Fiat recently released October sales for the U.S. market, and the results are disappointing. Fiat sales of the 500 and 500C dropped to 1965, a 71% drop in sales from September. Also, this happened in a month that saw sales increase for many automakers, including Chrysler. There are various reasons for the decline including the 500 losing its “new car” appeal and the dealer network being small, but I only want to point to one source: Jenny from the Block.
Lotus is getting fat and greedy, Porsche makes more money selling SUVs to housewives than sports car enthusiasts, Aston Martin sells a rebadged Toyota. The world of sports cars is upside down. But there is hope, a small glimmer from the prodigal son of the automotive world: the Alfa Romeo 4C. This September, Alfa Romeo is set to disclose more details on the 4C at this year’s Frankfurt auto show. It may be a revised concept, or maybe, the production model.
This is not just big for car people, but for Alfa Romeo as well. Alfa is putting their hopes for a successful return to the U.S. on the back of a 1,800lb sports car. It also marks a return to Alfa making true sports cars.
The specifics so far point to the 4C as being a lightweight, turbocharged sports car. It will have a carbon fiber tub, RWD, and a turbocharged 4-cyl where it is supposed to be, the back of the car. It will also be priced in the reasonable $50,000-60,000 range. The 4C looks to replace the much loved, but nearly departed, Lotus Elise in the hearts and minds of people that enjoy driving cars, not status symbols. As for more specifics, we will have to wait until Frankfurt.
November 16-17, at the Los Angeles Auto Show, one of the most anticipated cars of 2012 will debut. The Fiat 500 Abarth. Yes, you read that right. The Abarth is not a V8, RWD sports coupe or a trillion horsepower, billion dollar supercar, but the sporting version of the Fiat 500.
Powered by a turbocharged 4 cylinder engine, the Abarth should produce around 180hp, 10 more horsepower than the European version. Also, it only weighs around 2300 pounds, and will probably get close to 40mpg on the highway. This isn’t just eating your cake and having it too, it’s like eating the whole bakery and looking like Brad Pitt.
Not to mention, the Abarth name is steeped in racing history. Founded in the 1950s, Abarth started as an unofficial tuner for Fiats. However, they slowly began to be incorporated into the company to modify cars officially, and organize Fiat’s racing activities, from sports car racing to rallying. For reference, the M badge for BMW has only been around since the 1980s.
After its debut, the Abarth should be on showroom floors the first half of 2012. In these times of austerity, the Fiat 500 Abarth is a battle ax of fun to cleave through the continuing stream of boring cars.
Fiat logo is shown at the opening of a new dealership in Istanbul, in this May 6, 2010 file photo. Fiat Industrial, through its affiliate CNH, will set up a plant in Argentina to manufacture powerful combines and specialty tractors destined for the Latin American market. The plant will create some 600 direct and 1,500 indirect jobs, CNH said in a statement on April 26, 2011. REUTERS/Osman Orsal/Files (TURKEY – Tags: TRANSPORT BUSINESS)
DETROIT (Bloomberg) — Fiat S.p.A. has options to increase its stake in Chrysler Group LLC to more than 70 percent as the U.S. government seeks to exit its investments in the auto industry.
Fiat has an option for 12 months to buy the U.S. Treasury’s remaining stake after it repays debts to the government, Chrysler said today in a filing with the U.S. Securities and Exchange Commission. Chrysler said in April it would issue new debt to repay the government loans, allowing Fiat to exercise an option to increase its stake to 46 percent from 30 percent.
The Treasury holds an 8.6 percent stake in Chrysler, the company said April 12. That amount would be reduced when Chrysler meets the final of three performance milestones that each give Turin, Italy-based Fiat an additional 5 percent stake. The final goal, to build a vehicle that gets 40 mpg in the U.S., should be met this year, Sergio Marchionne, CEO of both automakers, has said.
The logo of a 2009 Fiat 500 vehicle is seen outside Chrysler Headquarters during the Chrysler Group LLC 2010-2014 Business Plan Presentation in Auburn Hills, Michigan in this November 4, 2009 file photo. Fiat is poised to increase its stake in Chrysler Group LLC to 30 percent within the next two months, CEO Sergio Marchionne said on April 7, 2011. REUTERS/Rebecca Cook/Files (UNITED STATES TRANSPORT BUSINESS)
Chrysler Group LLC is bolstering its lineup of fuel-efficient powertrains, thanks to initiatives under Fiat SpA management.
Many of the advances involve Fiat technology; the Italian automaker is known as a small-car and small-engine specialist.
Paolo Ferrero, the former Fiat executive who now heads Chrysler powertrain, said work is under way on a variety of propulsion systems, ranging from improved gasoline engines to diesels, hybrids and electric vehicles.
And new transmissions will further improve fuel efficiency, he said Thursday after a presentation at the 2011 Society of Automotive Engineers World Congress.
Chrysler’s new Pentastar V-6 is proliferating across the lineup and is being considered for the Ram 1500 pickup as well, Ferrero said. That would allow the Ram to compete more directly with the new Ford F-150. The Ram currently has an older version V-6 as well as a V-8.
The Auburn Hills automaker also is improving its four-cylinder engines with Fiat’s MultiAir technology, which improves combustion. The engine in the Fiat 500 has MultiAir, and it will be expanded to more engines in Chrysler vehicles. Turbocharging also is expected in the future.
I don’t think anyone is too surprised by this development as Marchionne’s Fiat will reap more rewards for the risk the company took back in 2009.
From Auto News.com:
Fiat SpA, the Italian carmaker that owns 20 percent of Chrysler Group LLC, may boost the holding to more than 50 percent before an initial public offering by the U.S. automaker, the companies’ chief executive officer said.
“I think it is possible. I don’t know whether it is likely, but it is possible that we’ll go over the 50 percent mark if Chrysler decides to go to the markets in 2011,” Sergio Marchionne, 58, told reporters at the Milan stock exchange today. “It will be advantageous if that happens.”
Fiat received the stake as part of Chrysler’s 2009 bankruptcy reorganization under government supervision. It expects to receive an additional 15 percent this year when Chrysler makes a small engine in the U.S. and meets sales objectives outside of North America. Fiat has an option to increase the holding to 51 percent, by buying an additional 16 percent, after Chrysler repays U.S. and Canadian government loans.
With the upcoming launch of the Fiat 500 we now have the first Fiat television commercial in the U.S. since the early 1980′s. Things have been moving quickly at Fiat/Chrysler for the past 18 months which makes it hard to believe the Fiat 500 is actually ready to hit the ground. DashBoardNews and Bullz-Eye.com had a chance to view the car at the L.A. Auto Show and eagerly await an opportunity to drive the Fiat 500!
Fiat could very likely own 51% of Chrysler in the next few years. If that happens Sergio Marchionne might have made the biggest and smartest one sided bet of the great recession!
From Detroit Free Press:
Sergio Marchionne, CEO of Fiat and Chrysler, told analysts Thursday that Fiat plans to raise its ownership of Chrysler from 20% to 35% by the end of 2011 “barring unforeseen circumstances.”
Marchionne’s comments came in a conference call after the Italian automaker reported third-quarter earnings of 170 million euros, or $236 million.
Fiat can increase its Chrysler stake in 5% increments by meeting three objectives. The first objective, to be achieved early next year, is the launch of a 1.4-liter four-cylinder MultiAir engine built at its Dundee, Mich., factory, in the Mexican-assembled Fiat 500 minicar.
Chrysler Dealers were shown the future in Orlando, Florida this week and part of the plan is changing the name of the current Sebring to the Chrysler 200. Good move Sergio! The last redesign of the Sebring fell flat partly because of styling woes and a crappy interior to boot so this car gets kicked to the curb. The new 200 under the new Fiat led group will sport a stiffer body, new suspension geometry, a new rear sway bar and improved noise, vibration and harshness treatment according to the company.
Fiat/Chrysler keep marching towards the future and we like what we see!
From AutoNews.com:
DETROIT — Chrysler Group today said it would name its redesigned mid-sized sedan the Chrysler 200 — the vehicle that will replace the Sebring in its lineup.
The 200 is a re-engineered, restyled version of the current Sebring.
The company showed the renamed car and several other vehicles to its dealers today at a national meeting in Orlando and said the 200 will arrive in showrooms in the fourth quarter.
The 200 will be available with Chrysler’s new Pentastar V-6 engine and a six-speed automatic or with Chrysler’s 2.4-liter I-4 engine mated to a four- or six-speed automatic transaxle.
Chrysler sales take off in June with Dodge leading the charge clocking a 67% increase with the Charger, Avenger and Challenger leading the way. The industry average was well below Chrysler’s jump in sales as things might be changing for this company. Looking back a year ago and then to today with a market that has still not rebounded strongly you have to give the folks at Chrysler/Fiat credit for fighting back. There are new products on the way and if the auto market in the U.S. can find it’s way in the months ahead Sergio Marchionne will have a lot of new friends in the Midwest!
From the Detroit Free Press:
Chrysler said today that U.S. sales jumped 35% compared with the same month a year ago, a gain led by its Jeep and Dodge brands.
Jeep sales rose 25%, on an 86% jump Jeep Wrangler sales. Dodge, newly minted as a car brand, saw its sales increase 67% on a spike in sales of the Charger, Avenger and Challenger.
Overall, sales of Chrysler’s passenger cars, an area where industry observers say Chrysler must improve, nearly doubled.
Chrysler’s minivans also performed well. Sales of the Chrysler Town & Country rose 34% and sales of the Dodge Caravan jumped nearly 50%.
