Autoblog

REPORT: Fiat 500 to launch in the U.S. with Abarth performance model

Noah Joseph — Wed, 28 Oct 2009 01:29:00 EST

Filed under: Performance, Hatchback, Fiat

Fiat 500 Abarth EsseEsse - Click above for high-res image gallery

With every passing week comes another report of how Fiat and Chrysler will be sharing products. If it's not Chrysler-badged Lancias then it's Lancia-badged Chryslers or an Alfa-badged Jeep. As for the Fiat division itself, the emerging strategy appears to be to bring the 500 retro-mini over and set it up as something of a brand of its own, with sights set squarely on BMW's Mini and forgoing the rest of the Fiat line-up.

Earlier reports indicated that we'd be getting four versions of the 500 Stateside, including basic hatch, cabrio and upcoming wagon in addition to the Abarth performance model. But rather than start with the basics and work its way up, or launch the entire range simultaneously, the latest news suggests that Fiat is preparing to hit U.S. soil running by starting off with the 500 Abarth. According to WardsAuto, the Fiat 500 Abarth - complete with 133-horsepower turbocharged four, upgraded suspension and all the sporty touches that make an Abarth an Abarth - will arrive at Chrysler dealers in 2011 with an $18,000-$19,000 price tag. Fiat reportedly targets selling 20,000-25,000 units of the 500 Abarth in the first year.

By the time the 500 Abarth arrives, we'll likely be looking at an updated version with even more oomph. With the standard hatch, the open-top 500C and the upcoming Gardiniera wagon expected to follow, there's no telling if the initial model will be the only Abarth on offer, or whether Fiat will follow up with the even hotter EsseEsse version (pictured above), racing models like the Assetto Corse or R3T, an Abarth convertible or specials like the 695 Tributo Ferrari or an Opening Edition of our own.

Gallery: Fiat 500 Abarth

[Source: WardsAuto.com]

REPORT: Fiat 500 to launch in the U.S. with Abarth performance model originally appeared on Autoblog on Wed, 28 Oct 2009 01:29:00 EST. Please see our terms for use of feeds.

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Autoblog Podcast #149

Dan Roth — Wed, 14 Oct 2009 10:44:00 EST

Filed under: Podcasts, Budget, Hybrid, Technology, Tokyo Motor Show, Chrysler, Dodge, Toyota, Tokyo Auto Salon, Electric, Lancia

Click above for the Autoblog Podcast in iTunes, RSS or listen now!

Episode #149 of the Autoblog Podcast, the first frost edition, has arrived. The Tokyo Motor Show is coming up, and there have been a couple previews of what to expect there. The Toyota FT-86 concept has had everyone abuzz with its heralding as the spiritual successor of the much-beloved AE86 of the 1980s. Also building excitement for Tokyo is Subaru's Hybrid Tourer concept. Moving on from Asia, we touch on Lancias being rebadged as Chryslers before wrapping up with Chrysler and Fiat's collaboration on an electric car. Very last, we hit up some questions before calling it a night and going to sleep off our ailments. Keep the feedback rolling in to Podcast at Autoblog dot com, thanks for filling our survey with data, and we'll see you soon for #150! Remember, if you get lonely, there's always Joystiq and Engadget. Thanks for listening!

Continue reading Autoblog Podcast #149

Autoblog Podcast #149 originally appeared on Autoblog on Wed, 14 Oct 2009 10:44:00 EST. Please see our terms for use of feeds.

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Ciao! Fiat to build Chryslers in Italy?

Chris Shunk — Thu, 17 Sep 2009 14:39:00 EST

Filed under: Europe, Plants/Manufacturing, Chrysler, Jeep, Fiat

Fiat is hard at work trying to come up with the best available use of its newly acquired Chrysler arm. Part of that plan may be to sell more Chrysler products in Europe, and Fiat just so happens to have an available factory to build them in. Automotive News is reporting that Fiat CEO Sergio Marchionne says the company would use its freshly purchased Carrozzeria Bertone plant near Turin, Italy. Fiat purchased the facility in July, just a few weeks after Chrysler exited chapter 11 bankruptcy.

Marchionne declined to discuss which vehicles would be built at the factory, but those following the Italian automaker have plenty of reasonable guesses. AN quotes sources who say the facility could open as soon as late 2011, and it could build the next generation Chrysler 300. The upcoming new 300 will reportedly begin production in the US in early 2011, and the 300's RWD platform is rumored to be used in future Alfa and/or Lancia models. The sources also claim Jeep models could be built in other Fiat facilities by using complete knock down kits shipped from here in the US.

[Source: Automotive News - Sub. Req'd | Photo: DAMIEN MEYER/AFP/Getty Images]

Ciao! Fiat to build Chryslers in Italy? originally appeared on Autoblog on Thu, 17 Sep 2009 14:39:00 EST. Please see our terms for use of feeds.

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Will Chrysler get Fiat Ducato or Iveco Daily to replace departing Sprinter?

Dan Roth — Tue, 08 Sep 2009 08:59:00 EST

Filed under: Minivan/Van, Work, Chrysler, Dodge, Mercedes-Benz, Fiat, Specialty

Fiat Ducato - Click above for high-res image gallery

Easy come, easy go - that's apparently Chrysler's luck with repurposed European-market work trucks. For the last few years, Chrysler has offered the German-designed Sprinter van under the Dodge nameplate. Mercedes-Benz wants its rig back, so it's taking the well-regarded work vehicle out of Pentastar dealerships and anointing about 120 of its own dealerships as Sprinter outlets. Consider it more terms of Chrysler's divorce from its one-time masters.

Now that Chrysler's ownership has moved south to Italy's Fiat, the Euro-work-truck hole in the showroom may be filled by something from the new management's portfolio. The Iveco Daily from Fiat's work truck division might easily fill the Sprinter's void. About the same size as the full-length Sprinter, the Daily might be a little too much for buyers considering the shorter versions of the captive Daimler. Fiat's Ducato might be a better fit, offering the tall format that Sprinter buyers have found useful without being quite as large at the Iveco.

If either truck heads this way to fill the void, it will not be badged as a Fiat. Gualberto Ranieri, Chrysler's Senior Vice President of Communications, has asserted that "the only Fiat vehicle in North America will be the Fiat 500. Period."

Gallery: Fiat Ducato and Iveco Daily

[Source: Automotive News - Sub. Req'd]

Will Chrysler get Fiat Ducato or Iveco Daily to replace departing Sprinter? originally appeared on Autoblog on Tue, 08 Sep 2009 08:59:00 EST. Please see our terms for use of feeds.

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REPORT: Chrysler to display at Fiat booth in Frankfurt

Noah Joseph — Thu, 27 Aug 2009 08:30:00 EST

Filed under: Frankfurt Motor Show, Marketing/Advertising, Chrysler, Fiat

Chrysler Deputy CEO Jim Press arrives on stage at the 2009 New York Auto Show in a Fiat 500

Ever since the deal for Fiat to effectively take control of the troubled Chrysler group took effect, we've harbored a lot of questions over how the two companies would interact. With Fiat CEO Sergio Marchionne taking the big office in Auburn Hills, some speculated that the two automakers would, in essence, merge, while others looked to Nissan and Renault chief exec Carlos Ghosn as a potential example - that is, keeping the two companies allied but run separately. Well, we may have our first glimpse at the answer with reports that the two automakers will be displaying together as one unit at next month's upcoming Frankfurt Motor Show.

Both Chrysler and Fiat have a history of making big splashes at auto shows, and Frankfurt will be the first major car expo since the alliance was reached. Chrysler, for the most part, has kept a low profile since emerging from bankruptcy two months ago. And according to the latest reports, Chrysler will be limited to a section of the Fiat stand. Whatever approach Marchionne takes towards his two charges in Frankfurt, you can bet everyone will be taking notice.

[Source: The Detroit Bureau]

REPORT: Chrysler to display at Fiat booth in Frankfurt originally appeared on Autoblog on Thu, 27 Aug 2009 08:30:00 EST. Please see our terms for use of feeds.

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Autoblog Podcast #139

Dan Roth — Wed, 05 Aug 2009 17:45:00 EST

Filed under: Car Buying, Podcasts, Acura, Chevrolet, Chrysler, Ford, GM, Earnings/Financials, Fiat

Click above for the Autoblog Podcast in iTunes, RSS or listen now!

As sure as the August heat is going to make that ice cream cone melt all over your hand, the Autoblog podcast keeps notching up new episodes. Chris, Sam, and Dan blocked out some time to sit in front of the microphones and chat about a few things, and thus we present to you Episode #139 of the Autoblog Podcast. Surprisingly positive sales figures start us off, and we stay on that category for a little while, mulling the Ford Focus's top status as a C4C purchase, and Camaro beating Mustang again in sales figures. Moving on to the truly sublime, we talk about the exotics at the MeadowBrook Concours before hitting on Fiat's MultiAir technology port and then wrapping with some of your questions. Thanks for all the response so far to our survey, and iTunes users can submit reviews of our work at the Autoblog Podcast iTunes page, too. We're always reachable at Podcast at Autoblog Dot Com, too. See you next week!

Continue reading Autoblog Podcast #139

Autoblog Podcast #139 originally appeared on Autoblog on Wed, 05 Aug 2009 17:45:00 EST. Please see our terms for use of feeds.

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REPORT: Alfa favors larger sedan as first salvo in new American push

Dan Roth — Tue, 04 Aug 2009 15:58:00 EST

Filed under: Sedan, Europe, Plants/Manufacturing, Chrysler, Alfa Romeo, Fiat

Fiat's plan for re-entry to the U.S. market includes Alfa Romeo, as well as pumping up its Chrysler interests. While Alfa has desirable hatches like the MiTo and the 147, the company thinks it might have the best luck relaunching in the States with its upcoming Giulia sedan. The Alfa Romeo division is a money sink right now for Fiat, and successfully re-entering the US market could open the door to better financials. To make the relaunch of Alfa feasible, the brand is going to have to share with Chrysler.

Chrysler has the LX platform, which could potentially be reworked and used for the new Giulia, is being examined as one way to get an Alfa model launched and built in the U.S. without crushing Fiat with shipping and import costs piled on top of being expensive to build in the first place. The LX is heavier than might be ideal, though it has been engineered to support all-wheel drive, and the rear-wheel drive default of the longitudinal powertrain layout is inherently more sporty if tuned properly. Alfa's got its own platform, the C-Evo, which could be bulked up to underpin the Giulia, and it, too, is a front-engined, RWD layout that could potentially bring an appropriately athletic feel.

Neither platform is exactly perfect - both are aging, and the competition in the segment is stiff. The futures of Alfa and Chrysler appear to be intertwined, with both brands relying on the same basic hardware to launch new or updated models that need to be successful for Sergio Marchionne's plan for world domination to actually work.

[Source: Bloomberg]

REPORT: Alfa favors larger sedan as first salvo in new American push originally appeared on Autoblog on Tue, 04 Aug 2009 15:58:00 EST. Please see our terms for use of feeds.

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REPORT: Alfa Romeo to lead American charge, Fiat 500 to go it alone

Noah Joseph — Fri, 26 Jun 2009 09:55:00 EST

Filed under: Chrysler, Alfa Romeo, Fiat

Alfa Romeo has been toying with the idea of returning to America for years, but now that Fiat CEO Sergio Marchionne is working from Auburn Hills, the time seems more ripe than ever as details emerge on Fiat/Chrysler's strategy vis-a-vis the North American market. While Marchionne implements management restructuring designed to reduce Chrysler's executive hierarchy and separate its divisions into more independent units, a product strategy is rapidly being put into place to make up for lost time during the bankruptcy procedure and get the company back on track.

With Maserati and Ferrari already present in North America and Lancia offering little to entice North American buyers, the Italian side of the partnership looks poised to enter the market with Fiat and Alfa Romeo models. However, while future Chryslers, Dodges and Jeeps will share underpinnings with their Fiat and Alfa Romeo counterparts - including an Alfa GTX to be based on the new Jeep Grand Cherokee - the Fiat brand itself will have a very limited presence in the North American market, offering only the 500 retro hatchback as a stand-alone model... not unlike BMW's Mini brand. Other Fiat models will carry Chrysler, Dodge and Jeep badges, while Alfa Romeo will take the higher profile on this side of the Atlantic, offering cars under the stoic marque to compete with other European luxury brands. As the Freep points out, Chrysler and Alfa had collaborated in the early '90s to bring Alfas Stateside with limited success, but Marchionne evidently thinks it'll have better luck this time around.

[Source: Detroit Free Press]

REPORT: Alfa Romeo to lead American charge, Fiat 500 to go it alone originally appeared on Autoblog on Fri, 26 Jun 2009 09:55:00 EST. Please see our terms for use of feeds.

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Officially Official: Chrysler exiting bankruptcy, Fiat steps in and makes changes immediately

Frank Filipponio — Wed, 10 Jun 2009 13:28:00 EST

Filed under: Government/Legal, Hirings/Firings/Layoffs, Chrysler, Earnings/Financials, Fiat

Fiat now owns a big chunk of Chrysler. Officially. Soon after the Supreme Court gave it the go-ahead, the sale of Chrysler to Fiat was complete. Altogether, the deal took just 42 days. With a couple of signatures and a wire transfer Wednesday morning, the sale was official. Fiat gets most of Chrysler's assets and $6.6 billion in "exit financing" from the federal government.

This can be seen as a victory of sorts for the Obama Administration, which had hoped to get Chrysler reorganized quickly and efficiently. Supporters say that the new Chrysler Group LLC has a good chance of being more competitive out of the box, having shed much of its legacy labor costs and debt, and Fiat's expertise with small cars shouldn't hurt either.

Official statements by current Chrysler CEO Bob Nardelli and Fiat's Sergio Marchionne are pasted in after the jump. Nardelli congratulates employees on being a part of "a leaner, healthier and more robust company," and says goodbye at the same time. He will return to a position with Cerberus. Marchionne introduces himself as the new CEO, former Toyota exec Jim Press as Deputy CEO, and Robert Kidder as board chairman. He also promises that the world's sixth largest automaker will begin to show signs of improvement immediately.

In related news, the Obama Administration has announced the appointment of a new 'Compensation Czar' to oversee the salaries and benefits packages awarded to 175 major executives at seven of America's biggest companies that receive federal aid. According to the New York Times, Washington attorney Kenneth R. Feinberg will have "broad discretion" in determining what compensation packages executives are awarded, including the top 25 decision makers at General Motors, GMAC, Chrysler, and Chrysler Finance.

For its part, as it emerges from bankruptcy, Chrysler's union retiree trust (VEBA) will own 55% of the company, with Fiat getting a 20% share that can grow to a max of 35%. The U.S. and Canadian governments split the rest. If the Fiat-Chrysler deal is any indication, General Motors may see a quick exit from bankruptcy as well, even without a Fiat of its own to step in and help. Now they just need to get people into showrooms with cash in hand.

[Sources: Chrysler, The New York Times | Photo by Sean Gallup/Getty]

Continue reading Officially Official: Chrysler exiting bankruptcy, Fiat steps in and makes changes immediately

Officially Official: Chrysler exiting bankruptcy, Fiat steps in and makes changes immediately originally appeared on Autoblog on Wed, 10 Jun 2009 13:28:00 EST. Please see our terms for use of feeds.

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Ruh-Roh, Chrysler: Fiat finishes dead last in new British J.D. Power survey

Dan Roth — Mon, 08 Jun 2009 10:57:00 EST

Filed under: Car Buying, Etc., Chrysler, Fiat, UK

What automaker has a lower owner satisfaction score in the UK than Chrysler? The one and only company that makes automobiles less tasty to UK consumers is Fiat. Both brands, which are soon to be joined at the arm rest, scored significantly below both the industry average and survey champ Lexus, which enjoyed its ninth year topping the charts. The rest of the top five are Honda, Mercedes-Benz, Skoda, and Toyota.

What owners in the UK have to say about Chrysler and Fiat doesn't necessarily go for the rest of the world; after all, they prefer Rugby and Cricket to our Football and Baseball. It just may be, however, that like those seemingly separate but similar sporting endeavors, the overseas opinion of Chrysler and Fiat as bottom feeders may not be entirely far off from what North American consumers think.

[Source: JD Power | Photo Illustration by Sean Gallup/Getty]

Ruh-Roh, Chrysler: Fiat finishes dead last in new British J.D. Power survey originally appeared on Autoblog on Mon, 08 Jun 2009 10:57:00 EST. Please see our terms for use of feeds.

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Fiat confirms 500 at Chrysler dealers in about 18 months, other new models to be U.S. specific products

Jeremy Korzeniewski — Mon, 01 Jun 2009 14:00:00 EST

Filed under: Budget, Europe, Green, Hatchback, Chrysler, Fiat

Fiat 500 - Click above for a high-res image gallery

According to Richard Gadeselli, vice president of Fiat communications in Italy, the Fiat 500 will be sold in Chrysler dealerships in the United States in about a year and a half. The small, retro-minded front-wheel drive hatchback will reportedly be the only model in Fiat's current line that will make the jump to America without any major changes. It seems that the other six small or midsize vehicles that Chrysler plans to sell in the near future will be based on the chassis and running gear from the Italian automaker but will not share any sheetmetal with their Fiat siblings. As Gadeselli tells Automotive News:

"There is a misconception out there that Chrysler is going to build the Fiat Bravo, just stick a different badge on it. They will be Chrysler products. They will be specific to Chrysler. The vehicle architectures will be based on our stuff, and there will be some powertrains. The vehicles will be U.S. vehicles, designed for U.S. customers by a U.S. company."

Based on the above, we think it's safe to assume the Fiat 500 will easily beat the rest of the automakers products to America. In any case, we're looking forward to finally seeing the diminutive 500 do battle with the Mini Cooper and Smart Fortwo for the affections of small, sporty car aficionados on American roads about 18 months from now.

Gallery: Fiat 500

[Source: Automotive News - sub. req'd]

Fiat confirms 500 at Chrysler dealers in about 18 months, other new models to be U.S. specific products originally appeared on Autoblog on Mon, 01 Jun 2009 14:00:00 EST. Please see our terms for use of feeds.

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Rumormill: Lancia could be axed if Fiat-Chrysler-Opel deal goes through

Dan Roth — Tue, 19 May 2009 10:59:00 EST

Filed under: Europe, Government/Legal, Chrysler, GM, Opel, Fiat

Fiat's acting like it hasn't eaten in years, hungrily throwing down for the pieces of the business that troubled automakers are trying to spin off. General Motors Europe is seriously contemplating cutting free its Opel unit, and Fiat's Sergio Marchionne has been meeting with management and union higher-ups in Russelsheim about a deal that would see Fiat taking on Chrysler and Opel.

As part of the merger, rumors are flying that Fiat's sub-brand Lancia, good for about 100,000 units annually, would be shuttered. The Lancia dealer's association says this is nonsense, citing the brand's relative success in its home market. As the clock ticks down to the June 1 deadline for GM, all creative options are being explored, so you can be sure that a Fiat/Chrysler/Opel trifecta is but one of the possibilities getting scrutiny at the moment.

[Source: Forbes]

Rumormill: Lancia could be axed if Fiat-Chrysler-Opel deal goes through originally appeared on Autoblog on Tue, 19 May 2009 10:59:00 EST. Please see our terms for use of feeds.

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Autoblog Podcast #126

Dan Roth — Fri, 08 May 2009 17:30:00 EST

Filed under: Car Buying, Podcasts, Government/Legal, Chrysler, GM, Earnings/Financials, Alfa Romeo, Fiat, Opinion/Editorial

Click above for the Autoblog Podcast in iTunes, RSS or listen now!

The esteemed Mr. Lavrinc joins us for Episode #126 of the Autoblog Podcast, and Dan shows up late, but we still pack in an hour and a half of goodness. Starting with the Autoblog Garage kicks off a discussion about diesel and then electric vehicles and technology. The GM/Fiat/Chrysler dealings are once again kicked around for quite a while, with a wide ranging discussion of what Fiat platforms might be coming, and how GM's shrinkage strikes us. We move on to the death of Knight Rider, lamenting the loss of Nunez's liveblog, before we split opinions on Cash for Clunkers and finish with some letters. Thanks for hanging in for the full hour and a half, please keep your feedback rolling in to podcast at autoblog dot com.

Follow the jump to subscribe to the Autoblog Podcast in iTunes, add the show to your RSS aggregator... or listen to it right now!

Continue reading Autoblog Podcast #126

Autoblog Podcast #126 originally appeared on Autoblog on Fri, 08 May 2009 17:30:00 EST. Please see our terms for use of feeds.

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BREAKING: Marchionne confirmed as post-bankruptcy Chrysler CEO

Noah Joseph — Thu, 07 May 2009 11:15:00 EST

Filed under: Hirings/Firings/Layoffs, Chrysler, Fiat

After weeks of speculation, Fiat confirmed today that its CEO, Sergio Marchionne, will assume the same role with Chrysler once it exits bankruptcy. According to statements from the Obama administration, Chrysler could emerge from "surgical bankruptcy" in as little as 30 to 60 days, after which Chrysler's current chief executive Bob Nardelli will step down and Marchionne will step in.

A dual Canadian and Italian citizen, the Ontario-educated Marchionne is credited with turning the Fiat Group around from a money-losing enterprise into one of the largest and most successful automakers in the industry. After taking over the helm at Fiat five years ago, Marchionne said he would need to double its sales to 5.5 million units annually in order to make the company financially viable. His vision for separating Fiat, Lancia and Alfa Romeo out of their parent company and into a new auto group together with Chrysler (and potentially with GM's European and Latin American assets) would make it the second-largest automaker in the world, with 6 million cars produced annually. The bulk of the debts, however, would remain with the shells of their former organizations, leaving the new one unencumbered and free to regroup. There's no further news at this point as to when Chrysler will emerge from its Chapter 11 proceedings, allowing Marchionne to step in, or how the reported Treasury Dept. regulations will affect Marchionne's salary, but we can expect to hear plenty more on this highly-rated executive and his vision for reshaping the auto industry in the very near future.

[Source: The Detroit News | Image: Giuseppe Cacace/Getty]

BREAKING: Marchionne confirmed as post-bankruptcy Chrysler CEO originally appeared on Autoblog on Thu, 07 May 2009 11:15:00 EST. Please see our terms for use of feeds.

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Court documention reveals which Fiats and Alfas are destined for U.S.

Jeremy Korzeniewski — Tue, 05 May 2009 18:59:00 EST

Filed under: Coupe, Budget, Sedan, Crossover, Hatchback, Chrysler, Alfa Romeo, Fiat

Fiat 500 - Click above for a high-res image gallery

Curious which of its models Fiat plans to send over to the United States to sell through its planned partnership with Chrysler? Wonder no more. The most recent set of documents filed in Chrysler's Chapter 11 proceedings offer a number of intriguing clues as to what we can expect to see in the coming years.

Tom LaSorda, current ChryCo Veep, suggests that Fiat has agreed to assemble a vehicle using its C-EVO platform at one of Chrysler's underutilized U.S. plants. Further, Robert Manzo, executive director of Capstone Advisory Group, has specifically named the Fiat 500, Grande Punto and Panda (tellingly, Manzo called the Panda a Jeep) along with the Mito and Milano from Alfa Romeo as models coming to the aid of Chrysler.

Joining these new models would also be Fiat's 3.0-liter diesel V6 and 1.4-liter four-cylinder Multiair engine line, along with the Italian automaker's dual-clutch automatic gearbox, which would replace the units Chrysler will no longer be receiving from Getrag. The biggest question left unanswered seems to be what will be left of Chrysler's current line?

Gallery: Fiat 500

[Source: Inside Line]

Court documention reveals which Fiats and Alfas are destined for U.S. originally appeared on Autoblog on Tue, 05 May 2009 18:59:00 EST. Please see our terms for use of feeds.

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REPORT: Chrysler pursuing clause to award Fiat $35 million if deal falls apart

Noah Joseph — Tue, 05 May 2009 15:32:00 EST

Filed under: Chrysler, Earnings/Financials, Fiat

Think Fiat's getting a pretty sweet deal with Chrysler? The Italian automaker is, after all, gaining a 20% stake in the troubled American automaker, plus local manufacturing capacity and access to its dealer networks, all without paying a thin dime. Not a bad deal, but Chrysler's hard at work trying to make it sweeter. Emerging reports suggest that if the deal between Fiat and Chrysler were to fall apart, Chrysler would be obligated to pay Fiat $35 million in severance fees.

Chrysler is currently pursuing the clause in the courts administering its bankruptcy protection. The reasoning is that Fiat has put in the time and money into pursuing the partnership that would allow Chrysler to continue operating, and if the courts - or anyone else, for that matter - were to terminate the arrangement, Fiat would deserve compensation. A similar clause worked out well for Fiat after its partnership with General Motors was terminated. The tables now turned, Fiat has certainly come a long way since then.

[Source: The Detroit News | Image: Chris McGrath/Getty]

REPORT: Chrysler pursuing clause to award Fiat $35 million if deal falls apart originally appeared on Autoblog on Tue, 05 May 2009 15:32:00 EST. Please see our terms for use of feeds.

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REPORT: If Chrysler liquidates, 38,500 jobs would be lost

Michael Harley — Fri, 01 May 2009 13:58:00 EST

Filed under: Government/Legal, Plants/Manufacturing, Chrysler, Fiat

A court filing by the legal firm Jones Day estimates that 38,500 Chrysler workers will lose their jobs if the bankrupt automaker fails to quickly form an alliance with Fiat SpA and is forced to liquidate. In addition, if the deal with Fiat is rejected Chrysler LLC employees will lose $9.8 billion in benefits and $2 billion in pension payments, according to the legal team.

"Time is of the essence," said attorney Corinne Ball. The lawyers, in court seeking to organize the company's 25 affiliates into a one bankruptcy proceeding, stressed in yesterday's so-called first-day pleadings that if Chrysler dissolves, "it will mean the end of an iconic, 83-year-old American car company."

[Source: Bloomberg | Image Source: Bill Pugliano/Getty]

REPORT: If Chrysler liquidates, 38,500 jobs would be lost originally appeared on Autoblog on Fri, 01 May 2009 13:58:00 EST. Please see our terms for use of feeds.

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Fiat could take majority control of Chrysler as early as 2013

Damon Lavrinc — Fri, 01 May 2009 10:59:00 EST

Filed under: Government/Legal, Plants/Manufacturing, Chrysler, Fiat

We all know by now that Fiat will take an initial 20% stake in Chrysler in exchange for supplying the bankrupt automaker small-car platforms and fuel efficient drivetrains. Further down the road, Fiat will have the opportunity to purchase a large stake in Chrysler, upping its ownership to 35% and between 2013 and 2016, the Italian automaker can take an additional 16% share of Chrysler, bringing its total to 51% and gaining majority control. However, until Chrysler repays its loans to the U.S. Treasury, Fiat's share must be kept at 49%. For Fiat to take control of Chrysler, the crew from Auburn Hills will need to pay back over $10 billion in loans, and we remain suitable skeptical that Chrysler will be able to return the cash - particularly with new products from Fiat still 18 months away, at least.

[Source: SMH | Image Source: Vittorio Zunino Celotto/Getty]

Fiat could take majority control of Chrysler as early as 2013 originally appeared on Autoblog on Fri, 01 May 2009 10:59:00 EST. Please see our terms for use of feeds.

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Breakdown of Chrysler's Big Day [w/POLL]

John Neff — Thu, 30 Apr 2009 14:00:00 EST

Click above to take poll after the jump

It's not often your company both files for bankruptcy and gets new owners in a single day, but that's just what happened to Chrysler today. We've had some time to digest all the details after President Obama's press conference at noon, and here's what we know...

Blame it on the creditors - President Obama cited Chrysler's creditors' refusal to accept a debt-for-equity swap as the main reason filing for Chapter 11 was the only option left.
Chrysler divided - 55% will be owned by the Voluntary Employee Beneficiary Association (VEBA), 10% shared proportionally between U.S. and Canadian governments, 20% owned by Fiat.
Fiat's got goals - Remaining 15% of company will be distributed to Fiat in three 5% increments for meeting the following goals: creating U.S.-built 40-mpg vehicle platform, providing a U.S.-built fuel-efficient engine family and giving Chrysler access to global distribution network.
Nardelli nixed - Current Chrysler CEO Robert Nardelli will leave after the alliance with Fiat is completed and the company emerges from bankruptcy, though he has stated that he was not asked to leave. UPDATE: Former CEO Tom LaSorda will retire and Chrysler's President Jim Press will be sticking around.
GMAC gets the job - Chrysler Financial has been replaced by GMAC as Chrysler's preferred lender for wholesale and retail transactions.
In-and-Out - Chrysler and the U.S. Auto Task Force estimate the company will emerge from bankruptcy in 30 to 60 days.
Dealerships to be cut -- No surprise, but Chrysler's dealer network will be cut down as part of the restructuring. No hard numbers are available yet, but expect details to follow in the next 24 hours.
Business as usual - Chrysler will largely run as normal in the interim, being funded by government-backed debtor-in-possession financing; warranties will be honored, suppliers paid and dealers supplied with inventory, but no new vehicles will be built until bankruptcy terms are finalized.

Follow the jump to our informal poll and read the official press release from Chrysler, and check out some more good analysis from our friends over at thedetroitbureau.com.

[Image: Bill Pugliano/Getty]

Continue reading Breakdown of Chrysler's Big Day [w/POLL]

Breakdown of Chrysler's Big Day [w/POLL] originally appeared on Autoblog on Thu, 30 Apr 2009 14:00:00 EST. Please see our terms for use of feeds.

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Obama announces Chrysler bankruptcy, deal with Fiat; Nardelli out soon *UPDATED

Frank Filipponio — Thu, 30 Apr 2009 12:36:00 EST

Filed under: Government/Legal, Chrysler, Earnings/Financials

President Obama has just concluded a televised press conference where he announced that Chrysler will indeed head into Chapter 11 bankruptcy proceedings almost immediately. As part of the same announcement, he noted that the Auburn Hills automaker has reached terms with Fiat and will be headed into a partnership agreement that will include a cash infusion and technology transfers. By some estimates, the restructuring is expected to take 30-to-60 days.

The announcement came after late-night talks with a small group of creditors broke off before a restructuring plan could be reached. During the conference, Obama took pains to note the sacrifice of many players, including some in the financial sector, but he openly chastized other hedge fund operators and speculators for holding out for more debt compensation, arguing that they were looking to make money on the taxpayer dollars.

Keeping an upbeat tone in his announcement, Obama also reassured Americans that they will be repaid in full before Fiat gets any stake in the automaker, and that GMAC has agreed to step in to provide loans for Chrysler vehicles. Canada is also pitching in to make it work, but the U.S. taxpayers will be on the hook for an additional $8 billion in aid. Obama also reiterated that the government will stand behind Chrysler and General Motors vehicle warranties, and he extolled Americans to purchase new vehicles from domestic automakers.

Finally, in related news, it is being reported that Chrysler CEO Bob Nardelli (whom Obama praised during the press conference) will exit the company after the bankruptcy filing is complete.

*UPDATE: A new Chrysler press release (posted after the jump) confirms that Nardelli will leave Chrysler after it emerges from bankruptcy:

He will return to Cerberus Capital Management LP as an advisor. "Now is an appropriate time to let others take the lead in the transformation of Chrysler with Fiat," said Nardelli. "I will work closely with all of our stakeholders to see that this new company swiftly emerges with a successful closing of the alliance."

The Detroit Bureau's Ken Zino has excellent analysis of the announcement here.

More details and analysis on the way...

[Image: Bill Pugliano/Getty]

Continue reading Obama announces Chrysler bankruptcy, deal with Fiat; Nardelli out soon *UPDATED

Obama announces Chrysler bankruptcy, deal with Fiat; Nardelli out soon *UPDATED originally appeared on Autoblog on Thu, 30 Apr 2009 12:36:00 EST. Please see our terms for use of feeds.

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