Search This Site

Thursday, November 26, 2009

The Fiat/Chrysler deal summed up: Cash runs out; assets that produce cash don't...

Sergio Marchionne- CEO of Fiat and Chrysler

Much is being written about the Fiat/Chrysler linkup. Many times the the writer will drop in the statement "...Fiat didn't pay anything for Chrysler". It's a sensational statement that adds some bite to the article (hey, how could they give away a company for free and where can I get mine?), however, the author neglects to mention what Fiat did exchange for their stake in Chrysler (if someone thinks you can get a multi-billion dollar company for nothing, I've got a bridge in Brooklyn I want to show you).

Here's my take on the Fiat/Chrysler deal. I've posted my opinion on the subject on a few different news sites and I thought I would post them here for posterity;)

It's true that Fiat didn't give cash for its stake in Chrysler (and all of its troubles), but it is giving them many billions (estimated to be up to 10 billion) of dollars in cutting edge technology.

Now this estimated $10 billion in technology isn't my estimate, but industry experts. This technology so impressed the US and Canadian governments, they gave the go ahead for the Fiat/Chrysler deal.

"Free" Technology

Here's just some of the technology Fiat brings to the table:

Fiat MultiAir Benefits (click to enlarge)

1. MultiAir engine technology- A major revision to the internal combustion engine, MultiAir offers more power, reduced fuel consumption, and lower exhaust emissions compared to conventional gas engines. It's been called "variable valve timing on steroids" and is basically a bolt on application.

Fiat MultiJet II Benefits (click to enlarge)

2. MultiJet II- Fiat is a leader in diesel engine technology. They invented the Common Rail diesel, an advancement that improved refinement in passenger car diesels. This technological breakthrough boosted sales of diesel cars from 15% to 50% in Europe. Now, with MultiJet II technology, diesels will offer even more refinement, power and fuel economy.

Fiat C-Evo platform is adaptable(click to enlarge)

3) C-Evo chassis- A completed, modern platform, already engineered, ready to go for Chrysler. Developing a new automotive platform can cost at least $1 billion.

Fiat Dual Dry Clutch Transmission Benefits (click to enlarge)

4) A new dual, dry clutch transmission that reduces fuel consumption as compared with traditional automatic transmissions. Fiat has invested approximately $750 million in this transmission.

Fiat Grande Punto Abarth S2000

5) Fiat is a leader in small car design. This is what Ford said about Fiat: "...they are acknowledged as having been for many years one of the world's leading manufacturers of small cars". Even BMW is actively pursuing Fiat for help in designing their new small BMW.

The list of what Fiat brings to Chrysler could fill a website;)

Sergio Marchionne, the architect of this deal, summed this up best with "...You're getting a whole pile of assets that produce cash, which is as good or probably better than cash." and " ...Cash runs out; assets that produce cash don't."

The Plan

Currently, Fiat doesn't own Chrysler but they effectively run it, and after sitting through the five year plan they outlined November 4th (an eight hour presentation), you can see the monumental work they have done on behalf of the American company and its employees.

Part of the plan is for Chrysler to pay back the government loans by 2014, and profits generated here in this country stay in this country (by the way, Fiat hasn't received a penny for any of the considerable work it has done).

If the plan succeeds, they have earned their 35% stake in the company. Remember, nobody was interested in saving Chrysler or their American/Canadian workers.

Wednesday, November 18, 2009

Chrysler's Ram brand adding two Fiat based products

Chrysler's Ram brand product plan (click for full size view)

During Chrysler's Five Year Product Plan (announced November 4) , the Ram brand presented plans to sell two Fiat based commercial vans during the 2012 model year. As you can see from the above slide, there will be a small and large van proposed. Details are emerging on which vans from the Fiat lineup they'll be.

The small van looks like it will be the Fiat Doblò, a newly redesigned version of the "2006 International Van of the Year". The Doblò is a popular vehicle in Europe, and in America, will be a strong competitor to the similar sized Ford Transit Connect van. According to the slide, this small commercial van vehicle will be imported by Fiat (more specifically Turkey, where it is manufactured).

The choice for the larger vehicle was between two Fiat products, the Fiat Ducato and the Iveco Daily. These two vehicles are comparable to the outgoing Dodge Sprinter van (previously supplied to Dodge by Daimler). At this time, it appears the choice will go to the Fiat Ducato, a van that is (in Europe) more economical and generally less expensive than the old Sprinter. Previously, I've posted a brief overview of the Ducato and the Daily here.

Interestingly, the chart above says the large vehicle will be based off of a Fiat platform, so that sounds like this vehicle will be a Ducato derived commercial van manufactured here in the USA.

The addition of these two modern, efficient, proven vehicles to Chrysler's Ram brand product lineup will come at the right time as fuel prices and business expenses are expected to rise within the next few years. Vans like these will help American businesses save money and break away from the uneconomical, old fashioned cargo vans produced by GM and Ford.

Below is a look at the Fiat Doblò (this vehicle will receive a name change here in America), courtesy of Fiat Group Press.

Fiat Doblò Cargo

The newly redesigned Fiat Doblò is a vehicle designed to meet a need for functionality and comfort that makes the most of interior space and can accommodate up to seven people (in passenger van configuration). An authentic 'family space' that can rely on top-class safety, economy and respect for the environment.

Compared to the previous version that sold approximately one million units, the new model has been completely revamped in terms of style, engines and technical specifications. These aspects make the new Fiat Doblò the "best in class" both in terms of space and in terms of reduced emissions.

Fiat Doblò passenger van

All this has been achieved through the use of a new platform, more passenger space (with a wheelbase of 2755 mm, the biggest in its segment), a roomy 790 liter luggage compartment, reduced CO2 emissions (129 g/km with the 1.3 Multijet 90 HP engine, the lowest in its category), standard safety features and highly modular interiors with seats that can be folded and tilted.

Style and comfort

Fiat Doblò Cargo

The look is very cutting-edge. With a central shield and side bumpers that are perfectly integrated with the body, the front end blends protection and sophistication while the pronounced wheel arch and sloping shoulder contribute to the vehicle's strong and agile look. The tailgate's essential lines emphasis the accessibility and size of the generous load compartment; clear, sparkling light clusters and expanses of glass give the new Doblò a touch of elegance.

The interiors have also been designed to offer functionality and create attractive, welcoming environments through combination of colors, materials and trims.
Smart solutions for the best use of on-board space, such as a range of storage compartments and flexible interiors, offering up to 7 places, will satisfy the needs of those who make the Doblò a car to be enjoyed with family or friends.

Environment and economy

The Fiat Doblò will offer 4 power units at its launch: a 95 HP petrol engine and three diesel Multijet engines, 90, 105 and 135 HP, which will later be joined by a Natural Power engine with dual fuel system (petrol and methane) and an additional diesel engine with Dualogic robotized gearbox.

All units are lively and offer smooth torque delivery. They are remarkable for driving satisfaction, excellent performance, low noise levels, low operating costs (fuel consumption and maintenance) and also for their reliability and eco-friendliness.

The range is available with Euro 4 and Euro 5 versions and offers a Start&Stop device as standard, which cuts off the engine temporarily when the car is stopped to guarantee reduced fuel consumption and emissions.


Fiat Doblò instrument panel

To ensure optimum dynamic behavior, comfort and active safety in all road surface and load conditions, the vehicle has been equipped with innovative mechanical features including a bi-link rear suspension system available with various component calibrations depending on vehicle application. The Doblò's consistent and predictable road-holding is also guaranteed by the use of state-of-the-art electronic devices for stability control, namely ABS with electronic brake force distribution EBD and, above all, ESP complemented by a hill-holder system that helps the driver during Hill starts and comes as standard on this model.

The vehicle has been designed and built to achieve the highest levels of passive safety, due to a body with crumple zones, front air bags and innovative front side bags. The latter offer protection for both head and chest.

The vehicle also offers technical solutions and equipment that create optimum comfort conditions and help keep attention on the road: these include an automatic climate control system with distribution to rear seats, cruise control, parking sensors, a built-in Blue&Me hands-free system and a “Blue&Me TomTom” navigator.

The Doblò Cargo

The Doblò Cargo, also new, is at the top of the professional vehicle category

The new Fiat Doblò is joined by the new Doblò Cargo which has been designed to take its place at the top of its category in terms of performance and functional characteristics. It offers a more roomy load compartment than the previous model: square, regular, fully exploitable and equipped with sliding side doors and generously-sized rear doors to make light work of loading and unloading operations. Record-breaking statistics (interior length up to 2.2 meters, width between wheel arches of 1.23 meters, volume from 3.4 to 4.2 cubic meters, payload from 750 to 1000 Kg, combined fuel consumption of 4.8 liters/100 km and range of 1250 Km with the 1.3 Multijet engine) ensure that the new vehicle can offer substantial benefits in terms of optimization and reduction of running costs.

The range finds expression in 7 different body types: short and long wheelbase van, high top van, short and long wheelbase 5-seater combi; a particularly appealing and brand-new short and long drop-framed version can be easily and cheaply converted for specific trades (refrigeration chambers, fixed and tilting flatbed trucks).

Sources: Chrysler Media and Fiat Group Press

Monday, November 16, 2009

What are the differences between the Pop, Sport and Lounge versions of the Fiat 500?

Fiat 500 with Chrome kit

In Europe, there are 4 versions of the 500 (Naked, Pop, Sport and Lounge). The Naked version is sold in select countries. The other three are more commonly marketed in most countries, however, it is yet to be announced what versions will come to the US.

One of the popular features of the 500 is the high level of standard equipment and also the high level of customization / accessories available (if you take all the accessories into account, there is calculated to be 549,936 combinations available to customize a 500 ). Rest assured, Chrysler's Mopar accessory division will be gearing up to offer these accessories for the 500.

Here's a brief rundown on the standard features that come on the different versions. For more details click here to view a complete list of standard features (this document should be viewed in full screen for best readability).

Fiat 500 Pop interior

The Pop version equipment includes: two front airbags, two curtain-bags, two side airbags and one knee-bag, ABS complete with EBD, front headlights with daytime running lights, specific upholstery with a choice of Ivory or Black elements, Dualdrive electric power steering, black electric wing mirrors, height-adjustable steering wheel, centralized locking and electric windows, 175/65 R14” steel wheels with integral wheel hubs.
Fiat 500 with seven airbags

The 500 Pop specification is available with all three engines, but with the 100 bhp 1.4 16v the outfit includes the sophisticated ESP system and an instrument panel with sporty graphics.

Fiat 500 Lounge interior

The Lounge and Sport add exclusive equipment to the 500 Pop. The Lounge version includes the Chrome kit which features chrome around the side window mouldings, on the exhaust tailpipe, on the trim of the inside door handle, the gear lever and the front and rear bumpers.

The Chrome kit comes with chrome tail pipe, window and bumper mouldings

On the outside, the new 500 Lounge features 185/55 R15” alloys, electric body-colored wing mirrors and a fixed glass roof with sunshade. Inside, it features special fabrics, a leather-upholstered steering wheel with the controls for the optional Blue&Me system, manual climate control, a radio, CD and MP3 player, a height adjustable front seat, a 50/50 split rear seat with head-restraints, a key with customized remote control and an active handle on the tailgate.

Fiat 500 Sport interior

The Sport version includes sport seats with special foam, a rear spoiler, interior upholstery in exclusive colors and fabrics, a chrome-plated exhaust tailpipe and chrome inserts in the door sills.
The 500 Lounge and Sport come with this passenger seat storage area

The Fiat 500 Sport also offers 185/55 R15” sporty alloys, manual climate control, a sport steering wheel with the controls for the optional Blue&Me system, a radio with CD and MP3 player, and electric mirrors painted the same color as the bodywork.

The Sport and Lounge equipped with the 100 bhp 1.4 16v engine also offer the ESP system as standard equipment and an instrument panel with sport graphics.

*Note: This post was about the European Fiat 500. While there are some similarities in trim between the Euro Pop, Sport and Lounge and the US cars, the cars themselves are quite different. The link below explores all the differences and modifications done to sell the Fiat 500 in the US.

Thursday, November 12, 2009

Fiat 500 Pricing: How much will it cost?

This post is from 2009; exactly 1 year before the official pricing of the 2012 Fiat 500 was announced. Read the article and then go HERE to see how close I got!

Much speculation exists on the Internet on what price the Fiat 500 will be. It seems that people who aren't thrilled with the Chrysler/Fiat merger put a negative spin out there that the 500 will be in the $20,000 to $25,000 range. Those who are more objective feel it would start in the mid teens.

While we don't know what the final pricing will be, we do know that the 500 is priced lower than the Mini in all the markets it competes with. With that in mind, let's have some fun and speculate what a new Fiat 500 would cost now if it were being sold today. To do that, we'll take a look at a comparison between Mini prices and the 500 in various countries. In a semi-scientific way, we can interpolate what the price difference in America would be .

A couple of notes before we start, these prices were taken from the official website of each respective car company, equipment levels vary from country to country, and most important, currency values can vary by the hour (!).

Within the course of a few weeks, the Euro to dollar conversion went from 1.38770 to a current value of 1.49726. That's a pretty big deal, adding $1,659 to the price of the 500 1.4L Sport in Germany. Because of the currency fluctuations, we'll use the Euro, Pound Sterling and Polish złoty to make our predictions. The Dollar conversions are provided for convenience.

Another point is there are various taxes possibly built into the prices of the cars, but because we are comparing them within the same country, it should even out.

For our comparison, below I've picked 6 countries and have listed the base prices of the 500 and Mini. The order being the least expensive, then the next version up followed by the Mini Cooper.

United States:

Mini Cooper 118hp = $19,500


500 1.2 Pop = €11,250 = $16,849
500 1.4L Sport = €15,000 = $22,460

Mini Ray 75hp = €14,400 = $21,561
Mini One 95hp = €17,350 = $25,979
Mini Cooper 120hp = €19,900 =$29,797


500 1.2 Pop = €11,150 = $16,698
500 1.4L Sport = €15,150 = $ 22,687

Mini One 75hp = €14,900 = $21,564
Mini One 95hp = €16,330 = $24,451
Mini Cooper 120hp = €19480 = $29,167


500 1.2L Pop = €11,000 = $16,471
500 1.4L Sport = €15,000 = $22,460

Mini One 75hp = €15,200 = $22,762
Mini One 95hp = €16,500 = $24,709
Mini Cooper 120hp = €19,200 = $27,756


500 1.2L Pop = 42,500 PLN = $15,246
500 1.4L Sport 58,500 PLN = $ 20,986

Mini One = 64,700PLN = $23,211
Mini One = 68,800PLN = $24,682
Mini Cooper 120hp = 77,300PLN = $27,735


500 1.4L Classic - 234,900 MXN = $17,803
500 1.4L Sport 249,900 MXN = $18,940
500 1.4L Vintage - 279,900 MXN = $21,213

Mini Cooper $19,900
Mini Cooper Pepper $25,800

United Kingdom:

500 1.2L Pop= £8,700 = $14,563
500 1.4L Sport = £11,500 = $19,250

Mini First = £10,950 = $18,331
Mini One = £12,385 = $20,734
Mini Cooper = £13,715 = $22,960

From all the above a few observations. First, the Mini in the US is considerably less than it is in the other countries. Second, the Dollar isn't very valuable at the moment (hence, Fiat needs to build cars here in the USA or Mexico), and it's impossible to import a low cost car from Europe and price it competitively given these exchange rates.

You can also see that the 500 costs less in Poland (where it's made and has lower manufacturing costs than Italy), in fact, you can buy a 500 1.2L Pop for €10,198 compared to €11,000 in Germany and €11,250 in Italy.

OK, let's get to the point! To make our prediction, we have to be aware that the only model Fiat 500 to be sold here (at least in the beginning) is the 1.4L and not the 1.2L, and the Mini Cooper is the only comparable Mini version sold in the USA. With that, we'll take the percentage less the 500 1.4L is compared to the Mini Cooper in each country, average it out and subtract it from the US Mini Cooper's price. In my theory, that will give us an indication of what we could anticipate the Fiat 500 will cost.

The results are, for a 500 1.4L Sport, a range of between $14,699 and $16,350 or let's just say:


Very simplistic, I know, but it points out the pricing would most likely be less than Europe (just like the US Mini is cheaper than the European version). It gives us a general range at which the 500 could reasonably be assumed to be priced. Also, having the car produced in Mexico (which offers low cost manufacturing comparable to Poland) will help Fiat keep the price competitive and still make a fair profit.

And, for any of you who think that's too much, a similarly equipped Toyota Yaris is $15,169! And that's with steel wheels and not the aluminum alloy wheels the 500 Sport comes with.

In any case, Marchionne and the new crew at Chrysler are sharp, and won't price the car out of the market.

We'll have to wait a year or so to find out how close (or far) we are!

Tuesday, November 10, 2009

Where the Fiat 500 fits into Chrysler's 5 year plan

Car introduction time line. Fiat 500 in grey (click to enlarge)

As we can see in the image above, the Fiat 500 is due to start manufacturing during the fourth quarter of 2010, with the introduction late in the year (although Sergio Marchionne has stated sales would begin in January 2011). The 500C cabriolet version would be later during 2011 and then the high performance car everyone is waiting for, 500 Abarth, late in 2011.

Fiat 500 selling points (click to enlarge)

Above you can see the attributes of the Fiat 500 as it relates to the Chrysler plan. With a target of 100,000 units being produced (split between the US and South America), the 500 is not intended to be a high volume seller, but an eye catcher to bring people into a dealer.

High style, fun, youthfulness, personality, and presence are the new attributes that Dodge is cultivating and the Fiat 500 has all those in spades. Once people are in the showroom, potential customers can look around and check out the rest of the Chrysler lineup. The Fiat 500 will bring in the type of clients that the Chrysler group is directly aiming at, so if it does that, it will accomplish its mission. High volumes or not.

Pictures courtesy of Chrysler Media

Monday, November 9, 2009

Sergio Marchionne Comments on Chrysler's 5 year plan...

At the end of Chrysler's 5 year plan presentation on November 4, 2009, Sergio Marchionne took some questions. Here are some highlights of his answers.

Courtesy of Chrysler Media

Friday, November 6, 2009

Update on the time line for the Fiat 500 showing up in the USA.

To clarify when you'll be able to buy your Fiat 500, it will be January 2011. Sergio Marchionne made this comment during the question and answer period during the Chrysler Group LLC 2010 – 2014 Business Plan meeting Wednesday, November 4th.

Chrysler and Fiat CEO Sergio Marchionne

Other comments from Sergio Marchionne are; only the best dealers will get the Fiat 500, it will marketed as a Fiat 500 and not a Chrysler 500 also, the 500 will more than likely not be marketed in rural areas where its advantages in size and maneuverability will not be so important.

I've been reviewing 8 hours of audio and a slew of pdf files for interesting facts coming out of the business plan meeting. There's more information to come, so check back.

Wednesday, November 4, 2009

Fiat's plans for the 500...

Here's some preliminary details from Chrysler's five year plan just announced today as it pertains to the Fiat 500.

It looks like the Fiat 500 will be introduced during the fourth quarter of 2010, followed by the Fiat 500C sometime during 2011 and then the Fiat 500 Abarth being introduced during the fourth quarter of 2011.

The main implementation will be in key metro area markets and through select dealers throughout the country. There will be specific interior showroom branded salons with dedicated sales and management staff. As with the European 500, there will be a high level of customization through accessories.

I'll post more details as they come up so keep an eye out for them here.

Tuesday, November 3, 2009

The companies that make up Fiat.

The companies that make up the Fiat Group*

Fiat is a multi faceted company with core businesses that focus on the automotive industry. The Fiat Group is made up of nine companies, all leaders in their field. Here's a brief run down on them:

Fiat Group Automobiles

Fiat Group Automobiles consists of Fiat, Alfa Romeo, Lancia, Fiat Professional and Abarth. Fiat has negotiated what amounts to a controlling interest in Chrysler LLC at 20%. This is anticipated to rise to 35% once certain benchmarks are reached.

Fiat - The Fiat company dates back to 1899 (four years before Ford Motor Company) and over the last 110 years has produced many historic, innovative and often brilliant car designs.

The first Fiat cars came with a name plate stamped with the full name of the company; Fabbrica Italiana di Automobili Torino (or Italian Automobile Factory of Turin), later cars had a badge with the initials F.I.A.T. on them and people contracted the letters into a pronounceable word. In 1906, the F.I.A.T. company trademarked the name "Fiat", however the company still remained Fabbrica Italiana di Automobili Torino until 1918 when it underwent a reorganization and became Fiat, Societa per Azioni (Fiat Spa or Fiat Inc).

Of the original nine founders of Fiat, one person, Giovanni Agnelli emerged as the most prominent leader. He was elected Managing Director in 1902, became the largest shareholder and the Agnelli family has had the controlling interest in the company since then.

Alfa Romeo - The Alfa Romeo company dates from 1910 and is one of the most illustrious names in the auto business. It has a heritage of design and racing wins second to none. Many of the designers and engineers of Alfa Romeo serve as the the automotive who's who in the history of the auto industry.

The Alfa Romeo company was originally named A.L.F.A. (Anonima Lombarda Fabbrica Automobili or Lombarda Automobile Factory, Public Company). In 1915 an entrepreneur named Nicola Romeo bought the A.L.F.A. company and added his last name to the company.

Alfa Romeo has been involved in racing since its beginnings with many of the worlds most famous drivers being at the wheel; Giuseppe Campari, Ugo Sivocci, Antonio Ascari, Tazio Nuvolari, Rudolf Caracciola, Louis Chiron, Michele Alboreto, Mario Andretti, etc. It has been said that every car that Alfa Romeo has produced has been raced.

In 1932 the Italian government took over Alfa Romeo, running it until 1986 when the company was put up for sale. Fiat stepped in and rescued Alfa Romeo to keep the historic company from going under and to safeguard it as an Italian owned company.

Lancia - Lancia was founded in 1906 by Vicenzo Lancia, a Fiat racing driver who had a passion for excellence and innovation.

Lancia is a car company well known for innovation. In 1913, the Lancia Theta was the first car in Europe to fit a built-in electrical system. In 1921, the Trikappa was the first car in the world to mount a narrow angle V8 engine. In 1922, the Lambda introduced the world to the load-bearing body, independent front suspension, transmission tunnel incorporated into the floor, luggage compartment built into the load-bearing structure, and the first narrow angle V4 engine. In 1950, the Aurelia was the first car in the world to mount a 60° V6 engine, with clutch, gearbox and differential mounted in a single unit (transaxle) in the rear of the car. The car also had rear inboard brakes.

Lancia has a seemingly endless list of innovations. Some other firsts were the rear suspension with leaf springs pivoted on a ‘silentbloc’ at the front and with roller pivots at the rear and a drive shaft with flexible disc joints instead of universal joints.

However, all this expensive innovation took its toll on a small car company and, after a difficult period, Fiat took control of Lancia in 1969. With that, Lancia has been able to continue their heritage of innovative and unique vehicles.

Abarth - Abarth is an Italian manufacturer famous for creating record breaking racing cars and performance tuning car engines for regular road use and racing. The company was founded in 1947 by Karl (Carlo) Abarth who was an Austrian that lived in Italy.

Abarth had produced winning race cars for various marques such as Porsche, but became well known for modifying Fiats to produce unbelievable results against all odds. Eventually, in 1971, Abarth sold his company to Fiat where it was put in charge of modifying and producing Fiat race cars.

Fiat Professional - Fiat Professional is Fiat's light commercial truck operation. Fiat built its first light commercial vehicle in 1903. Fiat Professional was formed in 2007 and replaced Fiat Veicoli Commerciali.

Fiat Professional products are known for their versatility, robustness and fuel efficiency. They have enjoyed much success with over 43.2% of the Italian market and 12.3% of the European market (2008 figures).


Maserati was founded in Bologna in 1914 by the Maserati brothers, Alfieri, Bindo, Carlo, Ettore, Ernesto and Mario. Over the years Maserati has been associated with performance, racing, innovation, style, and luxury.

In 1993, Fiat bought Maserati from Alejandro de Tomaso after a period of waning interest in the exotic car company. Since that time, Fiat has invested heavily in the Modena based firm. Today, Maserati is enjoying a "rebirth" with many exciting examples, each one a worthy successor to the powerful Maserati heritage.


Arguably the most recognized Italian company in the world. Enzo Ferrari was a man driven to achieve great things in his life. As a boy, he fell in love with the automobile and racing. As a young man, he raced cars for the Alfa Romeo racing team. After he retired from racing, he secured the services of the great automotive designer, Vittorio Jano, and talked Alfa Romeo into running their racing team. It was a successful collaboration, but Ferrari had bigger dreams, so in 1947 he founded his own car company to produce road cars. With this he could now fund his racing car passion.

The road cars Ferrari produced have always been at the top of the most desirable list, however, in the mid 1960's, it became clear in order to survive and prosper he would need a partner. This partner would run the road car end of the business and let Ferrari concentrate on his first love of racing.

The Ford Motor company made what seemed to be a good offer and everything looked like the deal would go through when literally at the signing of the papers, Ferrari noticed the contract presented was not what was represented to him by the Ford negotiators. They, in essence, wanted to make Ferrari an employee of Ford. Insulted, Ferrari abruptly ended the meeting and the deal.

Instead, Ferrari went to Fiat, where the head of Fiat, Gianni Agnelli (grandson of the founder ) listened to what Ferrari had to say. The two shook hands and, in 1969, the partnership with Fiat was born.

Ferrari was able to do as he wanted and Fiat would take care of the road cars. He knew his company would be in good hands. Over the last 40 years, with the help of Fiat, Ferrari has pushed the boundaries in building the most exciting, passionate sports cars in the world.


The Commercial specialists in the Fiat empire. Iveco was founded in 1975 and was made up of five historic international commercial vehicle producers, Fiat Veicoli Industriali, Lancia Veicoli and OM commercial all from Italy; Magirus-Deutz from Germany and UNIC from France.

Iveco is one of the worlds major diesel engine producers (the first turbo diesel for heavy commercial vehicles, the first direct injection superfast light diesel, the first diesel engine for light vehicles incorporating EGR or Exhaust Gas Recirculation system that reduces polluting emissions). Iveco manufactures buses, quarry, construction and Fire trucks.


Case New Holland is a world leader in manufacturing tractors and agricultural machinery through the Case IH, New Holland and Steyr brands, and construction equipment through the Case, New Holland and Kobelco brands.

Case New Holland has a 170 year heritage made up of some of the most historic names in the agricultural industry, International Harvester, New Holland, Case, Steyr, Braud, Claeys, Fiat Tractor, Flexicoil, and Ford Tractor.


Fiat Powertrain Technologies (FPT) is a component manufacturer that focuses on research, development and production of engines and transmissions for the Fiat Group. FPT has been at the forefront of many recent engine technologies such as MultiAir and MultiJet II.

FPT was formed in 2005 to bring together all the engine and transmission technology in the Fiat Group under one roof.

Fiat automobiles, commercial vehicles, heavy trucks, buses, industrial machinery, marine applications, and power generation all benefit from FPT expertise.

Magneti Marelli

Magneti Marelli produces automotive components for the Fiat Group and other major car companies. Lighting, exhaust systems, suspensions and shock absorbers, engine control, and electronic systems are all specialties of the Magneti Marelli firm.

Magneti Marelli was founded by Fiat and the Ercole Marelli firm in 1919. The company was acquired entirely by the Fiat Group in 1967, and transformed into a world leader in automotive components.


Teksid is the largest iron foundry Group in the world with a production capacity of approximately 600,000 tons annually. In addition, Teksid is also the world technology leader in production of aluminum engine components for the automotive industry.

Teksid supplies engine blocks, cylinder heads and other components for engines, and cast-iron components for transmissions, gearboxes and suspensions, and aluminum cylinder heads.

Teksid was founded in 1978 and grew out of Fiat's acquisition of its foundry operation called "Ferriere" in 1917. For 60 years, Ferriere provided just Fiat with iron, steel and metallurgical products, but in 1978, Fiat decided to branch out and sell these products to others on the open market and Teksid was born.


Comau produces industrial automated and robotic systems for the automotive,
aerospace, petrochemical, steel, and foundry industries.

The company specializes in the areas of product and process engineering, logistics and management, manufacturing, installation, production start-up and maintenance.

Comau (COnsorzio MAcchine Utensili) was established in 1978 and during the past 30 years has risen to be the worldwide leader in automotive robotic technologies. Many of the worlds car manufacturers use Camau technology.

*Picture used with kind permission of Fiat

Sources: Fiat Group Press/Maserati Press/Teksid/Comau

CNH/Iveco/Magneti Marelli/FPT/Jan P. Norbye, New Fiat Guide