Let's carry out the five year plan in 4 years! Picture courtesy nhikmetran at flickr.com

Today is the day. Today, Sergio Marchionne will present his 5 year plan for Fiat. 5 year plans are usually reserved for a reunion of unreformed communist party elders. But Fiat respects traditional values.

In his opening remarks, Marchionne took a shot at the mongers of gloom and doom. He had two words for analyst reports that dissed Chrysler’s operating profits: “Boulevard press.” This is Euro-slang for tabloids, or the business section of the National Enquirer.

“As we all know,” said Sergio, “in business it is ultimately only facts that prevail.”

Then, the facts were presented.

Be extra careful when you read Bloomberg this morning. It will make you think you had one too many last night. The financial news service reports that Chrysler posted a $143 million operating profit in the first quarter,“after cutting costs and introducing a big pickup.” It’s a miracle alright.

Analysts will have a lot of uncomfortable questions tomorrow when Chrysler reports post-bankruptcy financial results, while Fiat unveils “la strategia grande” domani in Italy. They will finally unveil their long-awaited 5 year plan.

According to Reuters, “more questions than answers could still remain about Chief Executive Sergio Marchionne’s turnaround strategy.” The most uncomforting question will be: “Are you sure?”

In June 2009, Fiat was handed 20 percent of a washed and rinsed Chrysler for no cash, and despite protests, the deal was rammed through. The UAW was given 55 percent, the U.S. and Canadian governments controlled 8 and 2 percent, respectively. Often overlooked, or forgotten, the deal came with an option for Fiat to raise its stake to 35 and eventually as high as 51 percent if it meets some rather vague financial and developmental goals, hashed out with the U.S. government.

Sergio Marchionne thinks the goals are met. He plans to increase Fiat’s holdings in Chrysler to 35 percent within two years, says Reuters.

In the world of automobiles, it appears that China isn’t the only fruit ripe for the plucking. Brazil is buzzing. They’re weathering the current economic fragility very well, and companies are looking to invest in there. Down in Brazil, economically speaking, it’s car-naval time!

Media from Associated Press to The Business Standard of India are abuzz with reports that Fiat (the company) is planning to cut 5000 jobs and will be spinning off its car division this summer. The stock market seems to like the idea: Fiat’s shares rose 4.15 percent.

European new car sales have fallen back to crisis levels. With many of the incentive programs withdrawn or phasing out, it’s back to reality. Reality is quite rough. Basically, Europe is back where it was in the carmageddon days of early 2009. The few bright spots are caused by on-going life support measures. Without government generosity, the European market place would be a wasteland.

New passenger car registrations in the EU increased by a mere 3 percent in February. Compared to the pre-crisis levels of February 2008, new car registrations decreased by 16 percent, reports the European Automobile Manufacturers Association ACEA.

Alfa has rekindled its long lost love with a mature lady: Aunt America.

Last December, Cammy Corrigan reported on TTAC that there are “very important opportunities for Alfa Romeo in the United States.” At least in the eyes of Luca di Montezemolo, Chairman of Fiat. Despite being the object of unconditional admiration of Alfa-crazed owners, commonly known as “Alfisti,” Fiat’s sporty brand has reportedly lost €200m-€400m per year for the last decade. So something needs to be done.

“Andiamo a America,” appears to be la soluzione in Torino. Reuters reports that “Alfa Romeo is likely to return to North America by 2012 after a 15-year hiatus.” Alfas were last sold in America in 1995.