#SergioMarchionne

An article in Automotive News lavishing praise on the Chrysler/Fiat merger of equals marriage inadvertently spilled the beans on a couple upcoming products from Marchionne’s minions.

Our intrepid Brazilian correspondent Marcelo got the hearts of Canuckistani readers racing after he leaked news of an expanded Fiat lineup for Canada. According to Senhor de Vasconcellos, Fiat will add new product in Canada, where 500 sales have been much stronger than the USA. The only question is what the mystery product will be, now that Fiat head Sergio Marchionne confirmed the new model at a Toronto event.

Sergio Marchionne told Auto Express that Fiat may stick to small cars in the future, with vehicles like the 500L and the much-lauded Panda acting as Fiat’s “bigger” offerings. The reason behind the move appears to be greater consolidation with Chrysler and Fiat’s larger cars meeting a cool reception in the market.

Chrysler alerted the Securities and Exchange Commission that they’d be withdrawing their request for as much as $3.5 billion in loans. The money was to be used for the development of unspecified “green” vehicles.

A USA Today interview with Sergio Marchionne revealed some interesting details about Chrysler’s future product plans – among them, a wider adoption of the Dodge Dart/Alfa Romeo Giulietta platform, a possible small hatch dubbed the “Chrysler 100” and Alfa Romeos built on American soil.

The Fiat 500’s spectacular failure – selling less than 20,000 units in 2011, despite projections of 50,000 units sold- is quickly becoming the stuff of legend in automotive circles. Sergio Marchionne told CNN Money that the goal wasn’t really based on anything but wanting to beat Mini.

It’s becoming increasingly clear as time goes on that the Chrysler five year plan promulgated in November 2009 was merely a stopgap strategy aimed at stabilizing the then-recently-acquired firm while CEO Sergio Marchionne plotted a strategic course globally. Now, with news that Alfa is going to be re-launched with the US as its major focus ( possibly replacing Dodge), we’re getting a better and better picture of where the Sergio Show is headed with his transatlantic alliance. In an interview with Automotive News Europe [sub], Marchionne gives the latest snapshot

In his vision, Alfa Romeo and Jeep both have the DNA and the rich history capable to make them the alliance’s two global brands. “We need to continue to globalize Jeep and Alfa, so the development of architectures and engines that are designed to support these two brands is crucial, and everything else becomes almost secondary,” he said.

Chrysler clearly won’t be a global brand, as its products are rebadged as Lancias in Italy. Fiat will offer full lineups in Europe and South America, but only the Fiat 500 will be a truly global brand, in a role Marchionne compares to BMW’s MINI. Dodge doesn’t even rate a mention in this interview, which can only be interpreted as more evidence that it will be lucky to survive at all.

With Chrysler, Dodge, Ram and Jeep brands consolidating into single dealerships as part of Chrysler’s “Project Genesis” dealer overhaul, CEO Sergio Marchionne is voting overlapping models off the island, starting with Dodge’s Grand Caravan and Avenger. Automotive New [sub] quotes Marchionne saying

We cannot have the same type of vehicle in the showroom because the consumer is not stupid. We’re not going to create the confusion and conflict in the showroom.

Dodge’s minivan (which outsells its Chrysler T&C sibling, albeit at lower margins) and midsized sedan will be replaced in 2013 by a single crossover, based on the next-generation minivan platform. A compact crossover, based on a Fiat platform, will replace the Avenger “after 2014.” Oh, and the subcompact is definitely off. In other words, you can pretty much forget the product plans unveiled two years ago at Chrysler’s five year business plan.

Considering the United Auto Workers’ VEBA fund is still Chrysler’s second-largest shareholder, CEO Sergio Marchionne is taking an amazingly hard line with the union. With a GM deal long done, and Ford’s deal moving towards approval, Chrysler is the last automaker on the UAW’s to-do list… and Marchionne tells Bloomberg he’s up for a fight if necessary, saying

I sincerely hope that we don’t have to get to arbitration. But if necessary, Chrysler will go there. We and GM are completely different

Marchionne is reportedly pushing the UAW for a number of tough concessions, including a mere $3,500 signing bonus (compared to $5k at GM and a reported $6k at Ford), and the elimination of a planned 2015 cap on entry-level “Tier Two” workers (at 25%). And though both of these are tough asks, he’s using UAW boss Bob King’s concept of union internationalism as a cudgel against the UAW, playing Italian unions off their American counterparts. And as a result, he could earn Chrysler a favored place among America’s unionized autoworkers.

You want the truth? The Alfa Romeo brand sounds like it’s pretty much in chaos at this point. Since Fiat first got a toehold on the North American continent, we’ve heard so many variations of the Alfa-Romeo invasion plans, each one succeeded by a new and different set of plans, that I don’t know what to believe anymore.

Back in 2010, the brand was talking about a 2012 launch and 85k annual units in the US by 2014, with the initial launch lead by the Giulia midsized sedan. Then, earlier this year, the Giulia was delayed until “mid-2013” as CEO Sergio Marchionne “was not pleased with proposals he has seen from Alfa’s creative team in Turin.” Then, in June we got a “product plan” PowerPoint slide that was supposed to guide the new new Alfa invasion plan, which had the bulk of new products arriving in the US in 2013. Then, in July we heard that the Giulia was bumped to “the end of 2013 at the earliest” and the plans were changing again. Now, Alfa CEO Harald Wester tells Automotive News [sub] that there won’t be a single Alfa in the US until 2013, and that the bulk won’t arrive until 2014. Oh, and the rear-drive flagship that Alfa denied earlier this year is back on for “after 2014.”

And the worst part of this latest change in plans? They forgot to tell the dealers…

Chrysler CEO Sergio Marchionne’s petulant letter to UAW President Bob King sounded to me like a man angry with being kept waiting after a long flight, but according to the Detroit News, it has “derailed” the “carefully crafted timeline” for contract negotiations. To wit:

Sources close to the negotiations told The Detroit News that a deal was imminent with General Motors Co. when Chrysler CEO Sergio Marchionne sat down at his Mac computer and fired off a sharply worded letter to UAW President Bob King at 10 p.m. Wednesday, accusing the union leader of violating their gentlemen’s agreement to sign off on a deal by the 11:59 p.m. deadline.

Shortly after the letter was sent, talks stopped at both companies.

Chrysler and the UAW agreed to extend their current contract for one week. Talks resumed Thursday between the two sides, but nothing of substance is being discussed at the bargaining table, according to people familiar with the talks.

Actually, that’s not exactly what everyone is reporting…

Today’s resignation of Chrysler’s chairman and two other government-assigned directors was hardly a surprise, as now-Chairman and CEO Sergio Marchionne had signaled that changes were coming in the wake of Chrysler’s “payback” of government loans. In fact, Rebecca Lindland of IHS Automotive predicted that chairman Robert Kidder, as well as the other two departing directors would be the ones leaving, telling the Freep

Three of the five Chrysler board members who are government appointees — Kidder, Stuart Scott and George Gosbee — are members of investment advisory firms.

“Now, you kind of need to have people that have distinctive automotive industry experience verses financial expertise,” Lindland said.

But Lindland was only half-right. She picked the departing directors perfectly, but Marchionne didn’t replace them with even a hint of “distinctive automotive industry experience.” But not being a dyed-in-the-wool “automotive guy” himself, he apparently had some slightly different qualifications in mind…

According to Automotive News [sub]’s latest breakdown of Chrysler-Fiat’s product plans, a lot has changed since the big Five Year Plan product cadence guide was released in late 2009 [ PDF here]. The Chrysler brand’s C-segment offering appears to have been pushed back a year, its 2014MY B-segment car is AWOL and there’s no sign of a planned MY2014 “Midsized Crossover” or T&C. Planned MY2013 “Major Modifications” for Ram Light Duty, Heavy Duty and Chassis Cab are also nowhere in sight, although the “under consideration” MY2012 minivan-based pickup is back on, likely for MY2014. A MY2012 Challenger refresh is also off, according to these plans. And what’s taking up the slack? Alfa Romeos, and lots of them. Sergio and company didn’t mention Alfas during the seven hours of PowerPoint presentations back in late ’09, but it’s clear that his priority is on bringing Alfa’s 5-door subcompact MiTo, Giulietta compact, Giulia midsizer and Compact CUV to the US. Which means the cupboard will be largely bare over the next year, and thereafter another rush of products will launch across all six mass-market brands. Chrysler’s sales are growing at the moment, but can this plan maintain the momentum? The folks in Auburn Hills certainly hope so…