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Here's why GM is giving Marchionne the cold shoulder
Tue, Sep 8 2015What's funny about an Automotive News story titled Why Won't GM Play Ball with Marchionne? is that few people outside of the Fiat CEO and his confidants understands why General Motors would play ball with the Italian company. Marchionne has said the combined entity could increase its annual earnings by $5 billion, but even an outside analyst that agreed with the number only conditionally agreed, saying, "If you assume some synergies and peak US cycle market conditions then, yes, they could get to 30 billion." However, that same analyst described Fiat Chrysler Automobiles as "probably the most challenged within the global industry." Not US industry – global. And before that revenue goal could be reached, the merged companies would need to wade through a bureaucratic swamp. Plus the executive, manufacturing, financial, platform, procurement, and international labor swamps, among a few others. This AN piece can be viewed as GM's response to Marchionne's assertions and offers of various "hugs." It lays out numerous reasons why a more focused and disciplined GM - one almost done with a major crisis and able to focus on its priorities - believes Fiat would be the desperate housewife in such a scenario. On the other hand, while AN doesn't have Marchionne's numbers, to get a better sense of where the Italian is coming from you should read more of the "Industry on Trial" special report. Not that it justifies the creation of a GM-FCA, but it shows that the capital expenditures considering the amount of automaker development overlap are, to the outside eye, staggering. Related Video: News Source: Automotive News - sub. req.Image Credit: Bill Pugliano/Getty Images Earnings/Financials Fiat GM Sergio Marchionne
2013 Fiat 500e
Tue, 20 Aug 2013A Juice Box With Style And Substance
It happens nearly every day, and as often as not, I'm the guilty party: someone slips an eBay Motors or Craigslist link into the fetid automotive stew that is the Autoblog editors' online chatroom. Typically, it's enough to momentarily derail an otherwise productive dialog about editing a breaking news item or researching an arcane bit of automotive history. Predictably, we've all got our favorites. Once dubbed "Mr. Other Makes" by a former coworker and friend who noticed my penchant for four-wheeled eBay esoterica, I can't help but spend at least a few minutes trawling the online classifieds every night before I go to bed, staring glassy-eyed at some basketcase Bitter SC, Inca-wheeled Saab 99 Turbo, a moonshot Plymouth Road Runner Superbird or resuming my quest to seek out the world's last remaining unmolested first-gen Nissan Sentra SE-R.
Every Autoblog staffer has their peccadilloes, Editor-in-Chief John Neff among them. His classified quests skew toward larger sport sedans that discreetly package big performance. As the former owner of a first-gen Ford Taurus SHO Plus, Neff is a serial viewer of Pontiac G8, Audi S6, Lincoln LS V8 and BMW M5 listings. Yet the current apple of his eye is the 500E. No, not the bubbly electric Fiat shown here that shares its name, but rather the imposing 1991-1994 Mercedes-Benz E-Class, a hand-built V8 monster developed and assembled with Porsche acting as Daimler's skunkworks. A rare car, its values are starting to escalate, a reality that has Neff closer than ever to pulling the trigger.
Audi, Fiat squabbling over numbers and letters
Mon, Jan 19 2015There have been rumors and speculation and prognostications about a Nissan Juke- and Mini Cooper-fighting Audi Q2 since 2012. There have been the same for a performance-oriented Q4 since 2011, perhaps previewed by the TT Offroad concept shown last year at the Beijing Motor Show. Turns out that those two alphanumeric combos are the only ones missing from the series Q1 to Q9 in Audi's trademark stable, and the Ingolstadt company wants to get them to make its badge sequence and crossover lineup complete. But Fiat owns them, and rumor is, CEO Sergio Marchionne appears to have no interest in selling them. Fiat has used the Q2 and Q4 like trim badges, identifying whether a company product has two-wheel or all-wheel drive. They did it with the Alfa Romeo 159 sedan, and they do it now on the Maserati Quattroporte S and Ghibli S Q4 sedans. Car magazine says Marchionne "may not be categorically opposed to selling the rights," but he absolutely won't do it to any fiefdom in the Volkswagen empire, which would leave Audi a jilted suitor. Why is Sergio being so serious? VW Group CEO Ferdinand Piech first starting waving torches on the bridge between the two companies when he said Alfa Romeo could sell four times as many cars if Volkswagen owned it, then burned the bridge when it continued to publicize its desire to buy Alfa Romeo. VW followed that up by throwing salt on the land around the destroyed bridge with its aggressive pricing in Europe during the worst of the car sales slump there, which Marchionne said was causing a "bloodbath." VW's final flourish was to set the river itself on fire, when a press officer said Marchionne wasn't qualified to head the European Automotive Manufacturers Association (ACEA) and VW would quit the organization if he did take the top spot. That is why, putting it optimistically, Audi looks to have a grim chance of getting the Q2 and Q4 marques from the Italian. So long as he is in power, at least: Marchionne said he's walking away from the job in 2018. Audi might have a better chance bending the knee to, and generously rewarding, his successor. Featured Gallery Audi TT Offroad Concept: Beijing 2014 View 16 Photos News Source: CarImage Credit: Live images copyright 2015 Chris Paukert / AOL Government/Legal Audi Fiat Volkswagen Crossover Luxury Sergio Marchionne trademark volkswagen group