In a few weeks, Fiat will be handed another 5 percent of Chrysler as brownie points for meeting another milestone in its agreement with the U.S. and Canadian governments. Another milestone will be reached in the fourth quarter, Sergio Marchionne told Reuters today. That will bring Fiat’s ownership in Chrysler to 35 percent. But Fiat and Marchionne want more: Majority control, i.e. 51 percent. That needs a bigger milestone: Repay a $7 billion government debt. Marchionne thinks he can do it. (Read More…)

I’ve been waiting 28 years for Fiat to return to the United States, and that means TTAC is going back-to-back on the Fiat 500 coverage, following up Michael Karesh’s review with one of my own. (Read More…)

Automotive News [sub] reports that Fiat is “weeks” away from concluding an agreement in which 90 percent of its Latin American dealers will sell Chrysler vehicles, triggering a government clause that will increase Fiat’s stake in Chrysler from 25% to 30%. Known as the “Non-Nafta Distribution Event” in the Chrysler operating agreement, it calls specifically for

execution by the Company of one or more franchise agreements covering in the aggregate at least ninety percent (90%) of the total Fiat Group Automobiles S.p.A. dealers in Latin America pursuant to which such dealers will carry Company products.

And that’s it. Why does it matter that this agreement isn’t any more specific? Because Fiat has no plans to sell any Chrysler Group brands anywhere. Products, yes. Brands, no.

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I wasn’t planning to review the Chrysler 200. Renaming a lightly revised car to escape a well-deserved bad reputation always strikes me as a lame tactic. And the Sebring, on which the 200 is based, was so far off in so many ways that I didn’t see the point. We don’t just review cars to trash them around here. But then I drove the revised minivan, and was very pleasantly surprised. Perhaps Chrysler had similarly transformed the Sebring when creating the 200? With a Buick Regal for the week, and a need for some reference points, the time had come to find out.

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The trade war that erupted between the US and China late last summer may have cooled to an angry simmer, but its effects are once again being noticed in the automotive industry. After President Obama slapped a 35% tariff on imports of Chinese-produced tires, the Chinese government started casting around for potential objects of retaliation, and, as Bertel reported, US auto exports to China made “a good tit-for-tat.” The US imported $1.8b worth of Chinese tires in 2009, while China imported $1.1b worth of US-built cars (including transplant brands) in 2008. You shoot our dog, we’ll kill your cat.”

Now, the Chinese Ministry of Commerce has concluded its “investigation” into US auto dumping and illegal subsidies  in the Chinese market, and it just so happens to single out the two automakers who are partially owned by the US. Coincidence? Not so much. [Hat Tip: Michael Banovsky]

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All told, it takes about 3 weeks for a shipborne container from Japan to reach its destination at the West Coast. To the East Coast, it’s about 5 weeks. With the Japanese earthquake and tsunami three weeks old, we should see the first real stateside disruptions by now. And we do. But not all originate in Japan. (Read More…)

Every state in the union has its own laws regarding a manufacturer’s ability to sell cars, with some states banning the practice outright and others merely preventing OEMs from competing with their own dealer networks. California falls into this latter category, as the California New Motor Vehicle Board bans manufacturers from owning dealerships within ten miles of other same-make independently owned stores. But that apparently did not stop Chrysler from opening a dealership in Los Angeles which, according to a petition filed by the California New Car Dealers Association, is within ten miles of not one, but three independent Chrysler stores.

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Chrysler is coming down hard on some of their Jeep dealers. The Monroe Dodge Superstore in Monroe, MI, just down the road from Toledo, wanted to celebrate the 70^th anniversary of the Jeep. The first Willys-Overland Jeep was built 1941 at their plant in Toledo. The good folks at the Monroe Dodge Superstore thought hard about a good catchphrase. Then, the lightbulb went off. Presto, 600 T-shirts were printed, emblazoned with “Imported from Toledo.” They immediately heard from Chrysler. Not in a good way. (Read More…)

Malaise Era Molester Vans are rarely worth sparing from The Crusher’s jaws these days, what with steel prices stoking The Crusher’s hunger to insatiable levels, particularly when they’re on the rusty side. However, when that van is a ’78 Dodge Tradesman with a factory-installed 318 and floor-shifted overdrive 4-speed, things might be different. We hope. (Read More…)

Chrysler brought suit against Detroit company Moda. According to Chrysler’s complaint in U.S. District Court of Eastern Michigan,  Moda engages in “blatant misrepresentation of Chrysler’s IMPORTED FROM DETROIT™ tagline, introduced by Chrysler to tremendous public acclaim during Super Bowl XLV.”  Chrysler sues the company for “trademark infringement, false designation of origin, false descriptions, unfair competition, false and deceptive trade practices and unjust enrichment.” (Read More…)

Really cheap, low-optioned Detroit cars haven’t done well for decades, but that didn’t stop Chrysler from following up the super-downscale Omni America with the car advertised as “the lowest priced car on the market available with a standard driver’s-side airbag.” Apparently, no 1991 Plymouth Sundance Americas made it out of the showrooms. Well, none except for this example that managed to dodge The Crusher’s jaws for two full decades before its final tow into a Denver self-service wrecking yard. (Read More…)

Plenty of interesting street-marked machinery in my Denver neighborhood; on the same block as the Subaru GL hatchback coupe is this huge survivor of three major fuel-price upswings. It didn’t get crushed after 1973 or 1979, and so we can assume— or at least hope— that it won’t get crushed now. (Read More…)

Sergio Marchionne  is a multitasker: He has been knighted in Italy in 2006, and is CEO of two carmakers, Fiat and Chrysler. Money-wise, he’s just getting by. A 300-page filing with the SEC revealed that his pay as CEO of Chrysler equals what he draws from his knighthood: Niente. Marchionne received no cash salary from the company. He didn’t work entirely for nothing though. (Read More…)

Fiat’s plans to build up to 500,000 Chryslers and Jeeps in Russia collapsed last week. Chrysler’s cross-town rival Ford may have had something to do with that. On Friday, Ford and Russia’s Sollers “signed a Memorandum of Understanding under which the parties intend to launch a new 50:50-owned joint venture called Ford Sollers for the production and distribution of Ford vehicles in Russia,” says a Sollers communiqué. Sollers also had been in talks with Fiat, which ended fruitless. The end of the Fiat talks were announced on the same day the deal with Ford was revealed. (Read More…)

Though the the impact of nationality on the auto industry may be fading, the issue couldn’t be more central for Sergio Marchionne and his Fiat-Chrysler Empire. Having accepted aid from both the Italian and American governments, the future merging of Fiat and Chrysler raises a delicate question: will a merged Fiat/Chrysler be an Italian or American firm? When Marchionne suggested that the Fiat-Chrysler alliance could be headquartered in Detroit, Italy erupted in recriminations. The Italian government called Marchionne onto the carpet to explain himself, even as critics lashed out saying

The government is moving too late, but better late than never. Marchionne is more oriented strategically toward the U.S. than Europe

And sure enough: Fiat restated its commitment to investing some $27b into Italian production, but as AFP reports

the question of whether Fiat would remain based in its birthplace of Turin remained unclear, with local officials saying it had been put off for three years and would depend on the company’s performance.

But, while American and Italian stakeholders bicker over the “national character” of a merged Fiat-Chrysler, the proposal establishing four headquarters in Turin, Detroit, Brazil and “somewhere in Asia” points to the real issue: Fiat-Chrysler must orient itself around its markets, not any national corporate character. The longer the divide between Italy and the US is played up, the more Fiat-Chrysler runs the risk of developing a dysfunctional corporate culture like the DaimlerChrysler “marriage of equals.” It’s just too bad that, by tying itself up with the governments of the USA and Italy, Fiat allows the “national character” question to take such prominence.