Autoblog

Click above for a high-res gallery of Fiat's Alfa Romeo 8C Competizione

As the dollar weakens, European manufacturers continue to scramble for manufacturing opportunities offshore to salvage profits. Fiat is the latest to jump into the fray. Company sources are saying the Italian automaker is currently considering Mexico as a production site -- with their eyes on an existing plant that could be tooled up for 150,000 cars a year. With their Alfa Romeo brand launching in the United States next year, and Fiat sales up significantly in South America, a plant in centrally-located Mexico could easily supply demand for both markets. If approved, the Mexican plant would start building Alfa Romeos and Fiats in 2011.

[Source: Automotive News, subs. req'd]

If you told us a year ago that Fiat was going to sign a deal with the government of Serbia, we'd have laughed. But that was before the country announced that it was accepting tenders for investment in the state-owned automaker Zastava, makers of the famous Yugo (aka Skala 55). The process started back in December when the Serbian government made the announcement, sparking interest from various automakers. But even as recent as last week, the Fiat stance was that it was still considering the proposition. Well, it appears the Italian auto giant has done thinking, and has signed a memorandum of understanding with Serbia to establish a joint venture that involves Fiat investing a staggering 700 million euros (!) into Zastava's manufacturing facilities in exchange for a majority stake in the company, known in full as Zavodi Crvena Zastava. The Serbian government, meanwhile, will contribute some 200 million euros through tax incentives and similar measures.

Fiat has revealed that it will use the Zastava plant to produce the upcoming Topolino microcar. The vehicle will be based on the same platform as the 500 and Panda, but even smaller and positioned below either model, and share the same name as the concept car that previewed the new 500 and originally used on the 1936 runabout pictured above. According to reports, the new Topolino will be a compact two-seater measuring just 3150mm (124 inches) in length, slightly longer than the Smart ForTwo at 2692mm (106 inches). A four-seater version is expected to follow, in addition to an upscale version for the Lancia division.

[Source: Automotive News Europe – sub. req'd]

BMW has been kicking ass and taking names in luxury vehicle sales, and the Bavarian Motor mavens hold the top spot in global luxury sales as proof. Even though sales are more than brisk, top management wants to grow profits, and selling the German automaker's silky-smooth engines to its competitors may be part of the profitability plan. Back in February (and last May), news reports out of Germany said team Bimmer was looking for customers for its engines and transmissions, and now we have verification. Friedrich Eichiner, BMW's board member for corporate and brand development, told Automotive News that the company will decide by year end whether to sell its engines to the likes of General Motors, Daimler and Fiat.

For a relatively small company, BMW has a ton of money invested in engine tech, with a full range of turbo-diesel, turbocharged and naturally aspirated petrol offerings. It makes sense for BMW to sell its engines and transmissions to pocket some extra coin, as what makes a BMW an Ultimate Driving Machine is much more than just what's driving it underhood.

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

Click above to view Castagna's Fiat 500 wagon in hi-res

Unrelenting. That's the only way we could describe the Fiat group's assault on the MINI with more models than a Victoria's Secret photoshoot. While its sister brands Alfa Romeo and Lancia prepare their new retro-hatches to out-flank their Anglo-Saxon opponent, the Fiat division itself is branching out the 500 like a willow. Following the original hatch came the Abarth sport model, which will be followed by the cabrio, and then, as sources indicate, a longer wagon variant. The latter will target the new MINI Clubman, but without all the weird doors.

We got our first look at a Fiat 500 wagon in the ramp-up to this year's Geneva Motor Show, where carrozzeria Castagna showed off its wood-sided Cinquocente estate. Like its MINI wagons, which the coachbuilder crafted ahead of the factory's Clubman, Castagna's woodie wagon previewed the vehicle that may revive the classic Giardiniera nameplate used on the original 500 estate. Rather than stretching the wheelbase, the overhang will simply be extended, reducing costs and retaining the same front end as its more compact counterpart. Aluminum roof-rails are also tipped to join the more utile package, which could hit the market as early as 2010.

[Source: Auto Express]

Click above for high-res gallery of the O.CT Fiat 500

Fiat's neo-500 has been warmly embraced by tuners, and Austria's Oberschider Chip Tuning (O.CT) has turned its focus to the teeny tiny 'talian. The car is purposely designed to evoke the 1960s, so why should the performance numbers be any different? Even with tuning, the horsepower from the 1.3 liter diesel is still under 100, though a bump from 75 to 90 is useful. Even better, torque goes up to 133 lb/ft from 107 in stock tune. It's enough to whack a full three seconds off the 0-60 time, though Corvettes will have covered a quarter mile in the same amount of time. Of course, speed is only part of the equation, and there are wheel upgrades in several colors to punch up the visual ante, too. With all the tuner support popping up for the 500, anticipation for the car's arrival in the U.S. market is beginning to reach Episode 1 levels.


[Source: Inside Line]

Click above for high-res gallery of the Alfa Mi.To

Hot on the heels of the impending sale official sale of Jaguar and Land Rover to Tata and news that Fiat is looking to start producing Alfa Romeo vehicles in the U.S. are reports that Fiat would be interested in partnering up with the new Jaguar ownership to share rear-wheel-drive platforms for their high-end Alfa models. Tata and Fiat already have close ties, as Ratan Tata, chairman of the Tata Group, is a member of Fiat's board and the two companies jointly produce engines and transmissions in India.

In addition to possible platform sharing between Jaguar and Alfa, Fiat is also interested in using the existing Jaguar and Land Rover dealer base in the U.S. as a way to ease Alfa's re-entry the American market. Anything that helps get Alfa Romeo back in the U.S. is fine by us, but there are surely issues with selling what could possibly be competing brands from the same dealer lots.

[Source: The Financial Times]

The weak dollar is driving yet another automaker to the States. On the heels of the announcement earlier this month that BMW will increase production in the U.S, Fiat is considering moving production of both Alfa Romeo cars, and Iveco trucks, to manufacturing plants on our shores. We first broke the news in December, but now it appears Fiat is actively involved in talks with U.S. automakers to build partnerships and share manufacturing facilities with a goal of starting production by 2011 or 2012. This is positive news for consumers as Alfa prepares to once again enter the N.A. marketplace, and great news for the local economies who will benefit from additional jobs and tax revenue.

[Source: Reuters]

Click above for more pics of the Zastava Skala 55

The Easter holiday is a time of rebirth, and we can't think of a better automotive resurrection to celebrate than the Zastava Skala 55. Haven't heard of the Skala 55? Sure you have! It was sold here in the United States as the Yugo GV, and summarily tarred and feathered for being a $3,900 brand new car. Let's avoid an epic fight about the past and focus on why we're so jazzed that the rebuilt Zastava factory is still turning out these crisply styled five-doors. At the recent Belgrade Auto Show, Zastava parked a refreshed Skala 55 at its display and had one of the hits of the show.

The Mini is so 2006. VW's new Polo has yet to launch. Neither of those cars matter once you set eyes on the forthcoming hotness from Alfa Romeo. Alfa is coming back to the U.S. market, and while everyone's been ga-ga about the 8C Competizione, supercars just don't support the type of sales volume that Alfa is looking for. Dubbed the MiTo, Alfa's B-car might be the starter kit for the more aspirational supercars that the brand has to offer, but it's no less kickass when taken on its own. Alfa's styling will be new and fresh in the U.S., the brand having been absent from North American shores since the 1990s. There's a little retro in the nose as seen in these renderings from Winding Road, but it's not anywhere near the total homage to the 1960s that the Mini is.

What's underneath the sheetmetal that's alternately voluptuous and crisply creased is a versatile chassis developed before GM took their wad of cash home from Fiat. The MiTo actually shares its platform with the Opel Corsa and the Fiat Grande Punto, both of which have left favorable impressions with reviewers. Power units could run the gamut from a fire breathing turbocharged 1.4-liter gas unit to a 1.9-liter diesel, and a 2.0-liter that kicks out 280 horsepower is also a possibility if a Delta version comes to fruition. As excited as this news makes us, it's going to be a long wait until 2010.

[Source: Winding Road]

Word out of Frankfurt from the Financial Times Deutschland is that BMW is in talks to sell engines and transmissions to both General Motors and Fiat. All three companies have declined to officially comment.

The news is interesting, but not surprising. You may recall that GM has been selling transmissions to BMW for well over a decade for use in various 3 Series and 5 Series models (the current BMW 328i automatic uses a 6-speed GM 6L45 unit). So far, however, all have been automatic transmissions.

Speculating about the details, our tipster suggests that BMW may be helping GM with their SMG-style transmission program. As for the engines? It is possible that BMW could be selling its 4.4L V8 for the Cadillac line or lending GM a twin-turbo to compete with Ford's twin-turbo direct-injected V6? Thanks for the tip Brad!

[Source: Automotive News Europe, subs. req'd]