#Italy

Automobilwoche [sub] picked up strong signals that Volkswagen is interested in adding Alfa Romeo to their growing roster of brands. Last December, Marchionne had put Alfa on strategic review, and gave the brand, as Ed Niedermeyer put it so delicately, “a year to get its proverbial shit together.” They popped some Imodium, and in April, Marchionne was “determined” to build the brand into a “full-line premium carmaker.” Nevertheless, here and there whispers had popped up that Alfa could be sold if the right buyer would show.

OK, so we’ve been convinced that the re-born “Lancia Stratos” isn’t just a photoshop… but honestly, we wish it was. Because then the autoblogosphere might not have spent half the week running silly headlineslike “It’s Real!” and “Headed To Production!” and “My Sophisticated Appreciation For The Iconic Lancia Stratos Just Got All Over My Favorite Pair Of Blogging Sweatpants!” The reason that these headlines need to stop are simple: 1) Nobody will ever see this car on the road, 2) it will never be offered for sale, 3) It’s not even a freaking Lancia and 4) the entire story is so knee-deep in bullshit that it’s amazing anyone pays even the remotest bit of attention to it. And since we’re speaking truth to fanboyishness, I’ll just go ahead and say it : nobody actually wants a Lancia Stratos anyway… and even if they did, they certainly wouldn’t want this new one. Yes, you heard me.

A few weeks ago, I wrote about how Sergio Marchionne was successful in getting the majority of the unions at his Naples plant to sign a new work agreement. This was supposed to herald in a new era in Italian work practices and pacem in terris. Well, it seems that Fiat wants to press the issue home to the unions. Reuters reports that Fiat is so determined to teach Italian unions at their Pomigliano plant that their working practices are not sustainable, that they are now going to some extreme lengths. Fiat is now going to set up a new company to manage the plant near Naples. Doesn’t sound extreme, right? Well, there’s more.

“The only reason we are not making money on the net is that I pay interest on the borrowings I took from the government and I have money in the bank to cover that debt. Actually, against the Treasury we owe them nothing. We have enough cash to pay it all off. But you can’t run a business without cash, so it’s just a function of our capital structure. If we had taken those funds as equity as GM did, we would have been making money, net, right now.”

Two robots are retracing the tracks of Marco Polo and are on their way from Italy to China. The two heavily modified driverless Piaggio Porter Electric vans started last week in front of of the Milan Cathedral. By end of October they are expected to arrive in Shanghai after having driven 8,000 miles, all the way through Siberia and the Gobi Desert, all by themselves, untouched by human hands.

Well, kind of.

Fiat is determined to drag their Italian operations into the 21st century, says The New York Times. Lacksadaisical attitudes produced some novel ways of shirking work. Some examples include calling sick at Fiat (remember, you get paid in full even if you call sick) and using that time to work another job or faking a doctor’s note. The latter is particularly used when a local football team is playing. Well, no more, according to Marchionne. He wants to impose foreign style work standards to encourage more pride in Italian workers’ jobs and improve the competitiveness of Italian factories. Some have an opposite view.

Auto Express reports that Fiat is mating their ultra-efficient TwinAir, two-cylinder 900cc engine with a hybrid powertrain. Destination: A Fiat 500 that could get 100+mpg and an emission rate of 70g/km. The plan is to put a small 5kW (8bhp) electric motor into the gearbox casing. The TwinAir engine is so small, there will be space under the hood for the battery.

Fiat retreated from U.S. shores in 1983, but that doesn’t stop die-hard Fiat fans from keeping their Fix-it-again-Tonys alive, and from congregating once a year. This weekend, the annual convention of the Club Fiat-Lancia Unlimited was held at the Biltmore in Asheville, NC. At their closing dinner, Laura Soave, Head of Fiat North America, made Fiat fans an offer they can hardly refuse:

Many of you don’t know this, but during my days at university, I supplemented my meager grant money (in the days when European governments gave grant money to students) by gambling said grant. The extra money came in useful for text books, science equipment, drinking lager till my head span, etc. The fruit machines and betting on horses was fun enough, but where I really excelled was poker. Texas Hold ’em, to be more accurate. I learnt many of life’s lessons that way, but the one which stuck in my mind the most was this little nugget: “When you play a bluff, be prepared to have that bluff called.” Words which certain Italian unions should have heeded.

Where would the automotive world be without China. From Daimler to Volkswagen, all send daily prayers east, in the general direction of the Middle Kingdom. (No much aiming precision is needed. It’s a big country.) Even Lamborghini has high expectations. This year, they will sell record numbers of Lambos to China.

Sergio Marchionne’s turnaround of Fiat was a weird one. He turned around a company, which most people thought had died already. Sergio’s turnaround was helped by GM’s unwitting “ re-capitalization” of Fiat, too. Recently, worker relations in Italy have been strained, to say the least. If you thought the situation with the UAW in the United States was bad enough, in Italy, things are spicier than Mamma’s Arrabbiata sauce. The Financial Times UK reports that Sergio Marchionne has finally lost patience with unionized Italian workers and has threatened them to change their mindsets or else be out of a job. The end of September is their deadline. Mr Marchionne wants Italy to help drag Fiat (and Chrysler) into one of the top five car companies in the world. But to do that, he needs concessions from his Italian workers. Big ones.

Give it a little while and the snickering about uninspired, or foreign-inspired Chinese car design can end. Carrozzeria Bertone has signed a partnership agreement with the Raffles CU International College, an affiliate of the Changchun University in northeastern China. Next to Shanghai, Changchun is the second-most important auto manufacturing center in China. It is dominated by FAW and its joint ventures with Volkswagen and Toyota.

Last Friday, Chrysler celebrated the first anniversary of its miraculous emergence from bankruptcy. What did the employees get in observance of this occasion? A watch? A bonus?

Ultimate Factories – Ferrari

Bloomberg reports that Ferrari workers walked off the job for four hours yesterday, in protest of planned job cuts and production idling. Ferrari has announced that it plans to eliminate 120 office jobs and 150 production jobs, or nearly ten percent of its workforce. The Italian sportscar firm has also said it will put 600 workers on a week-long furlough next week, as it idles production of engines for its sister brand Maserati at a Maranello plant. Last year, Ferrari built about 4,500 engines for Maserati, about half of the 2008 number, as sales of the brand fell.