Chrysler, Fiat Alliance

McSpud

Irish Times

President Barack Obama said the US and Canada will commit more money to Chrysler as it forms an alliance with Fiat that will give the carmaker a “strong chance of success.”

As part of the agreement, Fiat will make engines and cars in the US, the official said. Fiat will gain 15 per cent more ownership of Chrysler by hitting three goals, including providing international distribution for Chrysler vehicles, building a car that gets 40 miles per gallon in the US and putting a new fuel-efficient engine in a US plant.

“Every dime of new taxpayer money will be repaid before Fiat can take a majority ownership stake in Chrysler,” Mr Obama said.

Says a lot about Chrysler that the US government has to force them to create an alliance so they can get 40mpg. Its not like 40mpg is a leap for almost any manufacturer aside from the US companies.

Don't see this as a good deal for Fiat. They should stay away from basketcase US manufacturers.

Alun

40mpg in the US translates to 50mpg over here. (In the US a pint is 16 fl.oz. as opposed to 20 fl.oz over here, but a gallon is still 8 pints).

road_high

Fiat seem to be doing quite nicely here in Europe with their current range. I don't understand to be honest either where they will benefit. Seems like throwing good money after bad to me..

TomMc

Fiat's new boss has turned around the companies fortunes big time. Building small cars is their forte. They have some very good engines too. If the yanks can get their head around downsizing who knows what could come of it.

Zube

mfitzy wrote: »

Seems like throwing good money after bad to me..

But it's not costing Fiat money. They are getting a chunk of Chrysler just for giving Chrysler access to small car know-how.

Hotwheels

May well be a cost effective way of getting Puntos,159's into USA using Chrysler show rooms.
They were looking for a way to introduce the 159 & Brera. And maybe the Lancia

alias no.9

They're planning on building 2 cars in the US, the Fiat 500 and the Alfa GT and they're also going to build a range of engines there. They're getting free factories and an established dealer network. It's a pretty good deal. In return they're sharing technology with a company who don't really with them in any segment of the market.

CarCity

This seems like a good deal for all to me.

Fiat get access to dealerships to relaunch Alfa into the US - something they've said they'll do but have been putting it off a while. They aren't putting a penny into it asaik and can walk away pretty easily.

Chrysler get access to much needed new technology (remember Fiat tech is used in many European cars) and their dealers will have more people in the doors.

And the US government can sell the deal to the American taxpayer because they can say Fiat have turned themselves around and can do it for Chrysler too. They can also justify pumping the money in Chrysler this way.

mike65

Doesn't this mean the yanks get to drive around in cars that break down with niggling cooling and electrical failures every week or two?

L1011

mike65 wrote: »

Doesn't this mean the yanks get to drive around in cars that break down with niggling cooling and electrical failures every week or two?

No, PSA didn't take the stake.

mike65

Are you trying to tell me Fiats are more reliable?

L1011

Since about 2003, yes. Significantly so. Fiat under Marchionne is not the Fiat of the 1990s or before.

Biro

mike65 wrote: »

Are you trying to tell me Fiats are more reliable?

Yes.

mike65

Fair enough, I look forward to the day all the "my Fiat overheated" type threads are in the Classic car forum

Biro

MYOB wrote: »

Since about 2003, yes. Significantly so. Fiat under Marchionne is not the Fiat of the 1990s or before.

Easy up on the "before".... There has been many excellent Fiats in the past. The late 80's and 90's were a bit of a lull time in the build quality department!

L1011

Biro wrote: »

Easy up on the "before".... There has been many excellent Fiats in the past. The late 80's and 90's were a bit of a lull time in the build quality department!

My lifespan doesn't go back far enough to remember pre-Uno! Although I have my eye on a 130 Coupe...

CarCity

mike65 wrote: »

Fair enough, I look forward to the day all the "my Fiat overheated" type threads are in the Classic car forum

I think they were 10th or 13th (out of 30) on the latest 'what car?' reliability index beating many more popular makes. So it appears to be an upward trend...(ie very close to bottom a few years ago).

road_high

I read that the recent Panda has a very respectable reliability record, so I'm sure that is having a big influence on the ratings.

McSpud

Alun wrote: »

40mpg in the US translates to 50mpg over here. (In the US a pint is 16 fl.oz. as opposed to 20 fl.oz over here, but a gallon is still 8 pints).

I know that, just suggesting its not exactly an ambitious target.

I know some people don't regard Fiat in a favourable light but IMO linking with Chrysler will make it even worse.

Probably drifting off pure motoring discussion but US government telling Chrysler what to make is destined to failure. Clearly the reason they can't sell their cars is because the market does not want them.

Lex Luthor

How does Daewoo fit in to all this? Are they not selling Chryslers in Europe?

cjt156

Daewoo is part of GM and all cars rebranded as Chevrolet now.

Oh and mike65, its the 21st centuary, you might want to catch up.

bazz26

I just hope this is good deal for Fiat in that they share their small platform technology in return for showroom space at US Chrysler dealerships. I'd hate to see the revamped Fiat image end up like Mercedes Benz did when they got in bed with Chrysler.

Will it work, I don't know though, I just cannot see the Yanks driving around in cars the size of Bravos no matter how economical they are.

Zube

bazz26 wrote: »

I just cannot see the Yanks driving around in cars the size of Bravos no matter how economical they are.

In 2008 in the US, Hummer sales were down 66%. Mini sales were up 50%.

woody33

"Here's to you, Mrs Robinson" - (obscure Alfa reference).

whiterebel

bazz26 wrote: »

I just hope this is good deal for Fiat in that they share their small platform technology in return for showroom space at US Chrysler dealerships. I'd hate to see the revamped Fiat image end up like Mercedes Benz did when they got in bed with Chrysler.

Will it work, I don't know though, I just cannot see the Yanks driving around in cars the size of Bravos no matter how economical they are.

I was in the US in August. Front page headline on arrival was that manufacturers couldn't meet the demand for "small cars" i.e. Corollas, Civics and the like. Oil was at $4 a gallon at the pumps. 10 days later gas prices are dropping like a stone, and the demand for the small cars has disappeared. Fickle country.

cjt156

bazz26 wrote: »

Will it work, I don't know though, I just cannot see the Yanks driving around in cars the size of Bravos no matter how economical they are.

I have to say that you do see a lot more small cars over there these days. The Civic has been the best selling car in the US several years. Focus, Corrola, Jetta do well too.
They do have an aversion to hatchbacks though; bizarre to see the "sedan" version of the Yaris parked up next to some big old Buick.

It does sound like FIAT are in a No Win No Fee situation though, hope it works out for them.

bazz26

Time will tell I suppose.

I just hope Chrysler doesn't rub off on Fiat as Chrysler really do produce some rubbish.

Rowley Birkin QC

Biggest problem I had with it was the way Barack Obama pronounced Fiat as Feeehat.

roosterman71

Chrysler close their factories starting Monday