#Italy

When Fiat started to get a grip on Chrysler, there was very little chance of success. But to be fair, they are making a go of it. Sergio Marchionne is doing his best to integrate Fiat and Chrysler. Is he really?

The need to expand automotive brands while improving fuel economy is driving automakers to some interesting lengths of late. From GM future concepts that have more in common with a Segway than a Cruze, to Honda’s U-3X and Chrysler’s ill-fated PeaPod, automakers are sending strong hints that the future will be smaller and decidedly less car-like. And MINI and Smart recently took this trend to its logical conclusion, each announcing that they would build (or, more precisely, re-brand) scooters… or as they call them, “alternative mobility concepts.” Which raises the question: what’s a scooter brand to do? Well, Piaggio, maker of the Vespa and other scooter-based “alternative mobility concepts” isn’t going to just drone off into that good night, and it’s fighting back by creating an “alternative” to its core scooter products: a four wheeled car-like “mobility concept.”

Even though Fiat CEO Sergio Marchionne’s disparaging comments about its over-reliance on Italian manufacturing have opened the door for more US manufacturing opportunities, United Auto Workers boss Bob King wants to make it clear that he won’t be taking advantage of Fiat’s rift with its Italian unions. Fiat tells Automotive News [sub] that failure to secure Italian union agreement with its new manufacturing plan could send increased production to Serbia, Poland and even the United States. King’s response [via Michigan Public Radio]:

They (automakers) won’t be pitting one worker in one country against another. We’re going to be part of working with our global partners in other unions and building a global middle class – and rebuild the American middle class, really.

Yes, in the brutally competitive international labor market, there is a way for everyone to win… really.

Four driverless, autonomous vans finished a trek most drivers would never think of driving: From Italy through Eastern Europe, Russia, Kazakhstan and the Gobi Desert, all the way to Shanghai, China. They arrived there last Thursday, just in time for the Expo that closed last weekend. It was a long 8000 mile way, and they never got lost.

Fiat could do more if it could cut off Italy

Having been handed a bankruptcy-rinsed Chrysler by the American government, Fiat’s Canadian-born CEO Sergio Marchionne is beginning to see Italy as nothing more than aging, uncompetitive factories and troublesome unions. And now he’s not just telling the Italian media that not only would Fiat be better off without the country that birthed it. According to Reuters

The CEO added that not a single euro of the 2 billion euros ($2.8 billion) of trading profit that Fiat is targeting for 2010 will come from Italy, where all Fiat car passenger plants are loss-making.

The funny part: Chrysler still holds a value of precisely zero dollars on Fiat’s balance book. And with the Fiat and Alfa-Romeo brands headed to the US, Italian-ness is still an important element of Fiat’s identity. But until Marchionne’s Chrysler revival and Italian invasion take hold stateside, and as long as mother Italia is a drain on its resources, Fiat might be best described as a Brazilian company.

Italian speakers can enjoy Marhionne’s interview here.

It’s easy to see why Sergio is feeling mighty pleased with himself. Fiat is predicted to turn a €400 million profit this year (that’s about $556m) and Fiat is expanding in Brazil, a huge car market. So can some of this good fortune rub off onto Chrysler? Possibly 35 percent of it can, if Sergio has his way.

The Freep reports that Sergio Marchionne, CEO of Fiat and Chrysler, has told analysts that Fiat is planning to raise its stake in Chrysler from 20 percent to 35 percent by the end of next year “barring unforeseen circumstances”. A big vote of confidence, indeed. When Fiat took its initial stake in Chrysler, it was given the option to increase its stake by 5 percent tranches, provided it could meet certain goals.

China isn’t the only big economy coming to play (sorry to burst your bubble, Herr Schmitt). [ED:No bubble. India is 10-15 years behind China, but they will definitely be next. China and India added will be a monster.] Just across the border, India is rising up and quickly, too. Car makers are desperately scrambling to get a foothold in the Indian market. And like the Chinese market, everyone is enjoying record growth in India. Well, almost everybody.

There’s no replacement for displacement? Sure, as long as you own an oil well. If you want to save gas, there are three ways to do it:

1. Make the car as light as can be (you can’t fool Newton.)
2. Use the smallest amount of displacement you get get away with, and make it up with direct injection, a turbocharger, and computer smarts.
3. Combine 1 with 2.

And what’s the easiest way to reduce displacement? Lose cylinders. That way, you also lose a lot of internal friction. If “Laufkultur” is part of your vocabulary, don’t read further, you’ll get sick. If you want to sick it to Big Oil, by all means, read on.

New car registrations in Italy fell 18.9 percent in September to 154,429 vehicles. Of course that means major pain for Fiat, which holds about 30 percent of the market. Actually, more than major pain: Fiat’s sales in their home market cratered by 26.3 percent to just 44,161 vehicles in September. That according to Transport Ministry data, published by Reuters. And what did Sergio Marchionne have to say to that disaster?

A few weeks ago, one of our overabundance of resident Germans wrote about how Volkswagen wanted to marry the Italian bride, Signorina Alfa Romeo. The project was colloquially called “Italian dressing” (Those Germans and their crazy sense of humor(!)). But it was soon dismissed as a throwaway comment from a company hell-bent by taking over ze vorld. Well, now Piech himself is getting involved, and if Piech wants something …

Ferrari is sending engineers all around to the world to investigate “thermal incidents”. Now what’s a “thermal incident” you might ask? It ain’t a mistake that happens in your long johns, that’s for sure.

It’s corporate speak for “that supercar which you lashed loads of money on may catch fire in a big way.”

„I’ve said Alfa is not for sale“ grouched Fiat’s Sergio Marchionne at journos who badgered him about Alfa possibly going to Volkswagen. While he was at it, Sergio told Automobilwoche [sub] that business is so good that he probably will raise year-end guidance in the third quarter.