Chrysler employees received some good news this week. The automaker announced it would issue profit-sharing checks worth $1,500 to each of its hourly workers for the first time since 2005. The company posted a $183 million profit for 2011, marking the first time the company has avoided a loss in six years, according to The Detroit Free Press. The earnings were due largely to a host of more compelling vehicles, including the Jeep Grand Cherokee, Dodge Durango, Chrysler 200 and 300. Each of those vehicles command a higher price tag than their less-refined predecessors.
On average, buyers have been willing to hand over $3,200 more for their Chrysler vehicles than they did just one year prior. Company CEO Sergio Marchionne said the profit-sharing checks were a reward that the company's workers had earned.
Interestingly enough, parent company Fiat isn't enjoying the same success back home. According to the report, without the earnings from the Italian automaker's stake in Chrysler, Fiat would have reported a $265 million loss in 2011. In a strange turn of fate, Chrysler has begun supporting Fiat. With Italy and the rest of Europe in the throws of a debt crisis, the automaker doesn't look to have a better 2012, either.
Fiat has finally tipped its hand on the 500L. After months of watching painful renderings of the five-door hatchback float to the surface, the company has dished a few official details ahead of the vehicle's debut at the 2012 Geneva Motor Show in March.
The 500L is 162.9 inches long, a smidge over 70 inches wide and 65.3 inches tall. Fiat says the four-door 500 combines an SUV driving experience with B-segment fuel efficiency and could easily serve as a first car for those who like the 500 but need a little more functionality. The Fiat 500L will begin production in Europe in the last quarter of this year. When it does, two gasoline engines and a turbo-diesel will find their way behind the headlights.
The Italian automaker isn't saying much about the company's plans for the 500L in the U.S., but we've previously heard American buyers will be able to sample the five-seater soon. Believe it or not, a seven-seat version is also planned for Europe. Follow the jump for the full press release and stay tuned for the unveil on March 6.
This year Mopar is celebrating 75 years since its name - a combination of MOtor and PARts - was first trademarked. During that time, Mopar has evolved to become synonymous with performance parts for Chrysler and Dodge vehicles, as well as amp'd-up specialty package vehicles, vehicle service and maintenance, and add Fiat to the long list of Chrysler Group brands it supports since the Italian automaker took part ownership in the smallest of Detroit's Big 3.
Anniversaries usually come with presents, and Mopar is bring four to show and share at the Chicago Auto Show next month. The first, and only one that will be sold turn-key, is the '12 Mopar 300, which becomes the brand's third factory-built model for modern times following the '10 Mopar Challenger and '11 Mopar Charger. While offering no more power than a standard 5.7-liter V8-equipped 300, the '12 Mopar does benefit from a new final-drive ratio of 3.91:1 that drops its 0-60 time in the low five-second range, as well as a significantly stiffer suspension, grippier tires and brake system upgrades.
Then there's the exterior. If the plague's preferred method of transmission were by car, this would be its ride. It is the Black Death on wheels, which themselves are 20-inch, 8-spoke forged aluminum rollers painted Gloss Black with Mopar center caps. We especially like the tasteful blue striping that appears across the '12 Mopar's sides and around its rims. While we've yet to see it, Mopar says the interior is equally void of light save for accents of Mopar Blue.
Only 500 of these '12 Mopar 300 models will be built and sold this summer for the price of $49,700, which includes destination charges. Each one will also come with a special box of goodies that includes Mopar-branded key fobs and merch; proof of the vehicle's exact manufacture date and number built; and a sketch of the car signed by its designer.
Follow the jump for three more anniversary models from Mopar.
Fiat has served up a few more tidbits on the upcoming 500L five-door expected to debut at the Geneva Motor Show in March. According to Automotive News, the vehicle will feature a taller roof than the thee-door Fiat 500, and while the two sill share a front fascia, the larger vehicle will ride on a widened version of the same chassis that underpins the Fiat Punto. All told, the Fiat 500L will be around 163.38 inches long, which is around 2.36 inches longer than the current 500.
Interestingly enough, Fiat plans to introduce both five-seat and a seven-seat version of the 500L in the near future, though American buyers are only likely to be able to enjoy the former configuration. The 500L is expected to touch down on dealer lots in Europe in July, while Americans will have to wait until early 2013 to plop themselves in the driver's seat.
In Europe, the vehicles will likely be available with with a turbocharged two-cylinder 900cc gasoline engine with 85 horsepower as well as a 1.4-liter four-cylinder good for either 77 or 105 hp depending on configuration. A 1.3-liter diesel will also be an option across the pond with either 75 or 99 hp. Odds are American buyers will simply see the 1.4-liter Multiair four-cylinder on their option sheets.
Recognize that tag line? It was used in the first ad for the 2011 Jeep Grand Cherokee, a 90-second spot devoted to resetting our image of Jeep and, subtly, America itself. Chrysler parent Fiat evidently thinks so much of the tagline that they've taken it to Italy for use in the ad campaign for the 2012 Fiat Panda.
Italy's had a tough time of late: just as it was trying to get Berlusconi and his "bunga bunga" in the rearview, its debt crisis went from 'critical' to 'euro-zone threatening,' austerity measures led to social and labor unrest, and now comes the capsized Costa Concordia and an Italian captain with the unique ability to trip and fall into a lifeboat before his passengers.
The Panda doesn't softly beat the drum of national spirit, it instead presents the Panda as just one symbol of what Italy can be if it is dedicated to working its way out of its funk. The Panda is so symbolic that, unlike in the Jeep commercial, the narrator never mentions the car. It's airing on Italian television now, and you can see it after the jump.
When a new vehicle arrives, the previous model is usually consigned to the history books. But that isn't always the case. Volkswagen, for example, has continued production of outdated models in South America and other markets years after they've been replaced. Jeep did the same with the XJ Cherokee in China, and now Fiat has taken a page out of the same playbook with the Panda Classic.
Launched in 2003, the outgoing Panda remains a strong seller in Italy (where, despite its lingering age, it held 38 percent of the market share last year) and across Europe (where its 15.7 percent market share makes it the top-selling city car). It's now being replaced by the New Panda, but rather than phase the old car out completely, it lives on as a budget proposition.
The front-drive Panda Classic will be offered in one trim level, with six color options and four engine options. The all-wheel-drive Panda Climbing soft-roader also soldiers on with similar specs.
Although the New Panda may be the better product in every way, European buyers on a budget may find the Panda Classic a tempting proposition with prices starting at just 7,900 euros. Full details follow in the press release after the jump.
Fiat USA put a video showcasing the 500 Abarth on the Internet last November that tested the bounds of what is doable on network TV. That's one of the big reasons it hasn't been put on TV yet.
You'll see what we mean when you view the ad, titled "Seduction," after the jump. It was the foam that made it iffy for the networks.
But we chatted with Chrysler marketing chief Olivier Francois at the Detroit Auto Show about Super Bowl commercials where advertisers are known to push the envelope. In the Chrysler-Fiat world of double titles, Francois is also CEO of Fiat.
Francois, who is considering a few options for the big game, is wondering if the Abarth video is Super Bowl worthy, and wants to know what Autoblog readers think about the spot. Good enough for the big game, also known as the Super Bowl of advertising?
Chrysler, of course, was the toast of the Super Bowl in 2011, showing an unprecedented two-minute ad featuring Eminem's "Lose Yourself," an appearance by Eminem himself and the new ad theme, "Imported From Detroit."
It's a high bar to reach again.
What do you think? Does this Abarth ad have the right stuff?
The Abarth 695 was originally intended as a Fiat 500-based tribute to Ferrari. Hence the 695 Tributo Ferrari moniker. But this one looks more like a salute to McLaren.
Created by Japanese tuner Office-K and unveiled this week at the Tokyo Auto Salon, this special Abarth has had its Scuderia Red paint hidden under a full chrome vinyl wrap - similar to the one we reported on back in May - and capped with a tricolore racing stripe up the nose.
Otherwise, it's mechanically the same as the stock 695, which means a 1.4-liter turbo four driving 180 little prancing stallions through a five-speed manual to the front pair of 17-inch wheels with their Brembo brakes. It also means an interior with a chunky steering wheel, Sabelt racing buckets and Abarth's signature turbo boost gauge. Check it the chrome job in the video after the jump and the images in the gallery above.
2013 Porsche Boxster, Detroit Show Editors' Choice, Chrysler/Fiat looking for a third, Nissan NY debut, VW beats Toyota
Episode #265 of the Autoblog Podcast is here with Chris, Dan, Zach and Chris Paukert this week. Topics include the 2013 Porsche Boxster, a discussion of the Editors' Picks from the Detroit Auto Show, a possible third partner for Chrysler and Fiat, a mystery debut in New York for Nissan, and Volkswagen beating Toyota in sales for 2011. Your questions and comments power the end of the 'cast, and for those of you who hung with us live on our UStream channel, thanks for taking the time. We've embedded our Q&A module after the jump for you to scroll through and follow along, too. Thanks for listening!
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According to The Detroit Free Press, a plus-sized version of the cheeky little Fiat 500 is heading to the Geneva Motor Show in March. Olivier Francois, head of the Fiat brand, has reportedly confirmed that a five-door 500 will be shown in Geneva, and that the new vehicle will be sold here in the United States starting in 2013.
Sound familiar? About one year ago, we reported that Fiat was working on a four-door (or, five-door) 500 internally known as Project L-Zero. This larger 500 was specifically being designed to round out the automaker's portfolio here in the U.S., though at the time, it was unclear whether or not the vehicle would be sold in other markets. Judging by the fact that the five-door 500 will debut in Switzerland, we can only assume that worldwide consumption is in the cards.
When Fiat pronounced that it was planning to sell 50,000 Fiat 500 models in 2011, we were more than a little skeptical. And now that 2011 is in the rear view mirror, it seems CEO Sergio Marchionne is ready to admit that the sales target was not very realistic.
CNN Money reports that the charismatic Fiat/Chrysler boss is now calling the 50,000 number "incredibly naive," adding that the goal was to best Mini Cooper's 2010 sales total of 45,644. Fiat only managed to sell 19,769 Cinquecento models for the year.
Given that Mini has been in the U.S. for a decade and the marque already has an established dealer body and marketing presence - as well as an entire range of products - critics have said that clear that Fiat's 50,000-unit first-year goal was ambitious to a fault. Marchionne went on to add "we set ourselves up for a fall," but the chief executive insists that the future of Fiat in the U.S. is still very strong.
Even though sales of the 500 came nowhere near 50,000 units, Marchionne says that the Mexico plant that builds the A-segment ride is still profitable. That's because the plant also builds models for South America and China. Marchionne is reportedly hoping to sell between 25,000 and 30,000 copies of the 500 in the U.S. in 2012. While the 500 will likely be the only Fiat-branded model available in U.S. showrooms in 2012, the lineup is at least set to expand with models like the $22,000high-performance 500 Abarth.
We record Episode #265 of the Autoblog Podcast tonight, and you can drop us your questions via our Q&A module below. Check out our discussion topics or chime in to help determine what else the crew chats about this evening. Subscribe to the Autoblog Podcast in iTunes if you haven't already done so, and if you want to take it all in live, tune in to our UStream (audio only) channel at 10:00 PM Eastern tonight.
Discussion Topics for Autoblog Podcast Episode #265
Fiat/Chrysler sold about 4.2 million cars in 2010, and company CEO Sergio Marchionne expects to improve that by more than 33% come 2014, predicting sales of 5.7 units that year (analysts, on the other hand, predict average Fiat/Chrysler sales of 4.9 million in 2014). Operating profit for 2011 has been pegged at around $600 million, a rewarding bump from the $200 to $500 million predicted earlier in the year and dwarfed by the predicted $3 billion operating profit for 2012.
For Marchionne, though, those numbers need help from the outside: he says that an automaker needs to sell ten million units per year globally in order to reach "a new level of efficiency" and get development costs where he wants them. To wit, he is considering a partnership with a third car company to make that happen. He has repeatedly stated that he hasn't spoken with anyone yet, but Italian paper Corriere della Serra has said that Peugeot is ready to talk, while other analysts have mentioned makers in emerging markets as potential partners.
This is hardly the first time Marchionne has mentioned his quest for Volkswagen-like scale - in fact, he's been quite consistent on his desire to rationalize costs throughout the carmaking process. Based on that, it's inevitable that he'll tie up, the only questions now are who and when. He could wait until Fiat digests the remaining 41.5 percent of Chrysler it doesn't own and "merges" with The Pentastar, or if the right partner raises a hand, it might be sooner. Whoever it is, if it results in more novelties like the Dodge Dart, we tentatively say we're all for it.
Fiat has announced that the 2012 500 Abarth will be priced from $22,000, *not including destination charges. That's a healthy jump from the tiny Italian's $15,500 base MSRP and higher still than the open-air 500C that starts at $19,500. For all that extra lira, buyers get Fiat's turbocharged 1.4-liter MultiAir engine producing 160 horsepower and 170 pound-feet of torque. Power is routed through a five-speed manual transmission and the super Cinquecento also receives an upgraded suspension and brakes, 16-inch wheels and dual exhaust system. The cost of admission also includes free tuition to the Abarth Driving Experience hosted by The Richard Petty Driving Experience.
The Fiat 500 Abarth can be difficult to place among its class competitors because it's the smallest kid on the block, but we've constructed a handy-dandy table to compare pricing, power and weight-to-power ratios for some likely adversaries. Despite being the smallest in size, the Abarth 500 actually ends up with the highest weight-to-power ratio. The upcoming Hyundai Veloster Turbo stands out as having the least amount for each horse to lug around, though without pricing information, the Abarth 500 presently stands as the least expensive in-road to the kingdom of hot hatches.
Motor Trend reports that Chrysler may forsake the Dodge Challenger for a resurrected Barracuda. The magazine cites two unnamed sources as saying the nameplate will surface in time to celebrate the vehicle's 50th anniversary in 2014. If true, the Barracuda will ride on a new smaller and lighter platform that's more fit to compete with the likes of the Ford Mustang and Chevrolet Camaro. The vehicle's bones will likely be shared with Alfa Romeo, which means a turbo four-cylinder may show up behind the Barracuda headlights as well as a fire-breathing V8. MT suggests the design may pull from the original fastback Barracuda, though a notch-back version would allow Chrysler to more effectively compete against the drop-top hardware from Ford and Chevrolet.
We have no doubt Chrysler and Fiat are currently investigating ways to breathe new life into the Challenger. The vehicle has been content to plod along as a distant third to its muscle-car rivals, but pulling the Barracuda name back into play seems unlikely. For starters, the Barracuda sailed under the long-dead Plymouth banner, and both Dodge and Chrysler have a long list of hallowed names from which to choose. Stay tuned.
While European buyers took to the Fiat 500 like a proverbial fish to water, American buyers have not, by and large, followed suit with quite the same vigor. But the next product in the pipeline from the Italian automaker could stand to change the brand's fortunes on this side of the Atlantic with something a little more accommodating to America's plus-sized appetites.
Code-named Ellezero (as in the letter L and the number 0), Inside Line says this new compact crossover is slated to debut this coming March at the Geneva Motor Show. Based on a new compact yet wide platform targeted at American consumers - not the one that underpins either the European or North American market 500 - the Ellezero takes a similar approach to the Mini Countryman, only even smaller. In fact we're told to expect the smallest crossover on the market.
Future Fiat and Jeep models are also expected to be based on this platform, with production slated for the Serbian factory that used to build the Yugo and which was, at one time, expected to produce a new Topolino that would be smaller (not larger) than the 500. European markets are tipped to get the new crossover later this year, with a U.S. market introduction sometime in 2013.
Chevrolet Volt and Fiat 500 sales flops, 14 million cars in 2012, most popular posts of 2011
Episode #263 of the Autoblog Podcast is here with Chris, Dan, Chris Paukert, and Zach this week. Topics include the perhaps early condemnation of the Chevrolet Volt and Fiat 500 as flops, predictions of a 14 million new car year in 2012, and a little discussion around Autoblog's most-read posts of 2011. Your questions and comments power the end of the 'cast, and for those of you who hung with us live on our UStream channel, thanks for taking the time. We've embedded our Q&A module after the jump for you to scroll through and follow along, too. Thanks for listening!
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'Tis the season for thin news cycles and cheesy top ten lists. Yahoo! Finance has thrown its hat in the top ten ring with its list of the biggest flops among all consumer goods introduced for 2011. Both the Fiat 500 and Chevrolet Volt have made it among the chosen few, rubbing elbows with such luminaries as Netflix's Qwikster and Disney's Mars Needs Moms.
Why the Volt? Yahoo! points to the vehicle's underwhelming sales, National Highway Traffic Safety Administration fire investigation and misguided General Motors executives as indicators of the plug-in hybrid's failure. We think that's a bit harsh given the fact that the Volt wasn't on sale across the country for most of the year, and we've harped on how absurd the NHTSA fire issue is in the past, so we'll save the digital ink here.
And what of the Fiat 500? It's no secret the adorable Italian hatchback has missed its sales goals by a country mile. While Chrysler had hoped to move 50,000 models this year, actual U.S. sales for the year will probably end up around 20,000 units, which really isn't too bad. Those early sales targets were picked straight from the crazy buffet to begin with, and the fact that the 500 suffered production delays, dealership network woes and a botchedmarketingeffort didn't help matters. Still, do those issues make the 500 one of the biggest product flops of 2011?
For our money, it's too early to call either of these vehicles flops - moving 20,000 relatively expensive very small cars for a new-to-the-U.S. (well, "new again," at least) brand doesn't sound too bad to us, and putting the Volt on the list when it wasn't available to most consumers strikes us as Yahoo! Finance trolling for controversy. What say you? Drop us a line in Comments...
How many sports cars can one automotive group offer? Just ask the people at Volkswagen, whose various divisions - Lamborghini, Bugatti, Porsche, Audi - churn them out like you and I would write Christmas cards. (Or Hannukah cards, anyway.) And the Fiat group is right behind their German counterparts, with Ferrari and Maserati keeping the upper crust of the market satisfied, and now Alfa Romeo and Abarth filling a more accessible - but potentially no less exciting - niche.
Recently we brought you a progress update on the Alfa Romeo 4C, a concept mid-engine sports car that's now apparently been green-lit for production. In the ruminations of its potential roadworthiness, there was speculation that Abarth could get a version of its own. But those rumors have existed for longer than the 4C concept, and will now appear to outlast it as well.
According to the latest reports, Abarth is pitching a project that would see it develop its own sports car. But while the 4C would be priced similarly to a Porsche Boxster or Nissan 370Z, the Abarth would be positioned lower - maybe at the Mazda MX-5 or the new Subaru BRZ/Scion FR-S/Toyota GT-86. It would also likely be front-drive, with between 200 and 250 horsepower, and draw its inspiration from the 1968 Abarth Scorpione pictured at right.
Whether it comes to fruition or not remains to be seen - not to mention its potential arrival in North America - but the prospect of another Italian sportscar isn't something we'd turn down.
Mopar is spreading its parts support network into new global markets. Chrysler and Fiat have opened new parts distribution centers in Shanghai and Dubai at 16,000 and 18,000 square feet, respectively. The new warehouses will help support Chrysler, Jeep, Dodge, Ram and Fiat brands around the world with a more comprehensive parts distribution system as the American marques continue to grow globally. Chrysler says that the facility in Shanghai will stock over 35,000 part numbers while its counterpart in Dubai will stock slightly less at 30,000. Chrysler is also planning to bolster its Middle East presence in other ways, however.
The company says it will open 12 Mopar Express lanes in the region. In 2011, five opened in Saudi Arabia, Kuwait and Jordan, while seven more will begin business in Abu Dhabi, Qatar, Saudi Arabia, Iraq and Kuwait in 2012. The service centers will provide customers with comprehensive vehicle inspections and factory-backed service. Hit the jump for the press release.
