Fiat Banking on Natural Gas Engines in the US, Thinks Hybrids and EVs Present Too Many Obstacles

Fiat’s comeback to the U.S. with the 500 is just the first piece of a larger puzzle. The company’s CEO, Sergio Marchionne, may give the green light for natural gas-powered cars to be sold in the Land of the Free, as they offer a cheaper way to cut emissions. In an interview with Bloomberg News, Mr. Marchionne noted that electric cars, favored by GM and Toyota, present “too many obstacles” with long recharge time for batteries being one of them.
Another company official, Constantinos Vafidis, who oversees transmission and hybrid development for the Italian maker, said that “natural gas is very suitable for the U.S., especially for public services and goods transportation, where vehicles are refueled from a central base”.

That’s why Fiat wants to target the commercial vehicle segment. The automaker has separated the Ram and Dodge brands last year, thus creating a standalone truck division. In 2012, the range could encompass various vans based on Fiat/Iveco platforms and brought over from Europe.
Natural gas is less expensive to produce, transport and distribute, which makes it an ideal solution for fleet operators. Currently, it costs about $1 less on average than a gallon of gasoline. Also, the additional cost for an engine running on natural gas is $3,000. For a diesel, this amounts to $3,300, while hybrids cost automakers a whopping $8,000. 

Having an edge in production costs and the U.S. being the world’s number one provider of natural gas means that Fiat could become a major player in the eco-friendly niche. The Turin-based maker is Europe’s market leader in manufacturing methane-powered cars delivering some 127,000 units last year.
The only problem is that in America, natural gas refueling stations are vastly outnumbered by gasoline stations. There are only 1,300 stations providing natural gas for 110,000 vehicles, compared to 160,000 stations selling conventional fuels. However, this problem could be circumvented if Fiat can convince government agencies and corporate fleets that natural gas is the way to go.

By Csaba Daradics

Source: Bloomberg

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BREAKING: Early Reveal for 2012 Chrysler 300 Sedan, Full Gallery Hits the Web

Knowing that we live in a world of reciprocity and "you scratch my back, and I'll scratch yours", we're not at all surprised by the early reveal of Chrysler's redesign 2012 model year 300 Sedan, courtesy of Motor Trend. For the record, the firm's new model was supposed to break cover at the Detroit Motor Show in January.
 
In any case and until the higher-ups over at the Chrysler Group decide that the rest of the world is worthy enough of some pictures, you can gaze at MT's gallery by clicking the link here. Check them out and tell us what you think about the 300's new styling direction in the comments below.

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Chrysler Confirms 2013 Dodge Viper, Says It’s Not Going to be Based on Alfa's 8C Competizione

When the last Dodge Viper rolled off the assembly line in July, there were only rumors about a new generation. A couple of months later, new information leaked about a possible successor, said to have been an “Alfa Romeo 8C Competizione with a Viper face”, much to the dismay of Viper fanatics. Some even went as far as to speculate that the Viper could be based on the Alfa's platform.
Now, The Detroit News reports that Chrysler officials confirmed that next summer we will see the 2013MY Viper adding that it won't be based on Alfa’s supercar. In particular, Dodge CEO, Ralph Gilles, said that the new Viper “is not based on anything else” and any similarity with the Alfa is accidental, as the two cars have different proportions.

“Where the cabin is, relative to the wheels, is unique” said Gilles. “The Viper cabin is very rearward and the hood is very long. Few cars in the industry are designed with those proportions anymore” he added.
Mr. Gilles also reassured that “there won’t be a part of the car that’s untouched” and that the 2013 Viper will be “a more forgiving car to drive and accessible to more people”.

Indeed, the previous generation was an unforgiving beast, without any electronic gizmos, bent on destroying those who treated it with disrespect. Granted, this accounted for much of its appeal, but a more drivable Viper is not such a bad idea - or at least it isn't for some.
The extent to which Dodge plans to dilute the sports car's much character is not known at this point. We just hope that Chrysler will keep a fine balance between the ingredients.

By Csaba Daradics

Source: The Detroit News

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Alfa Romeo Sale to VW Rumors Surface Again

Back in April, the Fiat Group announced yet another round of plans to revive its money-losing Alfa Romeo brand, which included the development of new models and a re-launch in the U.S market. At that time, this seemed possible as the Italian maker intended to make good use of Chrysler and its RWD platforms to expand the model range.
However, at the end of August, Alfa Romeo was rumored to be hemorrhaging about €200 million (US $261 million) annually. The brand-hungry Germans over at Volkswagen felt Fiat's need and offered to take over the historic Milanese company. After much unrest, in October, Fiat CEO Sergio Marchionne put an end to the rumors and reiterated his turnaround strategy, while Alfa estimated losses climbed to €306 million or about $400 million.
Now, Automotive News [AN] claims that in the past months the two companies have been discussing the sale of Alfa Romeo, but Marchionne is still undecided. So, what will happen next?

Inside sources told AN that the decision is not only about money, even though Fiat could use the cash and Volkswagen has plenty of it.

But this is a classic case of the door swinging both ways. If Fiat can survive the next couple of years, which will be the most difficult period of the turnaround plan and keep Alfa Romeo, then it could count on the premium brand to spearhead its next move.
The other scenario sees Fiat earning some quick cash, but still struggling in two year’s time, so, yes, the pressure is really on Mr. Marchionne’s shoulders.
My take on the matter is that Alfa should not be sold. Fiat has the opportunity to use platforms sourced from Chrysler, so rear-wheel drive Alfa’s could make a much anticipated come-back. Not taking this step doesn’t make sense.
Furthermore, if the Volkswagen Group acquires Alfa, it will have a tough time fitting the Italian company in a portfolio that includes brands like VW, Audi and Seat. In any case, only time will tell. In the meantime, take a look at the list below, in which Automotive News reasons the benefits of keeping or selling Alfa Romeo.

By selling Alfa, Fiat could:

• Cash in between 1.5 billion to 2 billion euros. Then the post-spinoff Fiat Auto would be virtually debt-free;
• Slash product development expenditures of at least 1.5 billion euros, since Fiat no longer would have to launch five new Alfas from 2012 through 2014;
• Boost profits in 2011 and 2012, since the company would be rid of Alfa's annual losses projected at about 200 million euros;
• Reintroduce Dodge as a sporty brand in Europe, positioned above the mainstream Fiat brand. A sporty Dodge would not overlap Lancia-Chrysler, which will focus on comfort.

And here are six good reasons why Marchionne should keep Alfa Romeo:

• If Fiat can fight through the next three years, it will emerge in 2014 with fatter profit margins and a nearly debt-free balance sheet, according to Mediobanca Securities;
• Fiat can raise as much as 2 billion euros by selling Magneti Marelli, Comau and Teksid, which produce auto parts, production tooling and engine blocks. Then Fiat wouldn't have to sell Alfa, and it could focus more closely on the auto industry. Investors would like that;
• A relaunched Alfa eventually could command profit margins of 10 percent or so. That would help Fiat to generate the 3.5 billion euro annual operating profit that Marchionne has promised by 2014;
• Fiat will save money by letting Alfa Romeo and Chrysler share platforms. Moreover, Alfa could generate sales of 500,000 units a year, helping Fiat and Chrysler to achieve economies of scale. Roughly 300,000 of the 500,000 units of Alfa planned by 2014 will be based on architectures shared with Chrysler;
• Since Alfa Romeo will share its compact wide global architecture with Jeep, Fiat could produce those vehicles together in crucial growth markets such as China and Russia;
• Without Alfa Romeo, Fiat would be hard-pressed to make reasonable volumes and decent profits with mid-sized and large cars. Aside from Ferrari's handful of supercars, Fiat would be forced to eke out a profit from low-margin segments such as minicars and compact cars.

By Csaba Daradics

Source: Automotive News

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Fiat's Split Into Two Groups Results in New Logos

In about a month's time, on the 1st of January 2011, Italy's Fiat will have completed the separation of its truck and tractor business from its car making operations. The split will result in the creation of two separate groups; Fiat SpA with a clear focus in the automobile sector, and Fiat Industrial SpA incorporating the firm's truck, commercial vehicles, agricultural and construction equipment, and related powertrain divisions.
 
In a brief announcement today, the Italian giant published the logos of the two newly formed groups. Fiat SpA, which will include the Fiat, Alfa Romeo and Lancia brands as well as the firm's 20% minority stake in the Chrysler Group LLC, will be identified by a logo displaying the word Fiat in tall, condensed blue lettering on a white background.
In contrast to the Fiat SpA logo, the Fiat Industrial SpA group, which will incorporate Iveco trucks and Fiat Powertrain Industrial and Marine as well as CNH Global NV (CNH), a subsidiary of Fiat Netherlands Holding N.V., gets a logo with burnt gold lettering on a blue background.
The new logos, designed by Robilant Associati, replace the Fiat Group logo adopted by the company in October 2005.
Following the demerger of the two groups, Fiat SpA and Fiat Industrial SpA will be listed separately on the Milan Stock Exchange with each company operating with their own management teams and boards of directors.

Fiat and Chrysler Announce Plans to Build New Cars and SUVs for Alfa Romeo and Jeep at Mirafiori Plant

The Fiat Group has revealed plans to create a new joint venture with its North American partner Chrysler LLC at its historic Mirafiori plant in Turin, Italy. Under the new plan, Fiat will bring a U.S. platform to Turin for production of larger segment passenger cars and SUVs for the Jeep and Alfa Romeo brands.

"These will be flagship models for Jeep and Alfa Romeo, the most international brands of the two Groups with significant development potential globally," said Fiat in a statement.

More than half of the vehicles to be produced at Fiat's Mirafiori plant would be for international markets outside the European Union and especially for North America. Although Fiat did not get into any specific details on the future models, the automaker said that they are expected to come to market in the third and fourth quarters of 2012.

"Bringing this new platform to Mirafiori will result in potential production of up to more than 1,000 vehicles per day or some 250,000-280,000 vehicles per year, resulting in full utilization of the current workforce and opening the way for potential new jobs," said Fiat.


The Italian automaker added that the total investment will be more than €1 billion, divided between Fiat and Chrysler in proportion to volumes produced for each brand.

"This is an extraordinary opportunity for Italian industry to produce cars of quality and prestige. Mirafiori has all the elements necessary to achieve a leap of quality and become a world class plant, producing cars for Europe, North America and other markets around the world," Fiat said in a statement released to the press.

Green Hornet’s 1966 Chrysler Imperial Black Beauty to be Raffled Off

While The Green Hornet doesn't say much to me, I'm sure plenty of our readers grew up watching the TV series or reading the comic books. You guys should pay attention for a minute, as CKE Restaurants is giving away an actual working example of the masked superhero's car, the Black Beauty, fully loaded with all the [faux] gadgetry needed to fight [imaginary] villains.


The marketing campaign is meant to create some hype around the upcoming remake, called The Green Hornet and starring Seth Rogen, which will hit theaters in the U.S. on January 14, 2011.

"The Green Hornet film is a great fit for Carl's Jr. and Hardee's customers," said Brad Haley, executive vice president of marketing for CKE Restaurants.

"Our target audience of 'young, hungry guys' are big fans of Seth Rogen, cool cars, comedy and action films, so what's not to like? People will also love the cool and exclusive stuff we'll be offering as part of the various The Green Hornet promotions, like the fully-loaded Black Beauty car from the film, complete with machine guns and rocket-launchers, that is the grand prize in our sweepstakes. Sorry, guys, the machine guns and rockets aren't functional, but they look awesome."


For those who don't know, the Black Beauty was actually a modified Chrysler Imperial, produced between 1964 and 1966. The prize car has been fully restored and features a brand-new supercharged engine and all the aforementioned prop weaponry, which makes it pretty cool if superheroes are your thing.

Besides the car, there are many other promotional items to be won, ranging from keychains to Sony PSP Go consoles. For more information check out your local Carl's Jr. or Hardee's restaurant or their websites.

By Csaba Daradics

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Insidious Dodge Challenger is One Mean Looking Mopar

Now here's something any Dodge fan would be happy to have in their garage. This heavily customized 1970 Challenger is up for sale, and boy is she a beaut'. Designed and built by Dave Salvaggio in 2007, the "Insidious" Challenger is one very special piece of metal. What started life as an otherwise unremarkable slant six has had a full reworking inside, out and under the hood, transforming it into a real show stopper.

In terms of the exterior, the door handles, roof rail moldings and other trim pieces have been shaved off. The wheel arches have been re-contoured and new, flush fitting glass has been fitted. The grille and taillights are scratch builds and the hood, bumpers and front fenders have all been reshaped or replaced. The fuel filler cap was also relocate and the whole car finished in black pearl overlaid with olive and sandstone pearl.


Underneath the hood is a 426 Hemi crate engine from Mopar Performance with custom headers, custom exhaust and a Hillborn EFI unit. This is mated to a Tremec TKO 600 transmission and is said to be good for over 575 hp (429 kW).

To reign in all that power the chassis has been reworked and now incorporates four-wheel independent suspension and coilover springs. The whole thing sits on Symbolic TS15 20-inch wheels clad in Pirelli P-Zero tires, 245/35/20 at the front and 275/35/20 at the back.

Inside, the vinyl and polyester carpeting of the original have been replaced with leather and Wilton Wool. An Alcantara headliner has been fitted and the seats covered in Spinneybeck leather with suede inserts. The piston grip shifter, Tuff steering wheel and dashboard are also covered in leather.

The interior is rounded off with green-gold inserts on the doors and steering wheel, aircraft-style gauges by Classic Instrumentation and a Pioneer DVD sound system. All in all a very smart and well maintained machine that is on sale at R & H Collectibles of Ohio for US$159,000.

By Tristan Hankins

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