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P. Diddy hosting Fiat 500L desert party

Fiat didn't run an advertisement during this year's Super Bowl. We've no idea why, though, because based on this recently released 60-second spot, the Italian brand probably could have done quite well during the big game.
The spot, called Mirage, stars Sean "Diddy" Combs (who happens to be the ex of former Fiat spokesperson Jennifer Lopez) and a pair of very unfortunate pedestrians. Wandering through the desert, the two are confronted by what they think are mirages before stumbling into a giant party hosted by the Grammy Award-winning rapper. It's a humorous spot, highlighting a product that Fiat really needs to succeed, the new 500L.
The Super Bowl-worthy ad is part of a larger campaign that will hopefully help distinguish the four-door L model from its smaller, two-door counterpart. "Too many people discover the 500L through the 500. That's what we have to solve for here," Jason Stoicevich, head of Fiat's brand in North America, told Automotive News. "It's awareness. We know it, we understand it and we had to find a creative way to deal with it."

Fiat 500X poised for Paris catwalk

We've known for some time that the new, Fiat-based baby Jeep (which may or may not be called the Jeepster) is set to arrive at the 2014 Geneva Motor Show. What we weren't sure of was whether its platform mate, the so-called Fiat 500X, would be doing so alongside or at a later date. Well, according to Reuters, we'll get to see the first all-wheel-drive 500 later this year in the City of Lights.
Yes, we can expect the 500X to arrive at the 2014 Paris Motor Show, according to an official with an Italian trade union. The unnamed source cited retooling at Fiat's Melfi factory, in southern Italy, which currently produces the Grande Punto. It's expected that the newest member of the growing 500 family will replace the Suzuki SX4-based Fiat Sedici, although when the X will go on sale remains an open question.
According to Reuters, both the Jeepster and 500X will be built alongside each other in Italy. Whether the 500X will cross the pond with it's slat-grilled cousin, though, remains to be seen (we're leaning towards yes).

Chrysler nets $1.6B income in Q4, Fiat profit up 5%

Chrysler announced its 2013 financial results today and unveiled its new name and decidedly bank-like logo. Amid the announcement, Chrysler posted big gains in income, while Fiat didn't perform to analysts' expectations.
For 2013, Chrysler had revenue of $72.1 billion, up 10 percent from 2012. Net income reached $2.8 billion, a 65-percent increase. It was the company's third straight year of annual profits.
In terms of unit sales, Chrysler sold 2.4 million cars worldwide in 2013, up 9 percent. According to Automotive News, 1.8 million of those vehicles were sold in the US, a 14-percent increase. The sales growth boosted Chrysler's US market share to 11.4 percent, up 0.2 percent.

Fiat Chrysler Automobiles has new name, logo

The question of what we'll call the new, combined empire of Fiat and Chrysler has been answered - the new entity will be known as Fiat Chrysler Automobiles. Initialized down to FCA, the new company will be organized in the Netherlands, meaning its full name is Fiat Chrysler Automobiles N.V. For those interested in such things, shares will be traded in the new company on both the New York and Milan stock exchanges.
Sergio Marchionne, one of the masterminds behind combining the two manufacturers, had this to say in an official statement:
"Today is one of the most important days in my career at Fiat and Chrysler. Five years ago we began to cultivate a vision that went beyond industrial cooperation to include full cultural integration at all levels. We have worked tenaciously and single-mindedly to transform differences into strengths and break down barriers of nationalistic or cultural resistance. Today we can say that we have succeeded in creating solid foundations for a global automaker with a mix of experience and know-how on a level with the best of our competitors. An international governance structure and listings will complete this vision and improve the Group's access to global markets bringing obvious financial benefits."

Chrysler purchases remaining shares from VEBA Trust, announces funding plan

It's official: The Detroit Three is now The Detroit Two and The Fiat Subsidiary, Chrysler. Both the Italian carmaker and The Pentastar announced the completion of cash payments and a Memorandum of Understanding (MOU) on future payments necessary to make the Chrysler Group a wholly-owned subsidiary of Fiat. As previously detailed, Chrysler made a cash payment of $1.9 billion and Fiat North America made a cash payment of $1.75 billion to the Voluntary Employment Benefit Association (VEBA) run by the United Auto Workers union.
On top of that, Chrysler Group signed an MOU that agrees to payments of $700 million to the VEBA in four installments, the first of which was made concurrently with the other cash payments. And for you trivia mavens, the full name of the UAW is the International Union, United Automobile, Aerospace and Agricultural Implement Workers of America. So go impress your loved ones with that nugget after you check out the press release below.

KSPG testing low-noise EV range extender engine

If you're going to add a gas-burning engine to an electric vehicle, it makes sense to have it be whisper quiet. We haven't heard the engine ourselves, but supplier KSPG AG said during the Detroit Auto Show this week that the range extender it put into a Fiat 500 for test purposes introduced "barely perceptible noise and vibration" levels. The engine, a two-cylinder V-type with something called "FEVcom vibration compensation" that allows the engine to kick on and power the vehicle without the cabin occupants really being able to notice. The whole unit - including a vertical crankshaft, two generators and gear wheel drive - comes in a ready-to-install support frame, KSPG says. Installed in the 500, it certainly looks tiny (click the image above to see what we mean). KSPG says the range extender is "largely universally mountable" and could be made cheaply if it were used in a variety of vehicles. KSPG worked with FEV on the project. Read more in the press release below. Low-noise range extender dispels battery runtime angst January 13, 2014 Together with FEV GmbH, KSPG is currently and successfully testing a range extender developed for electric vehicles. The test vehicle, based on the FIAT 500, has already undergone comprehensive tests at KSPG. Customer response to tests conducted at various OEMs underscore the targets achieved in the development of this extender where emphasis was on barely perceptible noise and vibration from the 2-cylinder V-type engine fitted with FEVcom vibration compensation. Thanks to its dedicated design features including active vibration compensation and convenient mounting location, the system on show performs excellently in the noise- vibration-harshness discipline. As a consequence, the impression of low-noise electric propulsion hardly suffers whenever the extender goes about its work. The range extender allows vast flexibility in the configuration of its operating strategy. Depending on the timing and load conditions for when it starts up, the unit's "operating philosophy" can be very closely adapted to any given conditions. The extender's advantages are to allow a reduction in battery size and cost and in the related weight. Also, the car can maintain its customary travel range without having to stop for lengthy recharging. It dispels "runtime angst," a phenomenon not to be underestimated when introducing electric mobility.

Honda scores big in Automobile Advertising of the Year Awards [w/videos]

This year the Detroit Auto Show didn't just celebrate the automobile, it celebrated how we find out about the automobile, too. Partnering The One Club, this year introduced the 2014 One Show Automobile Advertising of the Year Award to Cobo Hall, celebrating winners in five different categories of advertising: broadcast television, online, interactive, experiential, and print/outdoor. Winners in those categories were judged by 50 creative directors and journalists, while a Public Choice category was chosen from among nearly 20,000 online votes.
Honda walked off with three of the six awards, its Hands spot taking Broadcast honors, its Sound of Honda getting the Online category and Illusions winning Public Choice. Hyundai made the grade in Interactive with Driveway Decision Maker, Fiat captured Print/Outdoor with its "Letters" ad, and Toyota's Tundra Endeavor Campaign spot and BMW's A Window into the Near Future were co-winners for Experiential.
You can watch all of the press release and winning videos below or check out all of the finalists, announced last month, for a refresher.

Fiat to list on New York Stock Exchange?

Citing the ever-nebulous "two sources close to Fiat," Reuters is reporting that the Italian automaker and owner of the Chrysler brand is likely to list itself on the New York Stock Exchange. The move could reportedly happen as soon as 2015, marking the end, at least in the minds of investors, of Fiat's 115-year base in Turin, Italy.
The Italian government is not likely to react favorably to Fiat's potential move from Italy to the United States, despite initially positive reactions to Fiat's landmark final purchase of Chrysler, the third-largest automaker in the US. Fiat spent $3.65 billion to buy out the 41.46-percent stake in Chrysler that had been owned by the United Auto Workers' VEBA trust fund.
With little sign of a swift European recovery, Fiat has little choice but to focus on markets outside its traditional home, and a listing in New York could potentially be a boon for investors. According to International Strategy and Investment analyst George Galliers, speaking to Reuters, "People [would be] more likely to think of the entity in the same context as they do Ford and GM" if it were listed on the NYSE.

Marchionne completed Fiat-Chrysler deal from a Florida beach

Sergio Marchionne is the CEO of Fiat, which as you may have heard, has finally worked up a deal to finish acquiring the Chrysler Group after months of bargaining with the United Auto Workers and its VEBA healthcare trust, which owned just over 40 percent of the American brand. Where was Marchionne when the deal was finally hammered out? Well, not tucked away in a frigid Detroit board room until the wee hours of the morning.
Nope, one of the largest deals in automotive history was reportedly hammered out on the beach - at the home of a banker, in the Florida resort town of Vero Beach. Marchionne traveled to the home of Alain Lebec, a senior managing director at Brock Capital LLC, one of the advisory companies for the VEBA fund, where both sides met to make final arrangements in the $4.35-billion exchange. The location of the final deal, though, is nearly as remarkable as the pace with which it came about.
According to anonymous sources pinned down by Automotive News Europe, before the meeting, the two sides were meeting in Detroit as recently as December 19, which is where Fiat made one of its final revised offers. Naturally, the VEBA made a counter offer, which led Marchionne to initiate the Vero Beach meeting.

Fiat stock rockets up after word of Chrysler deal

Now that Fiat has finalized a deal to purchase the outstanding shares of Chrysler owned by the United Auto Workers' VEBA retiree heathcare fund without having to file for an IPO, you can count the Italian automaker's stockholders among the happy. The Detroit News reports that Fiat stock closed Thursday with a 12-percent gain for the day on the Borsa Italiana, having been up by as much as 15.8 percent during the day's trading, at prices not seen since mid-2011. One trader reasoned the run was because Fiat "paid less than the market had expected and there will be no capital increase to fund this."
But there are some who worry, including bank analysts and unions. The final price of the stake will be $4.35 billion - $1.9 billion in cash from Chrysler, $1.75 billion from Fiat and extraordinary dividends in the amount of $700 million paid over three years. Adding that sum to its ledger will raise Fiat's debt level to roughly 10 billion euros ($13.8 billion), which Citibank says will make it the most indebted OEM in Europe.
Italian unions are also concerned about what the deal means for the future. Fiat CEO Sergio Marchionne has had an at-times contentious relationship with both unions and the Italian government over the future of Italian manufacturing, a fact that makes headlines because Fiat is Italy's largest private employer. At least two left-leaning unions have publicly called on Fiat to give guarantees and to explain what the deal means for its Italian operations, while a centrist union argues this is "good news for Fiat workers, for the auto industry and for our country."