Fiat C-Medium: Dodge Dart for China?

According to PlayersChina.com, which caught a fairly nonrevealing spy shot of a car with the almost exact lines and proportions of the Dodge Dart, Fiat will be selling its own version of the Dart in China, through the Guangzhou-Fiat joint venture. The car is, according to PlayersChina, to be sold with Fiat’s 1.4 liter turbo engine, in two different states of tune, with the six-speed dual clutch transmission. The engine is to be made in China.

The information may not be entirely accurate; the article refers to the Dart has having the same C-EVO platform as the Alfa Romeo Giulietta, which is not the case. The camouflaged car did have the same proportions as the Dart, with additional padding to conceal body creases. It appears that the front clip might be somewhat different.

Automotive News reported on January 9, 2012 that Fiat would produce two cars based on the Dart at the Guangzhou plant in Hunan Province, for export to Europe. The first would be a sedan, the second would be a hatchback, replacing the Bravo. While Alfa’s Giulietta is also a hatchback, the Dart-based one would be wider, longer, and possibly less expensive (or comparably priced but larger).

Chrysler’s early and successful foothold in China, Beijing Jeep, was taken over by Mercedes during the DaimlerChrysler years. (Thanks, RVC, for finding this news/rumor.)

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Caliber production ends

The Caliber has joined the Nitro and Dakota: production of the junior Dodge ended last week at the Belvidere Assembly Plant which will be switching over to the 2013 Dodge Dart.

The much-maligned Caliber had a very strong start and quickly became one of Chrysler’s best-selling passenger cars, reaching peak sales of 101,079 in 2007. Unfortunately, it soon became apparent the Caliber was a victim of Daimler’s increasing desire to be rid of Chrysler: poor, margin-driven, management decisions had produced an underpowered vehicle built with components that were all-to-obviously selected based only on price. By the end of 2010, Caliber sales had plunged 55.4 percent and Sergio Marchionne had designated replacement of the Caliber to be a priority.

The saddest part of the story is the “could-have-been.” In theory, the Caliber should have been a good vehicle: the concept was right; good ingredients were available and there was certainly no lack of engineering talent. But all of the corner-cutting and the incredible management arrogance in Stuttgart produced a vehicle they deemed to be “good enough” but really wasn’t. From the beginning, the Caliber was handicapped by a variety of issues, including Chrysler’s lackluster interiors and poor fit and finish.

Cerberus’ indifference built on Daimler’s neglect and the Caliber never got the upgrades that could have made it more successful so now it has driven off into the sunset to join the other “could-have-beens” in automotive history.

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Zetsche cleared of criminal charges

German public prosecutors have dropped an investigation into former Chrysler CEO Dieter Zetsche on suspicion of involuntary manslaughter.

Prosecutors in Osnabrueck said there was no basis for charges of corporate negligence in the accident that killed Christof Kemmler, a 27-year-old engineer, at a Daimler AG test track near Papenburg Germany.

Kemmler’s parents blamed Daimler for lax safety controls and for putting an inexperienced and exhausted intern behind the wheel for a high-speed test. The intern was driving a Mercedes SUV and hit a car being driven by Kemmler, who was conducting sound tests.

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Former “car czar” Ron Bloom leaving

Ron Bloom, 56, President Obama’s “car czar” and top manufacturing adviser will step down at the end of August. The White House released a statement on Tuesday confirming earlier reports. He plans to return home to Pittsburgh to spend more time with his family but hasn’t announced any future career moves at this time.

“For the past two and a half years, Ron Bloom’s leadership and expertise has helped us put America’s automakers back on the road to recovery, launch new partnerships to make our manufacturers more competitive, and set aggressive fuel economy standards that will save consumers and businesses money at the pump,” said President Obama. “I’m grateful for his service, and wish him well in his future endeavors.”

“I am grateful to have been given the opportunity to serve under President Obama and alongside so many talented individuals who worked tirelessly to strengthen the economy and help communities across the nation,” Bloom said of his tenure. “We’ve faced many tough choices and dealt with numerous challenges over the past two and a half years — from restructuring the American auto industry to developing historic fuel efficiency standards. I am confident in this Administration’s ability to build on these accomplishments and continue our efforts to revitalize the manufacturing sector.”

In February 2009, Bloom was named Senior Advisor to the Secretary of the Treasury on the President’s Task Force on the Automotive Industry. As Steve Rattner’s deputy, he oversaw the restructuring of Chrysler, giving it a chance to return to profitability with the aid of a multibillion dollar taxpayer rescue that saved the automaker from possible liquidation.

An experienced dealmaker, he played a key role in extracting key concessions from Cerberus Capital Management and the executive team in place at the time, as well as from Chrysler’s creditors and the United Auto Workers union.

When Rattner left the government in August 2009, Bloom took over the post of “car czar,” responsible for watching the industry and protecting the Treasury’s (and the taxpayers’) interests.

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Chrysler figures chronicle the carnage

Employment figures released today by Chrysler in advance of the negotiations with the United Auto Workers union show not only how deep Daimler cut worker ranks but the even greater slashes inflicted by Cerberus Capital Management in its tenure.

At the end of 2000, Chrysler employed 75,489 hourly and salaried UAW workers. By the time Dr. Z and the Stuttgart Seven dumped Chrysler seven years later, that number was down to 44,075, a 41.6 percent decline. In just two years, “Chainsaw Bob” Nardelli trimmed the union ranks by an even greater margin, 44.6 percent, to just 24,403 employees. In period from 2000 to 2009, more than 67 of every 100 UAW jobs at Chrysler was cut. The salaried workers came out slightly better; only six of every ten positions were eliminated, but the hourly workers on the production floor saw their ranks trimmed by 68.4 percent.

Since the alliance with Fiat, the tide has turned a bit. in 2010, Chrysler added 180 salaried positions and 966 hourly jobs, bringing its total UAW headcount to 25,549.

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Fiat to buy remaining U.S. Chrysler stake for $500 million

Fiat SpA reached a deal last night to pay $500 million for the U.S. government’s remaining 6% share of Chrysler Group. In addition, the Italian automaker will pay $60 million for the Treasury’s rights to buy the stake held by the United Auto Workers Voluntary Employee Benefits Association (VEBA). An additional $15 million will be paid to the Canadian government.

A Fiat press release announcing the deal was issued this morning in Italy. In the release, Fiat Chairman John Elkann said: “On behalf of my family and I, I reiterate our confidence in Sergio Marchionne and his leadership team and our support of all the people at Fiat and Chrysler who are working with dedication and humility and have made it possible to repay the trust that the U.S. government demonstrated towards us a mere 23 months ago. We will continue to support them as they further strengthen this historic alliance and together build an international automotive group capable of competing with the very best in the automotive market.”

Combined with the 46% it already holds, the government share will give Fiat majority ownership of Chrysler. Chrysler is also negotiating for the Canadian government’s remaining stake and will acquire another five percent when the final milestone, certification of a 40 mpg engine built in the U.S., is reached later this year. Altogether, Fiat could have nearly 59% of Chrysler by year’s end.

With the options to buy the VEBA stake, Chrysler CEO Sergio Marchionne says the company may not need an initial public offering. While this would be the easiest route for the VEBA to sell its holdings, financial analysts believe there might not be significant investor interest in buying into a company already majority-owned by another. Speaking to Bloomberg News, Stamford, Connecticut-based consultant Maryann Keller said, “Why would anyone buy shares in a situation where you are perpetually a minority investor. In that situation, you would buy stock in Fiat, not Chrysler.”

With the sale of its remaining stake and the repayment of the loans extended to Chrysler Group, the U.S. Treasury has recovered $11.2 billion of the $12.5 billion it loaned the automaker. The remaining $1.3 billion, loaned to the former Chrysler LLC when it was still owned by Cerberus Capital Management, is unlikely to be repaid.

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