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The 14 Brands of Stellantis

January 18, 2021 by admin 2 Comments


The Chrysler Pacifica may outlast the brand under Stellantis.

An all-new automotive brand is here and we can’t wait to learn what Stellantis will do as it manages 14 brands from two previously separate automakers. Stellantis, which roughly translates as “to brighten with stars,” is the fusion of Groupe PSA and Fiat Chrysler Automobiles. The now-active company is trading under “STLA” at stock exchanges in Paris, Milan, and New York.

The 14 Stellantis brands are the most under one automaker, which expects to sell at least 8 million units annually around the globe, making it the world’s fourth-largest vehicle manufacturer. That’s two more than the Volkswagen Group’s 12 brands, which somehow has managed to maintain each.

As for Stellantis, we think some culling is in order, although that certainly won’t happen immediately. Instead, the new company will likely review its numerous brands, the markets where these vehicles are sold, and the future of the company as electrification and driving autonomy weigh in. In all, the combined company expects to save billions annually as it takes advantage of economies of scale to reduce expenditures.


Stellantis


14 Brands and the Future of Each

With these and other thoughts in mind, this is how we think the 14 brands will fit in, with the North American market the primary focus.

1. Abarth – Largely a performance side of Fiat in the U.S., this brand’s fate hinges upon what Stellantis plans to do with Fiat as mentioned below.

2. Alfa Romeo – Alfa is a niche player in North America and may not stay beyond the next few years. If Stellantis decides to keep Alfa Romeo, its role may be limited to a few key markets and little more.

3. Chrysler – What can be said about the Chrysler brand which will turn 100 in 2025? There is a strong chance the brand won’t survive as it’s down to two models – the 300 and Pacifica. The 300 is aged and isn’t likely to survive. The Pacifica minivan as a lasting nameplate is in decent shape, so this model could be moved to another brand and sold there.

Citroen Cactus
The Citroen Cactus
4. Citroen – Essentially unknown to the U.S., the Citroen brand isn’t likely to ever return. A Citroen model rebranded as a Chrysler or a Dodge is always a possibility.

5. Dodge — With the aged Charger and Challenger cars as well as the Durango SUV in need of updates, the Dodge brand doesn’t have much left to it, especially with the Journey and Grand Caravan gone. Like Chrysler, Dodge may be expendable unless new product is ported from Europe and rebadged in North America.

6. DS – Peugeot’s premium brand is a niche player and won’t head west anytime soon. A rebadged product might deliver fresh life into Dodge or Chrysler, but that’s about it.

7. Fiat — Ever since its return to the U.S. market a decade ago, Fiat hasn’t found its legs. The size of its cars is one issue, the limited product line is another reason. We think apart from Mexico and southward, the Fiat brand will disappear from the American and Canadian markets within a year or two.

8. Jeep – It is Jeep that made Stellantis a possibility. For without this fast-growing and now global brand, the merger might not have happened. We think Jeep will become the number one profit driver and growth possibility for Stellantis going forward as fresh products arrive and new markets are breached.


The iconic Wrangler remains the face of Jeep.

9. Lancia – The Lancia brand never made its way to North America and isn’t likely to do so. In fact, its future under the new regime is tenuous at best. We think along with Dodge and Chrysler, Lancia is also vulnerable and may not survive.

10. Maserati – Small sales have kept Maserati alive in North America. We believe the brand has much life left and as a profitable marque, it’ll still have its place here.

11. Opel – We’re not likely to find Opel-badged vehicles in North America, although the possibility of one or more products arriving stateside and sold as Chrysler or Dodge vehicles is possible. After all, since separating from GM, Opel has wound down its supply relationship to Buick’s Regal line. Perhaps one or more products will be relabeled for the U.S. market. That is, if the company decides to bring these models stateside.

12. Peugeot – The Peugeot brand was supposed to return to the U.S. market by 2023/2025. Now that the company is part of the greater Stellantis entity, its return may be in doubt. Instead of Peugeot-badged models returning, we may find select vehicles rebadged and sold under the Dodge and Chrysler labels. It is simply more cost-effective for Stellantis to work through the system already in place than to spend billions of dollars on reintroducing a brand that may only find limited success in a competitive market.

Citroen Cactus
The Ram 3500.
13. Ram – The 1500 series is the driving force for Ram along with its heavy-duty 2500/3500 variants. The Ram brand is strong and will likely receive a midsize pickup truck next year along the lines of the Jeep Gladiator. The rest of its vehicles include various vans – we think these models will continue, although the product basis may come from some other brand besides Fiat.

14. Vauxhall – see Opel. Vauxhall continues to exist as a rebadged brand of Opel in some markets, particularly in the U.K. It is of no use beyond these markets and might simply disappear altogether.

Brand Elimination

Nixing a brand is fraught with challenges. Not only must a company wind down operations, including reassigning personnel and eliminating advertising, but it must also ensure customers move on to its other brands. And there is no guarantee of that.

Over the past quarter-century, we have seen numerous car brands eliminated from the U.S. market. You may remember some, while others are relatively unknown except to the diehard enthusiast. These include Eagle, Merkur, Daihatsu, Plymouth, Saturn, Suzuki, Scion, Oldsmobile, Pontiac, and Mercury. One brand, Hummer, returns as a sub-brand of GMC, but the others are likely gone for good.


See Also — 5 Retired American Car Brands

Photos courtesy of Auto Trends Magazine. Company logo copyright Stellantis. All rights reserved.

Filed Under: Fun News Tagged With: Abarth, ALFA ROMEO, CHRYSLER, CITROEN, DODGE, DS, FIAT, FIAT CHRYSLER, Jeep, Lancia, MASERATI, OPEL, Peugeot, Peugeot Groupe, RAM, Stellantis, VAUXHALL

Stellantis Logo Revealed by Peugeot, Fiat Chrysler Ahead of Spring Merger

November 17, 2020 by admin 2 Comments

Stellantis unites American, French, and Italian automakers.

Stellantis


“To brighten with stars” is the meaning of the sobriquet chosen by French automaker Peugeot Groupe (PSA) and Italian-American manufacturer Fiat Chrysler Automobiles (FCA) as they plan to merge their companies under the “Stellantis” banner next year. When done, the combined entity will create the world’s fourth-largest automaker, completing an effort that began before the pandemic and could establish a trend for competing businesses to follow.

Mission Stellantis

Stellantis may not roll off the tongue immediately, but the new company hopes that it accomplishes its mission nevertheless. That endeavor unites once competing businesses under a singular umbrella, bringing with it the synergies required. Cost-saving is chief among them as the new company will enable 14 disparate marques to coalesce; share platforms, engineering, and technologies; and give Stellantis greater clout when negotiating with suppliers. Thus, the Stellantis name is reserved exclusively for the enterprise.

Notably, the company’s name will not find its way to a single vehicle. Instead, all 14 brands will operate with their own make/models serving their respective markets. These brands comprise Abarth, Alfa Romeo, Chrysler, Citroën, Dodge, DS, Fiat, Jeep, Lancia, Maserati, Opel, Peugeot, Ram, and Vauxhall. Ferrari is not included as that brand became independent a few years back.

Only one PSA name is not familiar to automotive enthusiasts: DS. The others, including Peugeot and Citroën, were once marketed in North America. Models from Opel and Vauxhall have also appeared stateside, most currently in the Buick Regal sedan, hatchback, and wagon.

Dutch Headquarters

The new company will be headquartered in Amsterdam, the Netherlands. It will continue to operate regional headquarters in Auburn Hills, Michigan; Paris, France; and Milan, Italy. Moreover, Stellantis will trade on three stock market exchanges: New York, Paris, and Milan.

Announced in October 2019, the $50 billion deal uniting PSA and FCA was finalized internally two months later. The understanding then, as it remains to this day, is that the companies must work through a lengthy closing process. Indeed, following its initial review, the companies won the approval of their respective shareholders as well as meeting other antitrust and other regulatory requirements. Some of the later milestones are yet in progress. An end-of-first-quarter 2021 closing is expected.

Peugeot’s USA Initiative

Well before the Stellantis development, the Peugeot brand has been working on returning to the U.S. on its own — without the four other PSA brands. For several years, the company has operated out of its Atlanta headquarters to begin the long work of bringing its vehicles to America. That effort will continue although it may now include some help from Stellantis’ American family.

Nothing has been said of this, but a company bent on consolidating to cut costs may find that Peugeot vehicles sold side-by-side with Chrysler brand products, for instance, is the best approach to advancing its agenda. We’d be surprised if this weren’t so.

Looking Ahead

Uniting disparate companies is often fraught with cultural challenges as evidenced in the earlier DaimlerChrysler debacle. Yet, a few years after that company separated, Fiat joined with Chrysler to form arguably a strong union. The Chrysler side will now have a third opportunity to work with an international automaker.

This time, the Fiat Chrysler team will come into this relationship on a 50:50 basis with the PSA Groupe. The Italian and French automakers are longtime rivals, but under the Stellantis umbrella, the new structure allows all stakeholders to advance two areas where the industry is heading: automation and electrification. Separately, the cost to develop them is nearly prohibitive for some companies who must then consider mergers, acquisitions, or alliances to move forward (GM and Honda, for example). Under Stellantis, the 14 brands will have the opportunity to not just survive but thrive, although further consolidation may cause underperforming brands such as Chrysler and Vauxhall to cease.


See Also – Deal Undone: Fiat Chrysler Renault Merger

Logo courtesy of Fiat Chrysler and PSA Groupe.

Filed Under: Automotive News Tagged With: CHRYSLER, FIAT, MERGER, Peugeot, PSA Groupe, Stellantis

Fiat Chrysler Peugeot: Now What?

December 19, 2019 by admin Leave a Comment

Chairman of the Managing Board of Groupe PSA Carlos Tavares and FCA CEO Mike Manley share a congratulatory handshake after concluding the merger agreement between their two companies.

Save for regulatory scrutiny, antitrust review, and shareholder approval, Fiat Chrysler and the PSA Groupe are set to merge. The two automakers agreed on a framework for merging the two companies, which will create the world’s fourth-largest automaker after the Volkswagen Group, Toyota Motors, and the Renault-Nissan-Mitsubishi Alliance.
We’re still about a year away from the merger’s completion. In the meantime, we’ll be waiting for word on the new name for the entity. I like “Global Motors” but I think GM would object.

Capacity, Electrification, & Autonomous Vehicles

No matter what happens over the coming months, a lot of what you’ll be hearing will be speculative especially as the companies have been relatively mum on where things are going. We do know no plants will be closed or jobs lost, but with a build capacity of 14 million units and current annual sales of 8.7 million units, there is ample room for consolidation. And it is doubtful we’ll see a significant increase in sales to narrow that gap, although Jeep and Ram may fuel much of the growth moving forward.

But there are certain trends such as electrification and autonomy that will impact the newly minted automaker. Like it or not, the industry is going through an upheaval, but I will say that full electrification isn’t likely to happen in the short term, if ever. Instead, we’re likely to see some sort of “hybrid” system based largely on hybrid electric vehicles. As for autonomy, large cities are the likely place to roll out the technology, but getting it to the masses will take many years and require an enormous amount of capital.

From the left side of the Atlantic, there are a few things we’re all wondering about and are certain to become the topic discussed at your favorite cars and coffee or other automotive meetups in the coming months. Here’s a sample of key questions we believe are foremost on Mopar fan minds.


See Also — Peugeot May Not Return to the U.S. Market After All


Which brands will die?

The current FCA stable includes Fiat, Chrysler, Alfa Romeo, Dodge, Lancia, Jeep, Maserati, Abarth, and Ram. That’s nine brands to manage and will soon climb to 14 with the Peugeot, Citroën, DS, Opel, and Vauxhall brands. It isn’t inconceivable that an automaker would manage so many brands – the Volkswagen Group is comprised of 12 brands. Even so, we could see a few brands dismissed. Dodge and Chrysler are most vulnerable and Vauxhall could simply be folded into Opel.

End of muscle cars?

FCA has done quite well with its muscle car lineup, with the Dodge Challenger firmly in second place behind the Ford Mustang and ahead of the Chevrolet Camaro. Having the four-door Dodge Charger to complement the sport coupe has always been a plus. Yet, these two models are aged and may not have enough life in them to continue for many more years. One way the models survive is if PSA has a platform to support them. That’s not known, although the new company could tap the Alfa Romeo Giulia/Stelvio’s platform for them.

When will Peugeot begin selling its cars here?

Long absent from the US market, Peugeot has fixed its eyes on returning by 2026. These plans were put in place in 2018, with the company establishing new US headquarters in Atlanta. That timeline was moved up by a few years earlier this year, even before the announced merger. No matter what happens going forward (merger or no merger), Peugeot plans to make its return, according to Car and Driver. Likely, they’ll import models built in Europe, foregoing US manufacturing, at least initially. That’s a sensible approach as FCA capacity is nearly full stateside, while European plants for both FCA and PSA are underutilized.

What’s the role of Opel going forward?

GM owned Opel (and Vauxhall) from 1929 to 2017, before selling the brands to PSA. Since then, Buick has continued selling several Opel products under its name including the now-discontinued Cascada convertible and the Regal sedan/hatchback/wagon. That agreement is coming to an end and soon Buick will sell crossovers only. That could leave the door open for Opel to arrive stateside on its own, but we doubt that’ll happen, at least not before Peugeot.

Getting it Done

No doubt, the FCA-PSA deal will get done. There are some issues to settle, including GM’s suit against FCA alleging racketeering over labor negotiations (which allegedly favored FCA at the expense of GM). Some are arguing the suit is GM’s attempt to thwart the merger and nothing else. Regardless, the matter should be settled before the merger is finalized.

With FCA and PSA united, expect other automakers to explore ways to combine synergies through alliances, acquisitions, and mergers. My personal “favorite” alliance is VW-Ford, as the two automakers are currently collaborating on self-driving cars and electric vehicles. That may leave GM as the last “American” automaker standing, besides Tesla, Rivian, Bollinger, and a few other upstarts.


See Also — Emerging Alliances Point to Further Auto Industry Consolidation

Photo copyright Fiat Chrysler Automobiles.

Filed Under: Commentary Tagged With: Car and Driver, CHRYSLER, FCA, FIAT, MERGER, Peugeot, PSA Groupe

SUV Smackdown: Fiat 500L v. Fiat 500X

October 30, 2019 by admin 5 Comments

The small utility vehicles segment is growing fast and Fiat is well represented by two models, the 500L and 500X. Yes, you can make an argument that the 500L is more wagon-like than SUV, so we won’t argue that point.

What’s important is that both models are small, reasonably priced, and seat five. From there, you’ll find other points of distinction, which we’ll examine here.


2020 Fiat 500L.

Click here to review the 500L’s specifications.

2020 Fiat 500X.

Click here to review the 500X’s specifications.


Fiat 500L v. Fiat 500X


L Before X

Fiat relaunched its U.S. operation in 2011 with the debut of the diminutive 500. Since then, Fiat rolled out the 500L in 2014 followed by the 500X in 2016. A fourth model, the 124 Spider, debuted in 2017. However, the last model is based on the Mazda MX-5 Miata and is not at all related to the other three.

Engine Dynamics

Both the Fiat 500L and the 500X come with turbocharged four-cylinder engines. Though they displace 1.4 and 1.3 liters respectively, it is the latter with a distinct power advantage. Indeed, the 500L’s engine makes 160 horsepower and 184 pound-feet of torque, while the 500X benefits from 177 horsepower and 210 pound-feet of torque.

The 500L routes power to the front wheels utilizing a six-speed automatic transmission, while the 500X has a 9-speed transmission, which sends power to all four wheels. In all, the first powertrain is lethargic, while the second one offers a spirited response.

Gas mileage differences are a factor

Choose the 500L and it gets just 22 mpg in the city and 30 mpg on the highway. We’ve seen V6 engines get nearly the same mileage. Choose the 500X and it gets 24 mpg in the city despite the added weight of all-wheel-drive running gear.

One cabin is nicer than the other

The 500L and 500X may be similar in size, but there is a significant design difference between the two. Where the 500L seems cheap, the 500X has a more premium vibe.

On the other hand, we give the nod to the 500L for passenger space as the 500X seems downright cramped in the second row.


2020 Fiat 500L.

2020 Fiat 500X.


Tech features on par

Both models come with a 7-inch display screen, Android Auto and Apple CarPlay, a six-speaker audio system, and one USB port. The list of options includes a navigation system, Beats Audio, and satellite radio.

Cargo space differences are noteworthy

The two models are nearly identical in length, although the 500L is 1.6 inches longer between the wheels.

Amazingly, the 500L has a noticeable edge in cargo space with 22.4 cubic feet to just 14.1 cubic feet for the 500X. Drop the rear seat and the differences are even sharper: 68 to 39.8 cubic feet.

No, you can’t tow

Like every other Fiat model sold in America, you can’t tow with either vehicle. Size is a big consideration why you shouldn’t, so just don’t.

The Better Value

The 500L costs less than the 500X, but you’re comparing front-wheel drive with all-wheel drive. The 500X is more modern, has a nicer interior, and has the edge in safety scores, according to the IIHS.

Unfortunately, Fiat’s quality scores are subpar, which is a concern for both models. In any case, the 500X is our pick over the 500L, despite its much smaller cargo space.


2020 Fiat 500L Specifications


Fiat 2020 500L
Segment Small SUV
Price Range From $22,200 (est.)
Destination Charge $1,495
Standard Engine 1.4-liter, turbo I4
Horsepower 160 hp @ 5,500 rpm
Torque (lb.-ft.) 184 lb.-ft. @ 2,500-4,000 rpm
Transmission 6-speed automatic
Seating 5
Curb Weight (pounds) 3,254
Wheelbase (inches) 102.8
Length (inches) 167.0, 168.3
Width (inches) 70.2
Height (inches) 65.3, 66.1
Headroom (f,r…inches) 40.7, 38.7
Legroom (f,r…inches) 40.0, 36.7
Shoulder room (f,r…inches) 57.3, 54.6
Hip room (f,r…inches) 54.9, 49.4
Storage (cubic feet) 22.4, 68.0
Gross vehicle weight (pounds) NR
Towing (pounds) NR
Payload (pounds) NR
Fuel regular
Fuel Tank (gallons) 13.2
EPA Fuel MPG (city/highway/combined) 22/30/25
Manufacturing Plant Kragujevac, Serbia

Data compiled by Tom Keegan. Specifications supplied by the manufacturer.


2020 Fiat 500L.

2020 Fiat 500X.


2020 Fiat 500X Specifications


Fiat 2020 500X
Segment Small SUV
Price Range From $24,800 (est.)
Destination Charge $1,495
Standard Engine 1.3-liter, turbo I4
Horsepower 177 hp @ 5,500 rpm
Torque (lb.-ft.) 210 lb.-ft. @ 2,200 rpm
Transmission 9-speed automatic
Seating 5
Curb Weight (pounds) 3,305
Wheelbase (inches) 101.2
Length (inches) 167.2, 168.2
Width (inches) 70.7
Height (inches) 63.7
Headroom (f,r…inches) 39.1, 37.8
Legroom (f,r…inches) 41.4, 34.8
Shoulder room (f,r…inches) 54.3, 52.8
Hip room (f,r…inches) 53.3, 52.2
Storage (cubic feet) 14.1, 39.8
Gross vehicle weight (pounds) NR
Towing (pounds) NR
Payload (pounds) NR
Fuel regular
Fuel Tank (gallons) 12.7
EPA Fuel MPG (city/highway/combined) 24/30/26
Manufacturing Plant Melfi, Italy

Data compiled by Tom Keegan. Specifications supplied by the manufacturer.


See Also — Abarth Life in a Fiat 500

Photos copyright Fiat Chrysler.

Filed Under: Specifications Tagged With: comparison, FIAT, FIAT 500L, FIAT 500X, SUV, utility vehicle

Fiat Chrysler Renault Merger Talk Heightens

May 28, 2019 by admin 5 Comments

A blockbuster merger of automotive manufacturers may produce the world’s largest automaker, especially if two outside automakers are also brought in. Fiat Chrysler, itself the result of a 2014 merger between European and North American manufacturers may soon tie in with Renault, the French automaker.

Renault is currently reviewing an offer from Fiat Chrysler to merge the two companies with each taking a 50 percent stake in the other. FCA produced 4.8 million vehicles last year to Renault’s 3.9 million, for a combined 8.7 million units. However, Renault is worth 10 percent more than FCA, which means the latter will supply more cash to even the transaction. Renault is worth more in part because of its investment in an alliance with Nissan and Mitsubishi.

Marchionne, the Capital Junkie

The late Sergio Marchionne.

A Fiat Chrysler merger with another automaker is something the late Sergio Marchionne insisted must happen to ensure FCA’s long-term survival. The former CEO and Chairman of FCA died unexpectedly last year, never seeing his dream fulfilled. However, it was Marchionne who outlined in his seminal 2015 report, “Confessions of a Capital Junkie,” industry consolidation.


See Also — Deal Undone: Fiat Chrysler Renault Merger


Specifically, Marchionne explained that consolidation is the key to remedying the destruction of capital. In particular, he noted that both regulatory- and consumer-driven improvements such as tighter emissions controls, new powertrains, safety upgrades, infotainment services, and the push to autonomous drive, are expenses difficult for manufacturers to bear, especially those with a lower sales threshold. Further, Marchionne indicated manufacturers would need to sell at least 6 million vehicles annually to remain profitable, something they could accomplish through either a merger, acquisition or by means of a partnership, such as an alliance.

With a combined 8.7 million annual units (assuming the combined entity could maintain its momentum), Fiat Chrysler Renault would easily pass Marchionne’s threshold. However, it’ll take years for real cost savings to kick in as the new entity gradually merges platforms, shares powertrains, and utilizes technologies across the affected brands.


Jeep is the big prize FCA brings to a Renault merger.

FCA and Renault Brands

For FCA, the automaker brings with it several brands, including Jeep, Ram, Chrysler, and Dodge, serving North America primarily. Fiat, Alfa Romeo, and Maserati are especially strong in Europe. As for Ferrari, the Italian sports car brand is now a separate entity and would not be included in the deal.

As for the French automaker, it brings the Renault, Dacia, and Lada brands to the merger. It also owns the Alpine sports car marque and has an 80-percent stake in Renault Samsung Motors, a Korean manufacturer.

By default, Nissan and Mitsubishi are also included as Renault has a stake in Nissan, which has a stake in Mitsubishi. However, much friction exists between Renault and Nissan over the firing and legal detention of Carlos Ghosn, who was the CEO of all three firms. Renault had been pushing for a full-blown merger with Nissan, but the Japanese automaker has fiercely resisted that move. With FCA onboard, Nissan’s stake in the new entity will be diluted, which might impact the alliance.

So Much Potential

An FCA-Renault merger brings with it much promise, but also many risks. Although FCA is successful, the previous DaimlerChrysler model was not. The new entity faces challenges, including bringing different cultures together. Further, France and Italy have vested interests in the industry, with France holding a stake in Renault. In any case, it appears the French government favors the merger.

Renault Clio.

FCA’s strongest brand is Jeep, which it is quickly transforming from a regional player to an international powerhouse. Indeed, the automaker will likely press forward with a plan to build a new manufacturing plant in Detroit to produce the Jeep Wagoneer and Grand Wagoneer, upscale models designed to take on Land Rover (Discovery and Range Rover series). Jeep’s growth is phenomenal and doesn’t appear ready to slow any time soon.

The Ram brand brings big profits to FCA with the large pickup truck adding a half-million sales annually. The new entity may find fresh markets for Ram, including perhaps Russia where Lada rules.

As for the Dodge and Chrysler brands, the survival of these two marques may depend largely on just how far the merged company plans to extend its reach. Both have had a place in the American automotive landscape, with a limited reach beyond. And both have lost several models over the past few years as FCA emphasizes utility vehicles and trucks over cars.


See Also — Fiat Chrysler Automobiles: No Takers

Filed Under: Commentary Tagged With: ALFA ROMEO, Alpine, CHRYSLER, Dacia, DODGE, FCA, FIAT, FIAT CHRYSLER, Jeep, LADA, MASERATI, MERGER, MITSUBISHI, NISSAN, RAM, Renault, RENAULT SAMSUNG, SERGIO MARCHIONNE

Abarth Life in a Fiat 500

February 20, 2019 by admin

Fiat 500 Abarth
The Abarth is the top-trim for the Fiat 500.

Pity poor Fiat. This Italian automaker returned to the U.S. market in 2011 after a long absence, but soon found customer’s tastes had already begun to move away from cars to crossovers.

Even with the introduction of a tiny 500X crossover a few years later, Fiat demand has never met expectations. Rumors that the brand would exit the domestic market have surfaced in recent years, casting a shadow over its long-term plans.

Fiat, though, may not throw in the towel. Like the Chrysler brand, Fiat may find a niche and occupy the market from that corner. That niche currently involves turbo engines, which are now standard across the entire model line. Electric vehicles will someday become a factor as well.

Going full-tilt turbo means that there is a difference between the power numbers of the standard models and the performance Abarth. That 25-hp boost is noteworthy, especially for a model of the 500’s stature.

Now with our Fiat pleasantries firmly fixed in the rear-view mirror, here’s what’s especially noteworthy about the Fiat 500 Abarth.

Fiat Abarth Highlights

Fiat 500 Abarth

1. More performance than expected.

The 500 Abarth is quick, although its 0-60 mph time of approximately seven seconds may not inspire die-hard race enthusiasts. Our test model came with the automatic, so we were not able to enjoy the benefit of foot-pedal action to move this diminutive hatchback.

Still, with one foot fixed to the gas pedal and the other tapping in anticipation nearby, we happily relished in the quick spooling turbo, which got the job done. The Abarth’s power likely surprised some other drivers too as its passing performance acquits this Fiat nicely.

The bonus here is the active exhaust system — it burbles and burps, just like the big guys out there. Noisy does it!

2. Steering with ample weight.

One thing this driver strongly dislikes about some cars is the light and disengaged steering. In these situations, the feeling is simply not there with nothing dialed in that stokes driving interest.

Happily, the 500 Abarth is fully compliant (and capable) with steering that is generously weighted and connected. The real treat is on the same twisty backroads you might take with your favorite sports car.

The Abarth, thanks to its small size and light weight, hangs the curves with ease and manages corners cleanly. This, despite a 64-to-36 front-to-rear weight distribution.

Fiat 500 Abarth

3. You can get a manual transmission.

Despite not having a manual transmission, our test Abarth did not disappoint. That said, there are some people who insist on a manual gearbox and Fiat eagerly complies by furnishing a standard five-speed transmission that enhances the fun-to-drive-factor as desired.

Quick shifts and smooth clutch uptake are two hallmarks of this system. The difference between the two transmissions isn’t big, which means if you elect for the automatic, you’ll still enjoy everything else this hot hatch has to offer.

4. A turning radius to love.

Fiat says the turning diameter of the 500 is 37.6 feet. No, the turning radius isn’t as tight as the Smart ForTwo, but at least you don’t have to settle for half the car in the Fiat.

It is a joy to drive the 500 and discover how easy it is to turn around, often without conducting three-point turns or backing up when you still have room to maneuver. I found myself quickly getting out of a traffic jam by swinging the wheels left and heading in the other direction to avoid that mess that lied ahead.

Fiat 500 Abarth

5. A convertible is a lovely option.

Some say the standard body style is a coupe, but it is a hatchback. Yes, it looks like a coupe, but there is a third door which is affixed to the rear. The liftgate swings high and out of the way, revealing up to 9.5 cubic feet of standard storage space. The rear seat drops too, expanding that space enough to accommodate all your groceries.

Another option to the hatchback is the convertible. Yes, you’ll still find what Fiat calls a “Cabrio” model, which delivers a drop-top driving experience that’s sure to please on a sunny spring day. One thing to keep in mind here: rearward visibility is restricted somewhat by the bunched up roof behind the rear seat. Also, when the top is dropped, storage space measures just 5.4 cubic feet. That’s barely large enough to hold a day bag or parcel.

6. Sporting treatments that inspire.

The 500 Abarth has the performance edge, but it also has the look to go with it. The most obvious difference is the “Abarth” badging and trim on the body, including the scorpion insignia centered on the grille, behind doors, and fixed to the rear. The Abarth paint scheme along the profile features a track-like design that spans from wheel to wheel. Lower grille trim, rocker panel embellishments, and dual exhaust ports are also present. Finally, the sporty wheel choices offers their own take on flair and distinction.

Step inside and you’ll find additional Abarth treatments, including red accents. You’ll find a few different fabrics with the Cabrio.

Fiat 500 Abarth

7. The interior is quite small.

On paper, the Fiat 500 seats four. In reality, the rear seats are essentially unusable for anyone who isn’t a toddler or a baby. That said, this model is best viewed as a two-seater with extra room in the back. But it isn’t a model for everyone — my near 6-foot-frame found a place inside, but if you’re just a few inches taller, the 500 isn’t right for you.

If you take a long trip with the 500, the thin seats can become wearisome, to the tune of what some 1980s compacts offered. Around town, the 500 is ideal — you’ll fit into tight parking spaces avoided or abandoned by others.

On the road, the sweet note of the Abarth’s exhaust may not be enough to keep you hooked. But a lot depends on your personal comfort needs and expectations, so don’t neglect extensive highway miles when offered a test drive.

8. Affordability fades as you move up the trim range.

How much should you pay for a new car, including one of the 500’s caliber? For 2019, the 500 comes in three trims: Pop, Lounge, and Abarth. The previous special 1957 Edition is no longer offered.

Speaking of the 2019s, my test model was a 2018 500 Abarth. Fiat is still clearing inventories and will likely release the 2019s this spring. You can find the 2018 Pop ($16,245), Lounge ($19,745), and Abarth ($20,495) trims. Add $1,245 for the destination fee and $995 for the automatic transmission.

Based on our preliminary information, the 2019s will retail from $17,490 to $23,235, reflecting an upgrade in standard equipment and the turbo engine (add about $1,500 for the convertible). Fully loaded, you’ll pay about $26,000 for the 2019 500 Abarth hatchback, which is a fairly high price point for this small people mover.

Fiat 500 Abarth
Fiat 500 Abarth

Auto Trends Recommends

If you’re looking at the “500” it is hard *not* to have the Abarth on your shopping list. In fact, if you’re looking at something economical but you still want performance touches, then you’ve found the model you want in the 500 Abarth.

We think the discounting on the 2018s is something worth exploring. Although that information isn’t as readily published as some brands (such as Kia and Hyundai), your dealer can provide that information.


Fiat 500 Abarth


2019 Fiat 500 Abarth

  • Sticker price from $20,495
  • Seats four
  • Engine: Turbocharged 1.4-liter I4 gas
  • 160 horsepower @ 5,500 RPM
  • 183 foot-pounds of torque @ 2,400/2,500 to 4,000 RPM
  • 5-speed manual or 6-speed automatic transmission
  • Wheelbase: 90.6 inches
  • Length: 139.6 inches
  • Width: 64.1 inches
  • Height: 59.8 inches
  • Passenger volume: 75.5/76.2 (500c) cubic feet
  • Storage volume: 9.5/5.4 (500c) cubic feet
  • Towing capacity: NR
  • EPA: 28/33 (manual)24/32 (automatic) mpg city/highway
  • Premium gasoline
  • Fuel tank: 10.5 gallons
  • Curb weight: From 2,366 to 2,511 pounds
  • IIHS safety rating (2018): Good, except for Poor in small overlap driver
  • Limited vehicle warranty: 4 years/50,000 miles
  • Powertrain warranty: 5 years/100,000 miles
  • Corrosion warranty: 5 years/unlimited miles
  • Vehicle assembly: Toluca, Mexico

See Also — Book Review — Fiat 500: The Design Book

Photos copyright Auto Trends Magazine. All rights reserved.

Filed Under: New Car Reviews Tagged With: Abarth, cabrio, convertible, FIAT, FIAT 500, FIAT 500X, hatchback, manual gearbox, turbo

Bantam Conveyance: 2017 Fiat 500

September 25, 2017 by admin 1 Comment

Behind the wheel of Fiat’s tiniest model.

2017 Fiat 500c
2017 Fiat 500c.

City cars are the smallest models you can purchase in North America, typically defined by such A-segment vehicles as the Smart ForTwo, Scion iQ, Chevrolet Spark, and the Fiat 500. Few manufacturers have dared to release such models for American and Canadian consumers, who typically prefer large vehicles over small.

The Fiat 500 soldiers on, now beginning its seventh model year. It’s late 2011 arrival also ushered in Fiat’s return to the North American market after a long absence. Like competing models, the 500 sits on a tiny footprint, measuring just under 12-feet long from bumper to bumper.

North American consumers haven’t embraced tiny cars in the big numbers they have elsewhere and that’s why the Scion iQ (as well as the brand) are gone and the Smart model is now an electric vehicle. Spark sales have tumbled by more than half this year, but 500 sales are down just 7 percent, roughly in line with the decline of all small cars.

2017 Fiat 500c

My test model was a 2017 Fiat 500c. The “c” stands for cabriolet, in this case a model where the roof folds back, but the roof pillars stay in place. You can drop the side windows to enhance the open-air experience.

Fiat offers the 2017 500 in three trims — Pop ($14,995), Lounge ($18,495), and Abarth ($19,995). Add $995 for the destination charge and another $1,495 for the cabriolet. This means it is entirely possible to find a new convertible costing under $18,000.

2017 Fiat 500c

Exterior Highlights

If the first impression you get of the Fiat 500 is its smallness, you aren’t alone. There is little getting past its Lilliputian size, a vehicle that seems at first designed for a small race of people. But it also champions Fiat’s design moxie as the 500 combines a timeless look with a modern theme.

Indeed, the Fiat 500 you see today takes its styling cues from the original, introduced in 1957 and built for nearly 20 years. Fifty years after the original rolled out, the current-generation model arrived, bringing with it a wholly modernized touch on the original theme.

The new model retains the circular theme of the original, with its round headlamps and daytime running lights combining with the narrow grille openings to place a design statement on the front fascia. At the rear, you’ll find stacked combination lamp casings, housing circular brake, backup and turn signal lights.

Fiat dresses the 500 in 15-, 16- or 17-inch aluminum wheels. Standard equipment includes halogen headlamps; power-folding, heated side mirrors; and your choice of a hard or cabrio top. If you choose the cabrio, it folds back and stacks immediately behind the vehicle. The main drawback here is your rear sight lines are blocked.

2017 Fiat 500c

Interior Overview

Certainly, the 500’s cabin is small. That said, it seems roomier than it is — Fiat makes good use of limited space, delivering a front compartment that’s reasonably comfortable for the driver and passenger. It also helps that the 500 is taller than comparable cars, as that extra space translates into higher sitting seats with more legroom.

Even rear passengers are possible, although it takes some imagination on how to get people back there. If the driver and front passenger don’t need a lot of legroom, the rear compartment is bearable on short trips, especially for children. Even so, the 500’s 2+2 layout is skewed toward whoever is up front.

Fiat doesn’t try to hide the fact that the 500 uses plastic — and plenty of it. Indeed, the entire lower dash panel is comprised of plastic cladding — creating visual interest for this little people mover. All dials, switches, door handles, vents, and even the top of the seat backs are round. The circular theme runs rampant through the interior, giving the 500 a youthful, even playful look.

Standard equipment includes power windows and door locks, a manual tilt steering column, leather-wrapped steering wheel, air conditioning, and a 12-volt outlet. Optional equipment includes automatic temperature control, a front passenger seat armrest, front seatback pockets, and heated seats. Cloth seats are standard; leather seats are optional.

2017 Fiat 500c

Safety Features and Rating

The Insurance Institute for Highway Safety (IIHS) awarded the 2017 500 with its top scores in four of five crash testing categories. But it also assigned its lowest score for its small overlap front test. There are two things at work here: 1), the Fiat’s design predates the test and would need a significant structural overhaul to comply, and 2), the vehicle’s size simply means it is at a disadvantage. So long as you understand these two points, you’ll know what to expect.

Most passenger vehicles offer at least some sort of crash avoidance & mitigation system. The Fiat 500 does not. What you will find is a suite of airbags along with the usual traction and stability control, and anti-lock brakes. A rear park assist system is standard, except on the base model.

Top Technologies

Standard technologies include an audio package with a 5-inch touchscreen display, Bluetooth connectivity and iPod interface and a USB charging port. An upgraded and available Beats audio system has satellite radio and is also tied in with GPS navigation with a one-year subscription.

Clearly, the Fiat 500 offers only base technologies, but that’s typical for this class.

2017 Fiat 500c

On the Road: 2017 Fiat 500

You get a 1.4-liter four-cylinder engine making 101 horsepower and 97 pound-feet of torque in the 500 and 500c. Fiat pairs this engine with either a 5-speed manual or a 6-speed automatic transmission.

My test model had the automatic transmission. Most definitely, the 500c isn’t anywhere near a performance model. It is best owned and operated by city dwellers who prize the small footprint and want a reasonably economical car. I say “reasonably” because there are larger cars that equal or beat the diminutive Fiat’s fuel economy.

Happily, the open road isn’t the Fiat’s enemy. I found sufficient power when needed, owing in part to its sub-2,500 pound weight. When accelerating hard you might wish for the benefit of a turbo (as found in the Abarth) — as it can take some effort passing at highway speeds.

Steering is light to the touch and the tight turning radius is a joy to behold. I imagine on the streets of Manhattan the 500 is especially loved, particularly when navigating the narrow streets in Greenwich Village and DUMBO. Parallel parking is a snap too — who needs assistance when you can do it yourself and with plenty of space left over?

2017 Fiat 500c

Parting Thoughts: 2017 Fiat 500c

The Fiat 500 is most certainly small, thus its size is of limited appeal to many. Some shoppers may want more power and that’s where the Abarth edition with its turbocharged 1.4-liter four-cylinder engine, generating 160 horsepower and 170 pound-feet of torque (manual) or 157 hp and 183 lb.-ft. of torque (automatic) makes things interesting. It also starts at $20,000, an affordable price point for any small car.

Fiat fans also have the larger 500L and the utility 500X to consider — we must not forget the 124 Spider, derived from the Mazda Miata. If a tidy package is what you want, then Fiat has you covered.


2017 Fiat 500c

  • Sticker price from $14,995
  • Seats four
  • Engine: 1.4-liter I4 gas
  • 101 horsepower @ 6,500 RPM
  • 97 foot-pounds of torque @ 4,000 RPM
  • 5-speed manual or 6-speed automatic transmission
  • Wheelbase: 90.6 inches
  • Length: 139.6 inches
  • Width: 64.1 inches
  • Height: 59.8 inches
  • Passenger volume: 75.5/76.2 (500c) cubic feet
  • Storage volume: 9.5/5.4 (500c) cubic feet
  • Towing capacity: NR
  • EPA: 31/38 (manual)28/33 (automatic) mpg city/highway
  • Premium gasoline
  • Fuel tank: 10.5 gallons
  • Curb weight: From 2,366 to 2,511 pounds
  • IIHS safety rating: Good, except for Poor in small overlap front
  • Limited vehicle warranty: 4 years/50,000 miles
  • Powertrain warranty: 5 years/100,000 miles
  • Corrosion warranty: 5 years/unlimited miles
  • Vehicle assembly: Toluca, Mexico

See Also — Book Review — Fiat 500: The Design Book

Click on photos to enlarge. Photos copyright Auto Trends Magazine. All rights reserved.

Filed Under: New Car Reviews Tagged With: 2017 cars, Abarth, CITY CAR, FIAT, Fiat 124 Spider, FIAT 500, FIAT 500L, FIAT 500X, IIHS

New Arrival: Fiat 124 Spider

June 9, 2016 by admin 3 Comments

All-new roadster adds pizzazz to the Fiat brand.

2017 Fiat 124 Spider
2017 Fiat 124 Spider.

Fiat’s reintroduction to the US market has been met with a tepid reception. Five years after its return, the Italian marque is struggling, as brand sales are down 18.6 percent through May 2016.

Two of Fiat’s three models are presenting a tremendous drag on sales. Demand for the diminutive Fiat 500 is off by 48 percent; Fiat 500L sales have plunged 62.8 percent. Offsetting some of that loss is the 500X, a subcompact crossover SUV introduced a year ago and sharing its underpinnings with the Jeep Renegade. Fiat 500X sales are set to overtake the 500, but it won’t be nearly enough to stop the loss.

2017 Fiat 124 Spider

This month, a fourth Fiat model arrives — the 124 Spider. The name should be a familiar one to Fiat faithful as this roadster was introduced nearly 50 years ago. For 20 years the 124 Sport Spider soldiered on, receiving several updates along the way.

Coupe and convertible versions were sold in the US beginning in 1968. Production ended in 1985, succeeded a decade later by the Fiat Barchetta before the latter was discontinued in 2005.

Some believe Fiat is well-served with a roadster in its product line. However, the current arrangement for Fiat Chrysler Automobiles doesn’t permit such an expensive investment in a risky segment, but that hasn’t precluded FCA from forging a joint venture with Mazda to obtain one. The first model in that venture is the Fiat 124 Spider, a roadster sharing its underpinnings with the fourth-generation Mazda MX-5 Miata.

2017 Fiat 124 Spider

Italian Design and Heritage

There is some risk here for both automakers. On the one hand, Fiat may not enjoy quite the sales lift it desires. On the other hand, a successful 124 Spider could siphon interest from the MX-5 Miata. No matter, Mazda should come out a winner as it recoups some of the cost of building this roadster.

“Our mission at FIAT is to deliver Italian design and heritage in vehicles that are fun to drive,” said Olivier Francois, Head of FIAT Brand, FCA – Global. “The all-new 2017 Fiat 124 Spider brings these elements together and comes loaded with open-air fun, stunning Italian design and the proven turbocharged MultiAir 1.4-liter engine.”

The 2017 Fiat 124 Spider is powered by a 1.4-liter, turbocharged four-cylinder engine. It comes paired with a 6-speed manual or an available Aisin 6-speed automatic transmission.

Three Trims Available

Three trims are offered — Classica, $24,995; Lusso, $27,495; and Abarth, $28,195. A special introductory Prima Edizione in Azzurro Italia (dynamic blue mica) launch edition with 17-inch, silver-painted premium aluminum wheels will kick things off. Just 124 models will be built with the price pegged at $35,000.

All 124 Spiders are outfitted with 16- or 17-inch wheels. A dual-tip exhaust is standard as is a roll bar, the latter painted in black in the base model. Halogen headlamps and LED taillights are standard. Cloth or leather seats are included, depending on the model.

The Abarth edition receives special exterior colors, front and rear Bilstein sport suspension, quad-tip exhaust, and unique front and rear fascias. This model also gets a very slight boost in performance, 164 horsepower up from the standard 160. All models produce 184 foot-pounds of torque. Available features include a Brembo braking system and Recaro seats.

2017 Fiat 124 Spider

Additional Joint Models Possible?

There is no word on how much FCA paid Mazda to develop the 124 Spider. Nor do we know if the venture will produce other models. But collaboration in the auto industry is rife and small-time Mazda and suitor-seeking FCA should both benefit regardless where this relationship is headed.

Recent News — Buick Envision Debuts With No Fanfare

Photos copyrights Auto Trends Magazine. All rights reserved.

Filed Under: New Models Tagged With: FIAT, Fiat 124 Spider, FIAT CHRYSLER, JOINT VENTURE, MAZDA MX-5 MIATA, rear-wheel drive, ROADSTER

Flagging Fiat Sales: No Easy Answer

October 14, 2015 by admin Leave a Comment

2016 Fiat 500X

The Fiat brand has this 500X crossover in its portfolio.

 

It must be tough sitting in a meeting of Fiat Chrysler brand heads, especially if your brand is underperforming. Sixty-eight straight months of year-over-year sales improvements puts an enormous pressure on executives to succeed. Sure, the streak will someday be broken, but the last thing any brand head wants is to be blamed for ending it.

Fiat Chrysler has enjoyed a tremendous rebound over the past six years as two separate and distinctly different companies were merged, Ram was separated from Dodge, and Chrysler was reassigned as a mainstream brand. In addition, the Fiat brand was brought back to the US in 2012 followed two years later by Alfa Romeo. FCA is on a roll and is continuing to gain market share.

Jeep, Ram, and Chrysler are continuing to grow, but Dodge sales are down with most of that loss attributed to a discontinued product, its midsize Avenger sedan. Dodge is right where it is supposed to be as a newly minted performance brand and sales should bottom out by early 2016. As far as the Italian brands go, Alfa Romeo’s gradual roll out will receive a major boost late next year when the gorgeous Giulia compact luxury sedan debuts.

Fiat 500L

Pictured: Fiat 500L.

That leaves one brand we’ve scarcely mentioned, the eponymous Fiat marque.

Certainly, FCA had high hopes for Fiat when the first of its North American 500 models was officially presented at the 2011 North American International Auto Show in Detroit. Many believed that the diminutive vehicle would pull in customers as high fuel prices coupled with Italian enchantment would drive interest in the brand.

Unfortunately, that hasn’t happened even as new models arrived, including the compact 500L followed by the 500X crossover. Under normal market conditions all three models should provide strong sales, however this market is anything but normal as lower gas prices, excellent financing rates, and intense competition has buyers looking elsewhere. Indeed, Fiat brand sales are down 10 percent year-to-date through September and would be off by more than 20 percent without the new-for-2016 500X n the product portfolio.

The Fiat sales drop may not have a tremendous impact on FCA’s overall sales, but it isn’t something that can easily be dismissed. Perhaps that is why the company’s CEO and President Sergio Marchionne decided earlier this month that Fiat brand head Jason Stoicevich should move on.

Indeed, last week, as part of a larger shuffling of brand managers, Stoicevich was reassigned to head of fleet operations and small business sales in the US. However, by the next day Stoicevich resigned and left the company altogether. Notably, no reason has been given for his abrupt departure.

Chrysler brand chief Alistair Gardner also was reassigned, but his sales numbers were sound. Additional management shuffling was also accomplished as Timothy Kuniskis now oversees three brands: Dodge, Chrysler and Fiat.

Alfa Romeo Giulia

Alfa Romeo sales should see a spark turn into a flame when this Giulia sedan
arrives on the market in late 2016.


We might speculate on the reasons why Stoicevich left, but that theorizing would not necessarily be correct. Stoicevich was in charge of Fiat for two years and seven months and may have been disappointed with the reassignment especially with new product on the way. One of those products is the reborn Fiat 124 Spider, a new model that shares its platform with the Mazda MX-5 Miata.

It has been thought by some that the 124 Spider will be shown at an upcoming auto show, with The Detroit Bureau identifying Los Angeles as that venue. The Los Angeles Auto Show kicks off next month just ahead of Thanksgiving and is the first of four important North American shows where automakers roll out new products. Detroit, Chicago and New York follow.

With the 124 Spider in the fold, the Fiat brand should get a fresh look from customers even if its sales are small in number. As for increasing those sales to reach 50,000 units per year, Fiat may need some help in the form of higher fuel prices. Certainly, the 500X and 124 Spider will contribute, but sales of the other two models may continue to decline or at least stabilize at levels far below what FCA management wants, but probably not to the detriment of Kuniskis’ place at the management table.

Fiat photos copyright Auto Trends Magazine; Alfa Romeo photo copyright Fiat Chrysler. 

Filed Under: Automotive News Tagged With: ALFA ROMEO, brands, CHRYSLER, DODGE, FCA, FIAT, JASON STOICEVICH, Jeep, RAM, SERGIO MARCHIONNE

Divorce Decree Finalized for Volkswagen, Suzuki

September 2, 2015 by admin Leave a Comment

handshake
A handshake doesn’t mean an alliance will succeed.


Six years after Volkswagen and Suzuki forged an alliance, the London Court of International Arbitration issued a divorce decree. That decree followed an appeal by Suzuki nearly four years earlier to dissolve the alliance, one where Suzuki demanded that Volkswagen sell its 19.9 percent stake in the Japanese automaker.

The decree means that Volkswagen may reap $3.8 billion from selling its shares based on Suzuki’s stock value at the close of business last Friday. Suzuki will be allowed to buy the shares, but it is also likely they’ll have to pay Volkswagen compensation as the court found the automaker breached the contract reports the Wall Street Journal. Further arbitration will settle the compensation claim and tie up other loose ends.

A Failed Alliance

The Volkswagen-Suzuki alliance never got off the ground as no joint projects were consummated. As part of the alliance, Suzuki had sought access to Volkswagen’s fuel-saving technologies, while Volkswagen hoped to gain a larger stake in India, a market dominated by Maruti Suzuki.

Cultural differences and misunderstandings impacted the alliance. In 2011, Volkswagen charged Suzuki with breaching the agreement when the Japanese automaker sought to purchase diesel engines from Fiat sPa, the company now known as Fiat Chrysler Automobiles. Suzuki insisted that it had the right to buy from Fiat, but Volkswagen was equally as insistent in its opposition.

Suzuki also pushed back against Volkswagen for including the company in its brand portfolio. But the disagreement runs much deeper than that as mutual distrust built up early and came to a head just 21 months into the alliance. Automotive News ran a report in early August detailing the troubled alliance based on internal documents it had secured.


See Also — Car Manufacturers: Who Owns What?


A Pattern of Failures

The dissolution of the Volkswagen-Suzuki alliance follows several other failed attempts to bring disparate automakers together. For example, shortly after GM emerged from bankruptcy, it forged a limited alliance with Peugeot, the French automaker. GM took a nominal 7 percent stake in Peugeot, but sold its shares in late 2013, less than two years after forging the alliance. The alliance was established in a bid to increase economies of scale, but it later crumbled.

DaimlerChrysler is another example of a failed alliance. The two companies joined forces in 1998 as part of a $37 billion “merger of equals.” Although several collaborative projects were completed, the two parties were never on the same page with the Americans charging that the Germans were controlling the entity. The two parted ways less than a decade later and at a great financial loss to Daimler.

Examples of Successful Alliances

Alliances that do work typically involve a healthy company absorbing or merging with one that is ready to go out of business. In the 1980s, Chrysler purchased American Motors, and from that acquisition, it was able to gain Jeep.

In 1999, Renault and Nissan forged an alliance as the Japanese automaker found itself in perilous financial shape. The two companies — one French, the other Japanese — have managed to make things work by remaining relatively independent of each other. It also helps that Renault’s CEO, Carlos Ghosn, became Nissan’s CEO. Another strong leader, Sergio Marchionne, has helped Fiat and Chrysler operate smoothly, but as one company.

Suzuki is not likely to seek a new partner, having valued its independence too much to work in that capacity. Then again, it is doubtful that any other automaker would risk forging an alliance with the company as long as its patriarch and CEO, Osamu Suzuki, remains involved in the business. Despite having relinquished his role as president and chief operating officer to his son, Toshihiro, the senior Suzuki will maintain his formidable presence within the company. His presence is certain to thwart any potential hookups that dilute the company’s self-determination.


See Also — Deal Undone: Fiat, Chrysler, Renault Merger


Artwork courtesy of Wikimedia.

Filed Under: Automotive News Tagged With: ALLIANCE, ARBITRATION, CARLOS GHOSN, FIAT, OSAMU SUZUKI, SUZUKI, Volkswagen, WALL STREET JOURNAL

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  • Cadillac Gets Most Things Right
    With the XT6 Crossover
  • The High Potency Dodge Challenger SRT Hellcat Redeye Widebody Coupe
  • The All-New Chevrolet Trailblazer Forges Urban Paths
  • The Small Infiniti QX50 is Big on Tech and Engineering Features
  • Toyota Brings the TRD Treatment to the Midsize Camry Sedan
  • The Kia K5 Outclasses Most Competitors, Including the Departing Optima
  • Can the Toyota RAV4 TRD Off-Road Handle Tough Terrain?
  • Subaru WRX Showcases Its Performance Chops
  • Infiniti Overhauls QX80 Trims and Makes This Important Safety Feature Standard
  • Ford F-250 Super Duty and a Trail-Stomping Tremor Package
  • A Cut Above: Mazda’s Mazda3
  • The Highly Efficient Hyundai Ioniq
  • Volkswagen Atlas Revels in its Strengths
  • General Motors Deepens Partnership With Honda, Takes Stake in Nikola
  • Smart Concept: Jeep Grand Wagoneer
  • More Than an Encore: Buick Encore GX
  • Got a Recall? There’s an App for That.
  • Refreshed Nissan Titan Makes Its Case
  • BMW M235i: Not Your Typical Coupe
  • Hot Stuff: Lexus RC F Sport Coupe
  • Will the Electric Vehicle Boom Create New-Found Dependencies for Foreign Minerals?
  • Rumors? We Got Them!
  • About Bollinger Motors, EV Startup
  • Raptor Fighter: Ram 1500 TRX!
January 2021
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