Marchionne gets Nasty, Tells VW Boss Piech to go and Fix SEAT Instead of Eyeing Alfa Romeo

Speaking at the J.D. Power and Associates International Automotive Round-table in San Francisco, Fiat Group and Chrysler LLC CEO Sergio Marchionne bluntly reiterated that the Italians won’t sell Alfa Romeo to the Volkswagen Group, or anyone else for that matter.

“As long as I am CEO of Chrysler and Fiat, Mr. Piech will never have Alfa Romeo. It's hands-off. I told him. I will call him and I will email him”, Marchionne said.

According to Automotive News Europe, Marchionne also took a shot at VW, saying that the group's Chairman Ferdinand Piech should try to turn around Seat, its struggling Spanish brand, instead of eyeing Alfa.

“I'm not the one who bought Seat. He's the one who bought it. I don't know if he can [fix it], but he needs to try”, the Italian official commented.

We’ll remind you that selling Alfa Romeo has been a hot topic for the past year or so, but Fiat never confirmed the rumors, periodically stating that it prefers to revitalize the Milanese company. Prior to Marchionne’s latest remark, it was Fiat Chairman John Elkann who also said that Alfa is not for sale.

“We would not sell Alfa even if we were offered tons of money”, Elkann told reporters on the sidelines of last month’s Detroit Auto Show, adding that the brand will be relaunched in the U.S. in 2012.

VW Golf Tops European Sales Chart in First Half of 2009, Ford Fiesta Finishes Second

Despite the heavy competition from the new Ford Fiesta that increased its sales in Europe by a hefty 34.2 percent to 243,340 units in the first half of 2009, VW's Golf continues to dominate the sales charts in the Old Continent with sales up 12.7 percent to 254,023 units in the same period, according to data released by Jato Dynamics. The rest of the top five list was rounded out by the Peugeot 207 with 193,778 units (-20,6 percent), the Opel - Vauxhall Corsa with 181,751 units (-14.1 percent) and the Renault Clio with 144,512 units (-28.0 percent).

Notably, the first ten places were occupied exclusively by European automakers - okay Opel / Vauxhall (at least for the time being) and Ford are controlled by their American parent companies.

Volkswagen was also Europe's top-selling car brand in the first half of the year with 842,787 vehicles sold, up 0.7 percent over the same period in 2008. Ford finished in second place with 666,548 units, down 3.6 percent over last year, followed by GM's Opel - Vauxhall division with 557,739 units (-16.8 percent), Fiat with 542,115 units (-1.4 percent) and Renault with 520,763 units (-18.4 percent).

Data: Jato Dynamics

Marchionne: Fiat and Chrysler Could Merge into a Single Entity in a Few Years

Speaking at the J.D. Power and Associates International Automotive Roundtable, Fiat and Chrysler CEO Sergio Marchionne today told reporters that the two companies could merge into a single entity based in the U.S. in the near future. Until then, Chrysler first has to refinance its government loans and launch an initial public stock offering, but Marchionne hopes that both will happen this year.

“Who knows? In the next two or three years, we could be looking at one entity. It could be based here”, said Marchionne. The companies are considering various “alternatives and scenarios. First we need to integrate them operationally and then look at governance”, he added.

Ever since the Fiat Group acquired a stake in Chrysler, in June 2009, the Italian company's main goal was to revamp the American brand’s portfolio. Models like the recently introduced 2011 Chrysler 200, 2011 Chrysler 300 and 2011 Chrysler Town & Country are just the tip of the iceberg, as the automaker wants to launch a total of sixteen all-new or revised models in 2011.

The automakers are also working on sharing an increasing number of platforms and technologies, which will help them to further expand their lineups. For example, early 2012 will mark the debut of a new Dodge compact sedan, built using Fiat underpinnings, with other models expected to follow afterwards.

Fiat currently owns 25 percent of Chrysler, a stake that could rise to 35% if a series of performance-related targets are achieved.

VIDEO: Fiat Engineer Explains the Differences Between the US- and Euro-Spec 500

During the U.S. presentation of the new 2012 Fiat 500, the Italian company's Chief Engineer Fabio Dimuro explained to journalists the main differences and changes compared to the European specification model. These include - but are not limited to- exterior and interior improvements, the introduction of a more appropriate for American consumers Aisin 6-speed automatic transmission, additional insulation that helped reduce powertrain noise levels from 76 db to 71 db, the addition of MultiAir intake system to the 1.4-liter engine, while Fiat and Chrysler also worked together to redesign the car's rear-axle. Hop over the jump to watch the video.

Lancia Ypsilon 'Collection 2011' Flies to Los Angeles for Promo Shoot

The Fiat Group is trying to make the best of its newly found contacts in the U.S. after its partnership with Chrysler LLC as the Italian automaker chose the city of Los Angeles to shoot the promotional photos as well as a new TV spot for its limited edition Lancia Ypsilon 'Collection 2011', which goes on sale in Europe this month. The special edition version of the ageing Ypsilon adds some unique styling touches such as bespoke color options for the body work and cabin trim, plus an upgraded interior with new fabrics and leather surfaces with contrast piping.

The 'Collection 2011' or as it is called in Italy, 'Collezione 2011', will be the last hurrah for the current Ypsilon as Lancia will unveil an all-new model at the forthcoming Geneva Motor Show. The next generation will be the first ever model in the Ypsilon series to be offered with a five-door body style.

Fiat Group to Make an Offer to Buy Carozzeria Bertone

The Fiat Group's appetite for acquiring automakers has yet to lose its edge. Today it was confirmed that Fiat S.p.A will make a 'non-binding offer' for Italian automotive design and contract manufacturing firm, Carrozeria Bertone that could be sold as part of a bankruptcy proceeding. It is reported that the deadline to make bids for the Italian coachbuilder is Thursday, July 16 with court administrators planning to have the sale completed by the end of the month.

Other companies interested in buying Bertone are said to include Chinese automaker FAW, an unnamed Spanish consortium and Italian entrepreneurs Gianmario Rossignolo and Domenico Reviglio.

Aside from the Carrozeria Bertone's design and engineering capability for specialty vehicles and concept cars, the firm also has a manufacturing plant in Turin. According to the coachbuilder's official site, the Grugliasco factory covers a total area of 310,000 sq.m. and has a potential output of around 70,000 vehicles per year.

The maker of the Corvette ZR-1 based Mantide concept supercar currently employs 1,140 people, down from 1,450 at the end of 2007.

Fiat Group and Guangzhou sign Agreement on China Car and Engine Production

Italy's largest manufacturer, the Fiat Group and China's Guangzhou Automobile Group (GAC) have signed an agreement for the establishment of a 50/50 joint venture that will produce cars and engines for the Chinese market beginning from the second half of 2011. According to the plan, the two parties will invest more than €400 million (about $560 million US) for the construction of a new, 700,000 square metre plant in Changsha, the capital of Hunan province in south-central China.

The Chinese plant will have an initial production capacity of 140,000 cars and 220,000 engines per year but Fiat said that capacity could be increased to a maximum of 250,000 cars and 300,000 engines annually.

The first model to be launched by the joint venture will be Fiat's C-segment Linea sedan while the first engines to come out of the factory will be the Italian firm's 1.4-liter four-cylinder gasoline engine in naturally aspirated and turbocharged forms producing 120HP and 150HP respectively.

Fiat said that the industrial project is qualified to receive support from the development plan recently established by the Chinese government to promote new investment in six provinces in central China.

Fiat Preparing Limited Run Abarth 500 in Gulf Livery [Updated]

We've received several e-mails tipping us off on a new limited edition version of the Fiat Abarth 500 Essesse dressed in the Gulf racing livery, which will reportedly be offered exclusively in Luxembourg in a limited run of 10 cars priced at €25,000 (plus VAT) a piece. While we appreciate all tips sent in, that doesn't mean we aren't going to -or at least try our best to- perform a background check and either confirm or debunk a story.

In this case, we didn't find a press announcement, but that doesn't necessarily mean the story is not true. However, the picture that has been floating around on several websites has definitely been doctored, and we say this not only because the colors are off, but mainly because we found the original image. Hoax or not, we must say that the 500 Abarth looks awesomely cool in those traditional racing colors.

*Update 1: Un point to the folks at Auto55 for sending in the official press release from Fiat Belgium (added after the jump) confirming the Gulf model - but not the photo, as we've already proved.

*Update 2: The guys from Autofan e-mailed the press photo in its original compression. Apparently, Fiat mastered the photoshoped image...

Source: Auto55 & Autofans & Vroom

EPA Rates the 2012 Fiat 500 at 38MPG on the Highway

The U.S.-spec 2012 Fiat 500 equipped with the 5-speed manual gearbox has received EPA ratings of 38 mpg on the highway, 30 mpg in the city and a combined figure of 33 mpg. American buyers can also opt for a 6-speed automatic, which is rated at 34 mpg highway, 27 mpg in the city and 30 mpg combined.

The 500 is produced at the Fiat Group’s Toluca plant in Mexico and it will start arriving in larger volumes this spring. The automaker plans to open a total of 130 dealerships, of which 40-50 will be in business by the end of March, while the rest should be open by the end of the year, according to Fiat North America.

At the start of sales three models will be available. The entry-level Pop costs $15,995, while the Sport and Lounge are priced at $17,995 and $19,995 respectively, with all prices including destination charge. The Sport model is expected to become the biggest seller of the lineup.

All models come equipped with power locks and windows, air conditioning, 50/50 split fold-down rear seat, speed control, heated mirrors, 7 airbags, 15-inch steel wheels and 4-year, 50,000-mile warranty.

Compared to its European counterpart, the U.S.-spec Fiat 500 was modified in order to be more appealing to American customers. The automatic transmission is one of the major additions, but the North American car is also quieter and has a more comfortable ride, while the 101HP 1.4-liter FIRE engine received the MultiAir intake system as well. Fiat claims that MultiAir improves fuel efficiency and power output by 10% over the Euro-spec engine.

Last but certainly not least on the public’s necessities list, the U.S. version also

Source: Autonews

Fiat Abarth 500 Gulf Limited Edition: The Real Photos

This here is the actual, factual Fiat Abarth 500 Gulf Limited Edition special in the flesh, photographed at the Autopolis Fiat dealership in Luxembourg. We say this because yesterday, we reported on the limited run special and Fiat's photoshoped picture that made the internet rounds. While our friends from Auto55 and Autofans verified the story with the official press release, we were left wondering what the Italian mini with the classic racing-livery would look like in real life.

Today, our pondering came to an end as the Marketing and Communications director of Autopolis Luxembourg dropped the first real life shots of the car in our mailbox. We believe Fiat should have released these photos instead of the 'chop from the beginning, but we'll give them props for keeping a close eye on the web-o-sphere and swiftly reacting to our post.

As for the car itself, it was created by the Italian brand's official importer for Luxembourg, Autopolis, in association with Gulf Petroleum, to celebrate the latter's 10th anniversary in the country.

Only ten examples of the Fiat Abarth 500 Gulf Limited Edition will be built, each priced at €25,000 (not including VAT) a piece, which is about US$34,000. Aside from the iconic Gulf Racing livery, the special edition 500s also get the 'esseesse' performance kit that pushes the 1.4-liter turbo engine's output to 160-ponies, a Monza sport exhaust and Corse-Sabelt racing buckets with the seatbacks finished in Gulf-blue.

Foreign Automakers Review Relationships with Tunisian Partners, which...”happen” to be Relatives of the Ousted President

The looting of the Ferrari 599 GTB owned by former Tunisian president Zein al-Abidine Ben Ali and the smashing of cars owned by his relatives including a Ferrari California may have been eye-catching in an offbeat sort of way, but there are more important automotive-related stories coming out from Tunisia.

It has been reported by several news agencies that Tunisians are also destroying random vehicles made by Kia, Fiat, Porsche and other makers. The reason? Because the companies that distribute them are controlled by members of the ruling family. Now, in light of all the latest developments, many international automakers are reviewing their business ties to the extended family of Zein al-Abidine Ben Ali, according to the Financial Times.

The daily newspaper said that up until now, the country's car market, which totaled just under 60,000 units in 2010, was heavily regulated by its trade ministry that favored importers controlled one way or another by relatives of the former president or his wife, Leila Trabelsi.

Companies controlled or owned by the family members of the ousted presidential couple include:

-Ford, which sells cars in Tunisia through a company partially owned by Belhassen Trabelsi, the former president’s brother-in-law;

-Ennakl, a dealer for Porsche, Volkswagen, Audi, and Seat controlled by Mohamed Sakher al-Materi, the president’s son-in-law;

-Kia, which distributes its models through City Cars, part of the El Materi Princess Holding, another company controlled by the former president’s son-in-law, Mohamed Sakher al-Materi;

-Le Moteur, which acts as an importer for several companies including Mercedes-Benz and Fiat, and is owned by Marouane Mabrouk, the deposed president’s son-in-law;

-Peugeot, which is represented by Stafim, a company in which Mehdi Belgaid – said to be engaged to Halima Ben Ali, the former president’s daughter – owns a stake;

Some carmakers such as Audi have stopped exporting their cars to the country because they are not sure if they would clear customs as well for their safety once they arrive on the dealer lots. The financial daily quoted Audi as saying; “We will have to look at whether we can continue doing business with this partner and whether they are the right partner for us. ”

Ford said it also looking into the matter and reassessing ties with its Tunisian importer, while Mercedes-Benz said it found no wrongdoing on behalf of Le Moteur but will monitor the situation. A Peugeot spokesman said the automaker will wait to see what the new government will do with companies associated with the president's family.

Other carmakers, including Kia and Porsche, said that for the time being, they will continue to do business as usual with their partners. Porsche in particular said it has no plans to change its arrangement with Ennaki “as long as the company is operational and paying for cars”.

The newspaper said that Fiat "would not comment on its business in Tunisia, or its local partner."

Source: Financial Times

Agnelli Grandson's Haute Couture Ferrari 599 GTB Blue-Jean Edition

When you're an heir to the Agnelli and Fiat fortune, you can have whatever car you want customized to your own personal - even bizarre- tastes. Take for example this Ferrari 599 GTB Fiorano that is said to be owned by Lapo Elkann, the son of Alain Elkann, the writer, and Gianni Agnelli's daughter Margherita. The one-off Ferrari features a special two-tone matte paint job as well as a unique interior trim.

But while we can overlook the 599's unique paint scheme that combines a flat aqua color for the body with a flat dark blue finish for the rooftop, exterior mirrors, alloy wheels and the rear apron - diffuser, there's something definitely wrong with the interior. It's one thing seeing a blue-jean denim upholstery in a Fiat Panda and another in a high-performance and exclusive supercar like the 599.

Lapo, besides being uber-wealthy and constantly featured in gossip columns for his playboy lifestyle, also made world headlines in 2005 after a drug overdose with some middle-aged cross-dressers in a Turin apartment.