Turns out that Fiat wasn’t affected too bad by Serbia’s sudden cash crunch. As reported yesterday, the country is having a hard time coming up €90 million it owes Fiat towards a jointly owned car plant in Kragujevac. Fiat has a richer sugar daddy, and he lives in Brussels. The European Investment Bank sees no reason not to continue disbursing its 500 million euro ($625 million) loan to Fiat, Reuters says. The loan is earmarked for the same plant. (Read More…)
Volkswagen chief Martin Winterkorn heaped salt into the open wounds of Europe’s embattled automakers. In light of the drooping demand, Europe could perfectly manage with 10 fewer plants, Winterkorn said in an interview with Germany’s Handelsblatt. However, don’t you’re your breath on Volkswagen shutting down any of its EU assembly lines. Volkswagen stand behind its European sites “without ifs and buts.” What about Sergio Marchionne’s accusations that Volkswagen is waging a brutal price war in Europe? Winterkorn: “Nonsense.” (Read More…)
The U.S. government may have to wait a little more until it sees the money it has sunk into GM. The reverse is true in Serbia. There, Fiat has to wait a little longer for the money owed by the Serbian government.
Here it is, the Fiat 500 Turbo that’s long been rumored. The Turbo uses a detuned version of the Abarth motor, good for 135 horsepower and 150 lb-ft. The sole transmission is a 5-speed manual, and there’s a tweaked chassis to go along with it. The Turbo also gets the same front end as the Abarth, but the more mild visual treatments of the standard car – all for $19, 500 (plus $700 destination).
You’ve got to give Sergio Marchionne credit for at least one thing: he’s a masterful negotiator. The Italian-Canadian FIAT exec bluffed General Motors into paying $2 billion for the right to NOT buy the Italian company. He went on to acquire a controlling stake in Chrysler for no cash. Instead, FIAT agreed to provide the auto maker, hollowed out by Daimler and Cerberus, with powertrains and platforms. Three years after that deal, Chrysler has introduced the first car developed for North America around FIAT innards, the compact Dodge Dart sedan (pre-production review).
The last Jeep Liberty will be coming off the line on August 16th, as the rugged 4-door Jeep makes way for its upcoming, car-based replacement.
Fiat saved Chrysler. Now, Chrysler keeps Fiat alive. Fiat would be in deep trouble, would it not be for the huge profits generated at Chrysler. Fiat’s future is so cloudy that it can’t give guidance for the near future. Yesterday, Fiat reported a second quarter trading profit of 1 billion euros ($1.23 billion), “bolstered by soaring sales at its U.S. unit Chrysler,” says Reuters. Today, Fiat says it has no clue where it will stand by the end of the year. (Read More…)
Fiat & Chrysler CEO Sergio Marchionne’s pointed remarks have attracted the ire of Europe’s 500 pound gorilla Volkswagen. VW demanded that Marchionne steps down as president of the European auto manufacturers association ACEA. If he won’t resign, Volkswagen could resign its ACEA membership – which would send the club into instant irrelevancy, not to mention insolvency. (Read More…)
Sergio Marchionne accuses Volkswagen of exploiting the European crisis to gain market share by offering aggressive discounts, the New York Times writes. “It’s a bloodbath of pricing and it’s a bloodbath on margins,” the Fiat and Chrysler CEO told the paper. (Read More…)
Gilt, a subscription-based fashion deal website, was offering an incredible deal on two hot Fiat products. $5,000 off a Fiat 500C or Fiat 500 Abarth.
Abarth was founded in 1952 as a “one-stop-shop” for Fiat performance gear. What does that have to do with the 2012 Fiat 500 Abarth? Nothing. Seriously. In 1971 Abarth was purchased by Fiat, by the 1990s the “brand” had deteriorated to a trim level on questionable hatchbacks and by 2000 it was “dead trim walking.” In 2007 Fiat decided they needed a performance brand once again and resurrected Abarth with the inexplicably named “Fiat Grande Punto Abarth” and (more importantly) a complete line of clothing and accessories. Despite the apparent soft start for the brand in the Euro-zone, Fiat tells us they held nothing back for the launch of Abarth in North America. Our own tame racing driver Jack took the Abarth for a spin on the track back in March but this time we’re pitting Italy’s hot hatch against a bigger challenge: the daily commute.
Sometime toward the end of my high school years, “fast fashion” shops like Zara and H&M set up shop in at the local malls, and became the place to shop. The clothing there wasn’t any better than the Gap or the Ralph Lauren remainders at Marshall’s, but if you paid for your own clothes, you would have been silly to shop anywhere else.
Shopping at those stores went beyond mere fashion considerations. If you spilled beer all over your shirt at a party, it wasn’t even worth sending it to the dry cleaners. Just throw it in the washing machine and hope it comes out. If that fails, pay $9.99 for another one. Eventually, people got wise to the fact that after three washes, the clothes tended to fall apart, but we willingly ignored the cheapness because we could look cool on a tight budget. Which is exactly why the Fiat 500 exists.
While sitting through the new Pitbull-scored Fiat 500 ad, a model at :49 seconds in caught my eye – it looks a lot like the leaked photos of the 500T, which supposedly carries a version of the Abarth’s 1.4L turbo engine.
Sergio Marchionne has been one of the most prolific alarmists regarding European overcapacity, and who can blame him? The economy is in the dumps in Fiat’s home market, as well as crucial export markets, and closing a plant would come with all kinds of blowback.
According to Brazilian enthusiast site bestcars.com.br, Fiat will start selling the 500 L in Europe this month. Deliveries will begin in October. The good news is that the minivan will be available in 100 countries, including the good old USA. Fiat took the opportunity to supply more info on the first stem off its iconic Cinquecento that will spawn a slew of cars including the 500 X. Read on to find out the details. (Read More…)
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