Sergio Marchionne, CEO of Fiat SpA and Chrysler Group, announced plans to bring the hecho en Mexico Fiat 500 to China. According to Gasgoo, Marchionne told reporters during the Detroit Auto Show that half of the 120,000 units built in the Toluca factory is destined for North America. The other half will be exported to China and Brazil. (Read More…)
Yesterday’s release of the Congressional Oversight Panel report on the auto bailout pointed out several fundamental problems with the government’s intervention in the auto industry, all of which stem from what the report termed the “mutually exclusive” goals of the Treasury in overseeing its investment in the industry. But that report focused entirely on the post-bailout management decisions by Treasury, ignoring the decisions made during the bailout itself. And though the White House has, in recent months, redefined its goals in bailing out GM and Chrysler to focus on the improved financial performance of the bailed-out automakers, this is clearly a recent recalibration of its political message. As I pointed out in my latest New York Time Op-Ed,
what Mr. Obama called his “one goal” — having Detroit “lead the world in building the next generation of clean cars” — is nowhere near being achieved.
And, as it turns out, the Administration’s actions in the bailout will inevitably come up well short of that goal in at least one important respect.
(Read More…)
Want to know how to get a good chunk of the Detroit 3, no money down? Easy: Today, Fiat increased its ownership of Chrysler from 20 percent to 25 percent. What did they pay for it? Niente. Fiat received the extra shares “upon the Company’s achievement of the first of three performance-related milestones,” as a Chrysler Group LLC press release proclaims. And what is that milestone? They started making an engine. (Read More…)
OK, we’ll admit that the ’75 Fiat 124 Spider was ridiculously underpowered with just 86 horsepower out of its Twin Cam engine, but compare that to the 62.5 horsepower of the ’75 MGB, a car so miserable that its manufacturer couldn’t afford to round the power figure down a half-horse. (Read More…)
Usually, unions take to the streets when their company is supposed to be sold. In Italy, unions demand the sale of their company.
In Milan, union representatives marched to the German consulate and handed the consul a letter in which they demand that Fiat lets Alfa go and that Volkswagen takes over.” With the letter delivered, the demonstrators grabbed megaphones and shouted: “Alfa has no chance with Fiat. We want Volkswagen!” Scusami? (Read More…)
According to Brazil’s Globo, Brazil’s baby darling, the new Uno, is outgrowing its baby shoes. Fiat must expand to keep up with the demand. The likely winner will be the northeastern state of Pernambuco. Fiat announced that it is in negotiations with that state’s government. Though the Italians denied that a factory was in the offing, what else should an automaker discuss with a state government? Police cars? It is a well known fact that Fiat needs more capacity. It is also well-known that Fiat and various state governments have been doing the habitual mating dance whenever a maker says it’s looking for a new place to call home. Next year will witness the beginning of operations at three new sites as Hyundai, Toyota and even Chinese Chery are busy building their new factories. The Big 4 (Fiat, VW, GM and Ford) in Brazil all have two factories, except for Fiat. Fiat only has one. Market conditions are now forcing the Italians to commit: Double-up or fold? (Read More…)
The Index of Effluency, considered the top LeMons prize, goes to the team that accomplishes the most with a car that never, ever belonged in the same time zone as a race track. A Fiat 600 with 1000cc Moto Guzzi motorcycle engine swap? Effluent and then some! (Read More…)
The rescue of Chrysler is making great strides. Sergio Marchionne today presented union officials an audacious plan. Powered by an investment of $1.3b, Chrysler and Fiat will build Alfa Romeos and Jeeps under one huge roof. The roof is in Mirafiori, Italy. Also known as the Fiat factory in Torino. And who will pay for all that? Fiat will pay 60 percent. Chrysler will pay 40 percent. (Read More…)
…and this is Fiat’s. The Italian brand left the US market in 1982, but it has returned with a first ad that seems like it was made sometime in the late 1990s. It’s a good thing the 500 has been relatively well–received, because it isn’t cheap and it clearly doesn’t have a fraction of the MINI’s marketing mojo. Between this, the “my tank is full” Ram ads (not to mention the entire first wave of “New Chrysler” ads), and the hallucinogenic Caravan spots, it seems like Chrysler’s Olivier Francois should be up for some kind of special award this year…
As a newcomer to Denver, I had my worries that the junkyards here would be wall-to-wall Sables and Sephias. Would my junkyard trips be a slog through a miasma of late-model boredom? As J. Frank Parnell said about the hazards of lobotomies: Not at all! (Read More…)
Abu Dhabi’s sovereign wealth fund, via its investment vehicle AMubadala Development Co, has sold back its 5 per cent stake in Ferrari to Fiat. It’s not that the sheiks were tired of Ferrari. Fiat wanted their shares back. Fiat had an option that gave it the right to buy back the stake that Mubadala had acquired in 2005 from Mediobanca, Italy’s largest investment bank for €114 million, domain-b reports.
Fiat paid €122m ($167m) to buy back the stock. Now their holdings climbed from 85 percent to 90 percent. Why would you want 90 percent in a small sports car maker if you already have 85 percent, and you need every penny of cash? (Read More…)
Chrysler has announced that the 2011 Fiat 500 1.4 Pop will start at a base price of $15,500 (before destination) with Sport models starting at $17,500 and Lounge versions starting at $19,500. All models are powered by Fiat’s 1.4 liter MultiAir engine, making 101 HP and 97 lb-ft of torque… and luckily the little engine has only 2,400 lbs to move. The base model gets 15″ steelies, cloth and a CD player, while the Sport model adds 16″ alloys, remote keyless entry, cloth/vinyl sport seats and steering wheel, sport suspension and a lightly modified exterior. The range-topping Lounge trim gets 15″ alloys, a Bose stereo, the Microsoft-based “Blue&Me” hands-free media system, premium cloth seats, a glass roof, body-color side moldings and chrome accents as well as a standard automatic transmission and automatic climate-control. Check out the three versions at Fiat USA’s new site… and hit the jump for Fiat’s just-announced list of US-market dealers.
Fiat could do more if it could cut off Italy
Having been handed a bankruptcy-rinsed Chrysler by the American government, Fiat’s Canadian-born CEO Sergio Marchionne is beginning to see Italy as nothing more than aging, uncompetitive factories and troublesome unions. And now he’s not just telling the Italian media that not only would Fiat be better off without the country that birthed it. According to Reuters
The CEO added that not a single euro of the 2 billion euros ($2.8 billion) of trading profit that Fiat is targeting for 2010 will come from Italy, where all Fiat car passenger plants are loss-making.
The funny part: Chrysler still holds a value of precisely zero dollars on Fiat’s balance book. And with the Fiat and Alfa-Romeo brands headed to the US, Italian-ness is still an important element of Fiat’s identity. But until Marchionne’s Chrysler revival and Italian invasion take hold stateside, and as long as mother Italia is a drain on its resources, Fiat might be best described as a Brazilian company.
Italian speakers can enjoy Marhionne’s interview here.
It’s easy to see why Sergio is feeling mighty pleased with himself. Fiat is predicted to turn a €400 million profit this year (that’s about $556m) and Fiat is expanding in Brazil, a huge car market. So can some of this good fortune rub off onto Chrysler? Possibly 35 percent of it can, if Sergio has his way.
The Freep reports that Sergio Marchionne, CEO of Fiat and Chrysler, has told analysts that Fiat is planning to raise its stake in Chrysler from 20 percent to 35 percent by the end of next year “barring unforeseen circumstances”. A big vote of confidence, indeed. When Fiat took its initial stake in Chrysler, it was given the option to increase its stake by 5 percent tranches, provided it could meet certain goals. (Read More…)
GM is the market leader in the United States. Volkswagen has Europe. Toyota has Australia and Japan. Fiat has…. Brazil? That’s right. Fiat is the number one in Brazil. Brazilians do love a good Fiat. But with Volkswagen’s global ambitions, that number one position in Brazil isn’t safe for Fiat. Volkswagen is number 2 there and if it one thing Volkswagen doesn’t like, it’s playing second fiddle. This is why Fiat is going on the offensive. (Read More…)
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