Fiat Acquires 35% Stake in Chrysler

[Verbose]

Can't claim to know, but considering Fiat makes a long line of small, eco-friendly cars already, maybe they're figuring that if there's EVER going to be a chance for them to get a cut of the US auto market, it is now? Even a US in financial downturn is a pretty damn big market for cars, especially for a brand not even present there at the mo.

Why the need to do it through Chrysler precisely escapes me.

 

[Luckymoose]

Yeah, I don't really understand what Fiat has to gain from this. Car manufacturers are in a hell of a bind all around the world, not just in America. It doesn't make sense for me that Fiat would take on Chrysler's headache when they have their own headaches to deal with.

The deal at least shows that Chrysler is worthless. I just wonder how much less than nothing it's worth now.

Fiat has a whole lot to gain. They now have a workforce and distribution method for the US and can now sell more fuel efficient cars through the Chrysler name brand. I never thought Chrysler was worthless, it is my favorite of the big three, I drive a Jeep myself and find it to be superior to other vehicles with the same amount of mileage.

 

[Irish Caesar]

Can't claim to know, but considering Fiat makes a long line of small, eco-friendly cars already, maybe they're figuring that if there's EVER going to be a chance for them to get a cut of the US auto market, it is now? Even a US in financial downturn is a pretty damn big market for cars, especially for a brand not even present there at the mo.

Why the need to do it through Chrysler precisely escapes me.

Because Chrysler has it all in place. Fiat can enter the market... but it doesn't have the dealerships and the brand in the market. This way, they have dealerships across the country just like that. Chrysler is the best bargain of the American carmakers, I'd think... so it's the lowest investment to get a big piece of the pie.

 

[Alpine Trooper]

That means nothing. If a company can't pay it's bills, then it doesn't matter what it's capital stock looks like. It'll get auctioned off.

No one knows Chrysler's financial situation because it is privately owned and they not have to release that information. They're more than likely financially stable for now, much better than GM or Ford.

That doesn't mean Americans buy them.

I never said they did buy small cars. Some do and Canadians do too. But so what? It's not the wisest decision to drive European sized small cars on North American expressways in the first place. And a large vehicle can translate to low or no emissions too, which is the argument for smaller cars in the first place.

 

[Cutlass]

No one knows Chrysler's financial situation because it is privately owned and they not have to release that information. They're more than likely financially stable for now, much better than GM or Ford.

It can't be all that good if they're begging for a bailout

 

[a_propagandist]

Should have gone to the French carmakers, aren't Fiats supposed to be terrible cars?

 

[Cutlass]

Should have gone to the French carmakers, aren't Fiats supposed to be terrible cars?

They were in the 70s and 80s. Now? I've heard they improved. How much I can't say.

 

[Fëanor]

Considering that FIAT went from the brink of bankruptcy to almost 2 billion net income in just 4 years it might actually be the best panther to help Chrysler turn things around. Lets also not forget that the FIAT group is far more than just a "Carmaker", in fact less than half its revenue is from making cars.

 

[Dachs]

Yeah, they used to make airplanes for Mussolini too. They probably also made Starfighters or something for the Italian air force, I forget. It's been awhile since I cared about the Air Scouts.

 

[Verbose]

It's not the wisest decision to drive European sized small cars on North American expressways in the first place. And a large vehicle can translate to low or no emissions too, which is the argument for smaller cars in the first place.

This piqued my interests:

Why not? As in, what's so special with US expressways, or the traffic, either of whicj makes them so different from Europe Fiats are somehow a bad idea?

I've at least ridden on both, and to my naked eye at least, they look and work exactly the same?

 

[Verbose]

Should have gone to the French carmakers, aren't Fiats supposed to be terrible cars?

Not anymore. And Fiat has specifically made huge investments in developing hybrid fuel cars, biogas cars, eco-friendly in general, in latter years.

And apparently a quick google-session turns up Fiat also builds cars to individual market specifications and keeps itself with a pretty good spread of sizes and models.
The "Fiat Sedici" is a SUV, if such are salable in the US still. The Brazilian design bureau has developed the "Fiat Linea" as a sedan model for the South American and Eastern European markets, since there people demand sedans (Western Europe drives hatchbacks, stationswagons, but not sedans much). Afaik sedans dominate in the US, so why not try the Linea there? Fiat's largest model is the "Fiat Croma", which was developed in collaboration with GM already. The "Fiat Ulysse" is a big ass MPV. The "Fiat Strada" is a, small, pick-up.

And as far as Fiat cars being a legendary brand, where is Stapel when you need him?

 

[Agent Valentine]

Fix It Again, Tony.

 

[Cutlass]

This piqued my interests:

Why not? As in, what's so special with US expressways, or the traffic, either of whicj makes them so different from Europe Fiats are somehow a bad idea?

I've at least ridden on both, and to my naked eye at least, they look and work exactly the same?

He's thinking that the European cars are vastly smaller than the American. The smallest cars, like the original Cooper Mini, are so small as to not be a high volume choice here. However, most European cars are more or less the size of the small to medium cars already on US and Canadian roads. They have to be, car that 4 adults can sit in can only be so small. What has the Italian and French automakers out of the US is that the US auto market is already extremely competitive. So it is a hard market to break into. Korea can do it based on very low labor costs. And at that it took them being able to stick it out for a decade to be really firmly established. Renault had a partnership in the 70s and 80s to get here, but their cars then were not good enough to stay in the market.

 

[mangxema]

This piqued my interests:

Why not? As in, what's so special with US expressways, or the traffic, either of whicj makes them so different from Europe Fiats are somehow a bad idea?

I've at least ridden on both, and to my naked eye at least, they look and work exactly the same?

As Cutlass alluded to, it's the other cars on the road. When I was young, my mom and I were in an accident. Our Civic was totalled; the pickup that hit us had a slightly crumpled fender. You can buy a small car if you want, but you do so at your own peril. Momentum is a harsh mistress.

 

[Verbose]

As Cutlass alluded to, it's the other cars on the road. When I was young, my mom and I were in an accident. Our Civic was totalled; the pickup that hit us had a slightly crumpled fender. You can buy a small car if you want, but you do so at your own peril. Momentum is a harsh mistress.

You can still have a Fiat pick-up or SUV. As I'm usre you egree, I doubt the Fiat business idea is to specifically sell TINY cars, but to sell cars, period.

Otherwise it's a question of importing Italian traffic, which WOULD be a hard sell.

 

[a_propagandist]

I think the big=better (and safer) mindset is too ingrained into the consumers' minds. A well-designed car structure can, even if lighter than another vehicle, weather a crash or divert the force away from passengers better.

 

[holy king]

will the workers be on lunch break 35 % of the time now?

 

[Oerdin]

This is great news for Chrysler.

 

[Verbose]

will the workers be on lunch break 35 % of the time now?

Nope. Fiat is in Torino, northern Italy, kind of the Prussians of the south.

 

[Verbose]

I think the big=better (and safer) mindset is too ingrained into the consumers' minds. A well-designed car structure can, even if lighter than another vehicle, weather a crash or divert the force away from passengers better.

That's probably true.

Otoh, you emphatically cannot sell a car which gets a non-competitive crash-safety rating in the EU these days. And since Fiat can hack it here, it should be good enough in the US, from a pure car-safety POV. Perceptions might be another matter...

I mean, this is the car we're getting next for my wife. May I introduce you to the 2009 "Fiat 500" retro-car, a teeny-tiny town car!

It's a modern version of the original 1950's classic, which was small and cheap, but also the first thing (after the vespa) that allowed the Italians in general to discover the joys of motoring in the first post-WWII flush.

The modern retro-car looks like, and probably it will, crack like a nut if hit by, well, just about anything, like the 1950's original would. The modern difference is that it comes equipped with seven airbags and curtains. Only exaggerating slightly, for driver or passenger it means, that as the car disintegrates on impact around you, it also inflates to a huge rubber ball that safely bounces you to the side of the road.