Shocker! Chrysler Bringing Home More Bacon than Fiat...

Two years ago, Chrysler was saved from oblivion when the federal government provided a $15 billion bailout and orchestrated a rescue plan that gave the Fiat Group the management control of the company.

Last week, the Italian automaker raised its share in Chrysler beyond 50% for the first time, to 53.5%.So Fiat saved Chrysler in 2009, right? Well, yes, but 2011 is another story altogether.

You see, Chrysler’s US sales increased by 21% in the first six months of the year, whereas Fiat’s European deliveries dropped 12.7% in the same period. But that's only half the story. With the exception of the Maserati and Ferrari brands, the Chrysler Group will contribute to the alliance €155 million for June alone, while Fiat €175 million for the past three months.

If you're looking for an explanation, the answer can be found not only in Chrysler’s rise and Fiat’s fall, but also in the nature of Fiat’s sales as the Italians are mostly active in small car categories where profits are slim compared to the larger and more expensive cars that comprise the bulk of Chrysler’s sales.

Sergio Marchionne, who is the CEO of both Chrysler and Fiat, recently admitted that he intends to unify the management teams into a single, smaller and more efficient entity.

"Chrysler will generate a lot more cash flow and growth than Fiat very soon," said Bruno Lapierre, an analyst with brokerage Cheuvreux.

A merger would be profitable for both automakers, due to economies of scale, and it looks inevitable, as Goldman Sachs stated this week: “With the business of Fiat and Chrysler irrevocably linked, we believe a merger is a logical next step”.

But the question remains: who will benefit from it most? Chrysler, as everyone originally thought, or the former knight in shining armor, Fiat?

Via Reuters

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Oops! They Did it Again: Alfa Romeo’s Return to the US Delayed Until 2013

It’s 2003, 2004, 2006 – you get the idea- happening all over again; Alfa Romeo’s return to the US market has been delayed and will not happen in 2012 as was the most recent plan. Instead, Fiat Group and Chrysler LLC CEO, Sergio Marchionne, has pushed the Italian brand’s arrival back for another year, or so until he announces another delay.

Technically, Alfa has already returned to the market it abandoned in 1995 by selling 100 units of its 8C Competizione supercar. And Marchionne won’t exactly break his promise about 2012: the small detail is that it will be only with a few examples of the limited-edition 4C coupe.

If –and that’s a very big IF- everything goes according to schedule, Alfa’s actual second coming to the US will happen in mid-2013 starting with a compact crossover model.

The reason for the latest delay is the fact that Marchionne has thrice in the last 18 months rejected proposals for the new Giulia, the compact sport sedan that will replace the 159 and will be the second model, after the SUV, to be sold to the US market through Fiat dealerships.

Let’s keep our fingers crossed that this time it’s for real. Because since 2000, when the then-CEO Paolo Cantarella announced a return to the US in alliance with GM, which was subsequently pushed back to 2002 before being abandoned, we’ve already heard more than enough reports on the matter.

And this is all starting to sound like TV televangelists who every other day, and twice on Sundays, predict the end of the world yet, despite their "prophecies", planet Earth is still here.

Via Autonews

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Fiat Marks 500 Launch in China with 100 “First Edition” Models

The first Fiat 500 to make its way into China was presented today in Shanghai by Fiat Group Executive Vice President for International Operations, Lorenzo Sistino.

To celebrate the launch, Fiat crafted a special version named 500 “First Edition” featuring bodywork graphics by five young Chinese designers. The special edition will be available in a limited run of just 100 numbered units ahead of the city car’s regular launch in China on September 15.

The 500 “First Edition” is based on the Lounge trim featuring a three-coat pearlescent white body color, red leather interior and special badges on the door pillars. It is equipped with the 1.4-liter MultiAir engine that delivers 101HP and is mated to a 6-speed automatic gearbox.

The normal 500 that arrives in China in September will feature the same engine and gearbox offering buyers a choice of three trim levels (Pop, Sport and Lounge), 12 body colours, 9 color-material combinations for the upholstery and two interior trims (black or ivory).

All who place an order for the Fiat 500 between July 12 and September 15 will automatically enter a draw with the winner being able to exchange his or her car with one of the 100 “First Edition” models.

Sistino said the 500 hatchback will be followed next year by the 500C convertible and the “500 by Gucci” version, while he also revealed that next year Fiat will launch a new saloon made in its Chinese plant in Changsha with its local partner GAC.

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