Fiat to buy $560 Million share of Chrysler

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Kent

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So fiat is going to buy the government's share of Chrysler...

Lets hope this means we will get a rebadged 500 as a chrysler 100.

What do you all think?
 
Anything Fiat brings over here will be about as successful as the Smart car.

And I think Chrysler is unfixable. Just let it die.
 
Strictly from a business standpoint, I think it is a smart idea on behalf of Fiat. It is going to give them control of the company in the way in which they see fit, and that may mean we finally start seeing the products necessary to compete on an international scale. The thing is, however, there are still a bunch of people up here in Michigan who view it as another international takeover. I'm over it, because it is. In my mind, Chrysler hasn't been relevant since the mid-90s, so letting the Italians come in and push their products through existing dealer networks is fine by me.

The thing is, Fiat is still dragging their feet on the internationalization of distribution. Sure, they're going to start selling Chryslers in Europe as Fiats, but they've yet to return the favor here in the US. They scrapped the idea of selling the Lancia as a Chrysler, they're still touch-and-go with the new work van fleet, and it may be forever and a day until we see the officially-official return of Alfa Romeo.

They still have to do the following to make things right:
1. Get the Fiat network up and running alongside Chrysler and Dodge dealers
2. Dodge needs new C and B segment vehicles, pronto
3. Sell Alfa Romeos alongside Chryslers, eliminate the need for a luxury-based dealer network
4. ???
5. Profit
 
YSSMAN, not that easy. But it is a good start.

GM was developing the cross-platform model. Sell the same crap in every market. And then, the bottom fell out. The Chinese still are jones'ing for Buicks

Fiat, is essentially, bailing out Chrysler.

If you've ever been to Europe, you know that a 300C makes as much sense as an Escalade or a Suburban, or a HUMVEE (the H1). The Fiat is another alternative to the Smart car. For the majority that live in cities it's an actual option.

For rural communities, not so much.

Then again, the value of American cars in the EU is huge.
 
the 500 is a better option than the Smart, at least, kind of bridging that gap. It has enough power to move on the interstate without too many complaints...It is, by far and away, better than a Geo Metro or Ford Festiva for that sort of duty. It just has to be inexpensive enough to sell well.
 
GM was developing the cross-platform model. Sell the same crap in every market. And then, the bottom fell out. The Chinese still are jones'ing for Buicks

GM has been doing it since the '60s, where have you been? If anything, they are the posterchild of cross-platform-everything. The poor economy has basically re-enforced the notion of what GM was attempting to do... Develop a select number of platforms, and then, build as much as you can off of just a few. Thats why almost everything is going on the Epsilon II chassis. Make it flexible, stick it under everything, make a billion dollars.

*Point of Reference:
The Buick brand, in China, has been of high regard since the 1920s and 1930s when the cars were first imported there. Their nobility and other upper-class leaders all purchased Buicks over Cadillacs and Lincolns, and despite all of what Mao attempted to undo through the People's Revolution, it did little to deter them from buying Buicks as the economy opened up.

Fiat, is essentially, bailing out Chrysler.

That depends on how you want to look at it. Although it wasn't nearly as hostile as the takeover by DaimlerBenz in 1998, Fiat basically stumbled into the only way they were going to be able to easily re-enter the North American market... A place that they haven't been since the early '90s. Under Marchionne, Fiat has been able to see a great resurgence in Europe, and being the clever guy that he is, he realized that they can't defeat the likes of Volkswagen or GM without having the North and South American markets as well. Taking Chrysler on, or over, or whatever... That was the only way to cross the Atlantic again.

In my mind, it was a brilliant strategy on their behalf, and ultimately I would say it was a lot better than the previous alternatives that had been batted around before... A GM/Chrysler merger, Chrysler joining the Renault-Nissan Alliance, or being outright dissolved. I'll take the Italian Job, please.

If you've ever been to Europe, you know that a 300C makes as much sense as an Escalade or a Suburban, or a HUMVEE (the H1).

All despite the fact that, if my understanding is correct, the 300C and 300C Magnum sold rather well for an American car in Europe. Could it have been the affordability and the fact that it was not too different in size of a BMW 5-series? It works just as well there. They'll offer the Pentastar V6, the HEMI V8 variants, as well as a diesel that by all intents and purposes should be sold here... The only difference? It'll be sold as a Chrysler in the UK, and sold as a Fiat on the continent. That's fine. It will probably sell just as well, being yet another affordable alternative to the 5er and E-class.

The Fiat is another alternative to the Smart car. For the majority that live in cities it's an actual option.

For rural communities, not so much.

The 500 is a reasonable option for just about anyone. The biggest liability right now is the fact that Fiat does not have a dealer network in the US that is worth... Well.. Anything. Less than 200 dealers will not penetrate enough markets if they want to move as many 500s as they do, and for that matter, if they want to build the Fiat brand identification quickly enough in order to give us more of their Italian-made products. Cars like the 500, and even the Panda, are more than capable on the highways and byways of any community. They travel well on the freeway, and are exceptional in the city. I'd buy one immediately if the closest dealer wasn't 150+ miles away. For less than $18,000, you're getting quite a car... And a unique one at that...
 
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