Autoblog

Fiat talking with banks about buying rest of Chrysler

Jeffrey N. Ross — Wed, 13 Feb 2013 11:29:00 EST

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

All that stands in the way of Fiat's total ownership of Chrysler is a 41.5-percent stake currently held by the United Auto Workers healthcare trust, but according to SFGate.com, Sergio Marchionne is currently trying to raise the capital to complete the acquisition. The article says that a deal could be completed in as soon as 12 months, and the estimate for the remaining stake could cost Fiat SpA around $2.98 billion.

With a goal of completing the deal by the end of 2014, Marchionne is said to be in talks with various banks to help finance some of the deal. According to the report, the banks have indicated a need for a stronger balance sheet, controlled debt and reserve cash.

Two things that don't seem to be on the table to get the deal completed include issuing new shares to raise the capital or selling a stake in Ferrari. Fiat started with a 20 percent share of Chrysler in June 2009, and it raised its stake up to 58.5 percent in January 2012.

Fiat talking with banks about buying rest of Chrysler originally appeared on Autoblog on Wed, 13 Feb 2013 11:29:00 EST. Please see our terms for use of feeds.

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Fiat may control Chrysler, but it can't reach in its pockets

George Kennedy — Mon, 06 Aug 2012 17:35:00 EST

Filed under: Europe, Chrysler, Earnings/Financials, Fiat

Despite the fact that Fiat has a controlling stake in Chrysler, the Italian automaker cannot take advantage of the Pentastar's recent success to ease its pain in Europe.

Chrysler is on a roll right now, with an improving product portfolio, most recently highlighted by the Dodge Dart small car. The Pentastar brand has combined cash and credit worth $13 billion, but according to a new USA Today report, the Italian automaker cannot plunder Chrysler to address shortfalls on its end. Fiat was forced to cut capital expenditures in 2012 by $612 million, and while the brand posted a $440 million profit, without Chrysler's earnings, it would have been a $302 million loss.

So while the temptation might be there to move around funds where it is needed most, protections have been put in place by the U.S. government. According to Marichionne, "Firewalls are up, [Fiat] can't get to it."

As part of the original deal with Fiat and the U.S. government bailout, Fiat cannot get access to Chrysler's increasing stockpile of cash. It can, however, keep profits, of which Chrysler earned $436 million in the second quarter off this year.

Fiat may control Chrysler, but it can't reach in its pockets originally appeared on Autoblog on Mon, 06 Aug 2012 17:35:00 EST. Please see our terms for use of feeds.

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Fiat increases Chrysler stake to 58.5%

Jeff Sabatini — Thu, 05 Jan 2012 16:29:00 EST

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

How important is the forthcoming 2013 Dodge Dart to the future of Chrysler? Well, it allowed Fiat to boost its stake in Chrysler for the fifth time in the past year today, adding five percent to bring Fiat's total ownership to 58.5 percent.

That's because the new Dodge sedan scored a combined 40 miles per gallon in CAFE fuel economy testing, triggering the increase in ownership under the operating agreement reached following the Chrysler bankruptcy proceedings. (Note that the 40 mpg number is unadjusted, meaning that the actual EPA combined fuel economy, the one published on the window sticker, will be lower.) Chrysler sent the United States Treasury a letter stating that it was "irrevocably committed to begin assembly" of the Dart at its Belvidere plant in Illinois. Chrysler will take the wraps off the Dart on January 9 at the Detroit Auto Show.

Fiat's stake in Chrysler has grown considerably since it received its initial 20-percent share in the immediate aftermath of the automaker's bankruptcy. The Italian automaker has now met all the "performance events" of its agreement with the Treasury, and could buy out the United Auto Workers healthcare trust that owns the remaining 41.5 percent of the company, according to a report in Automotive News. However, that report indicates that Fiat's financial situation may not be solid enough to do so - at least not right away.

To read Chrysler's full press release, click through to the jump.

Continue reading Fiat increases Chrysler stake to 58.5%

Fiat increases Chrysler stake to 58.5% originally appeared on Autoblog on Thu, 05 Jan 2012 16:29:00 EST. Please see our terms for use of feeds.

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Marchionne pushing to consolidate Fiat, Chrysler management... soon

Chris Shunk — Thu, 14 Jul 2011 11:30:00 EST

Filed under: Chrysler, Fiat

Fiat is well on its way toward owning 57 percent of Chrysler by the end of 2011, and CEO Sergio Marchionne appears to be ready to take the integration of the two companies to the next level. Bloomberg reports that Marchionne plans to unify the management structure of the two automakers, adding that a tie-up will happen "pretty quickly."

While Marchionne provided no timetable for such a move, one possible date to look out for is Fiat's July 26 earnings report. Marchionne's plan to unify management at the two automakers is the next step in a broader plan to reduce costs while contributing $140 billion in combined revenue by 2014. At this point, there are few products that are being shared between Fiat and Chrysler, though by 2014 there should be a lot more platform and powertrain commonality.

One unknown at this point is whether any top-level Chrysler or Fiat execs will be shown the door when the management unification plans become public. If the two companies are really going to combine, we're thinking that some overlap is likely to result in job cuts on both sides.

Marchionne pushing to consolidate Fiat, Chrysler management... soon originally appeared on Autoblog on Thu, 14 Jul 2011 11:30:00 EST. Please see our terms for use of feeds.

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Fiat comes to terms with Treasury to buy Fed's $560M Chrysler stake

Aaron Richardson — Fri, 03 Jun 2011 10:30:00 EST

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

Fiat has reportedly reached a deal to pay $500 million for the rest of the federal government's share of Chrysler, along with another $60 million for the government's option to buy most of the remaining shares of Chrysler stock. The purchase, which President Obama should officially announce today, will settle the remainder of Auburn Hills' debt to the government.

The federal government bailed the automaker out to the tune of $4 billion under the Bush administration, with the total eventually rising to $5.9 billion. Fiat's purchase will account for the last of the debt and once again put the company under foreign ownership.

With the deal, Fiat will gain a 52 percent stake in the company.

Fiat comes to terms with Treasury to buy Fed's $560M Chrysler stake originally appeared on Autoblog on Fri, 03 Jun 2011 10:30:00 EST. Please see our terms for use of feeds.

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Report: Fiat looking to up Chrysler stake to 46% by June

Chris Shunk — Fri, 15 Apr 2011 09:30:00 EST

Filed under: Government/Legal, Chrysler, Fiat

Fiat has been in a big, fat hurry to increase its stake in Chrysler, as the Italian automaker has managed to increase ownership from 20 percent to 30 percent so far this year. A report out of Automotive News Europe (via Italian newspaper Corriere della Sera) shows that the stakes may raise once again by June of 2011.

From the onset, the first goal for Fiat has been to hit 35 percent ownership by the end of 2011, but sources tell AN that CEO Sergio Marchionne and his team are now aiming for 46 percent this summer. To hit that number, the automaker will need to pay down U.S. and Canadian government debt from the original $7.4 billion to under $4 billion. On Monday, Marchionne reportedly said that Fiat planned to speak with banks in an effort to refinance the loans. Earlier in the year, Marchionne referred to the government loans as "shyster loans," which, though he later apologized, tells us everything we need to know about the CEO's motivation.

As part of that agreement, Fiat has the option to pay down $1.14 billion in debt by the end of 2011, while waiting until next year will effectively raise the rate to $1.37 billion. That translates to a 20-percent interest rate for the year, which is high for a credit card, much less a government loan.

The next step for Fiat is to achieve another five percent ownership in Chrysler by the end of 2011. To do this, the automaker will need to sell a 40+ mile per gallon Dodge (likely a rebadged Fiat) and sell it in the U.S.

[Source: Automotive News - sub. req. | Image: Massimo Pinca/AP]

Report: Fiat looking to up Chrysler stake to 46% by June originally appeared on Autoblog on Fri, 15 Apr 2011 09:30:00 EST. Please see our terms for use of feeds.

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Report: Fiat to up stake in Chrysler to 30 percent

Chris Shunk — Wed, 06 Apr 2011 11:32:00 EST

Filed under: Chrysler, Earnings/Financials, Fiat

Fiat currently owns 25 percent of Chrysler, but that stake will reportedly jump to 30 percent in the next couple weeks. Automotive News reports that the Italian automaker is weeks away from satisfying additional requirements needed to bump the ownership stake by another five percent.

Unnamed sources claim that Fiat has already met a requirement that states that Chrysler receives $1.5 billion of its revenue outside of North America. The next step is to offer Chrysler vehicles to 90 percent of Fiat's Latin American dealers. Fiat will reportedly meet that goal by rebadging Chrysler vehicles as Fiats at Latin American dealerships. One vehicle that will reportedly receive the rebadge treatment is the Dodge Journey, which will be built in Mexico and renamed the Fiat Freemont. Fiat currently holds the largest share of the emerging Brazil market, with a substantial 22.3 percent share.

Fiat will receive another five percent of Chrysler by building a Fiat-based product in the U.S. that hits 40 miles per gallon or better. If Fiat wants to increase its share to an absolute majority of 51 percent, the automaker will need to fork over $1.14 billion by the end of the year. If the automaker waits until 2012, that number will jump to $1.37 billion.

[Source: Automotive News - sub. req.]

Report: Fiat to up stake in Chrysler to 30 percent originally appeared on Autoblog on Wed, 06 Apr 2011 11:32:00 EST. Please see our terms for use of feeds.

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Submit your questions for Autoblog Podcast #211

Dan Roth — Mon, 03 Jan 2011 17:21:00 EST

Filed under: Motorsports, Etc., Cadillac, Chrysler, Porsche, Fiat, Rumormill

Click above to subscribe to The Autoblog Podcast in iTunes

We're recording Episode #211 of the Autoblog Podcast tonight, and we've put some topics below. Drop us your own feedback and questions or vote on your fellow readers' submissions to help determine what we discuss this evening. You can subscribe to the Autoblog Podcast in iTunes if you haven't already to hear your question answered.

Discussion Topics for Autoblog Podcast Episode #211

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Submit your questions for Autoblog Podcast #211 originally appeared on Autoblog on Mon, 03 Jan 2011 17:21:00 EST. Please see our terms for use of feeds.

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Report: Fiat to build Jeeps in Italy

Dan Roth — Mon, 29 Nov 2010 10:01:00 EST

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

It's beginning to look like Fiat's plan for Chrysler includes heavier use of the C-EVO platform that underpins the Alfa Romeo Giulietta. There's already going to be a Dodge based off the C-EVO, and Fiat has just laid out plans to build a new Jeep model on the platform at the company's Mirafiori plant in Italy. The Jeep model will share the production line with Alfa models, and Fiat is trying to get the work rules tweaked to help support the 280,000 vehicle per year volume. The Detroit News reports that Italian unions are pleased with the plan that bumps volume by about 100,000 cars versus 2009 output.

Most of the Italian-built Jeeps will be exported, mainly to the United States. Engines and transmissions will come from Chrysler's U.S. operations, at least for vehicles headed here. Fiat and Chrysler are sharing plants and volume with apparent ease, with a planned Maserati SUV coming out of Detroit's Jefferson North plant and sharing much with the excellent Jeep Grand Cherokee. A mid-size Fiat SUV is also expected to use the Dodge Journey as a canvas; all moves that underscore how stingy things were under Daimler.

[Source: The Detroit News I Photo: Fiat]

Report: Fiat to build Jeeps in Italy originally appeared on Autoblog on Mon, 29 Nov 2010 10:01:00 EST. Please see our terms for use of feeds.

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Chrysler split over which CAD software to use

Sam Abuelsamid — Tue, 04 May 2010 08:01:00 EST

Filed under: Technology, Chrysler, Fiat

Anyone that's ever tried to get divergent computer systems to play nice knows that it's not a trivial matter. And when two automakers come together, getting everyone on the same page is both enormously difficult and critically important if the enterprise is to succeed. Chrysler is all too familiar with lackluster enterprises thanks to failed marriage to Daimler, and with it's recent Italian tie-up, the (software) language barrier could cause some problems.

Now that Chrysler has hooked up with Fiat, the two engineering teams need to consolidate the design software that they use to develop new products. As we learned in the Chevy Cruze safety story, computer aided design and simulation is the foundation to being able to develop products that meet regulations around the world.

Chrysler's engineers have been using Catia from Dassault Systems for more than two decades while Fiat uses the other major brand Siemens PLM's NX software. CEO Sergio Marchionne wants everyone in his domain to use the Siemens software for new projects. Unfortunately, the problem goes well beyond just switching out the software at the Chrysler tech center. Suppliers will also have to buy new software because they share design models with the automaker and they need compatibility. Chrysler has begun using the Siemens software for the modifications to the North American version of the Fiat 500, but it could be some time before the issue is resolved completely.

[Source: Automotive News - Sub Req'd]

Chrysler split over which CAD software to use originally appeared on Autoblog on Tue, 04 May 2010 08:01:00 EST. Please see our terms for use of feeds.

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Marchionne: Chrysler will break even in 2010

Chris Shunk — Tue, 30 Mar 2010 16:59:00 EST

Filed under: Chrysler, Earnings/Financials, Fiat

Think Chrysler is having a banner 2010? A quick glance at the sales charts shows a company in dire need of new product, better quality and a Hail Mary on the showroom floor. But as bad as the situation is right now in Auburn Hills, MI, it appears the company could just about be done bleeding cash.

The Detroit News reports that Chrysler/Fiat CEO Sergio Marchionne told a group of reporters that he was committed to breaking even, adding that the company won't lose money on an operations basis this year. Is Sergio being optimistic or is he basing his numbers on cold, hard facts? Who knows, but when asked if there was a chance Team Pentastar could pull of an actual 2010 profit, he reportedly answered "who knows?"

Marchionne also told reporters that Chrysler had $5 billion in cash at the end of 2009, the 2011 Jeep Grand Cherokee was on schedule to hit production on May 3, and that 50 percent of all Chrysler Group vehicles will be riding on Fiat platforms by 2014. The Fiat/Chrysler CEO also reiterated his stance that Chrysler would sell 1.1 million vehicles this year and that U.S. auto sales would crest 11 million units in 2010.

It's only fair that Marchionne gave us a state of The Pentastar update given the fact that today marks the one-year anniversary of when the Obama Administration gave Chrysler 30 days of working capital to work out an official tie-up with Fiat.

[Source: The Detroit News]

Marchionne: Chrysler will break even in 2010 originally appeared on Autoblog on Tue, 30 Mar 2010 16:59:00 EST. Please see our terms for use of feeds.

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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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