The throw-down between Fiat CEO Sergio Marchionne and Volkswagen has heated up in earnest. According to Bloomberg, Fiat and Chrysler are now offering current Volkswagen owners in the US $1,000 rebates to trade in their ride. It's the latest in a series of shots Marchionne has taken at his German rival. As you may recall, the Fiat executive entered into a spat with Volkwagen board chairman Ferdinand Piëch and CEO Martin Winterkorn in October after the duo called for Marchionne's resignation from presidency of the European Automotive Manufacturers Association (AECA). At the time, the Volkswagen executives were quoted as saying Fiat would not survive the European economic downturn.

In response, Marchionne called the German executives "reprehensible," and accused Volkswagen of using a pricing strategy that has created created a "bloodbath" in the EU. Volkswagen has taken to steep discounting to carve out ever-larger slices of market share in Europe, but the company has a much smaller foothold in the US. Marchionne may be trying to hit Volkswagen where the manufacturer is weakest with the new Fiat new incentive program.

Late last week, the Fiat executive was voted to a second term as ACEA president.


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  • 80 Comments
      John
      • 2 Years Ago
      Don't underestimate how many ladies currently owning badly aging New Beetles might take advantage of this. A friend recently traded in her completely trashed bug, including a ziploc bag of parts that had either fallen off or broken, on a Fiat 500 and was thrilled to get the $1,000. That cash is just an incentive. You could actually take it just for owning the VW and then sell your car yourself. She happily dumped hers with them and they gave her another $500 for it. While the Fiat is smaller, it gives off the same sort of cutsey-pooh style that she loves.
      vizcarmb
      • 2 Years Ago
      I guess im getting me that viper!!!
      scooters2
      • 2 Years Ago
      Whats next, Cadillac offers $1000 to BMW owners to trade in their ride too?
      cgm9999
      • 2 Years Ago
      As a former VW owner, there isn't a single vehicle in the Fiat/Chrysler portfolio that isn't a huge step down from what VW offers. It's going to take a lot more to get someone to trade in their Passat for an Avenger or Golf for a Dart, or Touareg for a Journey. Frankly, I wouldn't do it for any price.
        lasertekk
        • 2 Years Ago
        @cgm9999
        Former VW owner? Your break down too?
        RJC
        • 2 Years Ago
        @cgm9999
        Somehow I doubt it.
        The Wasp
        • 2 Years Ago
        @cgm9999
        Volkswagen Routan. Volkswagen disagrees with you.
        Xedicon
        • 2 Years Ago
        @cgm9999
        The Journey gets great reviews after its refresh, and the Dart is very competitive and gets good reviews, and the buying public disagrees with you on the Avenger / 200 as Chrysler is selling a whole lot of em (especially the 200). As for VW they've cheapened the hell out of their cars just for the sake of volume... Because that's not going to cause problems or anything.
      Leet
      • 2 Years Ago
      This is a case of a CEO's ego biting off more than it can chew. Who is to say VW doesn't come back and say, "hey FIAT owners, get a $2000 rebate when you trade any FIAT/Chrysler in for a new car from the VW family." I think it would be hilarious if VW just squashed them in Europe forever. They make crap cars as it is...it would be no loss. Ferrari would survive obviously, because its Ferrari. The rest of the FIAT makes can go to the dumpster.
        Legione13
        • 2 Years Ago
        @Leet
        VWs aren't exactly a paragon of reliability.
        wickedme91
        • 2 Years Ago
        @Leet
        VW will get 20 new customers and Fiat will get 200 new ones.
        Spankie82
        • 2 Years Ago
        @Leet
        Leet, you do get that VWs blow, right?
        gtv4rudy
        • 2 Years Ago
        @Leet
        WVs cost an arm and a leg to maintain and soon enough with their famous unreliablity will end up in the scrap yard before you know it. At least the FIATs are cheap to fix.
      lasertekk
      • 2 Years Ago
      Go Sergio. Stick it to those passionless kraut suckers.
      Shiftright
      • 2 Years Ago
      The Germans are dicks. Screw'em...Sorry, but still pissed off by how Daimler raped and pillaged Chrysler and left but a carcass. Suzuki received no favors from VW either.
        Val
        • 2 Years Ago
        @Shiftright
        So raped chrysler is so raped and pillaged, that it is currently carrying FIAT on its back. Yes, without chrysler, fiat would probably be bankrupt by now. And the germans also bought skoda, bentley, mini, rolls-royce, lamborghini and bugatti. You dare call those carcasses? Suzuki played a bluff and lost.
        razorpit
        • 2 Years Ago
        @Shiftright
        Gotta agree on the Diamler comment, Suzuki not so much.
      DRO3000
      • 2 Years Ago
      They both make terrible cars so who really cares?
        MAX
        • 2 Years Ago
        @DRO3000
        Probably better than whatever appliance you drive.
        Shiftright
        • 2 Years Ago
        @DRO3000
        Says you, the rest of the world disagrees
        • 2 Years Ago
        @DRO3000
        [blocked]
      MLZ
      • 2 Years Ago
      Fiat is playing a dangerous game with VW, you don't poke the BEAR!
      Street King
      • 2 Years Ago
      LOL, this doesn't have anything to do with the CEO's - it has to do with the DART. Go look at the car again, and then look at a new Golf or Jetta..its very clear they went after those cars with the Darts styling and size / infotainment etc. They want Euro buyers for their Euro car....'Nuff said. And to be 110% honest, I'll take the Dart 1.4T + twin clutch 6-speed over the VW version.
        Donny Hoover
        • 2 Years Ago
        @Street King
        The Golf is not comparable to a Dart at all but they just dumbed down the Jetta and ruined it. I would avoid the Dart on principle because of the curb weight and Chrysler's terrible reliability. I'm sorry, 600 lbs more than a Civic sedan is absolutely pathetic. I don't know what I'd buy in that segment right now, but I'm certain both the Dart and the Jetta would be at the very bottom of the list.
      Carlos Cruz
      • 2 Years Ago
      No thanks, I'll keep my 2012 GTI Autobahn. There is no car in either stable that I'd consider, even for $1000 off the sticker. (And before you even comment, troll, my car hasn't had any major mechanical problems, and the 3 VW's before that haven't been part of some VW electrical nightmare, as some of you would describe it.)
      hondosan
      • 2 Years Ago
      they just want the used VWs, because they know it's going to be easier to sell those than their own line up :D
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