in Europe will remain low for long. At least until 2014.” He counts on increasing U.S. demand for made-in-Italy Chryslers to keep his Italian plants open. If that demand should slacken, then … Read More >

Volkswagen’s Lamborghini division, along with Bentley, could be following Porsche and bring out a pricey SUV.  At the 2012 Beijing Auto Show in April, Lamborghini should show an SUV study to Chinese customers, Bloomberg writes. A production version is expected by 2016. Read More >

If you are lusting for extra oomph, and if all you have to transport is that sadly childless trophy female of yours, then Ferrari has good news from you. The Italians will show a successor to the 599 GTB Fiorano two-seat coupe at the Geneva auto show next month. Read More >

Today, Chrysler reported its first yearly profit since 1997. It was $183 million net profit on $55 billion net revenue. Not earth shattering as car companies go, but a start: Chrysler wants to turn this into $1.5 billion of net profit in 2012 and $65 billion of revenue. At the same time, Fiat-Chrysler cut its 2012 revenue target to 75 billion, due to a slowing demand for cars in a weakening European economy. Fiat will not pay a dividend for ordinary shares in 2011. Read More >

Today, “Italian automaker Fiat rolled out an introspective 90-second video for its new Panda compact car on the internet,” says Reuters. The wire claims that the ad is “aimed at tapping into the austerity zeitgeist.”

The commercial is inspired by last year`s “Imported from Detroit” ad that struck a chord with American buyers who want the good times to be rolling again. Now, Fiat wants to do a repeat in Italy. Read More >

Chrysler is dropping half a billion dollars into an expansion of one of its North American plants, Automotive News [sub] reports. This is where Chrysler will produce (to what degree remains open) its Fiat Ducato van, which will be sold as a Chrysler Ram Van.

Sergio Marchionne, CEO of Chrysler, told reporters in Detroit that this plant will be “the center for production of light-commercial vehicles in North America for us.” Red-white-and-blue blooded flag-wavers may object to the location of the plant.  It is about 180 miles southwest of Laredo, Texas. In Saltillo, Mexico. Read More >