FIAT News

FIAT is discussing with Chery, a Chinese auto producer, a possible tie-up for producing cars together to be sold in China and other Emerging Markets. FIAT already has a partnership in China with Nanjing Auto, which is expected to breakeven this year and become profitable from next year.
Apparently, Chery is in talks with several car makers, such as DaimlerChrysler, on possible tie-ups.

At the next Shanghai Motor Show, Chery is expected to bring out two concept cars, a medium size SUV and a two-door coupe, designed by Torino Design, both of which are aimed at the European market.

Hot off the Press

FIAT and Chery (the Chinese auto maker) have signed a memorandum of understanding wherby Chery will provide petrol engines (a 1.6l and a 1.8l) to FIAT.

The companies estimate that Chery will supply about 100,000 engines a year to FIAT and plan to sign a full agreement by the end of 2006.

My take is that these engines will make their way on FIAT cars destined for Emering Markets. Or so I hope.

A collaboration between Italian and Eastern car manufacturers, and the word cherry is involved? Why do I get a feeling of foreboding?

Hmm...
Strikeouts look crap when they're only one letter.

Originally Posted by bazza

Strikeouts look crap when they're only one letter.

Agreed with you on that one!

But I bet you, this is a way for FIAT to get sign off from the Commies to sell more cars in China (market economy my butt!).

At a press conference yesterday Marchionne mentioned the following:

• He's leaving FIAT Auto in 2007, but will remain CEO of the FIAT Group
• No word on the new FIAT Auto CEO, probably an insider I reckon
• FIAT to target a European market share of 11% by 2010 (vs ~8% today) and 35% in Italy
• Total car production is to reach 3.5m vehicles by 2010 with operating margins of 5%
• By 2010, FIAT wants to reduce debt to zero and have liquidity of about EUR 3bn
• Ferrari won't be sold
• The dividend next year (relating to 2006 fiscal year) should be EUR 200m and to grow to EUR 800m in 2008
  

And to think that 2 years ago FIAT was almost brankrupt...

The Palio, the pick up Strada, Stilo and Grande Punto are expected to come soon to Mexico.

Caramba!

Yesterday, Marchionne confirmed that FIAT will not sell Iveco and mentioned they are evaluating the opportunity to build cars with Chinese maker Chery (with whom they already have an engine production deal)

Today's Italian financial newspaper reported Marchionne as saying that over the next 4 years, the Fiat Auto group will invest €800m to develop its sales network. This should confirm what we've been reading about Alfa's sales network being revamped as well

Bertone and FIAT are to enter into a JV to produce a Lancia-branded CC, based on the Suagna concept car (in the pic)

Tata's finance director today reiterated that Tata Motors and Fiat are planning to jointly develop cars, starting with perhaps a small car which Tata aims to sell for as little as USD 2,200.

And a new name too


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From 1st February, Fiat Auto will change its name to Fiat Group Automobiles SpA. At the same time, Fiat Group Automobiles will be divided into four subsidiaries which will be 100% controlled by the parent company: The managers of the four marques will be appointed CEO of their respective companies and there will be no changes in relations between the Fiat Group and its employees, dealers or suppliers.
Fiat explained that the changes reflected the group's "new corporate mentality and business approach which stresses the unity of the group and the specific nature of the operating sectors and brands"
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Originally Posted by BigFoot

My take is that these engines will make their way on FIAT cars destined for Emering Markets. Or so I hope.

So you're a supporter of second best quality for "second class citizens"

Originally Posted by marius

So you're a supporter of second best quality for "second class citizens"

I didn't say that mate. I said that it's likely to happen, not that I think it's the right thing to do.

One consideration though. I believe the reason Fiat has entered this JV with Chery is to deliver lower cost vehicles to lower income markets. Sort of makes sense from a business point of view, doesn't it?
In terms of quality, the Chinese are probably not there yet but will soon be.

And that's a scary thought.

Here is how Valentino Rossi's bike may look like?

Recognise the main sponsor??

Breaking News

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Fiat will agree to set up two joint ventures in India, one for its car unit and the other for its truck business, Iveco, Chairman Luca Cordero di Montezemolo said today in Mumbai.

Montezemolo, in India as part of a four-day business trip with 450 executives, had a two-hour meeting with Tata Motors Ltd. Chairman Ratan Naval Tata, who heads India's biggest commercial- vehicle maker.
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Major news going on at FIAT. Fiat Auto has added €6bn capital into the holding company. The Wall Street Journal speculates that this may be in advance of a spin-off of the Auto division all together.

Marchionne said this morning in an interview in Geneva that Fiat's considering building a Logan-style low cost car.

Don't have more info than that at the moment...

Originally Posted by BigFoot

Marchionne said this morning in an interview in Geneva that Fiat's considering building a Logan-style low cost car.

Don't have more info than that at the moment...

in light of current events, a rikshaw, perhaps?

g

Probably

Would that be cheaper than the Fiat Seicento, already produced in Poland? If so, wow...

It'll probably be similarly priced to the Logan. Marchionne also said the car will be very beautiful.