Much of the speculation in the leadup to Fiat’s five year plan announcement centered on a long-rumored spin-off of Fiat’s auto business from the rest of the industrial conglomerate. Speculators even drove up Fiat’s share price considerably yesterday on hopes that the long-awaited spin-off would be announced today. And sure enough, Fiat did announce today that it would be spinning off part of its business. The only problem, according to Automotive News [sub], is that the newly-formed unit isn’t made up of Fiat, Alfa and Lancia, but Iveco and New Case Holland. Instead of its car operations, Fiat is bundling off its heavy commercial truck and tractor business into a new entity known as Fiat Industrial S.p.A. (Fiat-branded light commercial vehicles and Fiat Powertrain will remain behind).
Today’s CC Austin A40 Devon too frumpy for your taste? Austin’s Chairman Leonard Lord (shouldn’t that be the other way around?) read your mind. When he saw Jensen’s handsome new Interceptor, he made a deal for Jensen to build a sporty body to plunk on its A40 chassis. The export markets, America in particular, were in Lord’s mind with the A40 Sports. But despite a revised cylinder head, the inevitable twin SU carbs and 50 hp, it didn’t really catch on, especially with the yachting crowd. Read More >
The last ten years have not been kind to Fiat’s Alfa-Romeo brand, as 2009 sales levels fell to about half their 2000 volumes. Having put Alfa on “strategic review” and stuffed it into a “brand channel” with Maserati and Abarth, CEO Sergio Marchionne has had a change of heart, and is now “determined” to build the brand into a “full-line premium carmaker.” According to Automotive News [sub]’s coverage of Fiat’s five year plan presentation, that means committing to a US presence targeting 85,000 annual sales by 2014. For a sense of scale, the Alfa brand sold a grand total of 103,000 units globally last year. And Alfa is going to have to kick ass around the world to meet Sergio’s goals. By the time Marchionne expects American Alfisti to buy 85k units each year, he wants the brand’s global sales to have increased nearly five-fold to half a million units. Ambitious doesn’t even begin to describe it…
Given Ferrari’s pricing politics, it seems safe to assume that Ferrari/Maserati is a fairly profitable enterprise for its 85 percent owner, Fiat. Indeed, with over $2.5b in combined revenues last year and an 11.5 percent operating margin, the Italian sportscar brands aren’t exactly dying of economic downturn-related causes. But at today’s presentation of Fiat’s five year plan, CEO Sergio Marchionne revealed that his firm has big plans for Ferrari/Maserati, and gave unprecedented planning details as proof of the brands’ path towards even greater profitability.
Having acquired Saab’s old 9-3 and 9-5 platforms, Beijing Auto is wasting little time in putting the old Swedish warhorses back into action. In fact, if you cover the digitally-altered front end of this C71 concept, you’ll notice that it’s barely been changed. And that’s not all: at least one of BAIC’s two new SUV models seem to take more than a little inspiration from Jeep’s Wrangler and Grand Cherokee. Rather than simply ripping off popular models as other Chinese automakers do, BAIC’s designers seem only to seek inspiration from their partner firms. The weird part: BAIC has signed a deal to sell new, “real” Saabs at its Chinese dealerships. The real deal and the cheap, outdated knockoff sold in the same dealership? Even by Chinese standards, that’s a bizarre strategy. [via ChinaCarTimes]
I’m in the midst of an automotive dilemma: I’ve got two cars: a 2007 Nissan 350Z and a 1998 Volkswagen Jetta. I picked up the Jetta this fall to serve as a winter car. The Jetta turned out to have a brake problem (fixed), leaking shocks and a hole in the muffler. I really wanted something a little sportier for the winter. The Z is my baby, and I want to retain money to continue refining it into an AutoX menace, but the Jetta is killing me, Smalls! I see three alternatives: 1. Fix up the Jetta with nice suspension parts and a new cat-back, making the daily drive less slow. 2. Sell the Jetta, buy something else in its place. (Focus ZX3, GTI 1.8T, E36 BMW, Civic?) 3. Fix the Jetta to OEM specs, save money for the Z. What should I do?
Red light cameras in the state of California originally were first used to issue tickets to the owners of vehicles that entered an intersection after the light had turned red. In just the past few years, the cameras have shifted focus and now primarily ticket the owners of vehicles that make rolling right-hand turns on a red light. Assemblyman Tom Ammiano (D-San Francisco) wants to further transform the system by introducing green light cameras. The new system, which initially would only operate at a single intersection in Ammiano’s district, would target people who turn right while the light is green.
Let's carry out the five year plan in 4 years! Picture courtesy nhikmetran at flickr.com
Today is the day. Today, Sergio Marchionne will present his 5 year plan for Fiat. 5 year plans are usually reserved for a reunion of unreformed communist party elders. But Fiat respects traditional values.
In his opening remarks, Marchionne took a shot at the mongers of gloom and doom. He had two words for analyst reports that dissed Chrysler’s operating profits: “Boulevard press.” This is Euro-slang for tabloids, or the business section of the National Enquirer.
“As we all know,” said Sergio, “in business it is ultimately only facts that prevail.”
Be extra careful when you read Bloomberg this morning. It will make you think you had one too many last night. The financial news service reports that Chrysler posted a $143 million operating profit in the first quarter,“after cutting costs and introducing a big pickup.” It’s a miracle alright. Read More >
Increasing signs that reports of the death of luxury cars are greatly exaggerated are emerging from Sindelfingen. To the joy of Daimler stockholders, and to the amazement of pundits who predicted we’ll be driving scooters, Daimler nearly doubled its profit guidance. According to the new reckoning, between €2.5 and €3b should appear below the bottom line as EBIT (earnings before interest and taxes) by the end of this year, says Daimler according to Das Autohaus. That came as quite a surprise. Read More >
The fabled Mercedes “Shooting Break” (or Brake ) is one step closer to productiondom. Gasgoo reports that the Shooting Break will make “its world debut at the Auto China motor show later this week.” Meaning Friday, the 23rd. TTAC will be there. Read More >
The emerging car market in India isn’t emerging fast enough to keep some car companies alive. Three years after Renault started to build its low-cost Logan in India, Renault is pulling out. The ho-hum sales come as no surprise to the attentive TTAC reader. As previously noted, India sells in a year what China consumes in a month in terms of cars. Read More >
Talk about unfortunate timing: Just as the scrapping incentives all around the world are running out, a Japanese company found a way to turn old cars into fuel. Read More >
How cruelly ironic is it that the UK, home of the world’s most vibrant sportscar cottage industry and some of the most notorious “petrolheads” in Europe, is also the world’s leader in automated ticketing and surveillance? Oh, and before you try to answer, understand that Old Blighty’s Orwellian tendencies have just hit a new high/low. The Telegraph [via Jalopnik] reports that Britain’s Home Office is testing new average speed cameras which combine license number-reading technology with a GPS receiver. In contrast to previous generations of speed cameras, the new system, named SpeedSpike, can calculate average speed between any two points in a network, rather than just in a straight line. Read More >
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