Fiat SpA will fall short of its 2.7 million sales target for 2012 by half a million units, while Chrysler Group LLC is estimated to hit its goal of selling 2.4 million vehicles, the Italian company said.

Fiat and Chrysler CEO Sergio Marchionne expects both groups to grow to 4.6 million in total vehicle sales in 2012 – however, he still expects to hit his target of 5.9 million vehicles in 2014. To reach that target, Fiat and Chrysler will have to grow by 1.3 million vehicles in combined sales in 2013 and 2014.

When Fiat’s 5-year plan was announced in April 2010, Marchionne said that the Fiat would sell 2.3 million units this year and 2.7 million next year.

- By: Omar Rana

Source: Automotive News

Chrysler yesterday dropped the first teaser images and details on the new 2013 Dodge Dart compact car that will be unveiled at the 2012 Detroit Auto Show. CEO Sergio Marchionne now says that when the car’s fuel-efficiency is certified at 40 mpg or more by the end of the month, Fiat SPA could increase its stake in Chrysler by the final 5 percent, bringing its total ownership of the company to 58.5 percent.

The remainder of the company will be held by the UAW’s retiree health care trust.

Click here for our original post on the Dodge Dart.

Under the agreement with the United States Treasury after Chrysler cam out of bankruptcy protection in 2009, Fiat would get 5 percent by building a vehicle in the United States that would have an unadjusted fuel economy rating of at least 40 mpg.

The 2013 Dodge Dart will be produced at Chrysler’s Belvidere, Ill., plant.

Power will come from a range of three 4-cylinder engines including the Tigershark 16-valve 2.0-liter engine, a 16-valve 1.4-liter MultiAir Intercooled Turbo engine, and a new Tigershark 16-valve 2.4-liter MultiAir four cylinder engine.

- By: Omar Rana

Source: Automotive News

Imagine what would happen if a Ferrari designer blessed Chrysler models with some style? Well, that’s exactly what’s going on right now as we type this. Fiat SpA, which now owns a controlling stake in Chrysler Group LLC is counting on Lorenzo Ramaciotti, the designer of the Ferrari 612 Scaglietti, to make Chrysler models appear at home in Detroit and Milan.

63-year old Ramaciotti has a goal to create a common styling for Chrysler and its Italian sibling Lancia in a bid to save/cut costs and double sales of each brand by 2014.

“We are trying to find an international language, which could have a place both here in Italy and in the U.S.,” Ramaciotti, who heads design at Fiat and Chrysler, told Bloomberg in an interview. “If you put all the models into the showroom, they must fit together. It’s a delicate problem.”

Fiat and Chrysler CEO Sergio Marchionne combined Chrysler and Lancia to put together a strong global team. Marchionne is aiming to increase sales of the group to 5.9 million vehicles by 2014.

Target deliveries for Chrysler and Lancia are planned to hit 800,000 in three years, up from the current 300,000 right now.

We wish Ramaciotti all the luck.

- By: Omar Rana

Source: Bloomberg

Fiat and Chrysler’s CEO Sergio Marchionne said he remains strong on the idea that the only for an automaker to make it in the 21st Century is to get bigger and work smarter with a do more with less mentality. About three years ago, Marchionne made a prediction that the global financial crisis would leave the world with six global car makers and that each would be building around 6 million vehicles a year.

“I have not changed the sense of my prediction, but more important than the absolute number of cars, is the volume produced per architecture,” Marchionne told Automotive News Europe. He predicts a minimum volume at least a million vehicles a year to achieve return, given the level of investment it takes to develop a mass platform.

“By 2014, we expect Fiat-Chrysler to reach 5.9 million units and we will have just three main architectures that drive more than 80 percent of that total volume,” he said. ”I have never lived through a period with this level of complexity and this level of optionality.”

- By: Omar Rana

Source: Automotive News

Chrysler today reported a net income of $212 million for the third quarter – that compares fairly well to a net loss of $84 million a year ago. The Auburn Hills automaker attributes the increase in sales to its alliance with Fiat.

Chrysler reported a net revenue of $13.1 billion for the third quarter of 2011, a 19 percent increase from the third quarter of 2010.

“In the third quarter, Chrysler Group achieved increased sales and positive financial results, totally in line with the plan we laid out in November 2009. And in October, together with the United Auto Workers, we crafted a solid four-year contract that will support us in our growth plans and significantly reward our employees for their contribution to the revival of Chrysler,” said Sergio Marchionne, Chairman and Chief Executive Officer, Chrysler Group LLC. “This house continues to be fully focused on financial performance and making outstanding cars and trucks by fully leveraging its alliance with Fiat.”

- By: Omar Rana

“Ferrari doesn’t play with Bentley and with Porsche, it plays in its own box,” Marchionne said in an interview.

Prior to the conceptualization of Maserati’s first ever SUV, Marchionne had considered branding their at-the-time “new luxury SUV” idea as a Ferrari. However, he didn’t feel that was suitable for Ferrari’s image. And to add, Marchionne clearly pointed out that Ferrari has no plans to launch a four-door rival to the Aston Marton Rapide as the Maserati Quattroporte is more of a suitable competitor.

“We have invested as heavily as we have in Maserati because this brand has all the elements of the proper DNA to play in that fight,” he said.

Unlike the rest of the Fiat brand, Ferrari’s growth will still be limited to an annual sales figure of just 10,000 in the mid-term, up from 7,000 last year, he continued. He also said that increasing the annual sales of Ferrari would be “dangerous” to the integrity of the brand.

“It’s absolutely crucial,” he pointed out. “The uniqueness of that brand cannot be minimized and so we are very, very careful.”

After Marchionne’s plans for Maserati set in, he hopes the brand will increase their annual sales tenfold to about 55,000-60,000 units, up from just 5,675 from last year. And to help with this goal would be Maserati’s two new four-door sedans: a replacement to the aging Quattroporte and a smaller, baby version.

“The two sedans are being industrialized and they are great, trust me,” Marchionne concluded.

- By: Chris Chin

Source: Automotive News

In the November 2009 5-year plan that Sergio Marchionne unveiled for Chrysler, he said that 14 percent of its global sales would be powered by diesels by 2014. The CEO of the Auburn Hills automaker was never really fan of going the hybrid route… until now.

To comply with tougher U.S. fuel-economy standards proposed for 2025, Chrysler will build more hybrid vehicles. Later in 2013, the Chrysler brand will offer a hybrid version of the 300.

In a a recent interview with Automotive News, Marchionne said that his attitude has not changed about hybrid but he acknowledged that fuel economy standards for 2025 have made hybrids a must.

“I have no other way of getting to 2025 numbers than by going to hybrids,” he said.

The CEO of Chrysler and Fiat said that hybrids would come in addition of a broad range of diesel offerings in the United States. Chrysler will start offering a diesel version of the Jeep Grand Cherokee in 2013.

- By: Omar Rana

Source: Automotive News

Fiat SpA said that it expects to increase its stake in Chrysler to 58.5 percent by the end of 2011 as it achieves a preset performance target.Fiat currently owns 53.5 percent of the Chrysler Group LLC. The final test will be the production of a Fiat-based compact car that can achieve 40 mpg.

Fiat and Chrysler CEO Sergio Marchionne reiterated his taget of selling 6 million vehicles by 2014.

Marchionne said that the group had enough liquidity to help it weather the financial crisis.

- By: Omar Rana

Source: Automotive news

Suzuki and Volkswagen are apparently filing for a divorce after Volkswagen claimed that Suzuki violated its cooperation agreement with the automaker by purchasing diesel engines from Fiat SpA. Fiat has been pretty quite on the whole matter… until now.

Speaking at the 2011 Frankfurt Motor Show, Fiat CEO Sergio Marchionne said that Suzuki would be an interesting partner for the Asian market.

“With Suzuki we have had an industrial cooperation for a long time,” Marchionne said. Speaking on Suzuki’s relationship problems with Volkswagen he said they “have nothing to do with us.”

Suzuki’s Chairman Osamu Suzuki said earlier this week that he plans to end the two-year capital alliance with Volkswagen, comparing the partnership to a “ball and chain.”

- By: Omar Rana

Source: Automotive News

Sergio Marchionne, Fiat and Chrysler CEO says that despite the unstable global economic state, the brands are still sticking with the goal of selling 6 million cars per year by 2014.

With Europe on a continual decline, Fiat’s greatly important Italian market is going to suffer, and sales forecasts are the lowest they have been since 1983, at 1.8 million for this year.

Marchionne remarks “People don’t even know how to buy groceries for the weekend right now, and we are worrying about 2014.”

Fiat and Chrysler are still attempting to be a singular global automaker, and feel that changes in the U.S. will keep sales going. “Anybody who runs a business knows, the only way to maintain a structure when you are under pressure is to reduce costs… I am talking about everyone in general. Tighten belts, remove all unnecessary expenditures and try to gear up these places toward growth,” says Marchionne.

Fiat is still working with Suzuki on engine production possibilities to tighten its belt, but there is no deal in place, yet.

He later noted, that with the Volkswagen Up being launched as a competitor, they had no choice but to go forward with the Panda city car, which is the brand’s best seller. The model starts production at the Pomigliano plant in November.

- By: Alexandra Koken

Source: Detroit News

Fiat assumed a majority stake in Chrysler Group LLC in July. The CEO of both companies, Sergio Marchionne, said that he expects Chrysler to earn $3 billion in operating profits next year after cutting costs and giving a boost to sales.

Marchionne said that Chrysler will sell 2.4 million vehicles next year and about 2 million this year. The company can earn money by selling as few as 1.5 million vehicles, he said.

Marchionne has a goal of merging Chrysler with Fiat to cut costs and achieve more than 100 billion euros ($136.8 billion) in revenue by 2014.

“The future is a good future,” Marchionne said. “It sees Chrysler becoming a global automaker.”

- By: Omar Rana

Source: Automotive News

As much as Ferrari’s president Luca de Montezemelo says that an IPO for the brand is not on the table, the automotive industry just can’t seem to stop talking about it. According to new reports, several investment banks have approached Ferrari owner Fiat in recent weeks with a proposal to list the supercar maker on the Hong Kong stock exchange.

Some analysts say that a potential initial public offering could value Ferrari as high as $6.3 billion. Of course, that’s a bit enticing for Fiat since it would help pay down the debt of 5 billion euros ($7.2 billion).

“Fiat hasn’t made up its mind yet about the IPO, but it’s certainly talking with banks about it,” said one source.

Fiat decline to comment on the report. A spokesman referred back to comments by Fiat CEO Sergio Marchionne that a Ferrari IPO is not something he’s looking at for the time being.

- By: Omar Rana

Source: Automotive News

Despite all of the hype and push for electric vehicle motoring, people are starting to realize that EVs don’t have the potential that everyone seems to be promising because, well, EVs have been found to be very impractical and don’t suit many drivers’ needs. Even Chrysler and Fiat’s CEO, Sergio Marchionne agrees.

Marchionne himself said that now there’s a new CAFE rating for the future, the big improvements will come in the form of more efficient diesel and gasoline engines.

However, Marchionne does recognize that he is up to a serious challenge to try and get Chrysler’s CAFE rating up to 35.5 mpg by 2016 because of Dodge’s performance brand. And we know he’s up to the challenge.

- By: Chris Chin

Source: USAToday

A conference regarding whether Chrysler and Fiat S.p.A. will offer an IPO for the Auburn Hills make took place today in northern Michigan.

There has been growing speculation as to whether Chrysler will attempt to return to public ownership by the end of this year. But since Fiat S.p.A. has increased their stake significantly in Chrysler AG, the partnership relieved some of the urgency to make Chrysler a publicly owned company once again.

Fiat’s CEO Sergio Marchionne said at this conference however that a Chrysler IPO is an inevitable outcome. As for when is unknown as Chrysler still needs to work with the United Auto Workers union and their Voluntary Employee Benefit Association, which as it still stands, owns 45.7% of Chrysler.

- By: Chris Chin

Source: AutoObserver

It’s a scary thought for us to see a Chrysler Group LLC operation without Sergio Marchionne at the helm – however, it’s bound to happen one day. During a question-and-answer session at the 2011 Management Briefing Seminars, Marchionne said that he will be stepping aside as CEO from the Auburn Hills automaker within five years.

Marchionne said Chrysler’s future plans will be “up to the guy after me, I think — after 2015, hopefully. Maybe a year later. Chrysler will be here after me.”

Marchionne is currently CEO of both Chrysler and Fiat SpA. Over the past couple of weeks, he has started integrating the management teams of the two companies.

“I technically can go beyond 2015,” he said. “I wouldn’t focus on the date. I would focus on the process.”

He went on to say that he sees his successor coming from inside the company.

You can watch Marchionne’s speech from the 2011 CAR Management Briefing Seminars after the jump.

- By: Omar Rana

Source: Automotive News

In a recent interview, one of Chrysler’s new top executives spoke openly in his thoughts about the latest Fiat and Chrysler merger. Dan Knott, said recently that he has his hopes high for this latest merger between European auto giant, Fiat and Auburn Hills-born Chrysler AG.

Simply put, it comes down to this: “When I need a decision from Sergio,” he said today, referring to Chrysler and Fiat CEO Marchionne, “it comes at lightning speed, where before it would take months.”

Knott has been with Chrysler for about 28 years and has seen what he calls a significant difference in the way their partnership works when comparing the DaimlerChrysler merger of equals and the Chrysler and Fiat merger.

“Sergio is about collaboration, about respect, about humility,” Knott said, “and he’s usually four steps ahead of everybody else.”

- By: Chris Chin

Source: Free Press

Just recently, we’ve provided news that Fiat’s CEO Sergio Marchionne has increased their stake in the Chrysler Auto Group ridding the Auburn Hills make of its US and taxpayers’ ownership. This also means that executive pay restrictions imposed by the US government as part of the bailout program was also lifted. That said however, Marchionne made sure to notify the public that this does not mean executive pay will be increased.

“Assumptions that we’re going to start distributing cash indiscriminately are probably misplaced,” said Marchionne in a press conference call regarding Chrysler’s second quarter earnings.

During US and taxpayer ownership, Chrysler wasn’t allowed to pay executives more than $500,000. General Motors on the other hand remains under the same restrictions that Chrysler was under.

“The compensation restrictions are all gone,” Marchionne continued. “Chrysler intends to remain competitive on compensation, but will stay in line with an industry trend toward more restraint on pay.”

- By: Chris Chin

Source: Automotive News

Earlier this week, we provided news that Fiat was increasing their stake in the Chrysler Auto Group well past 50%. However, despite Fiat’s prominence over Chrysler, Chrysler’s out standing sales in the US market and growth in Brazil has allowed the American auto manufacturer to offset Fiat’s less successful sales in Europe.

“Chrysler will generate a lot more cashflow and growth than Fiat very soon,” said Bruno Lapierre, an analyst with brokerage Cheuvreux.

This is due to the fact that Fiat is known for its relatively low-cost automobiles, which means smaller profit margins, whereas Chrysler has larger profit margins by earning more money per unit from sedans and SUVs.

Chrysler’s sales rose 21% in the first half of 2011 while Fiat’s sales throughout Europe dropped by 12.7%.

- By: Chris Chin

Source: Reuters