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Fiat’s five year plan

by David Zatz on

Sergio Marchionne reiterated his belief that Europe had too much production capacity, praised the UAW for its role at Chrysler, said he would run the car business after it was spun off, and slammed a small number of analysts whose pessimism was not supported by factual material.

Maserati is planning to enter the E segment. Though no further information was given, this will likely use the LX or LC cars made by Chrysler as its base. In the past we were told that Maserati may use a twin-turbo version of the Pentastar V6 expected to reach 400 hp.

According to the comprehensive five-year plan which Fiat/Chrysler CEO Sergio Marchionne unveiled today, the next generation of Alfa Romeos, the Spider and new Giulia, are slated to be based on a Chrysler platform, with production starting in 2012 and 2013.

As previously stated, Chrysler and Lancia are to be integrated. A new compact minivan will be created and the current Ypsilon will be replaced. As rumored earlier, Dodge cars other than the Charger, Challenger, and Viper will be integrated with Fiat’s line.

Fiat and Chrysler’s combined volumes are projected to hit 6 million cars by 2014, which Marchionne said was the minimum needed to be globally competitive. Rather than cutting back on Italian production, Fiat intends to double production there by 2014, presumably using Chrysler to add new vehicles.

He also said Fiat would expand its European dealerships by 1,600 within the next five years; 950 would be dedicated to Chrysler. 34 new models are to launch in Europe, 13 of which are to be produced in North America. At the same time, the number of architectures will be cut from 16 (in 2006) to five (in 2014), with a plan for 7.6 models per architecture (from 1.7 in 2006).

Fiat’s top market is currently Brazil, followed by Italy.

Alfa Romeo’s status has been raised. Though, like Lancia, it cannot survive on current volumes, he believes Alfa’s return to having a full line (fueled by Chrysler cars) and return to North America would help. Part of the projected gain would be at the expense of Eurocompetitors: “We’ve allowed the German contingent to dominate the C and D segment in Europe.”

Manufacturing improvements are saving a claimed 1.9 billion euros over five years, while combined purchasing will supposedly save another 2.9 billion euros in the next five years. (A euro is currently worth $1.34 in US and Canadian currency.)

Fiat is working on a version of its 6 speed dual clutch automatic (automatically shifted manual) transmission for 4x4s, including Jeeps; it can cut CO2 emissions by 24%.

David Zatz founded Allpar in 1998 (based on a site he had begun in 1993-94), after years of writing reviews for retail trades. He has been quoted by the New York Times, the Daily Telegraph, the Detroit News, and USA Today. Before making Allpar a full-time career, he was a consultant in organizational psychology. You can reach him by using our contact form (much preferred) or by calling (313) 766-2304

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