Fiat loves Chrysler dealers. Or at least they want to love those who can help set up shop for the Fiat brand in 165 markets.
On Monday, Chrysler Group LLC played host to 400 dealers who were on hand in Auburn Hills, Michigan, to find out what it will take to join the Fiat dealer network, getting more information about the Fiat brand and history, future product plans, competition, volume expectations and related matters.
Selected dealers will continue to sell Chrysler products, but they’ll also be given the opportunity to sell Fiats beginning with the subcompact Fiat 500 later this year.
Information Packet
Fiat 500, European Version
Dealers learned what Fiat needs in order to consider their shops and were given information packets to review. Those dealers interested in carrying Fiat will have until September 22, 2010, to present their information to Fiat North America. Selected dealers will be announced in October with the first models arriving in December.
“The Fiat brand offers our dealers the opportunity to be part of a unique experience,” said Laura Soave, Head of Fiat Brand North America. “Our dealers will be able to interact with a group of individuals that are not part of their current customer base. These are individuals interested in Italian automotive design coupled with fuel efficient technology. Our dealers will be the key point of contact with our customers, and thereby, a crucial part of the success of the Fiat brand.”
North American Manufacturing
Despite its Italian pedigree, the Fiat 500 sold in the United States will have a distinct North American flavor to it. The car will be built in Toluca, Mexico, and the 1.4-liter engine is being built in the United States. That engine features MultiAir technology, something that will provide a 10 percent boost in power while offering a corresponding increase in fuel mileage and decrease in emissions.
Auto Trends will provide additional dealer information and a review of the Fiat 500 over the coming months.
Sergio Marchionne, chief executive for Fiat and Chrysler, has outlined his five-year plan for both companies. Marchionne’s initiative is far-reaching, one that will separate the sprawling Fiat empire into two companies while drawing Chrysler ever closer to Fiat.
Two Fiats
The Financial Times reported on Wednesday that Fiat will be separated into two companies – Fiat for autos and Fiat Industrial, the latter comprised of its non-automotive divisions including Iveco trucks and Case New Holland, a producer of construction and farm equipment.
Marchionne’s ambitious five-year plan includes the blending of Fiat and Chrysler operations. The Fiat brand will be introduced to the North American market later this year when the popular Fiat 500 goes on sale (see photos following). In 2012, the Alfa Romeo brand will return with as many as five models available come 2014.
Lancia Revival
Marchionne also announced that Lancia would be revived, getting eight new models including six that it will share with Chrysler Group brands. Lancia will not be sold in North America while Fiat’s other two brands, Ferrari and Maserati, will continue to sell its cars in the United States and Canada.
Fiat controls 20 percent of Chrysler with that number expected to increase to 35 percent eventually. Fiat and Chrysler operations will remain separate although Marchionne hasn’t ruled out that the two automakers may eventually merge.
Big Changes
Marchionne announced that 51 new products will be introduced over the next five years, two-thirds of that total will be Fiat products and one-third Chrysler Group models. If all goes according to plan, the combined automotive operations will produce 6 million cars annually by 2014, exceeding the 5.5 million Marchionne said in December 2008 that automakers need to produce in order to be profitable.
Both Fiat and Chrysler have reported net losses for the first quarter of 2010, but each is expected to be profitable for the year. For Chrysler, that improvement is in stark contrast to more recent years when the automaker lost billions and eventually declared bankruptcy and becoming a ward of Fiat.
It probably won’t be much of a surprise to Chrysler followers, but come next Wednesday we’re going to learn just what sort of direction the beleaguered automaker will take when it announces its product plans going forward. With Fiat steering the ship, a number of new models based on Italian technology will underpin upcoming Chrysler and Dodge vehicles, particularly its cars.
Dodge Ram
The announcement is coming as some worry that Chrysler needs to move quickly as customers abandon the automaker in favor of competing brands such as Ford, Hyundai, Kia and Volkswagen. Chrysler has already said that for all intents and purposes its Dodge Ram line will be separated from other Dodge products which also means that the Dodge Grand Caravan and other Dodge models will go away. In their place will be a handful of new models resting on Fiat platforms.
Fiat has indicated that the Fiat 500 (pictured), its popular world car, will be sold through select Chrysler dealers beginning in 2011. The Italian automaker has also said that its Alfa Romeo line will be introduced to the US market, perhaps no later than 2012. Fiat owns a 20% stake in Chrysler, but the company has no plans to pour cash into the struggling automaker, just product lines.
UAW Ownership
Chrysler filed for bankruptcy late this past spring, emerging weeks later with most of its toxic assets left behind. With federal government assistance, Chrysler broke free from its previous parent, Cerberus Capital Management, LP and is now owned by the United Auto Workers (UAW), the US and Canadian federal governments and Fiat. The UAW owns the lion’s share of what is now legally called Chrysler Group, LLC at 55%. Over time, Fiat will eventually increase its ownership to 35% and, if successful, gain controlling interest over Chrysler.
A number of Dodge models will go away over the next few years including its midsize sedan, the Avenger, the Nitro SUV and the compact Caliber. Several Jeep models will be dropped including the bulky Commander, as well as the Compass and Patriot. Chrysler will say good-bye to the aged PT Cruiser and its midsize Sebring sedan. New models based on Fiat platforms will replace some of the vehicles being retired, but not all.
Fiat 500
Fiat plans to build its 500 model in Mexico beginning in 2011, importing that car to the United States. Several other Fiat derived model lines will be built at other factories in North America and sold as Chrysler, Jeep and Dodge vehicles. We’ll have to wait until the Chrysler Group makes its announcement next week to see the outline of those plans.
Auto News | Matt Keegan, 31 Aug 10 | 
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The announcement is coming as some worry that Chrysler needs to move quickly as customers abandon the automaker in favor of competing brands such as Ford, Hyundai, Kia and Volkswagen. Chrysler has already said that for all intents and purposes its 
