According to Fiat CEO Sergio Marchionne, his company’s stylish Alfa Romeo brand will return to North America in the next 24 months, meaning that models should be on sale in 2012. “I’m a lot more confident now that Alfa Romeo will reconstitute a product offering that is acceptable globally, and more in particular in the United States and Canada,” said Marchionne to Automotive News.

According to AN, the vehicles most likely to arrive in North America are the successors to the 159 and 166 models, which are believed to be based on upcoming Chrysler world platforms. The 159 would show up in 2012 and ride on Chrysler’s new compact wide midsize architecture, which is also believed to underpin the next Caliber and PT Cruiser – which is odd, considering they are compacts. As for the 166, it may ride on the next generation of Chrysler’s large rear drive platform, which will also be used for the 300 and Dodge charger.

It is not clear how Marchionne intends to position the Alfa brand in the U.S., especially using similar low-dollar platforms to Chrysler models and with Alfas normaly commanding much higher dollar values and delivering a higher level of performance and sophistication.

[Source: Automotive News via Autoblog]

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]

Last week Fiat/Chrysler CEO Sergio Marchionne set out a long-winded plan for the future of the American automaker and how its future will be closely tied to its new Italian parent company. There was a lot to digest at the seven hour press conference and so we thought a model by model breakdown would be helpful and would shed some light on what appears to be the general plan to eliminate old Chrysler products and replace them with new Chrysler Group-branded Fiat models. So let’s start with Dodge…

DODGE BRAND

From the smallest to the largest vehicles, Dodge will see the introduction of a subcompact car in 2013 based on the Alfa Romeo MiTo. Currently Dodge does not offer a sub-compact with its smallest offering being the compact Caliber, which receives a mild update this year but will be eliminated in 2012 and then replaced the same year by a Fiat Group-based vehicle. Presumably it will be another Alfa Romeo platform, however, the car will be built in the U.S.

Moving to the mid-size segment, the Avenger will also be updated for 2010 and then replaced by a Fiat Group platform in 2013.

The future for the Journey, Grand Caravan and Charger is more positive, with the Journey and Grand Caravan getting updates for 2010 with a new Grand Caravan due in 2014. The Charger will be all-new for 2011 with a new interior and exterior, after originally launching in 2006. A new rear suspension will also be part of the package. As for its Challenger sibling, it will be updated for the 2012 model year.

Two vehicles that will be eliminated are the Nitro and Viper, with the Nitro slated to be scraped in 2011 (with a possible successor), while the Viper will cease production mid next year with a potential sports car replacing it in 2012.

One new model will be added to the Dodge lineup; a seven-seater crossover based on the new 2011 Jeep Grand Cherokee (pictured above).

RAM BRAND

The new Ram brand still won’t have a lot going on, although Fiat is looking to expand its offerings. The Dakota is scheduled to cease production late in 2011 with a possible unibody pickup to replace it. As for the Ram 1500, it will get a mid-cycle refresh in 2012, as will the heavy duty Ram trucks. A chassis cab version of the Ram will also arrive in 2010.

Two additions to the lineup include a front-drive small work van and full-sized van in 2012. The small van will be similar in purpose to Ford’s Transit Connect and will be based on the next-generation Fiat Doblo. It will be imported from either Turkey or Brasil. As for Ram’s new full-sized van offering, it will be one of two vehicles: either the body-on frame Iveco Daily or the unibody Fiat Ducato. Unlike the small van, this full-sized unit will be assembled in the U.S.

CHRYSLER BRAND

Starting in the small scale, the Chrysler Brand will also get a subcompact, although (surprisingly) it will not be based on the same Alfa Romeo vehicle as the Dodge sub-compact. Instead, it will be underpinned by the next-generation Lancia Ypsilon five-door hatch and will go on sale in 2013.

A new compact sedan (based on a Fiat Group platform) will be launched in 2012. It is not clear if the Fiat Group platform is the same one that will underpin the Dodge compact sedan. The same can be said for the Sebring, which, like its current Dodge counterpart (the Avenger) will get styling updates next year and be replaced by a Fiat Group platform in 2013.

As for the PT Cruiser, it will be eliminated late next year – although we’ve heard that one before.

The Chrysler 300, like the Dodge Charger, will be all-new for 2011 with the new model arriving some time next year. Styling is expected to be evolutionary, so don’t expect much change – which is probably a good thing.

And as for Chrysler’s final product, the Town & Country minivan, it will get updates next year with a new model in 2014. Fiat hopes to differentiate the Chrysler minivan from its Dodge counterpart by taking it more up-market. (Have we learned nothing from the R-Class?)

JEEP BRAND

Finally, there’s the Jeep brand, where we’ve already learned the Patriot, Compass and Commander will be eliminated over the next few years. The first to meet the scrap heap is the Commander, with production ending late next year, while the Patriot and Compass will be get mild updates for 2010 before being retired in 2012. Interestingly, Fiat may build and sell the Commander overseas after 2010.

At the low end of the spectrum, a new subcompact SUV will arrive in 2013 based on the next generation Fiat Panda Cross, while a new compact crossover will arrive the same year based on an unnamed Fiat Group platform. A new Liberty will also arrive that year, again based on a Fiat.

As for Jeep’s core vehicles, the Wrangler will get a new interior next year, with a new engine offered in 2011. The Grand Cherokee will continue on as planned with the new model debuting next year as a 2011 model.

[Source: Automotive News]

A week ahead of a planned Fiat/Chrysler press conference in which Sergio Marchionne, the CEO of both automakers, was to outline the future of Chrysler, much of the information has been revealed in an in-depth report in the Wall Street Journal. But before we get to the new products that the Italian-owned automaker is planning to bring into the North American marketplace, it’s time to learn the fate of the vehicles being axed. And judging from the list, it appears as though Fiat is intent on moving its products in and Chrysler’s products out.

The vehicles to be cut include the Chrysler PT Cruiser and Sebring. On the Dodge side, four models will be eliminated, including the Caliber, Nitro, Avenger and Grand Caravan. Three Jeeps will also meet their maker: the Commander, Compass and Patriot.

In place of these vehicles Fiat is ready to announce the introduction of the 500 in 2011, along with three Alfa Romeo vehicles: the MiTo (shown above), Milano (which will replace the 147) and another yet unnamed mid-sized sedan.

The rest of the plan will see the Chrysler 300 and Dodge Charger redesigned in 2011, with the Grand Cherokee due out soon. And with only two Chrysler products left, the rumored decision to axe that brand’s name may just happen.

The Wall Street Journal made no mention of past reports that the Fiat Panda would see its way to the U.S. as a Jeep. There is also no word on if the Fiat 500 will be offered in just it’s standard hatchback form, or if a convertible and sporty Abarth version will also join the product lineup.

GALLERY: Alfa Romeo MiTo

[Source: WallStreetJournal via KickingTires]

After several rumors and reports, Chrysler has now confirmed that the Dodge Ram will be spun off into its own brand with the appointment of two individuals. Fred Diaz Jr., formerly Director of the Denver Business Center, will now head up the RAM brand, while Ralph Gilles will take over at the helm of the car brand. Gilles will also continue to run the product design department at Chrysler Group.

“The brand-focused strategy has been refined further with the unbundling of the Dodge Brand which now consists of the Dodge RAM Brand and the Dodge Car Brand organizations,” said Chrysler and Fiat CEO Sergio Marchionne. “This reorganization will allow us to protect and develop the unique nature of the product offerings within the Dodge Brand.”

Within this new corporate structure, Marchionne also appointed a new Chrysler brand CEO; Olivier Francois, who comes from Fiat’s Lancia Brand and will continue in his position there as well.

Official release after the jump:

Chrysler’s deputy CEO Jim Press is planning to quit his post before the year’s end, reports the Wall Street Journal.

Press took the helm of Chrysler in 2007 when Cerberus Capital Management took a controlling share in the company. He moved to the position after a lengthy 37-year career at Toyota Motor Corp.

When Chrysler emerged from Bankruptcy in June under new ownership by Fiat, Pres was made deputy CEO under the leadership of Fiat boss Sergio Marchionne. Under the old Chrysler System, Press worked alongside former Chairman Robert Nardelli and vice-chair Tom LaSorda. But when Chrysler filed for bankruptcy LaSorda announced his retirement. Then upon emerging from bankruptcy under the ownership of Fiat, Nardelli also stepped down.

Neither Press nor Chrysler have made any official announcements regarding Press’s decision to leave.

[Source: Automotive News]

The car that has generated the most publicity out of the Fiat/Chrysler deal is the Italian automaker’s 500 model and now word comes from Fiat’s CEO that four different versions of the subcompact will be offered in the U.S.

Sergio Marchionne told Bloomberg that the four trim levels will include the standard 500, a convertible version, a wagon and a sporty Abarth model. While the 500 is slated to go on sale in 2010, Marchionne did not say if the additional three models would be offered concurrently or if they would be introduced in succession.

Marchionne also said that while additional Fiat models will make their way to the U.S. (like the Fiat Panda, presumably as a Jeep model) only the 500 will be branded as a Fiat.

In Europe the Fiat 500 is offered with a 1.2-liter or 1.4-liter four-cylinder gasoline engine or a 1.3-liter turbo diesel. We are only likely to see the 1.4-liter in North America, a model that makes just 85 horsepower and gets an average of 36 miles per gallon.

As for the Abarth 500 (pictured above) it gets a 1.4-liter four-cylinder with a sophisticated variable geometry turbocharger (similar to the ones used in modern Porsches) to make 135hp and 133 ft-lbs of torque.

GALLERY: Abarth 500

[Source: Bloomberg via Fiat2America]

Now that Fiat CEO Sergio Marchionne is at the helm of the new Chrysler he is looking at making some changes. For starters, the Chrysler Sebring and Dodge Caliber, as well as the Jeep Patriot and Compass may get the axe.

Marchionne is looking at cutting under-performing models from the Chrysler lineup, with a particular focus on the models mentioned, while also examining how the company can become more cost effective by adjusting prices and tweaking the trim levels and equipment offered on the company’s many vehicles.

The Caliber has the best chance of staying on but it is likely to receive major changes.

Fiat is also examining a plan that would see Alfa Romeo models rebadged as Dodges in North America, while some Dodge models that make it to Europe would wear the Alfa crest.

As for the Jeep brand, arguably the strongest name of the three, Fiat may look to make a push with it in emerging markets, something Chrysler never tried to do in the past.

[Source: LeftLaneNews]

When the U.S. Supreme Court delayed the sale of Chrysler to Fiat yesterday it put the whole contract in jeopardy, giving the Italian automaker the opportunity to walk away if the sale isn’t approved by June 15th. Fiat CEO Sergio Marchionne has, however, confirmed his commitment to the purchase, saying that it would not deter him.

“We would never walk away,” he said in an interview with Bloomberg. “Never.”

Late Monday afternoon Supreme Court Justice Ruth Bader Ginsburg delayed the sale but did not make clear the intentions of the court. A group of Indiana pension funds have attempted to block the sale of Chrysler to a Fiat-run group (also comprised of the U.S. and Canadian governments) by alleging that the initial bankruptcy court acted contrary to the law by putting the needs of unsecured lenders ahead of secured ones (some of which include the pension funds).

The bankruptcy court’s decision was upheld by an appeals court and now the matter may go before the Supreme Court.

It is not guaranteed that the Supreme Court will heard the case but that is the speculation.

All we do know is that Fiat has an unwavering interest in the Chrysler brand and the U.S. market. This is likely due to Marchionne’s belief that in a post-recession auto industry there will be far fewer major players controlling significantly larger shares of the market.

[Source: Automotive News]

Fiat is about ready to walk away from a potential partnership with Chrysler says CEO Sergio Marchionne unless the U.S. automaker can significantly cut labor costs. While the United Auto Workers union has made it known that it is willing to work with Fiat and Chrysler management, the Canadian Auto Workers union isn’t.

“From what I can tell from a distance, the CAW may have taken more rigid positions,” said Marchionne in an interview with Canada’s Globe and Mail newspaper.

Currently Chrysler and the CAW do not see eye-to-eye. The automaker has asked the union to cut labor costs by $19 CDN to $55 to match hourly wages in U.S. plants but the CAW will only go as far as reducing hourly wages by $7.25 (an amount GM workers agreed to recently).

Marchionne did not mince words in his interview with the Globe saying that a sense of entitlement in an organization that is technically bankrupt was nonsense and that the involvement of the U.S. and Canadian governments in a bailout plan was a sign of last resort for Chrysler.

Marchionne said that there is currently only a 50 percent chance the deal could go through. Meanwhile Moody’s Corporate Finance recently said that Chrysler has a greater than 70 percent chance of going into bankruptcy.

Meanwhile the Obama administration’s April 30th deadline is fast approaching.

[Source: Globe and Mail]