• Jan 3rd 2011 at 4:29PM
  • 22
According to Automotive News, Fiat may be looking to increase its stake in Chrysler from 20 percent to 51 percent before the Pentastar goes public. If true, that would mean that Fiat intends to repay Chrysler's federal loans before their 2013 due date. Doing so would allow the Italian automaker to sink its teeth into its American property by an additional 16 percent.
Sergio Marchionne, who serves as the CEO of both Fiat and Chrysler, said that while he doesn't know for certain whether he would move to have Fiat take over a larger portion of Chrysler, it is a possibility. The executive said that such a move would provide plenty of benefits for both automakers.

Fiat itself has been undergoing fairly substantial changes outside of its tie-up with Chrysler. The company just split into two different operations, with its automotive efforts flying under one banner and its industrial work sailing under another.

[Source: Automotive News - sub. req.]

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    • 1 Second Ago
      • 4 Years Ago
      That means the remaining 49% of Chrysler shares will be available to be traded.
        • 4 Years Ago
        And that is a bad thing? They can always decide to sell more stock later.

        I just want to see purpose beind all the brands and which peice of the pie they will get?

        Fiat - Needs to be the mainstream Chevrolet/Toyota type brand. Everything from microcars to large minivans.

        Ferrari - will always be the performance oriented track king/queen. The Touring cars should start to fill in the Maserati's line up.

        Maserati - Think Aston Martin. Touring Cars, Sport Luxury Sedans. They should be comparable to AMGs, ///Ms, and Audi RS.

        Alfa Romeo - This should be the brand to compete with the Luxury Marques. Italian Design, Ferrari support in chassis development and great cars design to give Mercedes, BMW, Jaguar, and Audi a run for their money by producing cars just as capable, with style to equally satisfy.

        Chrysler - This should be the brand to compete with the entry level Luxury Marque. Think Lexus, Infiniti, Cadillac. Rear Wheel Drive bias (obviously AWD version should be available.) Lower Content, larger vehicles then the Alfas versions. Think Chevrolet Caprice (stretched Pontiac G8 versus the smaller Cadillac CTS.)

        Dodge - This should be the "Scion" brand of the group. Think Dodge Abarth 500, Viper ACR, Charger & Challenger SRT. This brands margin is based of the dealer installed accesories. They will have their own versions of products throughout the other brands, but geared towards the aftermarket croud.

        Lancia - Think Kia! (I would say Hyundai, but they have recently started to move into the mainstream lineup versus the value conscious line up...) They should also be a full product line, but their higher end cars should be comparable to an Avalon/Maxima/Impala or the entry luxury FWD vehicles like Acura, Volvo, Saab, Buick and Lexus ES. If they did anything larger, it should be comparable to a FWD Towncar for fleet purposes only.

        Jeep - This is easy. Keep the Off-Road icon brand Off-Roaders. Every vehicle in this line up should be capable of carrying the Jeep badge. If it does a CUV, its fine as long as they give it the Jeep capability. I think Land Rovers at a discount. Wrangler should get the pickup variant gladiator as discussed in an earlier thread. The Grand Cherokee is top notch. The current Patriot and Compass need to go. I'm sure the new future Panda 4x4 will disappear and next generation will share platfrom with the future Patriot/Compass replacement. I see the Liberty replacement to follow similar patterns with basing it of next generation's Doblo.

        Ram - This should be the Commercial division for all of Fiat's Fleet products. Think Trucks, Vans, etc.

        I'm sure there will be some overlap, but thats the only way to give some purpose to all the different brands. Otherwise they maybe gullible to fall into the GM pattern which Fiat almost did in its previous history.
        • 4 Years Ago
        CarCrazed - I'm actually in agreement with you by about 70% or so.

        Ferrari - supercars

        Maserati - Gentleman GT types of two door sports cars and upper level vehicles to take on Bentley Flying Sperms, Rolls-Royce Ghost (not Phantom), Aston Martin Rapide, Panamera, XJ & XK and S-Class. Yes some of those are low roof cars whilst others are standard luxury limos. Though, in my view they could do a Maserati 4 door saloon GT to compliment current two door line-up of coupe and cabrio, and have Quattroporte be more in line with standard luxury cars. I'd even go as far as gamble on some sort of a Range Rover / Cayenne type of a vehicle. I think the tricky part will be programming suspension settings where sport will be like Rapide and yet in comfort ride closer to an XJ.

        Fiat needs to be world brand and follow lead of VW and Ford as in "one world one brand" philosophy. They need to have Polo, Golf, Mondeo, Touareg, Touran and so forth in terms of competition. I would not bother with Toyota and Honda, as far as I'm concerned they are way behind. I'd take Hyundai very seriously though because it is no longer a value brand, but a global player with ever increasing respect.

        Alfa-Romeo should be an emotional brand, as in style should not follow function. It should make cars on every segment up to $55k Euro but with a bias toward driving athleticism. They need to look "bite back of your hand" emotional and sound proper too.

        Lancia is an extremely damaged brand especially in the UK and they will have to make do with its Chrysler siblings. Longer term though, I would probably kill it.

        Chrysler could be the worldwide brand to take on more mainstream luxury cars such as well...Lexus and Infiniti. I think there is something cool about Chrysler which makes it really cool, they just need to hit it spot on in terms of styling. I see it having American classy gangster type of style and have a ride setting which is more Jaguar-ish and Lexus like. I doubt it'd be a huge volume seller at first, but it could start out as a niche and then expand. I would not try very hard to go after A8 and 7er right off the bat.

        Dodge should be an American blue-collar brand and I don't see it being worthy of offering in UK or European market, I think gray-market could do it. Dodge Viper and such specialty cars could be ordered via Chrysler dealers.

        Jeep should be worldwide, it is a respected brand, just in need of some tweaks. Don't try to appeal to everyone.

        • 4 Years Ago
        maybe in the US.

        but alfa is not a mercedes or bmw competitor.
        it's more equal to a VW+ catogory
      • 4 Years Ago
      Here we go with the "Chrysler is no longer American" comments...
        • 4 Years Ago
        ya but its owned by a European company so the commenters wont criticize. If it were owned by an asian company then they would go to town on it.
      • 4 Years Ago
      While we have only barely seen what a Fiat owned Chrysler is capable of (recently restyled models based on older platforms), I am very encouraged by this news.

      This is good news.
      • 4 Years Ago
      Poor old Jeep. Fought the Axis in WW2 and then getting owned by Daimler and now Fiat. Next, Toyota which owns Subaru (formerly Nakajima).
        • 4 Years Ago
        Accurate historical counter-point FTW!

        Irrelevant misleading historical information FTL :(
        • 4 Years Ago
        Chrysler used to own 1/4 of Mitsubishi auto, which had a big role in WWII. So what's you're point?
        • 4 Years Ago
        Same parent company. But if you want to go that route, then Subaru had nothing to do with Nakajima aircraft either. By the way Mitsubishi make fighters and bombers for the navy and army air forces.
      • 4 Years Ago
      To get 51% Fiat MUST (due to Obama really being on his toes and insisting) transfer the technology and engineering to North America. First time EVER a foreign brand would allow technology etc to go TO North America. In laymans terms .. it mean essentially the ownership (simulated) or profit has to remain "here".

      Most people perceive the place of manufacturing to be where the profits MOSTLY go, but in the "new world economy" manufacturing goes to the place where the cheapest labour is -- in otherwords, low cost in order to boost profits to the owners of the technology etc. Toyota and Honda build plants in the US for because it makes Japan more money.
      • 4 Years Ago
      Fiat seems to be a much better custodian of Fiat than Daimler.
        • 4 Years Ago
        you mean a much better custodian of Chrysler than DBAG right?
      • 4 Years Ago
      I'm seriously looking into a 500 for daily use....

      I can always import the badges from Europe to replace the Chrysler

      I miss Fiat being here.
      • 4 Years Ago
      Jesus, all the Jap makes except Toyota and Honda made military equip-Isuzu and Mitsubishi especially. GM still owns a good deal of Isuzu I think. Alfa should just make niche cars, inexpensive driver cars w/ styling. Ferrari is Ferrari. Lancia, pretty much redundant. Chrysler can upgrade, cars between Acura and Dodges. Dodge will always be American, muscle cars and affordable family cars. Fiat can be the small car King of the bunch-they are making very FINE cars right now, but I hate to limit them-their innovation and styling are good. Masarati makes the only cars I like as good as Jaguars, I would kill my neighbors cat to own one. As far as I'm concerned, no matter how well the BMW's an MB's perform, the still don't look as good as a 10 year old Jag.
      • 4 Years Ago
      Yep, heard the news on TV here in Italy, Marchionne said he thought about increasing to 51% of Chrysler before the end of this year already....
      • 4 Years Ago
      see this marriage going much better than Chrysler's bitter ex...MBenz. Hopefully one day Chrysler can once again stand on its own feet~! http://www.usedtruckstogo.com
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