Uh-oh: The UAW has reached out to unions representing workers of Chrysler and Fiat in other countries. They want to form a “global network.” The group will not collectively bargain with the companies, King told reporters from Reuters. The group will be just an innocuous clearing-house for information. (Read More…)
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Tag: Fiat
You’d think with an owner by the name of Fiat, Chrysler would be knee-deep in small cars. Just the opposite is true. The Freep complains:
“Chrysler, for all of its recent improvements, is missing out on one of the biggest opportunities of the year: a chance to grab a larger slice of the small-car segment while Japanese automakers try to rebuild their car supplies after the March earthquake and tsunami that disrupted operations.”
Alfa’s four-year product plan has leaked to autoblog.it, and though it takes a little deciphering it confirms what we’d been hearing: that key Alfa products will be “Imported from Detroit” (to borrow a phrase). Here’s what we’ve been able to piece together: the 2012 models are the 4C “supercar” (note Alfa’s use of scare quotes around the term) and the Compact-Wide “C-SUV,” which will be built alongside the next-gen Jeep Compass and Patriot in Italy. Then, in 2013 the midsized Giulia sedan and sportwagon will debut, underpinned by the developed-in-Detroit next-gen 200/Avenger platform. That same year, the MiTo will gain five-door and convertible versions as well, with a more-mysterious D-SUV that will likely be closely related to the next-gen Jeep Liberty. Finally, in 2014 Alfa will update its C-segment Guilietta, at which point it should be ready for global (i.e. US-market) duty.
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
I am sorry I am being brash but when you owe money to people and you pay them back you shouldn’t be celebrating. You just cut them a check and send them home and say thank you on your way out
We’ve given Fiat/Chrysler CEO Sergio Marchionne some grief for his somewhat unseemly self-congratulation at his repayment of “every penny loaned less than two years ago.” This quote, given to CNBC, is more what we were looking for. After all, one imagines that Chrysler doesn’t hold such celebratory spectacles for folks who finish paying off loans on their Calibers and Caravans. Acknowledging the mundanity of Chrysler’s Wall Street re-fi is a much better way for the firm to re-boot its post-bailout relations with the American people. For this quote, as much as for the promising but still-wildly-uncertain turnaround of Americas most troubled automaker, I am happy to extend Mr Marchionne and his team a modest, unceremonious word of thanks.
After the U.S. and Canadian government are out of the car business, at least as far as Chrysler is concerned, Fiat will own 52 percent. Who owns the rest? A large chunk, 45.7 percent, is owned by the UAW. By the UAW’s VEBA healthcare fund, to be exact. And the union is in no great hurry to change that. The UAW has a big “HOLD” on their share of Chrysler, hoping that the value goes up. That’s what “two people familiar with the fund’s strategy” told Reuters today. (Read More…)
Fiat has reached an agreement with the U.S. Government that will give Fiat 52 percent of the shares in Chrysler and therefore the final controlling majorioty. The Treasury said on Thursday it will sell its remaining 6 percent equity stake in Chrysler to Italy’s Fiat in a deal that will net Washington $560 million, Reuters reports. (Read More…)
When Chrysler celebrated its payback of “every penny that had been loaned less than two years ago” last week, I noted that CEO Sergio Marchionne’s triumphant line was technically correct, but hardly represented the whole truth of the story. I pointed to $1.5b in supplier aid that helped keep Chrysler afloat, as well $1.9b worth of the Bush Administration’s “bridge loan” to “Old Chrysler,” prior to its government-guided bankruptcy and sale to Fiat. Apparently my more-inclusive accounting of the price of Chrysler’s rescue (which was picked up elsewhere in the online media) caused Mr Gualberto Ranieri, Chrysler VP of Communication, to spend some part of his Memorial Day Weekend writing a response of sorts, outlining Chrysler Group LLC’s perspective on the situation. Hit the jump for Ranieri’s statement, and my brief answer to the headline’s question.
(Read More…)
Does that headline seem ripped from the pages of TTAC’s 2008-2009 headlines, or what? But really, who’s shocked? Chrysler spent early 2009 trying to convince the government that it was worth a (second) taxpayer-funded second chance, and now that it’s looking for a private-sector bailout in order to escape the terms of its publicly-funded bailout, Chrysler’s still got some ‘splaining to do. The DetN reports:
Chrysler Group LLC does not intend to speed up plans for new cars despite media reports that investors see a high degree of risk in an automaker that has been so dependent on truck sales…
“Nothing has changed from the five-year plan,” [Chrysler Group VP of Design and Dodge boss Ralph Gilles] said.
New small and midsize cars for Chrysler, engineered by Fiat, “are coming strong and heavy,” Gilles told reporters following a speech. “There is no need to speed up.”
Now, nobody would suggest that Chrysler should mess with its product timing simply to please some bankers. If it’s even remotely possible to hurry new products to launch without cutting serious corners, Chrysler should/would be doing it anyway (ask Sergio). Still, Gilles’ “nothing has changed” sound bite isn’t exactly true.
Nobody rescued the low-mile ’66 Coronet from its date with The Crusher (though as far as I know it’s still alive), but now we’ve got a new Put Up Or Shut Up Challenge! (Read More…)
Are there any 124 Spiders still driving on American streets, or is every single one sitting in a back yard or driveway, waiting for steel prices to rise high enough to trigger the final tow-truck ride to The Crusher? (Read More…)
We’ve seen a fair number of outstanding engine swaps in 24 Hours of LeMons racing— the Saab B Turbo-powered 300ZX comes to mind— but most such projects tend to have reliability and/or performance issues in the car-slaughtering arena that is LeMons. At the frozen Campaign To Prevent Gingervitis race a couple weeks back, the much-anticipated radial-engined MR2 ate its drivetrain after a single lap, but there was one outlandishly butchered machine that actually contended for the overall win: the Alfa Romeo quad-cam V6-powered Bertone X1/9 of Team Launcha Splatos. (Read More…)
In a few months, Fiat will own 46 percent of Chrysler, Fiat announced today in Turin. With another 5 percent milestone reached by the end of the year, Fiat will have the 51 percent majority in Chrysler. According to Germany’s Automobilwoche [sub], the 46 percent level will be reached after Chrysler has paid back the government loans. Payment of the loans is expected for the second quarter of 2011. (Read More…)
There’s been a recent groundswell of interest in natural gas as a fuel for cars in recent months, marked by Honda’s decision to sell a natural gas-powered 2012 Civic in 50 states, Edmunds CEO Jeremy Anwyl’s public paean to the fuel, and the EPA’s relaxation of natural gas conversion regulations. Honda alt-fuel manager Eric Rosenberg enthuses to WardsAuto
We’re the Saudi Arabia of natural gas… Demand [for the Civic GX] has tripled, and that’s actual retail demand. Traditionally, fleet has been about 50% to 55% of demand, but now it’s dropped; now 80% of demand is retail.
And since Chrysler’s new guardian, Fiat, has plenty of (well-subsidized) natural gas experience in Italy, it’s no surprise that Chrysler’s looking to get in on the action (Chrysler’s own experience with the stuff was brief). In fact, just last year Fiat-Chrysler was pushing the idea of natural gas cars as a stopgap until its first EV (the 500) arrives in 2012. Now, presumably because the desired government help wasn’t forthcoming, Bloomberg reports that Chrysler is only promising gassy goodness “by 2017.” Now there’s an interesting way to jump on a bandwagon.
Exactly a week ago, Fiat said it would up its stake in Chrysler “within weeks,” and according to the Detroit News, the deed is now done. Having earned 5% of Chrysler’s equity by building a FIRE-family engine in the US (for use in the Mexico-built Fiat 500), Chrysler had to confirm that it has brought in $1.5b in non-NAFTA foreign revenue, and (according to Chrysler’s LLC agreement [PDF])
[execute] 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
in order to bring its stake up from 25% to 30%. We already know that Fiat will achieve this goal by rebadging Chrysler vehicles as Fiats for Latin American markets, a move that is technically compliant with the letter (if not the spirit) of the LLC agreement. But, it turns out that Fiat still had to get the Treasury to amend its agreement in order to bend the rules just a little bit more.
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