Fiat and Chrysler Weave Operations Together
In November, Chrysler CEO Sergio Marchionne told an audience of reporters and analysts in Auburn Hills, Mich., that “Chrysler and Fiat have become inextricably intertwined.” On Wednesday, he will reveal just how interconnected the two carmakers will be in the coming years, reported Automotive News. Wearing his hat as Fiat CEO in Turin, Marchionne will unveil a five-year plan for the Italian carmaker. The Fiat plan calls for broad cooperation between Fiat and Chrysler in many operations, such as manufacturing, marketing, sales and finances. Marchionne has the companies working together in ways that luxury carmaker Daimler AG never dreamed of in its troubled decade-long marriage to Chrysler. “With Daimler, there was never a real chance to have an integrated pair of companies,” said David Cole, director of the Center for Automotive Research in Ann Arbor, Mich. “Daimler was scared to death of having Chrysler taint Mercedes. There are great possibilities between Fiat and Chrysler. They’re in same price classes.” On Wednesday, Marchionne and his team are expected to announce these developments:
Near-luxury brand Alfa Romeo will build a mid-sized sedan and station wagon in the United States at Chrysler factories. The debut of the Alfa Romeo Giulia in 2012 would mark the return of Alfa to the United States after a 17-year absence.
Using the same Compact Wide architecture underpinning the Giulia, Alfa also will build a large crossover.
The Chrysler and Lancia brands will share platforms. For example, Lancia will get a version of the Chrysler Sebring replacement due later this year and a version of the Chrysler Town & Country minivan.
A small Fiat car with four doors and styling similar to the 500 will be sold in the United States in 2013.
A possible Fiat compact sedan that will be imported from a Fiat joint venture factory in Serbia for sale in the United States. If approved, it will arrive in 2013.
A Fiat-badged version of the Dodge Nitro SUV will be sold in Europe by the end of this year.
During the presentation Wednesday, Marchionne and his lieutenants are expected to give updates on the financial performance of Fiat and Chrysler. Sales targets for 2014 for the combined companies are expected. The companies have combined in other areas too. Olivier Francois is running both Chrysler and Lancia brands and acts as global marketing chief for both Chrysler and Fiat. On the manufacturing front, Chrysler’s North American factories will build as many as 400,000 Fiat, Lancia and Alfa Romeo brands by 2014. Marchionne’s plan calls for reducing the number of platforms used by the two automakers and producing sufficient vehicles on each platform to gain economies of scale.
More Industry

Consumer Outlook on the Rise
Younger generations are feeling more positive about their financial futures and current affordability pressures than older generations, according to recent TransUnion data.
Read More →
Pennsylvania Dealership Under New Retailers
The sale of the Chrysler Dodge Jeep Ram store puts a family auto group on a leaner path as first-time dealers take the helm.
Read More →
Battery Storage Takes Priority Over EVs
U.S. automakers are prioritizing battery energy stationary storage over electric-vehicle production as the consumer demand for EVs lags the rest of the world.
Read More →
Auto Dealers Feel Better But Not Great
A second-quarter Cox Automotive poll of franchised retailers and independents found better views of the current market after a good spring but anticipation of third-quarter storminess.
Read More →
New-Vehicle Sales Picture Relative
A May forecast is complicated by last spring’s trade tariff effects on auto retail. Despite continued hard realities, many consumers took advantage of ways to bite the bullet.
Read More →
Auto Group Acquires Third Nissan Rooftop
Iowa-based Coleman Automotive Group recently acquired its seventh dealership, McGrath Nissan, which it renamed Nissan of Elgin.
Read More →
April Less Affordable
Based on prices, reduced incentives and slower household income growth, consumers found it more challenging to buy new last month, Cox Automotive reported.
Read More →
Building an Extraordinary F&I Agency
Work to determine your specialized talent, because that fact will determine everything about your agency’s future.
Read More →
Recipe for Compliance
The secret to both amazing barbecue and compliance is the same: understanding the basics and committing to a process.
Read More →
EVs Getting More Attractive
A growing percentage of U.S. consumers are open to switching and fewer are adverse to the idea, according to a recently completed survey. That’s despite the end of a tax break.
Read More →