Sergio Marchionne at the 2011 Detroit Auto Show

Sergio Marchionne took some questions and answers from the media at the 2011 Detroit Auto Show on Monday, January 10. In the video below, he takes a question on the Fiat 500, talks about Abarth and explains Fiat's plans for the US:




This was part two of a three part video. Go to my Youtube Channel to see the other parts: car-evolutioncars video channel


With thanks to Chrysler Media

Fiat increasing ownership stake in Chrysler

Chrysler LLC has announced that Fiat's ownership interest has increased to 25%, up from the initial 20% stake given to Fiat at the beginning of the merger.

This increase was the result of Fiat reaching a significant milestone set out in the merger agreement of building the FIRE (Fully Integrated Robotized Engine) family of engines in the United States. FIRE production began in November and is the engine that equips the new Fiat 500. You can read more about this in a story I did last October (click here).

Fiat can up their ownership level an additional 10%, done in two separate 5% increments by next; distributing Chrysler vehicles outside of NAFTA and producing a Chrysler vehicle in the US based on Fiat technology capable of achieving 40mpg.

Here is an excerpt of the official Fiat/Chrysler agreement:

"...Fiat will have right to receive up to an additional 15% equity interest (by vote and value) on a fully diluted basis. This stake can be obtained in three tranches of 5% each subject to the achievement of predetermined targets, in particular, achievement of regulatory approvals to produce the FIRE family of engines in the USA; achievement of sales of Chrysler vehicles outside NAFTA, and achievement of regulatory approval to produce a Chrysler model based on Fiat technology. Upon obtainment of such additional 15% interest, Fiat will also have the right to appoint another director of Chrysler..."

Fiat also has the option of becoming the majority stake holder (51%), but only after all the government loans are repaid. Current plans call for that to happen by 2014. However, Fiat/Chrysler CEO Sergio Marchionne wants Chrysler to go public sometime next year, so Fiat might repay the government loans early and grab the 51% before the IPO happens. This would save Fiat a considerable amount of money.

We'll have to see how that plays out. In the meantime, read the official Chrysler press release sent out yesterday:



Chrysler Group LLC Meets First of Three Performance Events; Fiat Increases Ownership to 25 Percent

January 10, 2011, Auburn Hills, Mich. - Chrysler Group today announced that Fiat's ownership interest in the Company has increased from 20 percent to 25 percent upon the Company�s achievement of the first of three performance-related milestones.

As outlined in its June 10, 2009 Operating Agreement, Chrysler Group issued an irrevocable commitment letter to the U.S. Treasury stating that the Company has received the appropriate governmental approvals and will begin commercial production of the Fully Integrated Robotized Engine (FIRE) in its Dundee, Mich., facility. As a result, Fiat�s ownership interest increased automatically under the terms of the Operating Agreement.

The ownership interests of Chrysler Group�s members are now:
UAW VEBA 63.5 percent
Fiat 25.0 percent
U.S. Treasury 9.2 percent
Canadian Governments 2.3 percent

The first North American application of the 1.4-liter FIRE engine with MultiAir Technology will be in the new Fiat 500, which Chrysler Group will begin to distribute soon through newly appointed dealers.

Fiat has the opportunity to further increase its ownership in Chrysler to 35 percent, in 5 percent increments, through two additional performance-related milestones. The first milestone relates to revenue and sales growth outside of the NAFTA region. The second milestone relates to commercial production in the United States of a 40-mile-per-gallon vehicle based on Fiat platform technology.

Chrysler Media

Fiat 500 engine starts production in the US next month

Chrysler announced it will begin manufacturing the engine used in the upcoming Fiat 500 early in November. The engine is a 1.4 liter 4 cylinder equipped with Fiat's innovative MultiAir valve system.

MultiAir is Fiat's revolutionary way of increasing power and torque while reducing fuel consumption and emissions. You can read all about MultiAir here.

The engine, which will be manufactured at Chrysler's Dundee, Michigan engine plant (GEMA), will be shipped to Mexico and installed into the 500, currently scheduled to begin production on December 13.

GEMA, which stands for Global Engine Manufacturing Alliance LLC, was a manufacturing arm of Global Engine Alliance LLC. The alliance was a joint venture of Chrysler, Mitsubishi Motors, and Hyundai Motor Company for developing a line of shared engines. On August 31, 2009, Chrysler bought out the two partners and the engine facility is now a wholly-owned subsidiary of Chrysler Group LLC.



This is significant because it was the stipulation in the original Chrysler/Fiat alliance that in order to increase its stake in Chrysler, Fiat would have to produce this engine here in the USA.

Below is an excerpt of the official Fiat/Chrysler agreement:

"...Fiat will have right to receive up to an additional 15% equity interest (by vote and value) on a fully diluted basis. This stake can be obtained in three tranches of 5% each subject to the achievement of predetermined targets, in particular, achievement of regulatory approvals to produce the FIRE family of engines in the USA; achievement of sales of Chrysler vehicles outside NAFTA, and achievement of regulatory approval to produce a Chrysler model based on Fiat technology. Upon obtainment of such additional 15% interest, Fiat will also have the right to appoint another director of Chrysler..."

Fiat currently owns a 20% stake in Chrysler. Its ownership level will rise to 35% once it meets 3 requirements; build the 500 engine here in the US, sell Chrysler products outside of NAFTA and produce a Chrysler automobile using the award winning C-Evo chassis

Currently Fiat owns 20% of Chrysler and oversees day to day operations at the company. Producing the 500's engine here will up the ownership level to 25%.

You can read more on the merger here. This link takes you to the first post on the merger back in March, 2009. Click newer posts to page forward to see the progression of news.

With thanks to Chrysler Media

Fiat Third Quarter Results for 2010: revenues up, profit nearly doubles

Even with todays economic times, Fiat has posted some pretty strong Third Quarter results. Here are highlights published today:

Fiat Group closes third quarter with revenues at $18.9 billion (�13.5 billion), up 11.9% over Q3 2009, and trading profit nearly doubled to $821 million (�586 million), with all businesses contributing positively.

Net profit of $266 million (�190 million), net industrial debt slightly below $5.6 billion
(�4 billion) and liquidity strong at $18 billion (�12.9 billion).

The Group upgrades guidance for the year to a minimum of $2.8 billion (�2 billion) in trading profit and net industrial debt below the $5.6 billion (�4 billion) mark.



� Revenues of �13.5 billion were up 11.9% over Q3 2009, with the most significant improvement coming from our Agricultural and Construction Equipment business.
� Trading profit rose to �586 million (Q3 2009: �308 million), on the back of volume recoveries for CNH, Iveco and Components and resilience for Automobiles, with Group trading margin improving to 4.3% (Q3 2009: 2.6%).
� Net profit reached �190 million from �25 million in Q3 2009.
� Net industrial debt remained substantially stable at �4.0 billion (�3.7 billion at the end of Q2 2010), with seasonal cash absorption largely offset by positive operating performance.
� Liquidity remained strong at �12.9 billion (�13.5 billion at end June 2010) after prepayment of USD 0.5 billion CNH bond.
� Demerger activities remain on track with an effective date of 1 January 2011.
� Guidance lifted with revenues in excess of �55 billion, a minimum �2 billion in trading profit and net industrial debt below �4 billion.

Group revenues for the third quarter totaled �13.5 billion, an 11.9% increase (+5.2% at constant exchange rates) over the same period in 2009, when overall trading conditions were weak. The increase was driven by particularly positive performance for CNH, Iveco and the Components and Production Systems business. The Automobiles business achieved a slight increase despite the fall in passenger car volumes for Fiat Group Automobiles, reflecting the phase-out of eco-incentives in the major European markets, which was compensated for by increased volumes for light commercial vehicles, Maserati and
Ferrari, in addition to positive currency effects.

The Group reported trading profit of �586 million for the quarter (trading margin: 4.3%), compared with �308 million (trading margin: 2.6%) for the same period in 2009. The improvement in trading performance was driven by higher volumes and continued focus
on costs and industrial efficiencies.

The third quarter closed with an operating profit of �586 million (�267 million for the third quarter of 2009). The �319 million increase reflects the significant improvement in trading profit (+�278 million) and a reduction in net unusual expense (zero for Q3 2010 compared with a �41 million charge for Q3 2009, consisting primarily of restructuring costs).

Net financial expense totaled �181 million for the quarter (�164 million for Q3 2009) and included a �58 million gain on the marking-to-market of two stock option-related equity swaps (�34 million gain for Q3 2009). Net of this item, financial expense increased �41 million over the prior year, reflecting the cost associated with maintaining high liquidity levels in excess of �12 billion.

Profit before taxes was �435 million (�128 million in Q3 2009), with the increase due to a significant improvement in operating result (+�319 million) slightly reduced by a �17 million increase in net financial expense.

Income taxes totaled �245 million (�103 million for the third quarter of 2009) and mainly related to taxable income of companies operating outside Italy and employment-related taxes in Italy (�28 million).

Net profit for the quarter was �190 million, up �165 million over the �25 million figure for the same period in 2009.

During the quarter, consolidated net industrial debt increased by �0.3 billion. Strong operating performance for the quarter largely offset the seasonal increase in working capital.

At September 30th, Group liquidity was �12.9 billion, down �0.6 billion over 30 June 2010, principally due to the early repayment of a USD 0.5 billion CNH bond (originally scheduled for 2014).

Fiat Group press release

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.

Fiat 500: waiting for the news...

The big news this week is Fiat is publishing their five year product plan this Wednesday, April 21.

Fiat will provide details on what additional vehicles, besides the Fiat 500, are coming to the USA. We'll also know more about the fate of Alfa Romeo and Lancia and, going forward, what influence Chrysler will have on them.

As far as the Fiat 500, after Wednesday's announcement, the ball will officially start rolling and I predict there will be a floury of 500 promotions started here in the US as we get ready for its launch this December (little more than seven months away). Hang on!

While we're waiting for Wednesday, here's a brief road test of the Fiat 500 from the UK:




Video courtesy of localmotoring.com

Fiat's 2009 sales: The best performance by any of Europe's big car makers

Fiat Group closed out 2009 selling 1,254,829 cars, up 6.3 percent from 2008. This is despite the overall market being down 1.6 percent. Their command of the European market rose to 8.7 percent, up .7 percent from last year. This was the best performance by any of Europe's big car makers.

By contrast, sales by France's Renault SA were up only 3.9 percent and Volkswagen AG � Europe's biggest car maker � were up just 0.7 percent.

All Fiat Group car divisions posted gains over last year except for the luxury sports car division Ferrari/Maserati, which saw a slight decline. This slight decline is amazing in light of the global economic crisis.

Below is the breakdown for each division's sales:

Fiat 1,016,340 units: up 6.1 percent

Lancia 121,549 units: up 6.6 percent

Alfa Romeo 110,545 units: up 8.1 percent

Ferrari/Maserati 6,395 units: down .3 percent

This performance by the Fiat Group this past year, under the adept leadership of Sergio Marchionne, gives us some hope for Chrysler in 2010.

Photos used with permission of Fiat Group

Marchionne Interview at Detroit Auto Show

Here's a interesting, short interview of Sergio Marchionne at the Detroit Auto Show on Monday, Jan 11 2010. In the interview he discusses how Chrysler is doing.

Fiat building its MultiAir engine in the USA

Fiat 500 1.4L MultiAir engine

Fiat has decided to produce the Fiat 500's MultiAir engine at the Chrysler Dundee, Michigan engine plant (GEMA). It beats out the Saltillo, Mexico engine plant that was also in the running to manufacture this engine. Saltillo is near the Toluca, Mexico plant that produces the 500.

GEMA, which stands for Global Engine Manufacturing Alliance LLC, was a manufacturing arm of Global Engine Alliance LLC. The alliance was a joint venture of Chrysler, Mitsubishi Motors, and Hyundai Motor Company for developing a line of shared engines. On August 31, 2009, Chrysler bought out the two partners and the engine facility is now a wholly-owned subsidiary of Chrysler Group LLC.

Fiat will invest $179 million at Dundee to produce the MultiAir engine, bringing an estimated 155 new employees to Chrysler. To help bring this investment about, the Michigan Economic Growth Authority Board in November approved a $4.6 million, 10-year tax credit for Chrysler.

Another reason for choosing Dundee over the Saltillo plant was the stipulation in the original Chrysler/Fiat alliance that in order to increase its stake in Chrysler, Fiat would have to produce this engine here in the USA.

Below is an excerpt of the official Fiat/Chrysler agreement:

"...Fiat will have right to receive up to an additional 15% equity interest (by vote and value) on a fully diluted basis. This stake can be obtained in three tranches of 5% each subject to the achievement of predetermined targets, in particular, achievement of regulatory approvals to produce the FIRE family of engines in the USA; achievement of sales of Chrysler vehicles outside NAFTA, and achievement of regulatory approval to produce a Chrysler model based on Fiat technology. Upon obtainment of such additional 15% interest, Fiat will also have the right to appoint another director of Chrysler..."

The following is the official Chrysler press release on this investment:


Chrysler Group LLC to Invest $179 Million in Jobs for Michigan, Fuel Efficient Engines for North America




Company Is Delivering on the Promise of the Fiat-Chrysler Strategic Alliance, says Chrysler Group CEO Marchionne
A Significant Step to Grow and Diversify State�s Economy, says Michigan Governor Granholm


Auburn Hills, Mich., Dec 17, 2009 - Chrysler Group LLC will invest $179 million to launch production of an advanced technology, fuel-efficient engine for the North American market, which will be built at the company�s Global Engine Manufacturing Alliance (GEMA) plant in Michigan.
The investment will create up to 573 new jobs industry-wide, including up to 155 new Chrysler Group jobs.

The GEMA plant, located in Dundee, Michigan, will produce the 1.4-liter, 16-valve Fully Integrated Robotized Engine (FIRE) for use in Chrysler Group�s growing fleet of fuel-efficient vehicles. FIRE is a collaboration between Chrysler Group and Fiat powertrain groups and will include Fiat�s innovative advanced technologies to reduce engine emissions and improve fuel economy.

�This is one more important step forward that demonstrates our intent to deliver on the promise of the Fiat-Chrysler strategic alliance and the substance of the road map we laid out in November,� said Sergio Marchionne, Chrysler Group LLC Chief Executive Officer.

�This project further demonstrates that Michigan has the competitive business climate, infrastructure and talented workforce to compete in the global marketplace,� said Governor Jennifer M. Granholm.



"We are pleased and excited with the I-4 FIRE engine loading at GEMA. The UAW is committed to working with the Company to continue doing everything we can to ensure this new engine launch is successful." said General Holiefield, Vice President and Director of the UAW, Chrysler Department.

Today�s announcement follows a thorough site selection review by the company and actions by the Michigan Economic Development Corporation and the Village of Dundee in support of the project.

Production of the 1.4-liter engine at GEMA will begin in the fourth quarter of 2010. The first application of the engine will be in the North American-built Fiat 500 that will go into production in 2011.

Chrysler Group has two plants at the GEMA complex, located at 5800 North Ann Arbor Road outside Dundee. In addition to the South plant which will produce the FIRE, the North Plant, opened in October 2005, produces the World Gas Engine, Chrysler Powertrain�s naturally-aspirated, four-cylinder engine family.

Chrysler Group LLC Introduces Fiat�s 1.4-liter, In-line 4-cylinder, Fully Integrated Robotized Engine with Multiair Technology to Powertrain Lineup

Inside Fiat's MultiAir engine

Auburn Hills, Mich., Dec 17, 2009 - Chrysler Group LLC will debut Fiat�s 1.4-liter, in-line four-cylinder Fully Integrated Robitized Engine (FIRE) featuring Multiair in the Fiat 500 starting in 2010. The engine, well-suited for a small car application, delivers 100 horsepower (75 kW) at 6,750 rpm and 95 lb.-ft. (129 N�m) of torque at 4,250 rpm. A turbo version also will be available in future applications. The 1.4-liter FIRE features Fiat�s Multiair technology, which significantly reduces emissions while improving fuel economy and power delivery.

The 1.4-liter FIRE features four valves per cylinder and incorporates state-of-the-art technology for Fully Variable Valve Actuation (FVVA), also known as MultiAir. Multiair is a sophisticated technology that delivers an increase in power up to 10 percent and a reduction in fuel consumption and emissions up to 10 percent when compared to similar engines. A turbo version of the engine is also planned and will produce a fuel economy improvement up to 25 percent when compared to a V-6 engine with equivalent power.

The MultiAir system consists of electro-hydraulic variable valve actuators filled with conventional oil, which is interposed between the camshaft and each valve. A solenoid valve is energized every 360-degree camshaft rotation, regulating the quantity of oil addressed to the actuator or to a reservoir. The lift of the valve is a function of the quantity of oil addressed to the actuator, ranging from full lift to complete valve closure. Each solenoid valve may also delay application of the actuator in advance, leading to late valve opening or early valve closing.

MultiAir is exclusive for Chrysler Group in North America and is based on a series of Fiat Powertrain patents related to hardware, combustion strategies and controls that allow for full control of the lift and timing of engine valves.

In the early 1970s, robotics in assembly plants was not common. The term �FIRE� came into existence when Fiat integrated the use of robotics in the production process of manufacturing plants. Although mechanized assembly is commonplace today, the brand name FIRE has remained with Fiat�s powertrain lineup.

Chrysler's new Pentastar V6

The 1.4-liter FIRE with Multiair is the world's first mass production engine to incorporate such technology to control the intake valves. Dedicated components have been developed to accommodate four "bricks" (one for each cylinder), which package relevant components. MultiAir technology can be adapted to different types of engines, including Diesels for enhanced NOx control, and is planned for Chrysler Powertrain's four-cylinder World Gas Engine and all-new Pentastar V-6.

Press releases courtesy of Chrysler Media

C-Evo chassis world preview

Alfa Romeo has released pictures of their new Giulietta sedan. The Giulietta is the first Fiat Group Auto that uses the C-Evo chassis. C-Evo is the evolution of Fiat's compact chassis currently used in the Fiat Bravo. This chassis (or platform architecture) is one of the technologies being given to Chrysler and is said to save Chrysler at least $1 billion in developmental costs.

Fiat Bravo

Fiat spent an estimated $148 million (100 Million Euros) upgrading and revising the current compact chassis with a new, advanced McPherson strut front and multilink rear suspension, lengthening the wheelbase and cutting the overhangs front and rear. In addition, Fiat has increased the chassis stiffness and also increased the crash worthiness (the current Bravo is already know for its five star crash rating and is listed at the top of its category by NCAP, Europe's leader in crash testing assessment).

Another advantage with this platform is it utilizes space frame technology, this allows its wheelbase to be easily adjusted to meet various models specifications.

Dodge 2010-2014 product plans (click to enlarge)

For example, in the compact segment, this chassis is being used for the replacement for the Dodge Caliber, which is due out in 2012. In the mid-size segment, the replacements for the Dodge Avenger and Chrysler Sebring will come out utilizing the C-Evo chassis, but with a longer wheelbase, this mid-size chassis is called the D-Evo, and is due out in 2013.

An added plus with the C-Evo is that besides front wheel drive, the chassis offers all wheel drive capabilities, opening up a new market for Chrysler in the compact and mid-size market segments.

The Alfa Romeo Giulietta will premier during the 2010 Geneva Motor Show, held from March 4- 14. Below is the Alfa Romeo press release on the new Giulietta:

Alfa Romeo Giulietta: world preview

The New 2010 Alfa Romeo Giulietta

The new Alfa Romeo Giulietta will be presented to the world at the forthcoming Geneva Car Show. Sales of the new model will start in spring and be gradually extended to all the major markets. The Alfa Romeo Giulietta is expected to give new impetus to the brand in one of Europe's most important segments.

The 1954-56 Alfa Romeo Giulietta Sprint

In the Centenary year, the name is a tribute to an automobile myth and Alfa Romeo.

The 1960-1962 Alfa Romeo Giulietta SZ

The Giulietta is a car that, in the fifties, caught the imagination of generations of car enthusiasts, making the dream of owning an Alfa Romeo and enjoying the high level of comfort and technical excellence accessible for the first time.

The Alfa Romeo Style Centre has produced a new Giulietta, a sports car capable of expressing both great agility on the most demanding routes and providing comfort on everyday roads.

A new architecture for enhancing road hold and agility in total comfort and safety

Meet the new Alfa Romeo, a compact created to appeal to customers who seek top dynamic performance and those who are looking for a distinctive style and a high level of comfort.

The Giulietta has brand-new architecture, designed to meet the expectations of the most demanding customers in terms of road holding, agility and safety. Its excellent dynamic performance and great comfort are the result of refined technical solutions implemented in the suspensions, a next-generation steering system, a rigid yet light structure made of aluminum and high-strength steel, and state-of-the-art manufacturing technologies.

Alfa DNA, a device which customizes behavior of the car according to different driving styles and road conditions, can adapt the new Alfa Romeo to the needs of each individual driver to enhance driving pleasure and comfort. The new architecture of the Alfa Giulietta was designed to integrate and enhance all on board systems. Three set-ups (Dynamic, Normal and All Weather) are available and can be selected using the Alfa DNA. This device - standard across the entire range of the new model - modifies the operating parameters of the engine, of the steering system, and of the Q2 electronic differential, in addition to fine-tuning the stability control system (VDC) behavioral logics.

Italian style sportiness and comfort

The Alfa Romeo 8C Competizione Concept Car

Combining sportiness and elegance, the Alfa Giulietta is the result of Alfa Romeo's new direction in style and technology - an approach that started with the 8C Competizione super car and which recalls the brand's glorious past while projecting its traditional values of technology and emotion into the future.

The front end is developed around a �trilobe shape� and features a brand-new interpretation of the classic Alfa grille, set into the front bumper and suspended between the two air intakes. The entire car develops from here to combine a lively personality with an elegant form.



The front headlamps implement LED technology and a Daytime Running Lights (DRL) function for maximum active safety.



The profile of the Alfa Romeo Giulietta is rich in personality and confers the appearance of an agile, solid model. This is above all the result of the coup� shaped side windows, which highlight dynamic and streamlined shape, and of the concealed rear handles. The side ribbing adds to the car's slender look, while the taut lines closing in on the rear end accentuate the "wedge" shape of the body.



The style of the rear end, like that of the front and the side, is strong and consolidates the impression of a muscular car, firmly gripped to the road.



Like the headlamps, the rear light clusters implement LED technology, to the advantage of preventive safety, in addition to good looks.



The interior design is taut and light: a horizontally developed dashboard with aluminum element accents and rocker controls which explicitly recall the 8C Competizione. Painstaking attention to detail and the high quality of the materials used are the most advanced expression of Italian style.



Finally, the dimensions of the new car give a compact, dynamic shape combined with excellent roominess and a capacious boot (350 liters): the car is 4.35 meters long, 1.46 meters high and 1.80 meters wide with a wheelbase of 2.63 meters.

Innovative engines for exciting, environmentally friendly driving




The Alfa Romeo Giulietta guarantees top level performance and next-generation technology in terms of technical solutions, performance and environmental friendliness. Four Turbo engines will be available at launch, all Euro 5 compliant and fitted with a standard �Start&Stop� system for reducing consumption and emissions: two petrol engines (1.4TB - 120 HP and 1.4TB MultiAir - 170 HP) and two diesel engines (1.6 JTDM - 105 HP and 2.0 JTDM - 170 HP, both belonging to the second generation of JTDM engines). Finally, the range is completed with the lively 1750 TBi - 235 HP with an exclusive Quadrifoglio Verde configuration.

Safety and dynamic behavior at the top of the segment

Alfa Romeo Giulietta was designed to obtain the maximum Euro NCAP rating in order to offer total protection to driver and passengers. Furthermore, suspension, steering and braking system are designed to be perfectly balanced even during extreme maneuvers.

Finally, the Alfa Romeo Giulietta is fitted with the most sophisticated electronic devices for dynamic control as standard: VDC (Vehicle Dynamic Control), DST (Dynamic Steering Torque), Q2 electronic differential and Alfa DNA selector. All these systems guarantee driving safety, dynamism and performance in the best Alfa Romeo tradition.

Turin, 2nd December 2009

******************************

After checking out the new Alfa Romeo Giulietta, I can't wait to see what Chrysler comes up with for this chassis!

Press release courtesy of Fiat Group Press, Dodge product slide courtesy Chrysler Media.

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.