Fiat SpA said on Wednesday that it has signed an agreement to buy the remaining 41.5% stake in Chrysler that it does not own from the United Auto Worker’s retiree health-care trust, known as VEBA, for $3.65 billion in cash up front and another $700 million after the deal is completed. The agreement will allow Fiat and Chrysler CEO Sergio Marchionne to realize his dream of creating a global automotive group out of the two companies. The joint automaker would be the 7th largest in the world. (Read More…)
TTAC commentator AMC_CJ writes:
My retired mother has come to the conclusion that she needs a 2nd car. Currently she has a 06′ Trailblazer that she keeps in mint condition, and despite having issues with the headlights going out automatically, and a lengthy dealing with GM, it’s been a good vehicle (and to GM’s credit, we think they finally found and fixed the problem with little expense to her). She loves her Trailblazer and it’s perfect for running up to our homestead in WV. But it’s the only car she has, and when it was in the shop recently it left her with a sub-par loaner she couldn’t drive very far. When I lived at home, I lent my parents a vehicle out of my own fleet when they needed. (Read More…)
Another victim of government meddling in Brazil’s auto market is dead. Fiat’s venerable old Uno, redubbed the Mille a while ago, will not receive airbags and ABS, as per a newly mandated law, and thus will go into history’s dustbin alongside VW’s Kombi. As a farewell, Fiat has unleashed into the Brazilian market its own last edition, the Grazie Mille (“Thanks a Thousand” a clever pun on the car’s official name, Mille, though the market still calls it Uno). It can be had for slightly over $13,000, and it’s the most well equipped Uno Mille of recent times. A nod back to when this car had the panache to dispute middle class families’ hearts.
Bloomberg is reporting that Fiat CEO Sergio Marchionne has resumed talks with the UAW’s retiree health care trust (aka VEBA) to buy the 41.5% of Chrysler that the Italian automaker doesn’t yet own. Fiat executives met last week with the trust’s representatives. The proposed initial public offering of Chrysler stock has been delayed for tax reasons until next year, creating a window of opportunity for a deal. Differing valuations on the stock prompted VEBA’s demand for the IPO, which would establish a market price for the stock, most likely more than Marchionne and the Agnelli family that controls Fiat want to pay. (Read More…)
‘Tis the season for year-end Top 10 lists celebrating and lamenting all things in the world of life, and the automotive industry is no exception. Ward’s Automotive has announced its list of the 10 best engines for 2014, and it’s a turbodiesel-intercooled festival of power this year.
Sources tell Bloomberg News that Fiat Spa will spend as much as 9 billion euros ($12 billion) over the next three years developing new models for for the European market. The Italian automaker hopes the strategy will end losses on the continent and restore drastically underutilized Italian factories to profitability. Many of the new models will be based on either the Fiat 500 subcompact or the small, low cost Panda. A five door version of the 500 will replace the Punto. The Punto, last restyled in 2005, has long been a fixture in Fiat showrooms and as recently as 2007 it accounted for almost a third of the Fiat brand’s sales in Europe.
Though Fiat wants to use its Italian factories better, the Punto’s replacement will be built in Poland to save on costs. Sergio Marchionne believes that “made in Italy” works with upscale brands like Maserati and Alfa Romeo. The upcoming Maserati Levante SUV will be made in Fiat’s Mirafiori factory. (Read More…)
On the heels of “the biggest thing to happen in the commercial world” that is the Ram ProMaster — whose page links back to our review, of course — the Italo-American truck division has announced the introduction of the ProMaster City in late 2014.
For the fourth time since 2004 Fiat CEO Sergio Marchionne is reported to have devised a new plan to revive the Alfa Romeo brand, this one focused on premium vehicles made in Italy for export to the world. Alfa hasn’t made a profit in the nine years since Marchionne took the reigns at Fiat.
Marchionne’s latest plan for Alfa will be based on a new rear wheel drive architecture (with all wheel drive variants) that will be developed by a dedicated group of engineers at Maserati in Modena, headed by Philippe Krieff. Krieff reports directly to Harald Wester, Fiat-Chrysler chief technical officer and CEO of Alfa and Maserati. (Read More…)
Though Chrysler-Fiat CEO Sergio Marchionne had previously said that an initial public offering of Chrysler stock could take place by the end of 2013, the Italian automaker announced that stock sale will not take place before the new year. ”The Board of Directors of Chrysler Group … has determined that it will not be practicable for Chrysler Group to launch and complete an initial public offering prior to the end of 2013,” Fiat said in a statement.
If you were hoping to celebrate an early Christmas in Milan with Signore Marchionne next year, you’re out of luck: Fiat has declined an invitation to show at the 2014 Milano Auto Show in light of the weakened local market.
1957. Italy was having a ball. La dolce vita was in full swing and Italians were on the up and up. Along came the original Fiat 500, or Cincuecento, to enliven things that much more. It’s hard to understand nowadays how exciting it is to see a nation get motorized, but the 500 helped Italians along and get over the World War doldrums.
Now, you Americans will be able to get a taste of that fabled time in recent Italian history. Fiat has cooked up an even more retro 500, Called the 1957 Edition, which seems to be an American special.
If you get it, you’ll be able to enjoy Fiat’s Multiair 1.4 16v engine good for 105 ponies mated to a manual or an auto 6 speed. More important than that, this special edition features a brown leather interior with sand colored details. Exterior colors are very 50-ish too: baby blue, water light green and white. The wheels are a modern take on 50s hubcaps and are 16 inches. According to sources, the suspension is calibrated in a more sporting set up. Finally, Fiat logos are done in the style of the 50s.
To be even more perfect I’d have called it Edizione 1957 to complete the Italian-ness. Call me jealous.
While new car and light truck October sales were up in France, Spain and Germany, giving hope that the European market has finally bottomed out, Italy’s car market is not showing any signs of recovery with car sales down 5.6% from a year ago. Fiat’s European chief, Alfredo Altavilla, remains pessimistic about that brand’s home market. ”We are not seeing signs of a recovery in Italy, while in other markets we are seeing the glimmer of recovery where the market has touched bottom,” Altavilla told Reuters. “The real problem in Italy continues to be lack of consumer spending.” (Read More…)
Another day, another turnaround strategy from Sergio Marchionne. The plan, which won’t be revealed until April, reportedly includes a rear-wheel drive architecture as a key element, with enough flexibility to be used in everything from Alfa to Dodge vehicles.
Remember the Fiat Viaggio, the Dodge Dart clone that was supposed to be the brand’s breakthrough product in China? The compact sedan has missed its sales targets by as much as 60 percent, and now Fiat is hoping that local production of the Jeep Cherokee can help fill some of their plant’s capacity and capitalize on China’s insatiable demand for crossovers.
Fiat is now the proud owner of VM Motori after acquiring the remaining 50 percent of the diesel engine maker from General Motors for $47.1 million.
The first half of VM Motori was purchased by Fiat in 2010, with GM exercising a put option to purchase the remaining half. VM Motori now supplies diesel engines for the forthcoming Jeep Grand Cherokee and Ram 1500 EcoDiesel – an engine originally developed for the European Cadillac CTS.