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The AutoGuide News Blog is your source for breaking stories from the auto industry. Delivering news immediately, the AutoGuide Blog is constantly updated with the latest information, photos and video from manufacturers, auto shows, the aftermarket and professional racing.
 |  Dec 21 2009, 12:09 PM

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Fiat’s plan to gobble up all of Chrysler has taken its first step forward since the Italian automaker rescued the struggling America manufacturer from bankruptcy liquidation. Currently Fiat owns 20 percent of Chrysler and has the ability to take a 35 percent share of the company if it meets three specific criteria: building a fuel-efficient engine in the United States, building a 40-mpg car in the U.S. and expanding Chrysler’s reach internationally. Once those goals have been achieved, it can also purchase up to 51 percent of Chrysler.

According to a recent report by Automotive News, Fiat will build the 92-hp, 1.4-liter four-cylinder motor for the 500C model in Dundee, Michigan. Fiat will use $179 million to revamp the former Global Engine Manufacturing Alliance plant to do so. Rather than build the 500C in the U.S., however, the engines will then be shipped to Mexico where the 500C will be assembled, with half of the cars coming back to the U.S. and the other half headed to Brazil.

With one of the three criteria now slated to be met, it seems like Fiat most certainly has its sights set on complete control of Chrysler. Fiat CEO Sergio Marchionne has made it clear in the past that he wants Fiat to be a global player and a secure foothold in the U.S. marketplace is a necessary step in achieving that goal.

Now we’ll just await news of a U.S.-built 40-mpg car and of Chrysler’s overseas expansion plans.

[Source: Automotive News via Autoblog]

Report: Chrysler Ends Engine Alliance With Mitsubishi and Hyundai

Will future Mitsubishi and Hyundai powertrain development be affected?

 |  Sep 11 2009, 10:59 AM

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In a brief statement, Chrysler has announced that the Global Engine Manufacturing Alliance (GEMA) is now entirely owned by the U.S. automaker, with both former partners, Mitsubishi and Hyundai, having sold their parts of the company.

This may sound like a dull bit of business news, but it could most certainly have a big impact on some of the coolest engines on the planet. Sure, the engines that originated from GEMA have found there way into less exciting vehicles like the Chrysler Sebring, but the same engines have also been the backbone of cars like the Mitsubishi Lancer Evolution (pictured above) and Hyundai Genesis Coupe 2.oT. The high-powered Caliber SRT4 also used a version of a GEMA engine.

Three basic engines have come out of GEMA with displacements of 1.8, 2.0 and 2.4-liters, many of which were fitted with turbochargers and superchargers to make as much as 300hp.

There is no word if the end of the GEMA partnership could affect future Hyundai and Mitsubishi powertrain developments, but you can be sure the decision had a lot to do with Chrysler’s new Fiat ownership.

Official release after the jump:

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