Showing posts with label Why Fiat. Show all posts
Showing posts with label Why Fiat. Show all posts

Wednesday, August 18, 2010

Will someone 6 feet 2 inches fit into a Fiat 500 (?) and other questions...


The other day I received a comment from a reader of this blog who has a few good questions. I thought I would share them with you.

My thanks to Michael M for checking out my blog and for taking the time to post a comment.


Hello Chris, three questions 1) When will the cars arrive in the Northern California Area and is there a place I could see one now?

Fiat North America has been showing up at various auto shows with the European Fiat 500. Recently it was at the Concorso Italiano auto show in Monterey, California. Keep an eye on this blog for when it will show up next.

Great news is folks on the west coast will be lucky this Fall as the North American version of the Fiat 500 will make its debut at the LA Auto Show, November 19-28. Don't miss this!



2) How supportive will the dealerships be for the 500?

The Fiat 500 will be marketed through select Chrysler dealers. Only the best dealers will be able to get the Fiat Franchise. The requirements are very stringent including a separate, dedicated staff. You can read more about Fiat dealers here.

After talking with the head of Fiat North America, Laura Soave, I can tell you she (and everyone I met from Chrysler) is absolutely committed to Fiat's success in this country. Soave has a strong background in customer service that will serve us well here.

With Fiat's help, Chrysler has refocused on customer service. An example is Chrysler is the first in the industry to introduce free, downloadable vehicle owner-information apps for smartphones. Besides an owner's manual, this app features includes product literature, detailed feature descriptions, photos, videos, frequently asked questions, and the ability to set up service appointments and purchase parts. Read more about this mobile app
here.



Our driver, who is just about 6'2", with the seat all the way back. Actually leaning forward with lots of room



3) I'm six foot 2+inches and 205 lbs and 67 yrs old I am wondering if I am going to be able to get in and out of one of these cars with ease. The Abarth knocks my sox off, I'd love to have one of those. I'm driving an 05 Subaru legacy wagon that is a rocket (I love it and it will pass anything on the road except a gas station) Thanks Michael M Oakland CA

Our driver at his normal seating position



The Fiat 500 was developed to fit large people. Here's a picture of a big guy (just about 6'2") sitting in the car. He drives this car regularly and has no problem fitting in.


Check out this road test on the English show "Top Gear". Jeremy Clarkson is 6'6" and has no problem fitting in.

A driver who is approx 6'2.5" getting into the front seat of the Fiat 500. Notice how his back can remain upright, without stooping



You can read more about the Fiat 500's interior accommodations and watch a neat video here.

~~~~~~~~~~~~~~~~~~~~~~~~~~

Michael, hope this helps.

Thanks again and best regards, Chris



With thanks to Chrysler Media, Fiat Group Press and
our accommodating driver, Jason.

Monday, June 14, 2010

Fiat 500: The Awards...


Luca De Meo, 2007 CEO of Fiat Automobiles with Sergio Marchionne, CEO Fiat Group Automobiles



Winning awards is nothing new for Fiat. Besides holding the record for winning the most "European Car of the Year" awards (view here), Fiat has also won a large number of awards for the 500. Here's a partial list of some of the awards the Fiat 500 won:


2009:

"WORLD CAR DESIGN OF THE YEAR" - AWARDED BY WORLD CAR OF THE YEAR AWARD ORGANIZATION

�PRIZE OF PRIZES� - AWARDED BY THE ITALIAN MINISTRY FOR PUBLIC ADMINISTRATION AND INNOVATION

"BEST CITY CAR" - AWARDED BY AUTOEXPRESS-UK

"CITY CAR OF THE YEAR" - AWARDED BY BUSINESS CAR (UK)

"BEST CARS OF 2009" - AUTO MOTOR UND SPORT - GERMANY

"MY FAVORITE CARS" - QUATTRORUOTE - CITY-CAR CATEGORY

"IMPORT OF THE YEAR" OVERDRIVE - INDIA

"THE BEST CAR OF 2009" - SLOVENIA - AVTO MAGAZIN - MINI-CARS CATEGORY - (FEBRUARY �09)

"BEST CARS 2009" - PORTOGALLO - MOTOR PRESS MAGAZINE - MINI CATEGORY - (FEBRUARY �09)

FIAT 500 ABARTH - PRODUCTION POWER CAR UP TO 6000 �/KGR/HP - GREECE

2008:

Sergio Marchionne, CEO Fiat Group, receives the award Car of the Year 2008 from Ray Hutton, president of the jury


"CAR OF THE YEAR 2008"

"EUROPEAN CAR OF 2008" (UIGA)

"CAR OF THE YEAR IN ZAGREB" - "AUTO KLUB" MAGAZINE - ZAGABRIA

"CAR OF THE YEAR 2008" - (SELECTED TWICE: BY TEN MEMBERS OF THE JURY AND THE READERS OF AUTO MAGAZINE)

"TOP AUTO 2008" IN THE CITY CATEGORY - GERMANY - SELECTED BY 150 AUTOMOTIVE JOURNALISTS FROM GERMANY, SWITZERLAND AND AUSTRIA

NO. 1 CAR - READERS OF AUTO PLUS - (JANUARY '08)

"CHI E' CARS OF THE YEAR 2008" (CRISALIDE PRESS) - JANUARY '08

CAR OF THE YEAR IN THE MINI-CARS CATEGORY - L'AUTOMOBILE MAGAZINE - FRANCE - JANUARY '08

"CITY CAR OF THE YEAR" - BBC TOP GEAR - UK

"BEST SMALL CAR OF THE YEAR" - FIFTH GEAR TV - UK

"CAR OF THE YEAR" - CAR MAGAZIN - UK

BEST CAR 2008- MINI-CARS CATEGORY - BEST CARS - AUTO ILLUSTRIERTE (SWITZERLAND)

"MY FAVORITE CARS" - CITY-CAR CATEGORY - QUATTRORUOTE

NO. 1 CAR IN POLAND - JANUARY '08

"MOST BEAUTIFUL CAR ON THE WEB 2008" - INFOMOTORI

"MOST BEAUTIFUL CITY-CAR ON THE WEB 2008" - INFOMOTORI

"AUTO LEADER 2007" - POLAND - READERS OF AUTO MOTO E TWOJ STYL

"WOMEN'S CAR OF 2007 (CAR WITH IMAGINATION)" - POLAND - READERS OF TWOJ STYL

"COMPANY CAR OF 2008" SELECTED BY FIRMENAUTO (FLEETS) AND DEKKRA (GERMANY)

"CAR OF THE YEAR 2008" - UK

"CAR MAGAZINE CAR OF THE YEAR" - UK


FIFTH GEAR "SMALLCAR OF THE YEAR" - UK

AUTO EXPRESS "BEST CITY CAR 2008"

"BEST COMPACT CAR" - SURVEY OF INTERNET USERS

"BEST SMALL CAR" (IMPORTERS CATEGORY) - READERS OF AUTO ZEITUNG (GERMANY) IN THE AUTO TROPHY AWARD FOR THE SECOND CONSECUTIVE YEAR



"BEST COMPACT CAR" - JAPAN (20.11.2008)

"IMPORT OF THE YEAR" - OVERDRIVE - INDIA

"LUXURY CAR 2008" - TOP GEAR - INDIA

2007:


Harald J. Wester, Chief Technology Officer Fiat Group, receives the Euro Car Body Award from Mathias Woydt, vice president of the Automotive Circle International


"EUROCARBODY 2007" - AUTOMOTIVE CIRCLE INTERNATIONAL - FRANKFURT (GERMANY)

AUTO TROPHY (SMALL CARS CATEGORY) - READERS OF AUTO ZEITUNG - GERMANY

"MOST BEAUTIFUL CAR IN THE WORLD" - (ITALY - MUSEUM SRL)

"SALES ACHIEVEMENT TROPHY" (L'AUTOMOBILE MAGAZINE) DECEMBER 2007

"CAR DESIGN OF THE YEAR 2007" - UK

"NEW CAR OF THE YEAR" - (QUATTRORUOTE)

Felipe Massa-Ferrari Formula 1 Driver

Friday, May 21, 2010

Looking back at the Fiat 131/Brava


1978 Fiat SuperBrava



There is a story on the Internet of a 1980 Fiat Brava with 500,000 miles and still going strong. You can read about it here and here. Owner Gil Cormaci has racked up that impressive number by making a 150 mile daily commute for, no doubt, quite a few years. The car still has original paint and engine.

In celebration of Gil Cormaci's accomplishment, let's take a look at the Fiat Brava of old.


Blast from the past: 1980 Fiat Brava commercial

The Brava was an upgraded version of the Fiat 131 Mirafiori, and was sold in the US from 1978 to 1982 . The 131 Mirafiori was named to honor Fiat's Mirafiori factory on the outskirts of Torino, Italy. Mirafiori translates to wonderful flower in Italian.


Fiat 124: 1966 European Car of the Year

The 131 was introduced in Europe in 1974 and replaced the 1966 European Car of the year Fiat 124. In 1975 the 131 made its way to the US.

1976 Fiat 131 Coupe


Like the Fiat 124, the 131 was a conventional rear wheel drive sedan. It offered a conventional layout but upgraded with the latest engineering, design and safety features of the time.



Popular Fiat commercial from the 1970's. Click the play button!

Its twin overhead cam engine, 5 speed gear box and a brake proportioning valve controlled by the ride height were extremely rare features on cars back then, regardless of cost.


Fiat Safety testing in the 1970's

Safety is taken very seriously at Fiat. In the above video you can see crash testing of various 1970's Fiat models. Since the 1960's, Fiat has played a leading role in safety research and testing. By the late 1960's all Fiat passenger car bodies were able to maintain a minimum crash survival space for their occupants in any impact situation at any speed up to 30mph. This was quite an impressive feat back then.

A couple of things to note in the above film. One is that besides controlled tests inside a crash test facility, you'll see cars driven into each other. Fiat developed this test in the 1960's and was unique in the industry by having the 2 cars driven by remote control from above by a helicopter.*


Fiat 128 Rally undergoing a rollover test. Look familiar?


Later, the tests were modified by having the cars towed and then released to crash into each other. These types of crash tests were better able to reproduce real life conditions, especially for the time era. Another thing to look for is the Fiat 128 Rally at the end of the film being catapulted into a rollover. Compare that to the popular Mercedes Benz commercial being played today. Seems the results are similar!


The Fiat 131 benefited by this research and besides having a body that featured energy absorbing front and rear sections, offered rear seat shoulder harnesses and most notably, a gas tank tucked behind the rear seat and out of an impact zone. Again, features very uncommon, especially in America.
The Fiat Brava was very well equipped


In Europe, during the 1978 model year, the 131 underwent a face lift and name change. This new, upgraded car was called the SuperMirafiori and, in the US, became first known as the SuperBrava and then just Brava. This new version offered an upgraded interior and slightly revised exterior looks. Exterior changes included a new hood, trunk lid, redesigned grille, taillights, gas cap, C-pillar air extractors and new wheels. Eventually a small chin spoiler was also added.

The Fiat Brava was quite an elegant looking small sedan back in the late 70's, early 80's



The Brava was sold in America until Fiat withdrew from the market in 1982. In Europe, the car continued to be sold until 1984. Interestingly, Fiat sold the 131 to other companies as Complete Knock Down Kits (CKD) and is still in production in Ethiopia by the Holland Car Co.

While we in the US only received the 131/Brava, there were a couple of Euro versions that are worth looking at. First is the 131 Abarth Rally.

This version was developed specifically for rallying with 400 homologated for sale.

The Legendary Fiat 131 Abarth Rally



Fiat had Bertone modify the body with wheel arch extensions, front air dam and spoilers on both the rear deck and roof. Because of the strength of the 131 body, it was determined that the car could be lightened without any detrimental effects. Through extensive use of light alloys and plastics, the weight was cut by 132lbs (60kg). An interesting fact is 75% of the 131 remained unchanged including the front suspension and steering.**

The Fiat Brava wagon was one of the best looking wagons back then


A clever new multi-linked rear suspension was fitted along with, for the first time on a production car, 50 series Pirelli P7 ultra high performance tires.

US version of the Fiat 132 engine, first used in the 124 Sports then in the US 131. The first affordable, mass produced twin overhead cam engine, by 1979 over 1 million of these engines were produced.* Fiat's gift to car enthusiasts everywhere.



Aurelio Lampredi, former Ferrari engine designer, in charge of Fiat engines and head of Abarth in the 1970's, designed a new 4 valve cylinder head for his twin cam engine, now at a capacity of 1995 cc. Inlet valves were 34mm and exhaust were 28mm at in included angle of 46 degrees (2 valve twin cams have a 66 degree included angle). The street version equipped with a Weber 34 ADF carburetor produced 140hp @ 6400 rpm/130lbs.ft @ 3800 rpm. For competition use, Kugelfischer mechanical fuel injection was fitted and power went to 215hp @ 7000 rpm/166lbs.ft @ 5600rpm. There was also a supercharged version with 285hp.

Lancia Delta S4. Super and Turbocharged



Side note: Over the years, this 16 valve engine, installed in various forms and cars, went on to win 10 World Rally Championships. Ultimately, in 1985 a turbocharged/supercharged version was installed in the legendary Lancia S4. This 1.8 liter engine has been reported to produce upward of 550-700hp.

Fiat 131 Abarth Rally


Performance with the base engine produced 400 meter standing starts at 15.3 seconds and 28.6 seconds for the kilometer. The competition versions would average 14.7sec for the 1/4 mile, 0-60mph in 6.6 seconds and 0-100mph in 17.5 seconds.
Tribute to the World Champion


The 131 Abarth was capable of brutal performance and went on to win numerous races, winning the World Rally Championships in 1977, 1978 and 1980.

Fiat 131 Racing



Another interesting version of the 131/Brava is the European only 131 Racing. This car sported a lowered, stiffer suspension and exterior changes such as a new grille, spoiler and wheel arch flares. The 131 Racing was not a race car but a good sports sedan.

The stiffer suspension addressed the only real criticism of the 131, understeer. When Fiat designed the 131, a deliberate decision was made to endow this family car with more underesteer than the outgoing 124 sedan. Always conscious of its social responsibility, Fiat felt it was safer for the average driver that way. Oversteer at the limit or upon trailing throttle requires arguably more skill than the average driver possesses. However, this understeer dulled some of the nimbleness of the previous car and many road testers commented on it. The 131 Racing addressed this characteristic.

Paul Fr�re, Le Mans winning race driver and Road&Track magazine correspondent tested the car saying: "I found it rather pleasant and fast road car for a contemplated moderate price: perhaps a car for BMW 2002 enthusiasts who can't afford the current 320. Suspension is on the stiff side, but the car handles quite well..."*****

Looking back the 131/Brava is not a bad way to commute even today. Hats off to Gil Cormaci for reminding us how cool the 131/Brava was. I'll take mine with a set of fender flares and 10inch wide rear wheels!





Photo Credits and resources: FMNA, FGP, Owner Archives, Autocar 3/76,*The New Fiat Guide by Jan P Norbye 1969,,**Car 4/76, ***Faza 6th edition, Al Cosentino 1984,****131 Abarth used under GFDL-cc_by_sa, *****Road and Track 6/78

Wednesday, April 21, 2010

Fiat's 5 year product plans...



I wanted to get this up as soon as possible for all that are following the latest on Fiat's product lineup. I'm going over my notes (I just got through the 5 hour presentation!) and will post some relevant news on what I heard.

A surprise for me was Sergio Marchionne actually took and answered one of my questions on Alfa Romeo(!). I'll post the question and his reply here soon.

In the meanwhile, check out these pictures from the slide presentation.




Tuesday, April 20, 2010

Luca Cordero di Montezemolo to resign as Chairman of Fiat




Fiat announces that, during a press conference to be held this afternoon, Luca Cordero di Montezemolo will announce his intention to resign as Chairman of Fiat. The Vice Chairman of Fiat, John Elkann, and the CEO, Sergio Marchionne, will also be present at the conference.




Luca Cordero di Montezemolo explained that the reason for his resignation, on the eve of the presentation of the Group�s 2010-2014 Business Plan, was that he had completed the assignment given to him by the core shareholder in May 2004.



Mr. Montezemolo will remain a member of the Fiat Board of Directors and Chairman of Ferrari.







Here's a little background on Luca Cordero di Montezemolo>



After joining Fiat, in 1973 FIAT moved him to Ferrari, where the 27 year old quickly became Enzo Ferrari's assistant and right hand man. In 1974, Montezemolo became manager of Scuderia Ferrari. In 1975, he was promoted out of Ferrari to be head of all FIAT racing activities, and in 1977 he advanced to become a senior manager of FIAT.



In November 1991, FIAT chairman Gianni Agnelli made Montezemolo president of Ferrari, which had been struggling since Enzo Ferrari's death; Montezemolo made it his personal goal to win the Formula One World Constructors' Championship once again. Montezemolo quickly made changes at the Italian team, signing up Niki Lauda as consultant and promoting Claudio Lombardi to team manager role.



During the 1990s he resurrected the Ferrari road car business from heavy debts into solid profit. He also took on the presidency of Maserati when Ferrari acquired it in 1997, until 2005.




Following the death of Umberto Agnelli on May 28, 2004, Luca Cordero di Montezemolo was elected chairman of FIAT. After leading Fiat's turnaround, Luca Cordero di Montezemolo decided to step down today (April 20, 2010) as Chairman of Fiat.



He will be succeeded by John Elkann, the grandson of the late Gianni Agnelli, and heir to the Fiat empire.

With thanks to Fiat Group Press, Elkann by Dgtmedia - Simone

Monday, March 29, 2010

The Fiat 500 hits the 500,000th mark...

Fiat 500 numbers 499,999, 500,000 and 500,001


There's no doubt that the Fiat 500 is a huge sales hit. The 500 was introduced on July 4, 2007 and, in little more than a month, 70,000 orders were taken in the first two countries (France and Italy) it was marketed. That number grew to more than 105,000 by the end of four months.

By the end of that year more than 140,000 total orders were taken for the 500. That figure had swelled to 390,000 by the middle of last year.

Today, March 29, 2010, Fiat celebrates the making of the 500,000th Fiat 500 at the Tychy, Poland factory.

With production set to begin at Toluca, Mexico for the US and Latin American markets later this year, the Fiat 500 promises to add a considerable number to its already impressive sales totals.

Below is the Fiat Press release on this major achievement of the Fiat 500:


The 500,000th Fiat 500 rolls off the production line


Another important milestone in the history of the Fiat 500 and the Fiat Auto plant in Tychy, Poland, where the car is manufactured. The 500,000th Fiat 500 rolled off the production line there only last week. The car in question was finished in Funk White and powered by a 69 HP 1.2 engine with Start&Stop.

Fiat 500 display in Japan, 2008


On sale and in demand in 83 different countries around the world, from Italy to Brazil, South Africa to Japan, the new Fiat 500 has reached this historic figure in only 21 months from its launch. The biggest ten markets for the first 500,000 cars have been: Italy (244,755 units), France (58,425), the Great Britain (51,445), Germany (48,319), Holland (13,682), Switzerland (10,765), Spain (10,103), Belgium (9,548), Japan (9,030) and Austria (8,648). It is well worth remembering too that 80 per cent of customers choose the top of the range versions (the Lounge and Sport) which are fitted as standard with Blue&Me.

Fiat CEO Sergio Marchionne receiving the 2008 European Car of the Year award


This new record has once again focused the media spotlight on the Fiat 500, and has confirmed its reputation as an Italian style icon capable of winning the hearts and minds of the public and the international motoring press. In addition to success on the sales front, the Fiat 500 has already won 40 international awards, has received the prestigious EuroNCAP 5 star rating�, and boasts a dedicated internet site (fiat500.com) with a community of over 120,000 users from 206 different countries taking part in 30 online activities and clocking up an amazing 240 million page visits.

Fiat 500C


This production record and the model�s unquestionable popularity are the result of the 500 project�s great ability to generate new versions. This was demonstrated by the debut of the 500C, the original cabriolet version of the 500 that pays homage to the 1957 soft-top but comes packed with advanced solutions in terms of build, engines and passenger comfort.

Fiat 500 By Diesel



The range offers a choice of two versions (saloon and Cabrio), 6 configurations (Pop, Lounge, Sport, Rock, by Diesel and PUR-O2), 2 petrol engine (a 69 HP 1.2 and a 100 HP 1.4) and 2 turbo-diesel engines (a 75 HP 1.3 Multijet and a 95 HP 1.3 Multijet II), all Euro 5 and available with either manual or sequential robotized (Dualogic) gearboxes. Remember too that the Fiat 500 has also inspired a number of Special Editions and show cars, from the 500 by Diesel to the Barbie� show car. And this is without mentioning the fascinating, high performance Abarth 500 and Abarth 500C. In brief, the Fiat 500 is a genuine �platform� for a whole family of cars characterized by technology and attention to detail normally only available on far more prestigious automobiles.


Turin, 29th March 2010
With thanks to Fiat Group Press

Friday, March 19, 2010

Fiat at Geneva: The World I�d Like...



The Fiat stand this year at the Geneva Motor show was quite attractive. The theme was "The World I�d Like" seen through the eyes of children. The concept is to "listen" to the little ones who will be making the world big one day.

This display has won the "2010 Creativity Award" at the auto show for its colorful and playful world with clear connotations of childhood.

Below is the Press release from Fiat on the award and about the stand and Fiat's vision for the future. You'll see from the videos that it was a spectacular display:


The Fiat Automobiles stand at the recent Geneva Motor Show has received the �2010 Creativity Award� for its original design and innovative display concepts. Now in its seventh year, this sought-after award is presented by the �Club de publicit� et communication de Gen�ve�. The aim of the award is to reward creative and innovative stand design, to focus attention on quality and practicality and, of course, to attract greater attention from the public. The main criterion applied to choosing the winner is always the originality of the stand itself.

This year the jury chose the Fiat stand, announcing that �Fiat took a chance and created a display area outside classical, conventional schemes. The stand welcomed visitors to the Motor Show into a colorful and playful world with clear connotations of childhood.



Colorful rainbow themes decorated not only the walls but the floor too, with rainbow bridges and colored carpets. The overall effect was extremely attractive and clearly visible even from a distance.

The jury�s attention was attracted particularly by Fiat�s original and innovative color configurator.

Two bridges provided visitors to the stand with an overview of all the models on display.

Though technically simple, the stand was extremely well-conceived.

The jury has also noted that Fiat makes an effort to distinguish itself from other brands every year�.



This year�s original stand was based on the concept of �The World I�d Like�, seen through the eyes of children. As a company, Fiat is looking to the future and therefore eager to listen to the wishes of children today, because they will grow up to make tomorrow�s world a great place to live.



The stand was therefore drawn up using the children�s ideas, and expressed their imaginations and hopes for a future in which respect for the environment will play an ever greater role. The result was a bright and happy area where houses floated on clouds and a huge rainbow welcomed visitors into the Fiat world.



At the center of the stand, a practical but playful 500 configurator reflected the mood of the rest of the display area. Between the houses and clouds of the children�s dream city were spaces for the latest developments in automobile technology � cars that have taken a giant step towards sustainable mobility. Fiat has always been dedicated to the cause of environmental protection, as the latest recognition from JATO demonstrates. In a survey of the products of the ten best selling automobile brands in Europe, Fiat again emerged as the brand with the lowest average CO2 emissions for cars sold in 2009, at only 127.8 g/km (even better than the 133.7 g/km of 2008). This is the third year running for Fiat to top the list.


Part 1 of the Fiat Press conference at the 2010 Geneva Motor Show. Part 2 is below.

A fundamental contribution to this impressive result comes from the dramatic growth in sales of cars powered by methane, the most ecological and economical of fuels available today. The forward-looking decision to develop methane-fueled vehicles, taken over ten years ago, has established Fiat as the unquestioned leaders in OEM methane-fueled vehicles in Europe, with around 350,000 units already sold. We should not forget that Fiat is the first and only manufacturer to offer, in its Natural Power range, a total of 14 models of cars and commercials designed to meet the mobility requirement of a truly broad public, including retailers, tradesmen and distributors.


Part 2 of the Fiat press conference at the 2010 Geneva Motor Show

Fiat�s ecological supremacy is the result of long-term strategy based on two main pillars. Firstly Fiat offers a wide choice of high-tech solutions for reducing consumption and emissions, including the brand-new Twin-Air two-cylinder engine, the revolutionary MultiAir engines, second generation Multijet turbo-diesels, alternative dual-fuel (petrol-LPG and petrol-methane) engines and the innovative Start&Stop system. Secondly, Fiat puts a great deal of effort into making customers more aware of their responsibilities and helping them drive more ecologically. This is the philosophy behind the development of eco:Drive, the innovative software that works via the USB port of the Blue&Me system and analyzes driving style to optimize consumption and emissions.

Turin, 18th March 2010

With thanks to Fiat Group Press and Fiat on the Web

Thursday, November 26, 2009

The Fiat/Chrysler deal summed up: Cash runs out; assets that produce cash don't...



Sergio Marchionne- CEO of Fiat and Chrysler

Much is being written about the Fiat/Chrysler linkup. Many times the the writer will drop in the statement "...Fiat didn't pay anything for Chrysler". It's a sensational statement that adds some bite to the article (hey, how could they give away a company for free and where can I get mine?), however, the author neglects to mention what Fiat did exchange for their stake in Chrysler (if someone thinks you can get a multi-billion dollar company for nothing, I've got a bridge in Brooklyn I want to show you).

Here's my take on the Fiat/Chrysler deal. I've posted my opinion on the subject on a few different news sites and I thought I would post them here for posterity;)

It's true that Fiat didn't give cash for its stake in Chrysler (and all of its troubles), but it is giving them many billions (estimated to be up to 10 billion) of dollars in cutting edge technology.

Now this estimated $10 billion in technology isn't my estimate, but industry experts. This technology so impressed the US and Canadian governments, they gave the go ahead for the Fiat/Chrysler deal.

"Free" Technology

Here's just some of the technology Fiat brings to the table:

Fiat MultiAir Benefits (click to enlarge)



1. MultiAir engine technology- A major revision to the internal combustion engine, MultiAir offers more power, reduced fuel consumption, and lower exhaust emissions compared to conventional gas engines. It's been called "variable valve timing on steroids" and is basically a bolt on application.

Fiat MultiJet II Benefits (click to enlarge)



2. MultiJet II- Fiat is a leader in diesel engine technology. They invented the Common Rail diesel, an advancement that improved refinement in passenger car diesels. This technological breakthrough boosted sales of diesel cars from 15% to 50% in Europe. Now, with MultiJet II technology, diesels will offer even more refinement, power and fuel economy.

Fiat C-Evo platform is adaptable(click to enlarge)



3) C-Evo chassis- A completed, modern platform, already engineered, ready to go for Chrysler. Developing a new automotive platform can cost at least $1 billion.

Fiat Dual Dry Clutch Transmission Benefits (click to enlarge)


4) A new dual, dry clutch transmission that reduces fuel consumption as compared with traditional automatic transmissions. Fiat has invested approximately $750 million in this transmission.

Fiat Grande Punto Abarth S2000

5) Fiat is a leader in small car design. This is what Ford said about Fiat: "...they are acknowledged as having been for many years one of the world's leading manufacturers of small cars". Even BMW is actively pursuing Fiat for help in designing their new small BMW.

The list of what Fiat brings to Chrysler could fill a website;)

Sergio Marchionne, the architect of this deal, summed this up best with "...You're getting a whole pile of assets that produce cash, which is as good or probably better than cash." and " ...Cash runs out; assets that produce cash don't."

The Plan



Currently, Fiat doesn't own Chrysler but they effectively run it, and after sitting through the five year plan they outlined November 4th (an eight hour presentation), you can see the monumental work they have done on behalf of the American company and its employees.

Part of the plan is for Chrysler to pay back the government loans by 2014, and profits generated here in this country stay in this country (by the way, Fiat hasn't received a penny for any of the considerable work it has done).

If the plan succeeds, they have earned their 35% stake in the company. Remember, nobody was interested in saving Chrysler or their American/Canadian workers.

Tuesday, November 3, 2009

The companies that make up Fiat.



The companies that make up the Fiat Group*



Fiat is a multi faceted company with core businesses that focus on the automotive industry. The Fiat Group is made up of nine companies, all leaders in their field. Here's a brief run down on them:



Fiat Group Automobiles



Fiat Group Automobiles consists of Fiat, Alfa Romeo, Lancia, Fiat Professional and Abarth. Fiat has negotiated what amounts to a controlling interest in Chrysler LLC at 20%. This is anticipated to rise to 35% once certain benchmarks are reached.




Fiat - The Fiat company dates back to 1899 (four years before Ford Motor Company) and over the last 110 years has produced many historic, innovative and often brilliant car designs.



The first Fiat cars came with a name plate stamped with the full name of the company; Fabbrica Italiana di Automobili Torino (or Italian Automobile Factory of Turin), later cars had a badge with the initials F.I.A.T. on them and people contracted the letters into a pronounceable word. In 1906, the F.I.A.T. company trademarked the name "Fiat", however the company still remained Fabbrica Italiana di Automobili Torino until 1918 when it underwent a reorganization and became Fiat, Societa per Azioni (Fiat Spa or Fiat Inc).



Of the original nine founders of Fiat, one person, Giovanni Agnelli emerged as the most prominent leader. He was elected Managing Director in 1902, became the largest shareholder and the Agnelli family has had the controlling interest in the company since then.



Alfa Romeo - The Alfa Romeo company dates from 1910 and is one of the most illustrious names in the auto business. It has a heritage of design and racing wins second to none. Many of the designers and engineers of Alfa Romeo serve as the the automotive who's who in the history of the auto industry.

The Alfa Romeo company was originally named A.L.F.A. (Anonima Lombarda Fabbrica Automobili or Lombarda Automobile Factory, Public Company). In 1915 an entrepreneur named Nicola Romeo bought the A.L.F.A. company and added his last name to the company.



Alfa Romeo has been involved in racing since its beginnings with many of the worlds most famous drivers being at the wheel; Giuseppe Campari, Ugo Sivocci, Antonio Ascari, Tazio Nuvolari, Rudolf Caracciola, Louis Chiron, Michele Alboreto, Mario Andretti, etc. It has been said that every car that Alfa Romeo has produced has been raced.

In 1932 the Italian government took over Alfa Romeo, running it until 1986 when the company was put up for sale. Fiat stepped in and rescued Alfa Romeo to keep the historic company from going under and to safeguard it as an Italian owned company.



Lancia - Lancia was founded in 1906 by Vicenzo Lancia, a Fiat racing driver who had a passion for excellence and innovation.

Lancia is a car company well known for innovation. In 1913, the Lancia Theta was the first car in Europe to fit a built-in electrical system. In 1921, the Trikappa was the first car in the world to mount a narrow angle V8 engine. In 1922, the Lambda introduced the world to the load-bearing body, independent front suspension, transmission tunnel incorporated into the floor, luggage compartment built into the load-bearing structure, and the first narrow angle V4 engine. In 1950, the Aurelia was the first car in the world to mount a 60� V6 engine, with clutch, gearbox and differential mounted in a single unit (transaxle) in the rear of the car. The car also had rear inboard brakes.



Lancia has a seemingly endless list of innovations. Some other firsts were the rear suspension with leaf springs pivoted on a �silentbloc� at the front and with roller pivots at the rear and a drive shaft with flexible disc joints instead of universal joints.

However, all this expensive innovation took its toll on a small car company and, after a difficult period, Fiat took control of Lancia in 1969. With that, Lancia has been able to continue their heritage of innovative and unique vehicles.



Abarth - Abarth is an Italian manufacturer famous for creating record breaking racing cars and performance tuning car engines for regular road use and racing. The company was founded in 1947 by Karl (Carlo) Abarth who was an Austrian that lived in Italy.



Abarth had produced winning race cars for various marques such as Porsche, but became well known for modifying Fiats to produce unbelievable results against all odds. Eventually, in 1971, Abarth sold his company to Fiat where it was put in charge of modifying and producing Fiat race cars.



Fiat Professional - Fiat Professional is Fiat's light commercial truck operation. Fiat built its first light commercial vehicle in 1903. Fiat Professional was formed in 2007 and replaced Fiat Veicoli Commerciali.



Fiat Professional products are known for their versatility, robustness and fuel efficiency. They have enjoyed much success with over 43.2% of the Italian market and 12.3% of the European market (2008 figures).

Maserati


Maserati was founded in Bologna in 1914 by the Maserati brothers, Alfieri, Bindo, Carlo, Ettore, Ernesto and Mario. Over the years Maserati has been associated with performance, racing, innovation, style, and luxury.



In 1993, Fiat bought Maserati from Alejandro de Tomaso after a period of waning interest in the exotic car company. Since that time, Fiat has invested heavily in the Modena based firm. Today, Maserati is enjoying a "rebirth" with many exciting examples, each one a worthy successor to the powerful Maserati heritage.



Ferrari



Arguably the most recognized Italian company in the world. Enzo Ferrari was a man driven to achieve great things in his life. As a boy, he fell in love with the automobile and racing. As a young man, he raced cars for the Alfa Romeo racing team. After he retired from racing, he secured the services of the great automotive designer, Vittorio Jano, and talked Alfa Romeo into running their racing team. It was a successful collaboration, but Ferrari had bigger dreams, so in 1947 he founded his own car company to produce road cars. With this he could now fund his racing car passion.

The road cars Ferrari produced have always been at the top of the most desirable list, however, in the mid 1960's, it became clear in order to survive and prosper he would need a partner. This partner would run the road car end of the business and let Ferrari concentrate on his first love of racing.



The Ford Motor company made what seemed to be a good offer and everything looked like the deal would go through when literally at the signing of the papers, Ferrari noticed the contract presented was not what was represented to him by the Ford negotiators. They, in essence, wanted to make Ferrari an employee of Ford. Insulted, Ferrari abruptly ended the meeting and the deal.

Instead, Ferrari went to Fiat, where the head of Fiat, Gianni Agnelli (grandson of the founder ) listened to what Ferrari had to say. The two shook hands and, in 1969, the partnership with Fiat was born.



Ferrari was able to do as he wanted and Fiat would take care of the road cars. He knew his company would be in good hands. Over the last 40 years, with the help of Fiat, Ferrari has pushed the boundaries in building the most exciting, passionate sports cars in the world.




Iveco


The Commercial specialists in the Fiat empire. Iveco was founded in 1975 and was made up of five historic international commercial vehicle producers, Fiat Veicoli Industriali, Lancia Veicoli and OM commercial all from Italy; Magirus-Deutz from Germany and UNIC from France.




Iveco is one of the worlds major diesel engine producers (the first turbo diesel for heavy commercial vehicles, the first direct injection superfast light diesel, the first diesel engine for light vehicles incorporating EGR or Exhaust Gas Recirculation system that reduces polluting emissions). Iveco manufactures buses, quarry, construction and Fire trucks.



CNH



Case New Holland is a world leader in manufacturing tractors and agricultural machinery through the Case IH, New Holland and Steyr brands, and construction equipment through the Case, New Holland and Kobelco brands.



Case New Holland has a 170 year heritage made up of some of the most historic names in the agricultural industry, International Harvester, New Holland, Case, Steyr, Braud, Claeys, Fiat Tractor, Flexicoil, and Ford Tractor.



FPT



Fiat Powertrain Technologies (FPT) is a component manufacturer that focuses on research, development and production of engines and transmissions for the Fiat Group. FPT has been at the forefront of many recent engine technologies such as MultiAir and MultiJet II.



FPT was formed in 2005 to bring together all the engine and transmission technology in the Fiat Group under one roof.

Fiat automobiles, commercial vehicles, heavy trucks, buses, industrial machinery, marine applications, and power generation all benefit from FPT expertise.




Magneti Marelli



Magneti Marelli produces automotive components for the Fiat Group and other major car companies. Lighting, exhaust systems, suspensions and shock absorbers, engine control, and electronic systems are all specialties of the Magneti Marelli firm.



Magneti Marelli was founded by Fiat and the Ercole Marelli firm in 1919. The company was acquired entirely by the Fiat Group in 1967, and transformed into a world leader in automotive components.




Teksid



Teksid is the largest iron foundry Group in the world with a production capacity of approximately 600,000 tons annually. In addition, Teksid is also the world technology leader in production of aluminum engine components for the automotive industry.



Teksid supplies engine blocks, cylinder heads and other components for engines, and cast-iron components for transmissions, gearboxes and suspensions, and aluminum cylinder heads.

Teksid was founded in 1978 and grew out of Fiat's acquisition of its foundry operation called "Ferriere" in 1917. For 60 years, Ferriere provided just Fiat with iron, steel and metallurgical products, but in 1978, Fiat decided to branch out and sell these products to others on the open market and Teksid was born.




Comau


Comau produces industrial automated and robotic systems for the automotive,
aerospace, petrochemical, steel, and foundry industries.



The company specializes in the areas of product and process engineering, logistics and management, manufacturing, installation, production start-up and maintenance.

Comau (COnsorzio MAcchine Utensili) was established in 1978 and during the past 30 years has risen to be the worldwide leader in automotive robotic technologies. Many of the worlds car manufacturers use Camau technology.



*Picture used with kind permission of Fiat

Sources: Fiat Group Press/Maserati Press/Teksid/Comau

CNH/Iveco/Magneti Marelli/FPT/Jan P. Norbye, New Fiat Guide