Automotive News [sub] reports that Fiat/Chrysler will become the latest in a line of third-rate global automakers to form a joint venture with the Russian firm Sollers, with plans to produce half a million units of nine Fiat and Chrysler models at a new plant in Naberezhnye Chelny. Previously Sollers had formed joint ventures with such notable automakers as Ssangyong and Isuzu. Reuters reports that Russia’s state-owned banks will provide most of the venture’s $2.9b in start-up costs. But Fiat/Chrysler has a tough road ahead of it. An analyst for BrokerCreditService describes Sollers’ challenge thusly:

The main object of this plan is to take some, I think, little market share in Vladivostok and Primorsky Kray Russian region, because over 80 or 90% of cars in this region are used cars of Japanese production.

Chrysler has yet to prove that it can handle that kind of competition in the US market, and it will be interesting to see how new Chrysler models sell against the previous-generation Sebring/Stratus, which is produced in Russia as the GAZ Volga Siber.

Fiat’s Sergio Marchionne looked like a pretty shrewd operator when he was able to snag a bailed-out Chrysler from the US government without paying a penny. Between that and the booming European sales on the back of government-funded scrappage schemes, Fiat pretty much spent 2009 proving that automakers should cater to governments almost as much as consumers. But as 2009 wound down, Fiat’s government affairs winning streak came to a halt as the Italian government started asking for a little quid for its quo, and it’s been going downhill from there. Now that Fiat wants to shut down its Sicilian Termini Imerese plant, and right-size Italian production, the love affair is officially over. “We are examining the possibility of renewing [consumer incentives],” Italian Prime Minister Silvio Berlusconi told reporters from Automotive News [sub]. “But Fiat does not seem interested in them.”

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Today’s review of the Fiat Bravo is more than just a unique look at a European-market vehicle that will never be sold in the United States: it’s an(other) early look at the future of Chrysler. Sergio Marchionne has called the C and D segments “critical” for US-market success, and the C-Evo platform that lies beneath the Fiat Bravo tested today, will form the basis for planned 2012 replacements to the Caliber and PT Cruiser and possibly the re-launched Sebring and Avenger (reportedly in stretched form). Indeed, the Lancia-trimmed version, known as the Delta, was shown at the Detroit Auto Show in Chrysler-brand drag, apparently to prove how easy these rebadges will be. As cynical as this might seem, Mr Bronfer’s relatively positive review leaves little doubt that Fiat’s got more to offer the C and D segments than the aging, neglected Mitsubishi platform that currently underpins Chrysler’s offerings in these classes. In that sense, this is some of the most positive news we’ve heard about Chrysler’s future in a while.

Having re-birthed themselves at the taxpayers’ expense, one of Chrysler’s top priorities is restoring the brand equity that has bled out since the Daimler takeover.  First up was the move to spin “Ram” off as its own brand, and now it seems that no-one is safe from “re-birth,” as UPI.com reports that Chrysler are rethinking their strongest brand, Jeep. Unfortunately, one man’s brand rebirth is another man’s brand betrayal. Chrysler want to replace all of Jeep’s products, except for the Wrangler and Grand Cherokee, and the idea is to utilise Fiat’s experience of fuel efficient engines as the basis for it. That means Jeep is likely to become smaller, more fuel-efficient and less off-road capable [rumors of a Fiat Panda 4×4-based Jeep (rendered above) date back to the earliest days of the Fiat-Chrysler alliance]. If you had to boil the proposed shift into a single word, UPI figures it would be “soft.” And the markets have reacted to this news in pretty much the same way you’ve probably just reacted: they think the idea is bad. Very bad.

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Today’s tester is a Red Alfa Romeo. So I really shouldn’t be telling you how its name is derived from the cities of Milano and Torino. I shouldn’t be revealing that it’s based on the Fiat Punto and I really needn’t elaborate about its underhood gadgetry, because in days of yore, “Red” was all you needed to know about an Alfa Romeo. On the other hand, to paraphrase Dylan, things have changed.
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Mamma mia! Fiat’s order book looks “worse than in the beginning of 2009, when we were deep in the economic crisis,” said Sergio Marchionne. Cosa facciamo? Eccola: Fiat will close all of their Italian plants for two weeks, from February 22 to March 5, reports Das Autohaus.

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Retro cars sell on looks. Take the Chrysler PT Cruiser as an example – automotive perfection it wasn’t, and yet it sold like iPods on a Black Friday. Others, like the Mini Cooper, proved that retro cars can look like the past and drive like the present. But worth driving or not, almost every retro car introduced over the last few years has been a marketing sensation, bringing easy revenue and much-needed customers into an otherwise dull product line, and reviving deserted showrooms. No surprise, then, that upon reviewing the stellar sales of the Ford Mustang, Mini Cooper and the Volkswagen New Beetle, Fiat’s chiefs in Torino decided that it was time to launch a true Italian vendetta. It didn’t take long to find inspiration: the instant choice was the Fiat 500.
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Chrysler/Fiat CEO Sergio Marchionne has a handful of brand management on his plate, as he aligns his two firms for the future. Merging Lancia and Chrysler was an obvious move; creating one full-line brand (albeit with different names from market to market) is a lot better than trying to keep two distinct brands, although even with their powers combined, Chrysler/Lancia is going to have an uphill struggle. With Lancia “taken care of,” the biggest problem on Fiat’s plate is Alfa Romeo, which has reportedly lost €200m-€400m per year for the last decade.

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“In Europe, Lancia is an undersized, underdeveloped brand, with nothing bigger than the Delta. Chrysler, which has a true global reach, has nothing smaller. Put them together and you have a full line-up,” is the short version of Sergio Marchionne’s plans for the Chrysler and Lancia brands. The surprising bit [via Autocar]: “we could see the two converge as early as the end of the year.” For Americans this means that some of the holes in Chrysler’s lineup could be plugged up by rebadged Lancias along the lines of the Delta shown at the Chrysler stand at the Detroit Auto Show. And hey, who are we to say no to all-new Chrysler products? Goodness knows the brand needs something new besides special edition lipstick on the same old pigs. There’s only one hitch…

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Having been told by the Secretary of Transportation that the Chrysler Group’s motley assortment of new trim level names, rebadged Lancias, decal-sporting special editions represents “the cutting edge of developing the kind of products that I think people in this country, and also in other countries, are really going to feel very favorable toward,” CEO Sergio Marchionne apparently thought enough had been said about his struggling bailout baby. As CBS reports, Marchionne suddenly canceled a 45-minute scheduled press availability before he had the chance to confirm LaHood’s astonishing opinion.

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We’d heard that Dodge (“The Full-of-Life Brand”) would be re-working its trim levels in order to “take ‘base model’ out of the Dodge vocabulary,” as a company press release puts it.  So, they’ve changed the names of trim levels on some Dodge models. First off, note that only certain models get the trim level name change: Caravan will still be sold in SE and SXT trim, and Challenger will still come in the standard SE, R/T and SRT8 trims. Otherwise, each model has its own trim levels: Journey now comes in Express, Hero, Heat, Crew and Uptown trims, Nitro is available in Heat, Detonator and Shock, while Caliber comes in Express, Mainstreet, Heat, Uptown and Rush, while Avenger comes in Express and Heat trim. What the Foxtrot does it all mean? There’s no way we want to break it all down, so surf on over to Kicking Tires for the full breakdown. Needless to say, it’s yet a another marketing mess from the soon-to-be defunct bailout baby named Chrysler Group.

The very first post-bankruptcy, Chrysler-brand advertisement was a true re-badge, literally replacing Lancias with Chryslers in the exact same advertisement. The second spot, which we ran yesterday, was a vague, year-end spot emphasizing history and heritage while showing only one modern car. Though it’s not a strict re-badge like the Lancia ad, the new Chrysler ad is, at the very least, based on some serious platform-sharing. Specifically the ad above, an Italian-language spot for the Fiat Group, is thematically identical to the Chrysler ad.

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We’ve always said the Fiat-Chrysler alliance was positive. The headquarters of an increasingly global company are here. But I wouldn’t like to see new auto products being developed in the United States and not here in our own research-and-development facilities.

Andrea Bairati, commissioner for innovation for Italy’s Piedmont region in a WSJ piece on Fiat’s annual meeting in Turin. Maybe if Piedmont had kicked a few billion in on the Chrysler-Fiat alliance, Mr Bairati wouldn’t feel quite so slighted.

At the urging of the Italian government, Fiat said today that it is willing to shift production of Pandas from Poland to the Pomigliano plant in Naples and invest “hundreds and hundreds of millions” in order to bring its Italian production to over 800k units per year. But, he warns, the Italian government must extend domestic consumer credits in order to sop up the increased capacity or face a rapid market contraction. As part of the deal, the government would allow Fiat to shut a terminally unproductive plant in Sicily, for as Sergio says, “the number of cars produced per worker [in Italy] is totally out of proportion” compared with plants in Brazil or Poland. “It doesn’t correspond with any industrial logic.” He’s right, of course, but you have to admit that it’s strange to see the man who took American taxpayers for a savage ride by snagging a bailed-out Chrysler without putting a penny down, suddenly bankrolling the oblivious nationalism of the Italian government.

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