Autoblog

REPORT: Marchionne will choose to lead either Chrysler or Fiat within 24 months

Chris Shunk — Wed, 09 Dec 2009 11:01:00 EST

Sergio Marchionne appears to be very well regarded within the auto industry and his work making Fiat a viable automaker has been pretty remarkable overall. Now Marchionne is charged with saving the beleaguered and product-starved Chrysler while also keeping momentum back home in Italy. That's a big job that Marchionne won't be able to do for long. The dualing CEO reportedly said in a speech at the Peterson Institute for International Economics in Washington that he will decide which company to run within the next 24 months. It appears Marchionne is no Carlos Ghosn, for better or for worse.

Marchionne also gave some pretty stark assessments of the Pentastar, as he reportedly told the audience that Chrysler walked away from bankruptcy a cleaner company but "but we ended up with the same stuff we had." Ouch. Marchionne also reportedly used his time at the Peterson Institute to discuss what he calls the industry's overcapacity problem. He said that while Chrysler has the post-bankruptcy ability to pick and choose when to grow, in Europe, overcapacity results in billions in lost revenue. Germany, for example, hasn't shuttered a plant since before World War II.

So Marchionne is going to give up one of his CEO posts within the next two years. On one hand, it's nice to see that the Fiat/Chrysler CEO is a realist who doesn't want to stretch himself too thin, and at the same time we like the fact that he plans to stay at Chrysler at least until it begins to receive some new products via its partnership with Fiat. Do we think he'll choose Chrysler over Fiat? The Fiat that resides in sunny Italy with brands like Ferrari, Maserati and Alfa Romeo? We wouldn't, but hey, we're not millionaire CEOs, either.

[Source: The Detroit Bureau | Image: AFP/Getty]

REPORT: Marchionne will choose to lead either Chrysler or Fiat within 24 months originally appeared on Autoblog on Wed, 09 Dec 2009 11:01:00 EST. Please see our terms for use of feeds.

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Ruh-Roh: Marchionne reportedly puts Alfa Romeo under review

Noah Joseph — Wed, 02 Dec 2009 17:20:00 EST

Filed under: Car Buying, Europe, Earnings/Financials, Alfa Romeo

Take a look at the Fiat auto group. What division (barring Ferrari and Maserati) would you think holds the highest value for the company? If you thought Alfa Romeo, you're on the same page as yours truly, but you'd be mistaken. Horribly mistaken, as it turns out: Alfa has lost Fiat hundreds of millions of euros every year. Its sales have declined sharply, and not just since the global economy collapsed: Alfa sold 203,000 units in the year 2000, but only 103,000 last year. That's a heck of a drop-off.

In response, Fiat CEO Sergio Marchionne has ordered a full re-evaluation of the marque, with two courses of action to potentially result. The first would see Alfa more closely integrating its future products with Chrysler platforms. The second would be to stop investing in the brand altogether, leaving the still-new MiTo and the brand-new Giulietta to carry its aging stablemates (including the 159, Brera, Spider and GT) for the foreseeable future.

Speaking with Automotive News Europe from Fiat's headquarters in Turin, Marchionne reportedly said the new plan for Alfa will be revealed this coming February or March. Even if he chooses to keep Alfa alive with Auburn Hills synergy, though, Marchionne has nixed the notion of merging the brand with Dodge, noting that there's a limit to how many times a brand can be reborn.

[Source: Automotive News Europe - subs. req'd | Image: Tiziana Fabi/AFP/Getty]

Ruh-Roh: Marchionne reportedly puts Alfa Romeo under review originally appeared on Autoblog on Wed, 02 Dec 2009 17:20:00 EST. Please see our terms for use of feeds.

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REPORT: Senator John McCain doesn't believe Chrysler will make it

Jonny Lieberman — Mon, 16 Nov 2009 12:59:00 EST

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

It looks like everyone is thinking about Chrysler these days. First it was former DaimlerChrysler CEO (and current Daimler CEO) Dieter Zetsche offering advice to Fiat CEO Sergio Marchionne. Now it looks like former presidential contender and current Arizona Senator John McCain not only thinks that bailing out the ailing automaker was a bad idea (even though he supported bailing out Detroit during his 2008 presidential campaign), he thinks that Chrysler has no future. Here's a quote that comes via The Detroit News:

"It was all about the unions. The unions didn't want to have their very generous contracts renegotiated so we put $80 billion into both General Motors and Chrysler, and anybody believes that Chrysler is going to survive, I'd like to meet them."

While McCain's never been one for pulling punches, this may be one head butt over the top. Chrysler declined to comment on McCain's statements. Ironically, McCain made his comments while serving as grand marshal of a NASCAR event at the Phoenix International Raceway as Dodge announced its new Nationwide Series Challenger racer.

[Source: Detroit News | Photo by Christian Petersen/Getty]

REPORT: Senator John McCain doesn't believe Chrysler will make it originally appeared on Autoblog on Mon, 16 Nov 2009 12:59:00 EST. Please see our terms for use of feeds.

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Daimler CEO Dieter Zetsche dishes out advice for Chrysler

Jonny Lieberman — Sun, 15 Nov 2009 08:46:00 EST

Filed under: Car Buying, Chrysler, Dodge, Jeep, Mercedes-Benz, Fiat

It's said that certain cultures don't handle the concept of irony well. You know, irony - where the intended answer is the opposite of the actual answer. Case in point: Back when cab forward cars were all the rage and the once mighty Plymouth brand was put out to pasture, Chrysler looked as if it had a fighting chance at remaining solidly within the Big 3. The Dodge Ram was a gauntlet thrown, the V10 Viper had sports car fans atwitter and the Dodge Intrepid really was a smart, good looking car.

Chrysler, meet Daimler, your new "equal." And by equal we mean Daimler gets the all the profits and you get cast off, last-generation Mercedes platforms on which to underpin your new cars. In the case of the 300C/Charger/Magnum, this particular strategy worked, for a couple of years at least. In the case of the Crossfire, not even a little bit. And then under Daimler's watch - and specifically under the eyes of Dieter Zetsche, a.k.a. Dr. Z - Chrysler was piledriven through the mat. Have you driven a Dodge Journey lately?

Here's the irony - Dr. Z is handing out unsolicited advice to Fiat's Sergio Marchionne vis-a-vis Chrysler - and we just can't help but laugh. Zetsche claims, "I continue to be emotional about this company and am crossing my fingers for the very best future." And while we're 51% sure he's being sincere, where was that emotion when he green lit the Jeep Compass? Or the Chrysler Sebring? Or the Dodge Caliber? All cars that led directly to the bankruptcy of Chrysler. We could go on, but you get the idea. Our advice to Sergio? Do the opposite of whatever Zetsche is telling you.

[Source: USA Today | Source photo by TORSTEN SILZ/AFP/Getty Images]

Daimler CEO Dieter Zetsche dishes out advice for Chrysler originally appeared on Autoblog on Sun, 15 Nov 2009 08:46:00 EST. Please see our terms for use of feeds.

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Live Blog: Chrysler CEO Sergio Marchionne presents 5-year business plan

John Neff — Wed, 04 Nov 2009 15:56:00 EST

CEO Sergio Marchionne presents 5-year business plan

Chrysler CEO Sergio Marchionne will brief the press today from 11AM EST - 6PM EST at the Chrysler Technology Center in Auburn Hills, MI on his 5-year business plan for the oft-embattled automaker. Follow along with us after the jump as we Live Blog the proceedings.

Click to follow Live Blog after the jump.

UPDATE: 12:45 - They've paused for an hour-long lunch. We'll be back live-blogging the presentation when they return at 1:45PM EST.

UPDATE: 1:50 - We're back from lunch!

UPDATE: 3:30 - About to come back from a 25-minute coffee break.

UPDATE: 5:45 - That's it, the marathon press conference has concluded.

Continue reading Live Blog: Chrysler CEO Sergio Marchionne presents 5-year business plan

Live Blog: Chrysler CEO Sergio Marchionne presents 5-year business plan originally appeared on Autoblog on Wed, 04 Nov 2009 15:56:00 EST. Please see our terms for use of feeds.

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Fiat/Chrysler CEO Sergio Marchionne steps down from UBS bank board

Noah Joseph — Wed, 30 Sep 2009 08:00:00 EST

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

Sergio Marchionne with fellow board members at a UBS press conference

Sergio Marchionne is one of the busiest people in the business. Or any business, for that matter. After comprehensively restructuring his empire - what amounts to nearly the entire Italian automobile industry and then some - he lost his right-hand man to Volkswagen. But that didn't stop him from taking over at Chrysler's headquarters and tendering bids on other automakers as well, all the while battling the bureaucracy to get it all done. But everyone's got their limits, even Marchionne, so it should come as no great surprise that the Fiat and Chrysler chief executive has announced his resignation from the board of directors of Swiss bank UBS.

The Italian industrialist, however, wasn't just filling an empty seat on the UBS board. He was elected two years ago and named vice chairman last year. In fact, he was reportedly considered as a potential chief executive for the financial firm earlier this year. But while he may be up to taking the reins of one industry in shambles, he's not looking to take on two. Neither, incidentally, is Shell CEO Peter Voser, who is also stepping down from the UBS board.

[Source: Automotive News - Subs Req'd | Image: Sebastian Derungs/AFP/Getty]

Fiat/Chrysler CEO Sergio Marchionne steps down from UBS bank board originally appeared on Autoblog on Wed, 30 Sep 2009 08:00:00 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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REPORT: Fiat surprised by Chrysler's condition, new business plan coming in November

Chris Shunk — Thu, 17 Sep 2009 11:21:00 EST

Filed under: Chrysler, Fiat

Bad news travels fast. That old adage was first coined hundreds of years before the Internet, and we'd say the phrase holds more true than ever in the age of Twitter, Facebook and, well, Autoblog. We're but one of many car sites that have mentioned the dearth of new product coming out of Auburn Hills, Michigan over the next couple years, but someone forgot to tell Fiat CEO Sergio Marchionne. The Pentastar's new chief executive reportedly told reporters in Frankfurt this week that he was "surprised" at how little was going on over at Chrysler the past 24 months. Surprised? Really? Did Marchionne actually ask Chrysler brass which new products were hitting the streets in 2010 and 2011?

As a result of the dearth of product, Marchionne and his team are going back to work on Chrysler's business plan, with a new plan to be announced sometime in November. Marchionne told Automotive News that the management team had to be "absolutely clear about what we want to do with Chrysler and where the organization is going to be in five years."

Car Concepts Automotive analyst Todd Turner told CNN that he too had a hard time believing that Marchionne was blissfully unaware of Chrysler's plight, adding that Marchionne is using the extra time to announce drastic actions to right the Pentastar ship. Turner went as far as to say that Chrysler could pull the plug on the slow-selling Chrysler brand all together within the next five years or perhaps simply rebadge Fiat models as Chrysler products. That would leave Fiat's Detroit operations with the Dodge and Jeep brands.

Chrysler's newest beast master paid precisely zero dollars (or Euros or Lira or gold cougerans) for its pet project, and Marchionne reiterated that Fiat intended to keep it that way. Marchionne added that he didn't plan any outside investments for Chrysler but added that if total sales in the U.S. market don't hit about 11 million units in 2010, Chrysler may have to close more plants. We're just hoping Chrysler can make it through the next couple of years to actually get to the point where it is selling rebadged Fiats.

[Source: CNN Money | Photo by Bill Pugliano/Getty]

REPORT: Fiat surprised by Chrysler's condition, new business plan coming in November originally appeared on Autoblog on Thu, 17 Sep 2009 11:21:00 EST. Please see our terms for use of feeds.

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REPORT: Jim Press leaving Chrysler by year's end

Jonny Lieberman — Fri, 21 Aug 2009 14:27:00 EST

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

According to The Wall Street Journal Jim Press, the Chrysler Group LLC Deputy Chief Executive and sole surviving member of pre-bailout/bankruptcy Chrysler will be resigning his post by the end of November. The WSJ quotes three anonymous people close to the plan. When reached for comment, Press only stated, "I don't think anything has been released about management changes." If true, Press's departure will leave Fiat/Chrysler CEO Sergio Marchionne without any former-Chrysler advisers -- which may not be such a bad thing considering recent offerings like the Sebring, Journey and Caliber.

Still, one has to question the wisdom of losing a salty North American market insider like Jim Press, who spent 37 years at Toyota. Especially since Press was in the trenches when the Japanese automaker went from screwball import in the Sixties to the largest automaker in the world just a few decades later - a trick that Fiat would no doubt like to emulate.

Press was hired by Chrysler's former masters, Cerberus Capital Management LP, in 2007. His ToMoCo experience was supposed to help right Chrysler's boat, but it had too many holes in the hull from the apparent abuses inflicted by former "equal" Daimler. After a year on the job, Press found Chrysler on the brink of bankruptcy, and a few months later, they went under. If this report is true, it will be a sad chapter in an otherwise stellar career. Stay tuned.

[Source: The Wall Street Journal | Image: Bill Pugliano/Getty]

REPORT: Jim Press leaving Chrysler by year's end originally appeared on Autoblog on Fri, 21 Aug 2009 14:27:00 EST. Please see our terms for use of feeds.

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REPORT: Marchionne thinks Chrysler could go public in 30 months

Chris Shunk — Thu, 23 Jul 2009 10:58:00 EST

Filed under: Chrysler, Fiat

Analysts have been wondering when Chrysler would go public, and new CEO Sergio Marchionne has an answer: not soon. Some have speculated that Chrysler shares would be available on the stock exchange by the end of 2010, but Automotive News is reporting that Marchionne is giving a timetable of "not sooner than 2½ years." Marchionne obviously wants to hold off on going public until he and Chrysler's board of directors feel the company will command the appropriate value.

Reporters also asked Marchionne in a conference call when he felt Chrysler would be profitable. The Fiat/Chrysler CEO pointed out that he didn't feel such speculation was a good idea considering the fact that Chrysler has yet to have a post-bankruptcy board meeting. Good point. Chrysler's board of directors will be meeting on July 29.

Marchionne did, however, say that Chrysler would "generate healthy profit margins" once US auto sales hit 13-14 million units per year; something he doesn't expect to happen before 2011.

[Source: Automotive News - Sub. Req. | Photo Source: Tiziana Fabi/Getty/AFP]

REPORT: Marchionne thinks Chrysler could go public in 30 months originally appeared on Autoblog on Thu, 23 Jul 2009 10:58:00 EST. Please see our terms for use of feeds.

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Chrysler fills out board of directors

Chris Shunk — Mon, 06 Jul 2009 08:29:00 EST

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

The new Chrysler Group, LLC is out of bankruptcy, in bed with the Italians and the U.S. Government, and now it has a complete board of directors. Chrysler is forging ahead with a fresh group of board members, including former governors, Fiat royalty, and some people you've probably never heard of.

Chrysler announced the rest of its nine member board of directors over the holiday weekend, joining active chairman C. Robert Kidder, who was announced in May. Among the new board members are former Michigan Governor and U.S. Congressman James Blanchard, Fiat CEO Sergio Marchionne, Fiat Powertrain CEO Alfredo Altavill and former Northwest Airlines CEO Douglas Steenland.

Noticeably absent from the board is overt representation from the United Auto Workers, which is perhaps surprising as the labor group owns part of the new Chrysler. Hit the jump to read up on all of the automaker's board members.

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

Continue reading Chrysler fills out board of directors

Chrysler fills out board of directors originally appeared on Autoblog on Mon, 06 Jul 2009 08:29:00 EST. Please see our terms for use of feeds.

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REPORT: Dodges to be rebranded as Alfa Romeos in Europe

Chris Shunk — Thu, 02 Jul 2009 19:00:00 EST

Filed under: Europe, Dodge, Earnings/Financials, Alfa Romeo

With the ink still wet on the Fiat/Chrysler deal, many auto sites (including Autoblog) have had a bit of fun prognosticating which Fiat/Alfa models would be rebadged as Chrysler products. U.K. site Autocar is reporting that Fiat is exploring bringing in Dodge models to Europe to be rebadged at Alfa Romeos. CEO Sergio Marchionne is said to be considering the move, saying that the two brands share the same core identity.

Autocar quotes Marchionne as saying that Dodge is the muscle car of the U.S. while Alfa is the muscle car of Europe, the latter being an interesting bit of positioning that we Statesiders don't normally associate with the brand. If the right Dodge-branded products were to make their way to Europe, the theory is that the Auburn Hills marque could actually bolster the products already offered by Alfa. The problem is, though, that there are few (if any) Dodge models that could reasonably be expected to perform well in Europe. The only models that are likely to be of interest are the Charger, Viper and Challenger, and the there is a chance that the Viper could soon find itself outside of the Chrysler portfolio altogether. The Charger and Challenger are likely too big for Europe as well, and would probably only sell in small numbers.

Marchionne also tells Autocar that the Chrysler group is still losing money, but the rate has slowed due to production and labor cuts.

[Source: Autocar]

REPORT: Dodges to be rebranded as Alfa Romeos in Europe originally appeared on Autoblog on Thu, 02 Jul 2009 19:00:00 EST. Please see our terms for use of feeds.

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REPORT: Chrysler christens Brandon Faurote as new chief designer

Jonathon Ramsey — Wed, 01 Jul 2009 09:26:00 EST

Filed under: Chrysler, Dodge, Jeep

Chrysler Firepower Concept - Click above for a high-res image gallery

When Sergio Marchionne revamped Fiat, he installed new designers at each company division and charged them with creating products that would define each brand and move metal. Marchionne has apparently done the same with Chrysler, putting Brandon Faurote in charge of Chrysler, Joseph Dehner in at Dodge, and Mark Allen in at Jeep.

Faurote has been with the Pentastar since he was 22, and has worked on offerings like the 1999 Jeep Cherokee and the 2001 Chrysler and Dodge minivans. Since 2003, his title has been Chief Designer - Advanced Product Design, and he's given us concept cars like the 2005 Chrysler Firepower (pictured). He's also given us the Chrysler Imperial, so we pray his eye for the brand leads more toward artillery than royalty.

Joseph Dehner leads the Dodge charge and has the Crossfire and 2001 Chrysler Sebring in his quiver... but also the exterior design of the 2007 Sebring. Mark Allen has the the 2006 Jeep Wrangler and 2009 Dodge Ram 150 to take credit for, as well as super cool Jeep concepts like the Jeep JT and Jeep J8 Sarge. Here's to hoping Fiat encourages - and pays for - them to give us their best. Hat tip to 13enS!

Gallery: Chrysler Firepower Concept

[Source: The Motor Report]

REPORT: Chrysler christens Brandon Faurote as new chief designer originally appeared on Autoblog on Wed, 01 Jul 2009 09:26:00 EST. Please see our terms for use of feeds.

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Marchionne confirms Fiat still interested in Opel

Jonathon Ramsey — Sun, 28 Jun 2009 19:05:00 EST

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

Fiat CEO Sergio Marchionne, watching the travails of GM, Opel and Magna from his comfy Italian perch, has sent word that his previous offer for Opel is still on the table if anyone is interested. That offer, though, can't be sweetened because he doesn't "believe we could improve Fiat's offer. It's the most rational one we can put forward from an industrial viewpoint."

It doesn't appear as though anyone's listening. The German government wants to save German jobs, Opel workers are determined to vote down anyone who tries to take them away, and GM wants the most money and the least competition. Fiat's offer doesn't exactly fit that template.

GM and Magna & Co. will dance for a while longer, and if that doesn't work out, then GM will begin again with RHJ and Beijing Automotive. In the meantime, someone's going to have to pay to keep Opel running. Could it be that the most reasonable offer will be left unanswered while the other parties look for more expedient solutions?

[Source: Auto News, sub req'd]

Marchionne confirms Fiat still interested in Opel originally appeared on Autoblog on Sun, 28 Jun 2009 19:05:00 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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Rumormill: Suzuki to join Marchionne's Fiat/Chrysler/Opel super-group

Noah Joseph — Mon, 11 May 2009 15:29:00 EST

Filed under: Suzuki, Fiat

The Suzuki SX4 is also sold as the Fiat Sedici - Click above for a high-res image gallery

With Fiat preparing to join forces with Chrysler, Opel, Saab and General Motors Latin America, the Italian auto group is expanding its home base to the United States, Germany, Sweden and South America. So what's it missing? Japan. The latest rumors out of Automotive News Europe could go a long way towards addressing that omission, as the trade organ is reporting that Fiat CEO and merger mastermind Sergio Marchionne may be preparing to bring Suzuki into the fold as well.

The main contributing factor to this turn of the rumormill, though, is the presence of Suzuki's factory in Hungary, where the Japanese automaker builds the Sedici (twin to the Suzuki SX4 Crossover) for Fiat and the Agila for Opel. However, Marchionne insist these are pure speculation, dismissing the reports as "nonsense." Marchionne arguably already has more on his plate than he can chew at the moment, but the scuttlebutt probably isn't entirely without merit.

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

Rumormill: Suzuki to join Marchionne's Fiat/Chrysler/Opel super-group originally appeared on Autoblog on Mon, 11 May 2009 15:29:00 EST. Please see our terms for use of feeds.

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Marchionne to Germans: If you have a better offer for Opel, take it

Jeremy Korzeniewski — Fri, 08 May 2009 19:00:00 EST

Filed under: Europe, Government/Legal, Hirings/Firings/Layoffs, Plants/Manufacturing, Opel, Fiat

Fiat's bid for worldwide domination of the automotive industry has seen a bit of a snag in Germany, where government officials are said to be balking at the Italian automaker's plan to take over GM's struggling Opel brand. Fiat CEO Sergio Marchionne sounds confident that his plan is the best way forward for Opel, saying:

"I'm offering the German government a car business that will be effectively debt-free and I will take on Opel's liabilities, including pensions. I told them: if you have a better offer, take it."

Indeed, the German government may do just that. A competing bid from auto parts supplier Magna International is said to be the more attractive proposal from Germany's standpoint since it would likely offer guarantees that manufacturing sites in Germany, Belgium and England would remain humming along at full capacity.

Fiat's plan would rely heavily on the expected cost savings realized by combining all of its various automobiles on a single set of platforms - a process that would almost assuredly also dictate a corresponding loss of jobs.

[Source: Automotive News - Sub. Req'd | Image: AFP/Getty]

Marchionne to Germans: If you have a better offer for Opel, take it originally appeared on Autoblog on Fri, 08 May 2009 19:00:00 EST. Please see our terms for use of feeds.

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Auto threesome? Fiat CEO confirms pursuing partnership with Opel

Damon Lavrinc — Fri, 01 May 2009 13:03:00 EST

Filed under: Europe, Government/Legal, Plants/Manufacturing, GM, Opel, Vauxhall, Fiat, UAW/Unions

As if Fiat doesn't have enough on its plate while working on an alliance with Chrysler during its bankruptcy proceedings, the Italian automaker's CEO has finally confirmed that it's pursuing an alliance with General Motors' German arm Opel.

In the Fiat-owned newspaper La Stampa, CEO Sergio Marchionne said, "Now we have to concentrate on Opel. They are our perfect partner."

Coupled with the Chrysler alliance, if the deal with Opel would go through, that would make Fiat the world's number-two automaker behind Toyota. However, both Italian and German labor leaders are opposed to the venture, fearing sizable cutbacks to both Opel and Fiat's workforce.

In GM's recently revised restructuring plan, the General's generals laid out a plan to spin-off the Opel and Vauxhall divisions into a separate unit, which would require another investor for GM to secure financial aid from the German government. Currently, GM claims to have six investors interested in Opel, and along with Fiat, Canada's Magna is also in the offing.

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

Auto threesome? Fiat CEO confirms pursuing partnership with Opel originally appeared on Autoblog on Fri, 01 May 2009 13:03:00 EST. Please see our terms for use of feeds.

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Fiat CEO Marchionne: "If I was a betting man, I would suggest Chrysler is going to fall into Chapter 11"

Jonathon Ramsey — Wed, 29 Apr 2009 16:57:00 EST

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

After yesterday's Chrysler news regarding the first-lien holders and the U.S. Treasury coming to terms, we hope none of you thought the Pentastar had gotten off the see-saw. The latest tidbit comes from Fiat CEO Sergio Marchionne, but it comes via CAW head Ken Lewenza. According to Lewenza, Marchionne said that with two days left before Chrysler's got to show viability or go under, that "regardless of all the bondholders and stakeholders coming to the pump," if Marchionne had to put his money on the outcome he "would suggest Chrysler is going to fall into Chapter 11."

Also according to Lewenza, Marchionne also said "the Canadian plants are about as well positioned as you could possibly be,"so who knows, this could be Lewenza taking a dig at Chrysler and engaging in a little self promotion. Now we only have to wait and see if Fiat issues a 'clarification' of what Marchionne is reported to have said. For while Fiat isn't expected to put any money in for its potential stake in Chrysler, it is still being looked at as a possible savior, and those aren't the kinds of sentiments you want to hear from the person leading the cavalry moments before the battle is decided.

[Source: Auto News, sub req'd | Image: Giuseppe Cacace/Getty]

Fiat CEO Marchionne: "If I was a betting man, I would suggest Chrysler is going to fall into Chapter 11" originally appeared on Autoblog on Wed, 29 Apr 2009 16:57:00 EST. Please see our terms for use of feeds.

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