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Fiat and PSA predicted to be Europe's biggest losers in 2013
Thu, 17 Jan 2013Industry observers are expecting Europe's new vehicle sales to fall to lows not seen in decades, with Fiat and PSA/Peugeot-Citroën sitting in the lead car of the plummeting coaster. Both of those automakers traditionally count on the southern part of the continent for sales, yet consumers in that region have slowed spending due to the financial crisis.
Compounding the problem for Fiat is a lack of new product, as CEO Sergio Marchionne has stalled development to conserve cash during the downturn. PSA has invested in new vehicles, but aggressive price wars have forced it to sell its product with steep discounts. Making matters even more difficult, both companies may have their credit ratings cut this year. That would raise borrowing costs and only deepen the wounds.
The news isn't just bad for Fiat and PSA. Analysts are predicting that volume automakers in Europe lost 8 billion euros (about $10.68 billion in today's rates) overall in 2012, and they won't break even until mid-decade.
2013 Fiat 500e looks loud, runs quietly
Wed, 28 Nov 2012Somebody wanted it, so we all got it - the Fiat 500e, the electric city car packed with enough Earth-saving tech that CEO Sergio Marchionne quipped (admittedly, early last year) that each one built will cost Fiat $10,000. The good news is that it not only comes with tons of EV-only gadgets and features, it does a good job, to our eye, of flaunting its electric looks and it offers the kinds of personalization one would expect of a hatch in the 500 family.
The multi-contrast exterior is grouped into three color packages, including an e-Sport Package that pairs mean with green. The Interior can be had in either Nero or Steam, both coming with Electric Orange accents, and a seven-inch TFT screen with all kinds of electric-car-status details.
Juice comes courtesy of a 111-horsepower electric-drive motor with 147 pound-feet of torque, using a battery rated at 24 kWh. Range is estimated at "more than 80 miles" on the 15-inch Firehawk GT low-rolling resistance tires, but Fiat says stories of "greater than 100 miles" aren't uncommon. With our high-res gallery above, you don't have to go that far to check it out from every angle.
Chrysler purchases remaining shares from VEBA Trust, announces funding plan
Thu, 23 Jan 2014It's official: The Detroit Three is now The Detroit Two and The Fiat Subsidiary, Chrysler. Both the Italian carmaker and The Pentastar announced the completion of cash payments and a Memorandum of Understanding (MOU) on future payments necessary to make the Chrysler Group a wholly-owned subsidiary of Fiat. As previously detailed, Chrysler made a cash payment of $1.9 billion and Fiat North America made a cash payment of $1.75 billion to the Voluntary Employment Benefit Association (VEBA) run by the United Auto Workers union.
On top of that, Chrysler Group signed an MOU that agrees to payments of $700 million to the VEBA in four installments, the first of which was made concurrently with the other cash payments. And for you trivia mavens, the full name of the UAW is the International Union, United Automobile, Aerospace and Agricultural Implement Workers of America. So go impress your loved ones with that nugget after you check out the press release below.