Wednesday, July 29, 2009

Will Americans embrace Chrysler's Fiat cars?

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Here’s a question to ponder as Fiat takes control of Chrysler. Will Americans buy cars engineered by Italians for Europeans? History says no. For years, General Motors brought over the occasional Opel and tried to sell it as a Saturn or a Cadillac or whatever. The Saturn L-series was an Opel Vectra. The Cadillac Catera, or Caterrible, was an Opel Omega. Both failed.

In each case they encountered the same problem. Thanks to higher fuel prices, Europeans pay more for passenger cars. So when U.S. carmakers brought their Eurocars here, they often stripped them down to reduce costs and still make a profit at the lower prices Americans would pay. GM’s imported Opels often got weaker suspensions or the interior appointments weren’t as nice. The cars were watered down. Ford had a similar problem with the Ford Contour and Mercury Mystique, nicknamed the mistake. Ford kept the nice features and gave the cars the same nimble handling as the European Mondeo. But Americans didn’t want to pay up for a car smaller than a Taurus. It flopped.

Even Volkswagen—with its pricey family sedans and compacts—has never gotten big sales numbers in the U.S. The cars are too expensive to penetrate the mainstream, quality lags the Japanese and American models and the euro-to-dollar exchange rate has been killing them. Then you have failure in the U.S. by Fiat and Renault. In other words, Europeans have not been able to break the interloper’s curse when it comes to mainstream cars. In luxury, it must be said, BMW and Mercedes are kingpins.

In fairness to Fiat, a lot of the examples mentioned here were simply bad automobiles or wretched management decisions. Fiat plans to build cars here in Chrysler plants, which means competitive labor costs, lower shipping rates and no currency exchange risk. The business case looks much better. Also, the Italians know styling. The Fiat 500, pictured above, and the Alfa Romeo cars are quite catchy.

But to succeed, Fiat will have to adjust those cars to meet American tastes. European passenger cars tend to be engineered smaller to fit in tight European parking spaces and city streets. Americans like roomy rides. Fiat’s quality is barely average in Europe. They will have to step that up to compete with the likes of Toyota, Honda, Ford and, yes, GM. And when they come here in about two years, there may be even more competition from India, China, another European player or whoever Roger Penske can contract to make new Saturn cars. Fiat also has to improve Chrysler’s home-grown models, none of which get a friendly nod from Consumer Reports despite the supposed overhaul that outgoing CEO Robert Nardelli gave them. Fiat CEO Sergio Marchionne is a fix-it man. But he has a lot of fixing to do. His Chrysler play has hope, but it’s far from over, folks.

Fiat Panda Aria

The Fiat Panda Aria concept car marks the return of the twin-cylinder engine to cars, something which Fiat thinks is the next step to reducing fuel consumption and improving emissions. For the longest time, the smallest of cars like the K-cars of Japan have been using 3-cylinder inline engines. Fiat’s new SGE 900cc Turbo twin-cylinder engine knocks one off the cylinder count.

Fiat Powertrain Technologies decided to downsize from a conventional 4-cylinder engine to a 2-cylinder turbocharged engine. The engine incorporates Fiat’s Multiair electronic inlet valve control system (fancy word for throttle-less intake), turbocharging, and a Stop and Start device to reduce fuel consumption during heavy traffic. Two versions of the engine are available, with a third one under development.

The first variant is a 80 horsepower version that uses a petrol-methane fuel supply system. It runs on a mixture of 70% methane and 30% hydrogen. Then you have the Mono Fuel petrol-only version which puts out 105 horsepower. The third one currently being developed is a normally aspirated version making 65 horsepower.

The engine is 20% lighter and takes up 25% less space than a 4-cylinder engine that makes a similiar power output.

Other than the engine, the Fiat Panda Aria has a few other interesting features. The interior is upholstered with natural fibres, woven coconut fibre and biodegradable elements, while the exterior panelling is made of semi-transparent eco-resin and the structure is treated with opaque ‘totouch’ paint. Even the tyres are Pirelli’s experimental ultra-green tyres which use new compounds and new aromatic oil-free textile weaves.

One more rear shot after the jump.

Fiat 500 in India

Fiat 500 in India

Fiat 500

The Fiat 500 was launched in Mumbai on 19th July - Friday. This was a relaunch of the Italian car, known as Cinquecento, originally designed by Dante Giocosa, launched 50 years ago in Turin. The car will be available in India in both Diesel and Petrol variants with a starting price of Rs. 14,82,500.fiat-500-lara-dutta

The Fiat 500 comes with following standard features:

• ABS
• 7 Airbags (Knee, driver, Passenger, Side & Head)
• Blue & Me
• Automatic A/C
• Remote door lock
• ORVM with electrical drive & defrost
• Rear window defroster & wiper
• Steering wheel adjuster
• Front power windows
• Split rear seat
• Front fog lamps
• Smoker kit
• Electric servo – assisted steering
• Audio – Radio, CD & Mp3fiat-500-xray

Fiat 500 India

Fiat 500 lounge Version features:

• Alloy wheel
• Fixed glass roof
• Driver adjustable front seat
• Chromium kit
• Leather steering wheel with 8 buttons

Fiat 500 India

Fiat 500 sport version features:

• Alloy wheel
• Dark windows
• Sporty leather steering wheel with 8 buttons
• Sports seat with special countered padding
• Rear spoiler
• Chrome inserts on doors

Fiat 500

Whether you’re buying your first car, or just replacing an old one, the Fiat 500 is the car for you.

Why? Because it’s a car designed by you!

Take your pick from 4 different trim levels and 3 engines, not to mention a host of optional extras designed to enhance the style, sportiness and comfort of the Fiat 500. With over 500,000 different combinations available, you’re sure to find your perfect model.

Created by the Fiat Style Centre, the new Fiat 500 is a small 3-door car.

It is 355cm long, 163cm wide, 149cm high, and has a wheelbase of 230 cm. You could even describe it as a cute, playful compact with soft rounded styling.

Fiat 500 Pictures

Fiat 500s

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Fiat 500 India

Fiat 500 Exterior

The front combines the family feeling of the most recent Fiat models, with the distinctive elements of the first Fiat 500. For instance, you’ll notice features like the round upper headlights above and main beam lights below, as well as the familiar Fiat 500 whiskers and logo.

On the side, the mid-line slopes slightly at the front giving the Fiat 500 an impression of sturdiness.

While the rear features a distinctive chrome handle reminiscent of the number plate light holder found on the original Fiat 500 model, and similar in shape to that of a bicycle saddle.

To complete the look, there’s a choice of 12 body colours available - pastel, metallic and a pearl finish - all perfectly matching the wide range of interior fabrics and leathers.

And not forgetting the various options for customization of your Fiat 500: from stickers to alloy wheels, badges to style details, elegance and comfort.

Fiat 500 Interior Pictures

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Fiat 500 India

Fiat 500 Interior

On the inside, the Fiat 500 offers a welcoming, protective environment for both the driver and passengers. This is largely due to the large ring bordering the entire inner space, the great attention to detail, quality materials used, and instruments that aren’t just beautiful to look at, but are also easy to use. Chrome elements, two-tone seats, and a dashboard that perfectly matches the body colour combine with handy storage compartments and small details, like a fragrance dispenser, to create an environment that is both elegant and functional and can comfortably accommodate four people.

Fiat 500 India

Fiat 500 Italian designfiat-500-1960-model

Italian tradition, immaculate details and harmonious forms typical of the cars from the Fifties to the Seventies, combined with the influences of Italian culture, fashion and new guidelines merge to inspire the designers of Fiat 500.

Fiat tells us that the new 500 is not “a car that ‘looks like’ a 500 but, rather, one that ‘could be’ a 500 again. That said, at first glance, you could be forgiven for thinking that Fiat had never ceased production of the 500 and that the new model is the simply the latest example and the result of natural progression !

Fiat 500 India

Fiat 500 is a cool automobile - welcome to India !

Fiat 500C Pricing Disclosed

Fiat 500C

Fiat officially announced the sticker price of the convertible release of the Fiat 500C. The city car will be tagged starting at £11300 when it hits dealership this coming summer in the United Kingdom.

The Fiat 500 C aims to please the sector which loves value rides and appreciative of soft-top vehicles.

Fiat 500C back Fiat 500C wheels

Fiat will also be releasing a Lounge version which has a more powerful engine. This unit will cost £14100. Aside from the bigger engine, the Lounge will also have rear parking aid sensors, fog lights, automatic climate system, and alloy rims.

The Lounge version will also make use of Fiat’s Blue&Me which is a hands free entertainment system. It will also have the eco Drive, an advanced technology that analyzes the driving style of the occupant and gives fuel efficiency tips to help decrease harmful emissions.

Fiat 500C overview back Fiat 500C side top

The New Fiat Bravo

One of the most famous of all Italian carmakers is Fiat. Those of you who love cars must have heard about the new Fiat Bravo. Though this car from the stables of Fiat has been re-launched recently, it is not entirely a new car and has been around since 1995. In fact the Fiat Bravo had been doing the rounds from 1995 to 2001. Recently in 2007, this name was revived again as the replacement for the Stilo. The Stilo will henceforth be known as Bravo and shall not have three doors any more. Some of you might recall the Brava and it is interesting to know that both the Brava and the Bravo were both versions of the same car.

Fiat Bravo

The major difference is that whilst the Brava had a long 5-door hatchback, the Bravo has just a 3-door hatchback. You might be interested to know that the Fiat 131 was also known as the Brava in USA. Those who prefer cars with low pollution will love the new Fiat Bravo because of its low emission. Nowadays, every one is looking around for eco-friendly cars and for them the new Fiat Bravo might well be the best choice

Fiat 500, Barbie Inspired!

Barbie Fiat 500 Detail

This has to be one of the most bizarre Fiat 500’s I’ve seen to date. Inspired by the popular doll, this Fiat 500 Barbie Car is extremely high-end with a matching high-end price tag of well over $125,000. Yes, you read it right, well over one hundred and twenty-five thousand dollars.

That’s a heap of cash for a micro car. :D

Barbie Fiat 500

New Fiat Grande Punto pictures


Fiat's Grande Punto facelift has leaked onto the internet.

The pictures show parts of an undisguised Fiat Grande Punto, which is due to be officially unveiled at the Frankfurt motor show in September.

The Punto has a revised front end, inlcuding restyled headlamps and a new front bumper with three grilles and a grey centre section. The photos also show that the rear lights have been restyled.

The pictures also show a new dashboard that takes clear styling cues from the Bravo and features a revised gauge design and circular air vents.

The revised Fiat Grande Punto is also expected to benefit from the introduction of cleaner engines.

It goes on sale in early 2010.

Fiat 500 First Drive

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You might be wondering why KickingTires, the blog for car buyers, is posting about the subcompact Fiat 500, a car that's not available in the U.S. Well, it will be sold here next year, according to a Bloomberg report, and I had a chance to drive one on a recent trip to the United Kingdom. My early take on it is that it's a fun-to-drive little car in the vein of the Mini Cooper, but perhaps not the model the new Chrysler-Fiat alliance needs first in the U.S.

Fiatfront

One characteristic of the 500 that's very similar to the Cooper is its suspension, which manages to offer decent comfort on bumpy pavement while still delivering a sporting experience when cornering. The 500's steering, though not quite as weighty and engaging as the Cooper's, is quick and in keeping with the car's lively personality.

My 500 was powered by a 1.2-liter four-cylinder gas engine producing 69 hp. It's one of a handful of engines offered in the car overseas, but my guess is that it won't be offered in the States out of concern that customers might deem its relatively low output undesirable. A more likely base engine for U.S.-bound cars is the 1.4-liter four-cylinder gas engine that's rated at 100 hp, a little less than a Hyundai Accent.

Fiatrearquarter

I drove the 500 on everything from narrow city streets to the Motorway — the U.K.'s version of Interstates — and the 1.2-liter engine offered sprightly acceleration in the city and more modest performance at highway speeds. The engine is paired with a five-speed manual transmission, and the stick's light, precise movement through the gears made for easy shifting. I did have to be diligent about making sure the transmission was in the correct gear in order to keep engine power available.

Fiatinterior

Interior materials quality and construction is pretty good for a small car. It might be a little behind what Volkswagen is doing in terms of the richness of its materials, but the trim is as nice as what you'd see in small cars from Honda and Nissan. More importantly, the interior is much nicer than what Chrysler has been able to muster in its Dodge Caliber hatchback, the smallest car it currently offers.

Fiatseats

I wasn't a big fan of the 500's seats, though. The Lounge trim level I tested had attractive black-and-white checked seat fabric, and the driver's seat was height-adjustable, but the flat backrest wasn't the most comfortable when I drove longer than an hour or so. I could have also used a telescoping steering column; I was sitting fairly far away from the steering wheel with my arms stretched forward once I had positioned myself a comfortable distance from the pedals. Meanwhile, the two-person backseat — while somewhat short on headroom — can handle adult passengers if the front ones are willing to slide their seats forward to offer some extra legroom.

There's no question the 500 will improve Chrysler's small-car offerings in the U.S. It could also make a sales splash among car buyers who want the next new thing. That said, I think its small size will restrict it to niche status, and a niche model isn't what Chrysler needs right now.

What it does need is a small car that can take on the Honda Civic and Mazda3 and sell in high volume. The 500 isn't that car, but there are other, larger Fiat cars, like the Grande Punto and Bravo, that have potential. There's a good chance we'll see them in some form ... eventually.

More Photos

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Fiat Revs Up Junk Market

Italian auto maker Fiat SpA is tapping the new-issuance market for a €1.25 billion ($1.78 billion) bond, due to mature 2012, in another sign of Europe's reviving market for high-yield corporate debt.

Despite being rated as high-yield, or "junk," status, the new four-year issue Thursday drew heavy demand in the book-building process, with subscriptions of about €8 billion despite some concerns over its liquidity levels and its stake in ailing U.S. auto maker Chrysler Group LLC.

Fiat's bond will yield 9.25%, compared with a yield of 6.255% that was offered by investment-grade German car manufacturer BMW AG in February. The gap reflects the premium that Fiat must pay for funding.

Associated Press

Although 'it's a tough market for autos,' according to one analyst, Fiat's $1.78 billion issue saw brisk demand. Here, the dash of a 1980 Fiat 124 Spider.

In late May, the European junk-bond market began to revive following a yearlong hibernation imposed by investors' wariness of poor credit ratings.

Since then, there has been a steady stream of companies, including Italian telecommunications company Wind SpA and French spirits company Pernod-Ricard SA, launching high-yield bonds.

Fiat became a so-called fallen angel earlier this year when its credit ratings were downgraded to junk status from investment grade, adding to the company's liquidity problems.

That kind of a downgrade increases funding costs and eliminates investment-grade funds from its list of possible investors.

Jonathan Moore, a high-yield research analyst at Evolution Securities, said the bond market was familiar with the company and the deal would be completed with ease.

"It will not be a big test for the market, it is something it will be able to handle easily," Mr. Moore said. "It's a tough market for autos, but Fiat has done a reasonably good job and they are one of the auto companies that has done OK."

Analysts at research firm CreditSights said the proceeds of the bond would provide a useful boost to Fiat's liquidity, which currently stands at €6.5 billion.

The company, which has total net debt of €17.8 billion, has €7.4 billion maturing in the next 18 months, according to analysts at Standard & Poor's Corp.

"We understand that these maturities are currently covered, but there is still no headroom under the group's available committed bank line," S&P analyst Barbara Castellano said.

But analysts at CreditSights said that taking advantage of the receptiveness of the bond market and bolstering the company's liquidity cushion were positive moves for Fiat and would improve its credit-risk profile.

A Fiat spokesman declined to comment on the subject.

High-yield bonds are rated below Baa3 by ratings firm Moody's Investors Service and BBB- by S&P and Fitch Ratings.

S&P on Thursday said it was holding Fiat's rating at BB+ on a negative credit watch, suggesting that a possible downgrade could be pending.

Fiat also has a Ba1 rating from Moody's and a BB+ rating from Fitch.