[billfrombuckhead]

Fiat to take full control of VM Motori

http://articles.economictimes.indiatimes.com/2013-09-21/news/42272591_1_italian-carmaker-fiat-fiat-and-gm-full-control

Does this mean more Chrysler models will get diesels for American use? Durango? 300? Charger? Which others?

Imagine a Charger diesel police car. That would sure give Ford headaches.

 

[Erik Latranyi]

Fiat to take full control of VM Motori

http://articles.economictimes.indiatimes.com/2013-09-21/news/42272591_1_italian-carmaker-fiat-fiat-and-gm-full-control

Does this mean more Chrysler models will get diesels for American use? Durango? 300? Charger? Which others?

Imagine a Charger diesel police car. That would sure give Ford headaches.

This is already being discussed in th Fiat section.

 

[JavelinAMX]

... And what does having control over both FPT and VM mean to those entities who purchase products from either VM or FPT.

 

[MoparNorm]

... And what does having control over both FPT and VM mean to those entities who purchase products from either VM or FPT.

More options.

 

[superduckie5000]

More Oil Burners Available ! ! !

TMD

 

[guyverfanboy]

More Oil Burners Available ! ! !

TMD

Yes! That would be great!

 

[tryphon]

It means (eventually) a farewell to Cummings....

 

[JavelinAMX]

It means (eventually) a farewell to Cummings....

Just what I was thinking.

Iveco's 5.9L and 6.7L Sixes (that Iveco family) were co-developed with Cummins; have closely similar specs and by being produced in-house might possibly be lower cost for the performance (which would be a positive). But Iveco/FPT doesn't ring as true to a customer in the market that Ram commercial (or even consumer Ram) operates in.

But to a bean-counter, more than one source of the same thing might cause some sort of managerial hiccup.

 

[66coronet]

I think the big words are "planning".

 

[bumonbox]

It means (eventually) a farewell to Cummings....

I suppose. They need to be very careful, as Cummins has been a huge asset to Dodge Trucks over the years.. That said, the Ram trucks are making consistant advancements. I'd say their safest bet would be make sure to offer another, presumably smaller diesel in the heavy duty trucks to showcase it. Make sure to show people it's a solid engine, and in time they can change it with out loosing to many customers.

 

[dodgeatheart]

It means (eventually) a farewell to Cummings....

They just need to buy Cummins then. Otherwise, someone else will snatch up Cummins. I can not tell you how many people I have had tell me they bought a Dodge because of the Cummins engine. And a lot of (Chevy/Ford) guys only respect the Ram because of that engine. With no statistical backing, my guess-o-meter says about 30% of diesel Ram sales are because of the Cummins engine. I know, silly statement, but I bet it's not far from the truth.

 

[unverferth]

They just need to buy Cummins then. Otherwise, someone else will snatch up Cummins. I can not tell you how many people I have had tell me they bought a Dodge because of the Cummins engine. And a lot of (Chevy/Ford) guys only respect the Ram because of that engine. With no statistical backing, my guess-o-meter says about 30% of diesel Ram sales are because of the Cummins engine. I know, silly statement, but I bet it's not far from the truth.

TOTALLY agree.
Losing Cummins would be disaster.

 

[tryphon]

Is Cummins even for sale? They do have a great reputation in the US, but are less of a player internationally. At the end of the day, if they are replaced by VM, what will really matter is how much better the replacement engine is going to be.

 

[Dave Z]

Cummins is a very large publicly traded company whose main business is not pickup engines but Class 8 engines and marine engines. They are now getting deep into natural gas power in commercial vehicles and generators and such.

 

[dodgeatheart]

Is Cummins even for sale? They do have a great reputation in the US, but are less of a player internationally. At the end of the day, if they are replaced by VM, what will really matter is how much better the replacement engine is going to be.

For sale? I doubt it, but everything has a price in business. It will matter what they replace a Cummins engine with, but there are people who buy a Cummins engine with a Dodge body around it. Lots of them. Say goodbye to that customer base.

 

[Erik Latranyi]

They just need to buy Cummins then.

Fiat Market Cap: $7.5 Billion
Cummins Market Cap: $25 billion

You should be wishing for Cummins to buy Fiat!

 

[MoparNorm]

Is Cummins even for sale? They do have a great reputation in the US, but are less of a player internationally. At the end of the day, if they are replaced by VM, what will really matter is how much better the replacement engine is going to be.

Not for sale and about three times larger than Fiat.
VM doesn't build engines in the larger diesel family and Iveco will never have the reputation of Cummins, in the US.
So hopefully Cummins remains a diesel provider for the medium and Heavy Dury Rams for decades to come, otherwise, there will be about 30% of Rams market looking elsewhere.
VM could expand someday and could eventually rival Cummins in reputation, but it won't be in this decade.

 

[jorisr]

There are a few posts above this one that claim that Cummins is more than 3 times bigger than FIAT.
I think this would be a bit misleading.

If you look at total revenue and profit the picture is a bit different.

For the second quarter of 2013:

Cummins reports:
Revenue = $ 4.5 billion
EBIT = $ 621 million

FIAT Spa reports:
Revenue = € 22.3 billion (~$ 30.1 billion)
EBIT = € 1.1 billion (~$ 1.48 billion)

FIAT Industrial Group reports:
Revenue = € 6.8 billion(~$ 9,18 billion)
EBIT = € 529 million (~ $ 714 million)


So looking at the second quarter in revenue FIAT(including Industrial) would be almost 9 times bigger than Cummins.

Strictly looking at the market cap would mean that Tesla is a much bigger company than FIAT.

I don't think you put things in the right perspective if you only look at the market cap.

 

[MoparNorm]

Point taken, Cummins was until relatively recently, still a family owned business and not likely for sale in any event.
Cummins annual sales are approx. 17+ billion, way too large for Fiat to absorb.

 

[dodgeatheart]

You should be wishing for Cummins to buy Fiat!

It's the only "merger" I would approve of!