Alfa back to the US with Chrysler?

[ECARRILLO]

FIAT, CHRYSLER IN PARTNERSHIP TALKS
LUCA CIFERRI
AUTOMOTIVE NEWS
JANUARY 19, 2009 - 11:27 AM ET
UPDATED: 1/19/09 12:07 P.M. EST
TURIN -- Fiat Group is in negotiations with Chrysler LLC to form a strategic partnership that could include a Fiat equity stake in the ailing U.S. carmaker.
The pact would help Chrysler speed up and strengthen its ongoing restructuring plan.
According to people familiar with the matter in Europe and Detroit, Fiat could give Chrysler access to its mini-, small-, lower-medium and upper-medium platforms, engines and transmissions. This would allow Chrysler to quickly build a complete new range of front-wheel-drive, low-emission vehicles.
It is not clear if Fiat would receive money or equity for giving Chrysler access to its technology.
A Fiat spokesman was not immediately available to comment. A Chrysler spokeswoman today said she couldn't provide immediate comment. A spokesman for majority owner Cerberus Capital Management LP could not be immediately reached for comment. Thomas Froelich, a spokesman for Daimler AG in Stuttgart, declined to comment. Daimler owns 19.9 percent of Chrysler.
Chrysler, which was acquired by private-equity firm Cerberus in 2007, saw its sales drop 30 percent last year and has been forced to throttle back on new investment. It received $4 billion in emergency government loans this month and plans to seek another $3 billion.
Fiat began looking at Chrysler last summer and more than a dozen executives spent weeks at Chrysler headquarters, industry sources told Automotive News. Fiat executives also held talks with Chrysler dealers and held meetings with Chrysler owner Cerberus in New York, the sources said.
Wide interest in small cars
Detroit's other carmakers, General Motors and Ford Motor Co., are also planning to introduce a complete range of mini, small- and lower-medium vehicles based on their respective designs currently offered or under development for Europe. These cars would be ready in 2010 or 2011.
Chrysler, which does not have a similar range of products built in Europe, has been looking for a partner to quickly get such vehicles.
It sought help from Japan's Nissan and Chery Automobile in China. So far, only the Nissan small car project has borne fruit.
Fiat gains U.S. access
Possible extensions of the Fiat-Chrysler deal could include access for Fiat to Chrysler's North American manufacturing operations and its distribution network.
Fiat has postponed the relaunch of its Alfa Romeo brand in North America until 2011 because it has had difficulty in finding a local manufacturing and distribution infrastructure.
Fiat Group CEO Sergio Marchionne has said he would like to sell the Fiat 500 minicar in the United States but only if it is built locally.
An alliance with Chrysler would allow Fiat to sell Alfas and the 500 in the United States, because sharing manufacturing sites with Chrysler would bring down costs.
Alfa cars and the 500 would be sold in North America through Chrysler, Jeep and Dodge dealers.
At the same time, Chrysler could access Fiat's distribution network in Europe and Latin America. Fiat is the No.1 automaker in Brazil, Latin America's largest market.
In 2010, Chrysler will bring to North America a Nissan-designed small car made in Japan. Chrysler began selling the Nissan-built Dodge Trazo in Latin America in late 2008.
In December, Chrysler and Chery ended 17 months of negotiations to initially give Dodge a China-built minicar for sales in Latin America.
Chrysler and Chery also ended talks to build a small car similar to the Dodge Hornet concept car on the Chery A1 platform, to be sold in the United States, Europe and other world markets.
Nissan Motor Co. now is planning to produce a small car based on the Hornet concept in calendar year 2010.

[ECARRILLO]

I'd love to get a FIAT 500 Abarth, but since I live in Michigan and work for the Autro Industry, my next car will have to be a Ford, GM or Chrysler.

[velocedoc]

FIAT talks to Chrysler about a partnership. Another article.

The FIAT 500 could be the gas saver Chrysler is looking for to compete with the new small Chevrolet and Ford? FIAT had been looking at idled Chrysler plants for manufacturing in the US. Will FIAT bring their line here and Alfa along with it? Remains to be seen.

[lowmileage]

Quote:

Originally Posted by ECARRILLO A Fiat spokesman was not immediately available to comment.

[ECARRILLO]

Quote:

Originally Posted by lowmileage Obvioulsy he was working hard on getting more 8C's to the states.

[Del]

My wife and I were quite taken by the new 500, and would like to see it here. The deal with Chrysler would be as much a failure as it was the first time.

[lowmileage]

Chrysler will be OOB by mid year.

[Pat Braden]

Isn't one ARDONA enough? I can't imagine presenting a re-organization plan to the government for additional bail-out funds which indicates Chrysler is going to resume a partnership that did not work the first time. That's as stupid as flying a corporate jet into the first meeting. Apparently, they haven't learned anything.

From reading the posted article, does that mean we would have the same scenario as GM and Chevy coming down the same assembly line, the only difference being whether they get a bow tie or a GM slammed on the front as an emblem? Thinking primarily of Suburbans, in this example. Talk about no longer having a recognizable Alfa...

I've stated before that Chrysler is on life support and GM is in intensive care, I will be surprised if Chrysler survives. GM may have a chance, but they've been hurt by their mortgage arm, Lending Tree, which made some high risk loans like the other institutions. At this point, they can't even identify the poor loans since they've been sliced, diced, and repackaged globally. Additionally, compounded by GM's attitude: "The American public will buy what we produce, who cares if it's not what they want or not fuel efficient." Ford, imo, has the best chance of survival over the other two and is still family owned and pretty much controlled.

A mistake for Alfa in my opinion --- I'm not at all surprised at the delay once again and would expect more as the new deadline draws near; that is and has been their modus operandi.

[DaveC]

Things to come?

[Timo]

Quote:

Originally Posted by Del The deal with Chrysler would be as much a failure as it was the first time.

[sptsdn]

Ugh. What a nightmare that would be.

I'm still hoping that Fiat would buy Saab and use their (rapidly diminishing) dealer network as a way to return to the States. I feel that Saab and Alfa could sit next to one another on showroom floors and be moderately successful; one would appeal to the more sensible buyer (assuming Saab gets back to it's roots a bit more), and Alfa would appeal to a more dynamic buyer. I think the two companies combined could make a pretty decent product.

[ECARRILLO]

Quote:

Originally Posted by lowmileage Chrysler will be OOB by mid year.

[AlfaVeloce]

Fiat needs to do what Mercedes and BMW did, and VW is doing, or they need to just stay home. Sorry. A partnership with Chrysler is doomed before it could get started. It would be the blind leading the helpless.

That said, Huntsville, AL has a really great VW proposal I am sure they could change the pages to say Fiat and resubmit it.

If they hang too long with Chrysler they will just be building a bonfire of money.

[jarrington]

Quote:

Originally Posted by DaveC Things to come?

[italcarguy]

Will we see the Viper GTS with an Alfa badge on the nose? The ultimate serpent...