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Chrysler and Fiat offering $1,000 rebates to VW owners as Marchionne gets tough

The throw-down between Fiat CEO Sergio Marchionne and Volkswagen has heated up in earnest. According to Bloomberg, Fiat and Chrysler are now offering current Volkswagen owners in the US $1,000 rebates to trade in their ride. It's the latest in a series of shots Marchionne has taken at his German rival. As you may recall, the Fiat executive entered into a spat with Volkwagen board chairman Ferdinand Piëch and CEO Martin Winterkorn in October after the duo called for Marchionne's resignation from presidency of the European Automotive Manufacturers Association (AECA). At the time, the Volkswagen executives were quoted as saying Fiat would not survive the European economic downturn.
In response, Marchionne called the German executives "reprehensible," and accused Volkswagen of using a pricing strategy that has created created a "bloodbath" in the EU. Volkswagen has taken to steep discounting to carve out ever-larger slices of market share in Europe, but the company has a much smaller foothold in the US. Marchionne may be trying to hit Volkswagen where the manufacturer is weakest with the new Fiat new incentive program.
Late last week, the Fiat executive was voted to a second term as ACEA president.

Fiat debuts 500 Ribelle, 500L Urbana Trekking

Fiat has introduced a pair of special edition models at the 2014 Miami Auto Show, trotting out the 500 Ribelle and the 500L Urbana Trekking.
The smaller of the two, the compact 500 Ribelle, expands on the 500's retro-chic looks by adding a red roof, spoiler and mirror caps, which should contrast nicely with the limited color palette of Bianco, Billet Argento, Grigio and Nero Puro. Aside from the paint changes, Fiat has added gloss black headlight and taillight bezels and black wheels. The cabin comes with a choice of two upholstery colors: gray and red or gray and black.
The five-door 500L Urbana Trekking adds a few pieces of matte-painted trim, in the form of new mirror caps, side sills and body side molding. Matte-black, 17-inch wheels spice up the exterior and match the standard black roof, while Fiat's six selectable colors (Verde Bosco Perla, Rosso Perla, Giallo, Bianco, Grigio Scuro and Blue Tornado) add a degree of customization to the limited-edition five-door. For some reason, the pretty matte paint shown in the gallery was a one-off item for the debut car, and won't be offered to consumers. Gloss black interior trim pieces and a mix of black leather and leatherette change up the interior ever so slightly. Beats Audio and satellite radio are both standard features.

Hellcat no help to Fiat-Chrysler's bottom-of-the-pile mpg average

What, you expected the "fastest muscle car ever" to help fleetwide fuel economy? Nope, don't think that's going to happen. That means Fiat Chrysler will likely to continue to languish at the bottom of the heap when it comes to fleetwide fuel economy among the largest automakers serving the US, especially as the automaker starts to sell its Dodge Challenger SRT Hellcat. A few hundred Fiat 500E electric vehicles aren't going to turn the trend around. See, Chrysler has once again finished at the bottom of the list when it came to fleetwide fuel economy among automakers for 2014 model-year vehicles, according to a preliminary study by the US Environmental Protection Agency. Chrysler and Fiat had an average of 21.1 miles per gallon. That substantially lagged the overall 24.2 mpg average, but it was an increase from the company's 20.9 mpg average last year and the 20.1 mpg average two years prior. For 2014, General Motors had the second-worst fleetwide fuel economy at an even 22 mpg. Fiat Chrysler does say it's working on improving its fuel economy, according to Automotive News. The company plans on making its inline-four-cylinder and V6 engines smaller, and will sell more vehicles with eight- and nine-speed transmissions. Heck, there's even a plug-in hybrid version of the Chrysler Town & Country minivan in the works for late 2015, and the company can tout fuel-efficiency gains with the Chrysler 200 and Jeep Cherokee. We would be remiss if we didn't note that, compared to its muscle-car forefathers, the Hellcat actually performs pretty well at the pump. Last month, word got out that the 2015 Challenger Hellcat, equipped either with a six-speed manual or an eight-speed automatic transmission, got a combined fuel economy of 16 mpg. Heck, the automatic-tranny version got 22 mpg on the highway. And that's for a car with 707 horsepower and a 10-second quarter-mile time. Still, with the pedal floored, the car can burn a gallon and a half of fuel per minute. Ouch.