Automotive News Europe - February 2, 2009 - 9

February 2, 2009 www.autonewseurope.com · PAGE 9 Fiat-Chrysler alliance Chrysler to build Fiats, Alfas? Alliance would give Italians gateway to North America, while Fiat’s Brazilian dealers could get Dodge pickup Luca Ciferri & Bradford Wernle Automotive News Europe Fiat and Chrysler could build seven models in North America under their proposed alliance, according to sources who have seen the productsharing agreement. Four of those cars would be sold under Chrysler brands, one as a Fiat and two as Alfa Romeos. The seven models would be built at Chrysler plants in North America and sold through selected Chrysler, Dodge and Jeep dealerships, the sources say. The plan includes vehicles on four Fiat platforms (see table in this page), from the minicar to the upper medium segments. The two companies considered the timing and the volumes of their proposed product sharing in meetings that lasted from January 23 to January 30. Production of the first vehicles is expected to commence in mid 2011, people familiar to the matter told Automotive News Europe. “This potential alliance would give us access to substantially all Fiat group vehicle platforms, which would complement our current product lineup with fuel-efficient, environmentally friendly small cars and powertrain technology”. Bob Nardelli, Chrysler LLC CEO Four platforms, seven vehicles Potential production in North America of Fiat-technology based models: Small cars (B-platform, currently used by Fiat Grande Punto and Alfa MiTo) Chrysler would build for Fiat the Alfa MiTo and derive from the 2011 Fiat Grande Punto replacement small car for one of Chrysler’s brands. Lower mediums (C-Evo platform, debuting early 2010 on Alfa 147 replacement) Chrysler would build for Fiat the 2010 Alfa 147 replacement and base on this platform a new vehicle, possibly the 2011 Dodge Caliber replacement. Sources say Chrysler could build the Fiat 500 minicar in Toluca, Mexico. Minicars (A-platform currently used by Fiat 500 and Panda) Chrysler would build for Fiat the 500 minicar and derive from the 2010 Fiat Panda replacement a minicar likely to be sold as a Chrysler or Dodge. Upper-mediums (stretched C-Evo platform, currently under development) A replacement for the Chrysler Sebring and Dodge Avenger mid-sized sedans could sit on a stretched version of the C-Evo platform Fiat is developing. Fiat at the moment has no plans to build vehicles in NA on this platform, but a larger model for Alfa is possible. facture Fiat’s 1.4- and 1.8-liter gasoline engines, as well its new C635 gearbox. This new 6-speed unit, debuting in Europe this summer on the Lancia Delta and Alfa MiTo, is designed to be offered as a manual, as an automated manual transmission (AMT) and as a dual clutch. Dual clutch gearboxes are as smooth as traditional automatics in shifting gears, whist offering better fuel economy not only of automatics, but also of manual transmissions. Shared production Fiat and Chrysler teams are also currently reviewing how to channel The planned volume of shared existing and future products into North American production could each other’s global dealer network. reach 500,000 to 600,000 units a According to people familiar to the year from 2013. matter, the Dodge Dakota pickup and The vehicles Chrysler could build the Journey crossover top the list of for Fiat, the Fiat 500 minicar, the Alfa priorities. Romeo MiTo and 147 replacement enChrysler is almost not-existent in try premium models, would use local- Brazil, the largest automarket in ly produced, Fiat-based powertrains. Latin America, where Fiat is the No.1 Under the terms of their tentative automaker. agreement, Chrysler would manuFiat Brazilian dealers were promised a pick up set stemming from cooperation with Tata Motors of India, but last year this product “I have not made a specific disappeared from Fiat time commitment to Chrysler, product plans. Those dealers could soon receive but turning Chrysler around is part of the process of strength- the Dodge Dakota to meet their pickup needs, as well ening Fiat Group. Thus it is simas the Journey. ply part of my job.” Fiat is also considering if it would need a variant Sergio Marchionne, of the Journey for western Fiat Group CEO ANE Europe. Downsizing Chrysler models Potential production in North America of Fiat-technology based components Fiat can offer Chrysler the technology for two small engines and one flexible gearbox. Chrysler could build the following components for its own vehicles and for Fiat and Alfa models manufactured in North America: 1.4-liter gasoline engine (Currently used on a variety of Alfa, Fiat and Lancia models.) The output of this 16-valve, 4-cylinder engine currently ranges from 90hp for the normally aspirated version used by the Panda minicar to 155-hp for the turbo version used by the Alfa MiTo. 1.8-liter direct gasoline injection turbo engine (Debuting this year on the Alfa MiTo, Lancia Delta.) The output of this 16-valve, 4-cylinder engine will range from 190hp to 230-hp. It will progressively replace the current range of 1.8-, 1.9 and 2.2-liter gasoline engines. It will debut late this year on the Alfa MiTo and Lancia Delta. Multiair In March at the Geneva show Fiat will debut its variable valve timing system, called Multiair. Designed to improve torque and power by about 10%, whilst reducing fuel consumption by 10% and emissions by 50%, the Multiair system could be applied both to normally aspirated and turbo engines. Its first application will happen this year on 1.4-liter engine. 6-speed C635 gearbox (Debuting this year on the Lancia Delta) The C635 will debut as a manual in June, followed in September by the dual clutch variant and by an automated manual transmission (AMT) in 2010. Commentary Lancia may return to US after 30 year gap Three-decade hiatus could allow brand to come back with untarnished reputation Luca Ciferri Automotive News Europe The Fiat and Chrysler product and marketing teams have a lot to discuss. Close to the top of the agenda in their deliberations is the issue of which badge would best fit the new range of Fiat-based mini, small and lower medium cars that Chrysler could begin selling in North America from 2011. One possibility worth consideration could be the reintroduction of the Lancia brand that withdrew from the United States 30 years ago. Its last car, the Beta Montecarlo/Scorpion, sold less than 2,000 units in that market. Many Scorpions still survive today, owned by proud collectors. Most of them are not the same people who originally bought a great Pininfarina design that was let down by poor build-quality, modest performance and insufficient braking capabilities. To most of today’s generation of car buyers in America, Lancia would be perceived as a completely new brand, just like the youth-oriented Scion brand launched successfully there by Toyota. The difference is that Lancia offers 103 years of heritage and a history that Scion does not have. Italian flair Lancia could also add some Italian flair to Chrysler-built small cars, which will not only face competition from US versions of the Fords and Opel/Vauxhalls we know here in Europe, but also from stylish minicars including the Honda Jazz and Toyota Lancia withdrew from the North American market in 1977. The last model offered there was the Scorpion, known in Europe as the Beta Montecarlo. Yaris, which already have won over a considerable chunk of US buyers. Last but not least, if some – or all – of these Chrysler-built small cars were to go to Latin America, their distinctive Lancia-specific front and rear end styling would offer a further advantage. These North American-built Lancias would clearly differentiate themselves from sibling Fiat models which are already manufactured in Brazil and Argentina. This would, in essence, allow Fiat-Chrysler to introduce a new line of cars to Latin America at no additional cost. ANE

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Automotive News Europe - February 2, 2009

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