Fiat/Mazda Alliance May Bear More Fruit, With Mazda Cars Built At Fiat, Chrysler Plants

Derek Kreindler
by Derek Kreindler

Although news articles on the topic are fairly thin, it seems almost inevitable that Mazda and Fiat will continue doing business together, with the next step involving Mazdas built at Fiat/Chrysler plants.

Articles in Automotive News and Just-Auto have quotes from Sergio Marchionne expounding on his openness to alliances and the “difficult economics” of creating new platforms and engines independently. Our sources indicate that further collaboration between Fiat and Mazda are going to happen.

Mazda needs to form an alliance with someone or risk perishing. Fiat and Chrysler plants have excess capacity, and Mazda is facing a big problem with a strong yen impacting their exports. Their new factory in Mexico can’t come soon enough, and North American built Mazdas would be a lifeline of sorts for the company.

The deeper business synergies between Mazda and Fiat are somewhat obscure, but from a strictly product-focused standpoint, the two companies seem to share an ethos for more compact, fun-to-drive cars. Mazda manages to stretch few resources into some compelling products and technologies, and a Fiat tie-up could ease some of the burden of being an independent automaker, while passing some lessons of their own back to Turin and Detroit.

Derek Kreindler
Derek Kreindler

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  • Charliej Charliej on May 25, 2012

    Fiat is the savior of Chrysler. Without Fiat, where would Chrysler be now? In the dead company file? Fiat invested money for redesigned cars and it is paying off. The US is coming out of the recession and car sales are booming. Chrysler would not be here to enjoy increased sales if not for Fiat.

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    • Highdesertcat Highdesertcat on May 26, 2012

      @highdesertcat redav, I've never been a Chrysler fan. I owned several used 4X4 Jeeps over the decades and I thought they were all crap, even those from AMC. But they were relatively easy to fix and parts were plentiful at junk yards and easy to come by. The architecture of Jeeps and Chrysler/Plymouth/Dodge/DeSoto cars was straight-forward and I was comfortable rebuilding Chrysler engines for my dad's dragster since I was 12, and modifying underpowered Jeeps and Chrysler products with larger engines. ('63 Dodge Slant 6 -> 383, Jeep I-6 -> 318) When Daimler owned Chrysler the culture that led to Chrysler's demise did not change. Ditto during Cerberus. But under Sergio and Fiat I believe that Chrysler will do OK. In fact Chrysler has done so well that its profits are what is keeping Fiat alive. Sergio and Fiat have marginalized the UAW representatives on the BoD and Fiat will press on without the UAW's help and make Chrysler products elsewhere at the first sign of trouble with the UAW. The UAW knows this and is unlikely to strike Chrysler or cause mayhem, unless they are just on a suicidal binge to kill themselves. That's happened before so it could happen again. For the UAW suicide is painless, it brings on many changes. Like the tax payer bail outs, for instance. I hope Chrysler will be around for the next 3 years because that's how long the warranty is on my wife's 2012 JGC. So far, no problems.

  • Wallstreet Wallstreet on May 25, 2012

    I am hoping Fiat/Mazda alliance will at least give birth to Alfa mx-5 or Miata Spider. I can't wait !

  • Geozinger Geozinger on May 26, 2012

    Fish, meet bicycle. Bicycle, meet Fish. This sounds like all of the usual synergy/marketing/BS doublespeak whenever two companies are feeling each other out to see if this union would work. Contrary to popular opinion, Fiat isn't all that healthy. Like it's Chrysler owning predecessor, Daimler, they're making money off of the North American product but the home market isn't all that great. This has been discussed on this blog before. Mazda is in a world of hurt, and appears to be desperate to gain another partner immediately, at least one not named Toyota. I can't imagine the Sumitomo keiretsu letting their business interest twist in the wind, so something will come along to help them out. I have a hard time imagining what it is these two companies could do together, even if a new Fiata were to come out of the early talks. Is Fiat still involved with Suzuki, which produced the Sedici (SX4 in the States)? I can actually see more possibilities with Suzuki vs. Mazda. Suzuki would give Fiat/Chrysler entry into SE Asian markets that F/C has a slim chance to enter. Suzuki could get solid NA distribution and/or product through an alliance or merger with F/C. I could see the 'synergies' happening there. Mazda and C/F in NA have a lot of overlap. I think it would take a long time, with tightly focused coordination to give each enough room to move in the same market without stepping on each other's toes.

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    • Highdesertcat Highdesertcat on May 27, 2012

      @unhittable curveball Mazda was one of the brands my brothers carried before they retired from the new-car retail business. Mazdas never sold well. When given a choice, most buyers chose the Ford equivalent even though the Mazda6 was, IMO, the better value of the two, and the Mazda3 would eat a similar Focus for lunch in ride and handling. The Mazda 2300/4000 was a rebadged Ranger. The Mazda5 was a niche vehicle without equal and the CX-9 was a better dad-mobile than anything from anyone else. If Sergio would be able to take over Mazda, Fiat would get the better end of the deal, just like Chrysler's profit and the $1.3B taxpayer money saved Fiat from certain death, the better end of the deal. Fiat has an established history of crappy vehicles and the Fiat name would not sell well on rebadged products from Mazda and Chrysler. Maybe in strong Fiat markets it would, but I can't think of any strong Fiat markets, not even Italy. Sergio would do well to market under the established names while at the same time incorporating the better quality into his own Fiat line of products.

  • Cheezeweggie Cheezeweggie on May 26, 2012

    Great. Well engineered cars built by the UAW with Chrysler management. The inverse of shining s&!t.

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