Coach Guardiola is preparing in the best way to his sabbatical year. Here he’s with his new Abarth 500 at Italian Motor Village Barcelona.
Former coach of Barcelona futbol Club, Pep Guardiola, chose an Abarth 500 as his new car. He has admired the characteristics of the small powered Italian and that’s why he will be able to enjoy its Turbo engine in the beautiful Barcelona. One more happy client of these great cars. Good for it.
After the presentation of Fiat Viaggio in Beijing Auto Show 2012, the Group is getting ready to enter the Chinese market with some of its brands. The Viaggio will be the, by the moment, the only product to be produced locally, but more products from Fiat brand as well as Dodge and Chrysler will soon join Jeep in world’s largest market. Fiat will be initially present with the C-segment sedan, and will import both, the 500 and Freemont from Mexico. The small one will be offered with some specific changes while the large MPV will be offered with the 173hp 2.4 engine. It is also expected the return of Chrysler with its big sedan, the 300C imported from Canada. After being produced in China during Daimlers era, this sedan will go back to China with its facelift and much better interiors to compete with of Germans in D-segment in large version configurations. Its launch will take place in June 26th and its price should be 500.000 yuans (US$79.000). Dodge is also getting ready. Some spy shots reveiled by the site CarNewsChina.com showed its Journey (is the Dodge version as the logo can be seen in the steering wheel). It means that China will be, as it is Brazil, another market to have both models available, Fiat Freemont and Dodge Journey. Nevertheless, it is expected the Journey to be more expensive as it will have a better engine of 283hp 3.6 V6. Its price is not expected to be far from Freemont which starts at $250.000 yuans (US$39.000). All of these models will join the only brand of the group that has not interrupted its presence in China, Jeep.
Dodge Journey/Fiat Freemont. Both models are available in Brazil and soon in China. Photo by autoesporte.com.br
Jeep models are available in China in 120 dealers. They are all imported from North America and it makes them really expensive SUVs. No matter its representation in the country has changed a lot during the last 30 years (its owners were always changing) the brand still has a good reputation among Chinese. Last year they sold 19.013 units, up 63% compared to 2010. Is a small number compared to competition but it can be seen as a good starting point for future sales with local production. In fact Fiat-Chrysler’s plan include the start of production in 2014. In the meantime, Jeeps will continue to be well recognized, and its sales will rise without reaching the big numbers local production means. It is because imported cars are highly taxed by Chinese authorities and it makes Jeep products really expensive: the Grand Cherokee starts at $576.000 yuans (US$91.000). All of that means that Fiat has a lot of potential but they need to start local production as soon as possible if they want a respectable place in this important car market.
RAM 1500. Is it coming a diesel version? Photo by netcarshow.com
Some news are coming from America. The latest one is related to Fiat and its successful 500. After the good start of Abarth version with 160 hp, Fiat presents the 500 T version. They saw the lack of a mid size engine between the regular 500 with 105 hp and the Abarth one. That’s why the 500 T with 135 hp will become the option for those wanting more performance than ‘just’ 105 hp but can’t afford $22.000 dollars that costs the Abarth. The T version is expected to keep increasing sales as the car will cost $19.000 dollars $15.200 €, and offers a very nice engine with good especifications inside, though the car will not have Abarth logo. With this version, Fiat 500 family in America is now composed by the 500 Pop starting at $15.500 dollars ($12.350 €), the 500 Lounge, 500 Sport, 500C Pop, 500C Lounge, the 500 Abarth and finally the 500 T. Meanwhile the Electric version of the small car was confirmed to be on sale next year.
American Fiat 500 family. Though the Abarth version is the bestselling one, it’s just offers one body type
Another sporty to arrive, not yet though, is the Dodge Dart SRT version. According to Sergio Marchionne, what is only missing to complete the project is “how big is going to be the engine that will move the Dart to create the SRT version”. It means they are really considering a super powered version of the mid size sedan and maybe use a 4 cylinders turbo version with even more than the 235 hp that moves the Alfa Giulietta Quadrifoglio Verde. But as people from Autoblog Spain say, the SRT Dart could be moved by 300 hp and 2.0 MultiAir engine. The problem is that there is no 4 cylinder engine turbo available at the moment.
Dodge Dart GTS 210 Tribute, showed in Chicago Auto Show 2012. Photo by autofan.mx/tag/dodge/
On the other hand future plans of Chrysler group include the elimination of double products. It means the car company does not want to offer anymore two brand options for the same model. That is why they will remove from Chrysler’s range, the Town & Country which is the same car of Dodge Gran Caravan. Instead they will project a lighter minivan to be shared with Lancia and leave the popular Dodge alone. The same destiny for the Jeep Compass as it is practically the same Jeep Patriot. The C-SUV-segment from Jeep will be removed from dealers by the year 2014 to be replaced by a global compact SUV that might share platform with other products of Fiat-Chrysler Group, such as the next generation of Fiat Bravo, which could be replaced by a Cross Over. Regarding this news, it is weird Chrysler wants to get rid of the Town & Country as it was its best seller in 2011 with more than 102.000 units. The MPV is an excellent product that could be even more differenciated from the Dodge version with more luxury interiors. A smaller successor could be also an interesting thing but taking into account that Americans prefer big version of these kind of cars. In the case of the Compass, it has not been certainly a big success and that’s why they should work on a global compact Cross Over to fit expectations of American and European clients and to become a product to expand into other markets.
A render of a possible future compact Jeep. Illustration by inautonews.com
Finally, based on a spy photo, people from Automotive News comment the possible arrival of RAM pickup with diesel engine. They suggest the black speckled stain seen just above the exhaust (a common sign of Diesel engines) could be the proof that Dodge is working on a RAM diesel. Good news that should be analyzed carefully as Americans are not really used to this kind of engines and big trucks had been always associated with big petrol engines. Although diesel cars have become less unpopular in the last months, their market share is still low. In 2011 only 101.624 cars out of 12.7 million of total passenger cars sold in America, had the diesel technique, and none of them was a pickup.
Dodge Avenger for North American and Middle East markets. Around 75.000 units were sold in 2011 in the whole world. Photo by netcarshow.com
After A, B and C-segments, it’s time to make a close analysis of medium sedans, or what is known as D-segment. Real sedans begin from this important segment, because the ones of C-segment are mostly 5 doors hatchbacks modifications. The cars belonging to D-segment are larger, wider and have better performance, and therefore other car makers begin to appear: the 3 famous Germans, some Swedish, Japanese and British. The largest particularity among them are its body type: 4 door sedan and Station Wagon. In Europe car makers add the 5 door hatcback version. To easily identify them it is important to consider these characteristics: average length between 4.6 and 4.8 m for business or family use.
Chrysler 300. In 2011 sold almost 45.000 units world wide. From Jan-Apr/12 there have been sold 30.000 units. Photo by netcarshow.com
It could be said D-segment is the one belonging to Germans. Audi, BMW and Mercedes-Benz have gained during the last 20 years an enormous good reputation making their mid size sedans and wagons. Thanks to their great work of quality and marketing, they are more or less the world’s most popular brands. Of course they are not alone, as is a segment with some importance in Europe and big numbers in North America and China. During the 80’s Japanese created their own premium brand to compete with Germans: Toyota created Lexus, Nissan proposed Infiniti and Honda did the same with its premium Acura. British from Jaguar have always had a place though nowadays they don’t offer any model in this segment. Volvo plays another important role always offering the latest inventions in security field. Koreans, strong in North America, have experienced a big evolution also. And finally come French and Italians. The first have done a local job without any important result in terms of sales. Italians, who had an important role with old Alfas, Lancias and Fiats, are now out of the ring.
Lancia Flavia Cabrio, considered the cabrio version of the Chrysler 200. In Europe it is positionated as D-segment
The position of Fiat-Chrysler group can be better analyzed separating both groups. Chrysler has an interesting position within the segment in the US and Canada. As its rivals from GM and Ford, D-segment represents America’s second largest segment after the whole SUV one. Medium sedans, as they are called in the US, had a market share of 18% during 2011, when 2.3 million units were sold, world’s largest market for this kind of cars. F-C Group is represented by Dodge Avenger and Chrysler 300, both of them with several years of commercial life. In fact the old age of this two models begins to be evident: the Avenger was number 11 in its segment, while the 300 occupied place number 14. The competition is really tough with Japanese leading the race: Toyota with its popular Camry, Honda with its Accord and then the Nissan Altima, among others. Although things are going better this year, especially with the Chrysler 300, F-C Group must hurry to replace both models to gain more market share in the segment: in 2011 in USA it was 4.3% and in Canada was 5.3%, the world’s best market share of the segment of the whole group. In Italy the situation is worse. Although the Lancia Thema is the twin brother of Chrysler 300, in Europe Lancia’s model is positionate in E-segment because of its size (5 m) and better accesories. In this context Fiat-Chrysler’s model was, until the last months, the beauty Alfa Romeo 159, the car called as a mistake by Sergio Marchionne.
The pretty Alfa Romeo 159 that resulted in a flop for Fiat. Just 10.000 units were sold wordwide in 2011
Alfa 159 was launched in 2005 as the sucessor of the 156. The shapes of the car are still amazing with really different Italian touchs. But external presence was not enough to conquer clients of this difficult segment. The car was very heavy, had a lot of quality problems and an interior not as good as Germans. Fiat interrupted its production in late last year when it sold around 10-11.000 units all over the world. It is a pity things went like this because the group is missing a good oportunity in a segment that sold 1.5 million cars in 2011, or 11% of the whole European market: 14.4% in Germany, 11.5% in the UK and 7.5% in France. In Northern Europe is very popular: 25% in Finland, 23.3% in Sweden and 21% in Norway. Fiat’s position is very complicated while Germans continue to consolidate their big presence, offering more and more body type versions of their already popular sedans. That’s why Fiat people must accelerate the launch of the supposedly called Alfa Romeo Giulia to be ready in 2014 to satisfy both, American and European markets. Meanwhile Lancia/Chrysler should think about a global mid size sedan to fit needs of Europeans and Americans. And it would not be a bad idea if Maserati offered also another exlusive sedan to compete with better conditions with Germans. A regular and classic sedan from Lancia, with a mid-price sporty coupe-sedan from Alfa, and a more expensive and powered Maserati could be an interesting trio that could reach other markets such as China (where the segment had an important second place with market share of 17%, dominated by Germans and Americans) or th3 Middle East (12% of sales). Here is the list of D-segment cars around the world:
D-Segment Cars around the world
There is one Golden rule in business which says that you should never reveil your real intentions especially when it is about something you really want. It has been a constant since negotiation has been part of society. People, companies and countries have been doing it in order to get whatever they want. Car industry is not the exception. Although the big deals became popular about 20 years ago, all car makers that still exist had to negociate to grow. Nowadays the fact of closing a deal means to survive.
Alfa Romeo Giulietta. Currently on production for C-segment
Three years ago, Fiat Group Automobiles signed a deal with American government to get a part of troubled Chrysler in exchange of technological transfer. This smart play allowed Italians to finally access to the American market with an important market share. Meanwhile Fiat’s board was dealing with another problem: Lancia and Alfa Romeo’s sales. Both companies have been loosing market share in Europe during the last ten years. Lancia, strongly dependant on Italian market, got its first life vest from Chrysler. But Alfa Romeo was in a worse situation: even though is less unpopular than Lanchia in the rest of Europe, its model range was being reduced as the demand was dropping dramatically. But ‘suddenly’ appeared Volkswagen.
Alfa 4C Concept presented in Geneva 2011. Available from 2013
Current financial crisis has been the scenario for three different situations: those car makers that finally died, Saab, Pontiac, Mercury; those struggling to survive, most; and those car manufacturers making useful of it, VW. Germans from Volkswagen keep a sales growth despite the deep crisis in its native Europe. This good moment allowed Mr. Ferdinand Piech, chairman of the supervisory board of Volkswagen Group, to look for more brands to increase its size and power. What Mr. Piech forgot was the golden rule: he made public his intentions to take over Alfa Romeo. And he has not done it once: more than three or four times he has repeated VW wants Alfa to be part of it.
Alfa Romeo MiTo. Photo by es.autoblog.com
Behind this public statements, there is for sure his intention to destabilize Alfa, its immediate future (coming plans and models) and generate a debate among Italians. Is it convenient to sell the Biscione to Germans? Can’t really Fiat take it to the road of success? some people say that if it is necessary for the brand to survive, the sale to Germans should be done. Other think Alfa is Italian and must continue being so. Personally I think Fiat guys ce la fanno: they can and must do it. This is not the first big crisis they have had. Fiat people are really prepared to face problems: two world wars, oil crisis, quality problems in late 90s and the begining of 00s. All of those periods have been tests they have been able to performed quite well. Besides the new scenario for Fiat after Chrysler’s takes over, offers an excellent perspective for Alfa as it opens them world’s second largest market, while they keep working in other fronts such as Asia. Fiat has the know how of making awesome shapes and great technologies to project excellent Alfas. They have the factories to do it. And the most important: the people.
1997 Alfa 156, a big success for the company. Photo by drive.com.au
And they must do it. Fiat-Chrysler has to demonstrate the world they can deal with this situation of taking Alfa to become a global profitable brand. It’s a matter of telling the industry that capability and will are part of their people. It is a message to people in which they say is just a matter of time. The problem is that time is short and expensive, and therefore they must hurry: Alfa has just two models on production and several plans (return to the US market, futury sporty cars, SUV, etc.) but they need to become real as soon as possible as Germans are gaining the world, while Koreans keep pushing and Japanese defend their empire.
Alfa Romeo has to be part of Fiat Group because Fiat belongs to Alfa as Alfa belongs to Fiat. They need each other. Alfa’s potential of offering a big range of sporty Italian models is a big opportunity to conquer not only America but the Middle East, the rising rich China and Russia. Alfa is part of Italy and therefore it must stay in Italy making use of what only Italians can do: the ‘Made in Italy’ touch with the passion they have for making cars.
Fiat 500 GPL. Photo by autonovita.blogspot.it
It seems Fiat Italy is going in the opposite direction of Italian government’s. This week one of main topics among specialized press was Fiat’s choice of working more and more in alternative solutions to the problem of gas. It is well-known by everybody that Italians are one of the few car groups not to deeply invest in the Electric car, not only because it’s a matter of costs but also because they don’t really want it. So far they have been working on the Fiat 500 EV, an electric version of the Cinquino with 100 hp powered by lithium-ion batteries and developed by Chrysler available from 2013. Nevertheless the board of the company is focused on GPL/Methane gas and they are really investing in a technology that might not sound as attractive and exciting as electric one, but that could be an interesting way of solving gas dependency and electric’s high cost.
Fiat 500 EV. Photo by forococheselectricos.com
GPL in Italy, or LPG (Liquefied petroleum gas) is a flammable mixture of hydrocarbon gases being used in cars since 1940s. It has a lower energy density than petrol . Therefore it results to be in an economic and already available technology, and at the same time less toxic to environment (23% fewer emissions) with the same performance features. This kind of energy source does not imply big engine modifications so the development costs are much less expensive than other future technologies. But if it is that good, why other car makers are not investing on it? the answer is in the supply chain. As electrics, GPL supply is not well-developed yet, and this make purchase final decision for clients to buy a regular car that guarantees energy supply. But the price of GPL compared to regular gas could be a reason for future growth of this energy source, though its car registrations are still low: in 2011 just 3,2% of cars sold in Italy had GPL, much more than electrics and hybrids, 0,02% and 0,29%. From the 122.288 Puntos sold in Italy last year, 5.581 (4.6%) had GPL technology and 10.455 had Methane gas. In the case of Panda, 4.2% of them were GPL and 16.9% had Methane energy source. Eventhough the small numbers and the terrible results GPL cars had in 2011 (sales were down 80% in Italy), Fiat is focusing and investing a lot in this kind of technology. They believe is a more efficient way to solve the problem of gas dependency as it takes less time and money to get better technologies. Their choice is also based on the negative side of Hybrid/Electric cars: social and economic sustainability, autonomy, costs and recharge times.
Fiat Panda Elettra press photo. The car was introduced in 1990 but its weight (1150 kg) did not make of it an interesting option as it was moved by only 19 HP
On the other hand Italian government is getting ready to present its incentive plan for electric and hybrid cars to become a reality from January 2013. This plans aims to boost sales of this kind of vehicles through discounts (subsidies) of $5.000€ from 2013 until 2015, and then $3.000€ for the next years. The discount could be only available for those cars with emissions under 50 g/km of CO2. For those with emissions between 50 and 95 g/km, the help would be of $1.200€. Italian government wants the electric cars to become more popular as their current prices are really high making their sales an irrelevant number, just 304 electric and 5.127 hybrid cars were sold in 2011. Without taking into account how Italian government will get the money for this, it is certainly a weird news if it is considered the position of Fiat, the only Italian car manufacturer.
Fiat Palio Electrico (Brazil). Electric Range (autonomy): 85 miles (135 kilometers). Speed: 60 MPH. Price about 70 000 dollars USD. Info and photo by electriccarphotos.com
Good for the intentions of Italian authorities and bad for Fiat if this plan becomes a reality. But somehow the government is giving the reason to Fiat. If an industry needs public support to become popular is because there is still a long path to become profitable. Government aids can boost a sector but at the end it will be unsustainable if the producers do not gain money without the aid. It is clear that electric cars are a growing industry and is still in an introduction and development phase, and therefore their demand is still low. But it is clear also that is not the only solution for energy sources, and maybe investing in what already exists to make of it more efficient can be the key for sustainability without public helps, that even with them, the final price for clients would still be high.
Electric vs. Gas options and prices in the same company. Information by omniauto.it and es.autoblog.com
Chrysler 300. Photo by netcarshow.com
Chrysler America wants to mantain the good sales records. For this month they are offering people to take any model from their dealers of Chrysler, Dodge, RAM, Jeep and Fiat, and then begin to pay 90 days after. This will certainly boost their domestic sales which have grown up 33% in the first 4 months of 2012 in an overall market that grew 10%. Therefore, it is expected May sales to reach another record, and being much higher than May/11 when the whole group sold 115.363 vehicles, up 10% compared to 2009 figures. So far, best selling models have been the RAM Pickup, up 23%, Grand Cherokee, up 51% and Wrangler, up 30%. The only models to see decrease their sales are Chrysler Town & Country, down 16%, and Dodge Charger, down 7%.
Fiat-Chrysler said they are ready to increase cooperation with Mazda and build their cars in Fiat and Chrysler plants worldwide. After this week announce of making a Joint Venture to produce the next generation of Mazda MX-5 and a future Alfa Spyder, this time people from F-C went forward to talk about more future plans together. Possible negotiations with a partner is something Fiat guys are working on as part of their plan to become more global and reach at least 6 million units by the year 2016. Mazda, as an independent manufacturer is one of the few available for a merge as they are looking also for a partner to develop new platforms and low costs of development.
Fiat has already some cooperation agreements with other car makers such as the manufacturing of Ford Ka sharing platform and body with Fiat 500, the twins Suzuki SX4 and Fiat Sedici, the common platform that share the Fiat Punto with Opel Corsa, and the Fiat Doblo and Opel Combo. This new intention of bulding Mazda cars could solve the extra production problem that Fiat and general car industry is facing nowadays in Europe. Mazda is mid size Japanese car manufacturer with strong presence in Australia and Israel and interesting numbers in Japan, Thailand, Colombia, the US and Canada. They are now introducing their new SkyActive technology, which is a efficient direct-injection gasoline and diesel engines that achieves, according to Mazda, the world’s highest compression ratio and achieves a 15% improvement in fuel economy.
Jeep, as Alfa Romeo, is considered one of Fiat-Chrysler’s best brand names. This SUV company is valuable for its global recognition, its glorious past and its promising future. It is one of the few only-SUV manufacturers and this allow it to specialize, offer great products and fulfil a fast growing segment in the whole world. There is certainly a long way to go to reach 800.000 units by the year 2016 as Marchionne said, but maybe it is a small number considered its big potential.
Jeep Wrangler. Photo by netcarshow.com
The SUVs from Jeep are present in several markets, but the big part of their sales are located in North America. Last year they had great sales numbers thanks to American economic recovery and very assertive marketing campaign. Although the range has not been deeply modified, during the last years (the only all-new model is the Jeep Grand Cherokee), the brand is going through a good period thanks to what they did very well some years ago: its popular Wrangler. This mid size Off-road still enjoys of high monthly sales figures due to its incredible mix of hard working vehicle with classic design. But Wrangler is not the only one. The all new Grand Cherokee has become a referent of large and luxury SUVs. It has been recognized as an excellent product with no problems when it has to compete with Germans or British. These two successful cars make part of a range of products that include also the compact SUVs, Compass and Patriot, not as popular as their brothers but with some interesting numbers. Jeep sells around 80% of its cars in the USA, 8% in Canada and has some presence in Mexico, Europe and the Middle East. By models, Grand Cherokee counts for 30% of total sales, followed by the Wrangler with 29%, the old Cherokee with 15%, and then the couple Compass/Patriot with 11,7% and 14,4%. Their sales performance in the US has been positive since May/10, while in the total sales for the year 2011, were up 44% (the total market grew up 10%).
Jeep Grand Cherokee SRT8 with 465 HP. Photo by netcarshow.com
Those numbers must be considered as the begining of next 5 years plan in which Jeep must reach 800.000 units globally. For doing so, they have to expand their business and consider growing markets outside the US. They have to increase their presence in the Middle East, where SUV segment had a market share of 34%, world’s largest. For that they must develop new concepts of SUV, larger ones than Grand Cherokee and focus on luxury. Something that is becoming popular in other markets such as China (where SUV segment has an enormous potential; in 2011 it was 13,5% of total sales) and Russia. The last news from Russia tell that there will be a factory for bulding Jeeps there in order to have a better access to this important market. In that context, Jeep could reach around 55.000 units in the whole Middle East region (GCC), 34.000 in China and 15.000 in Russia. On the other hand, Europe can become an interesting market only if they develop a unique succesor of the Compass/Patriot to be more competitive and look more compact just as Europeans like them (Ex: Nissan Qashqai). In this continent they can reach 132.000 units, 47.000 of them in Italy. Meanwhile they should forget that rumor of sharing a small SUV with Fiat, as Jeep is known for its hardiness and big SUVs. In other words, they have a great name and a big challenge to become global, but doing the right things in the right moment, will become a reality.
Jeep Renegade Concept. Rendering by hyundaigenesisblog.com
Fiat Group World 