PHOTO GALLERY Fiat Group Loses Big in Europe

Just two days ago, we reported that Fiat Group CEO, Sergio Marchionne, said that he would make the North American market Alfa Romeo’s top priority.

Now the Italian automaker’s boss admits that his company is facing huge troubles in Europe as in the first nine months of 2011, the company's sales decreased by 12% compared to the same period last year, with its share in the European market dropping from 8.2% to 7.3%.

Even in its home market of Italy, which used to be a stronghold, Fiat sales for the first nine months of the year have hit their lowest mark in the past 20 years.

Marchionne does not have any delusions that next year the situation will improve: “2012 will not be a great year for the European market”, he told reporters. “Since 2008, Italy has lost 700,000 cars, which for Fiat means a loss of 210,000 cars. There is no point in looking for new models”, he added.

With Europe being –at the moment- a lost cause for Fiat , Marchionne is looking overseas to compensate for his company’s losses.

Right now, the Fiat-Chrysler alliance's biggest profit contributors are the U.S. and Brazilian markets, and that’s where it will focus its efforts. Marchionne denied, however, reports that Fiat will leave Italy, despite losing money - and fast.

At this point, all of Fiat’s five Italian plants are loss making. The management wants more flexible labor deals and increased productivity, something the worker unions react to, with the FIOM metalworkers’ union organizing a strike on Friday.

“It’s a very bad idea”, commented Marchionne on the strike. “It’s certainly no way to encourage investments in Italy.”

Despite Fiat shares losing almost 30% of their value in the first nine months of 2011, Marchionne is not worried. “We have enough liquidity to deal with our requirements for quite a while," the group's boss. "The good news is part of our business is in good shape and generating cash… Europe is a source of concern.”

Now, you’ll never guess which part of "their business" he’s talking about…

Story References: Reuters

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Alfa Giulietta, Alfa Mito, Alfa Romeo, Alfa Romeo 4C, Alfa Spider, Chrysler, Fiat, New Cars, Reports

Out of all the mainstream brands included in the Fiat Group and Chrysler LLC portfolio, Alfa Romeo has the most potential to achieve a global reach and bring in some much needed cash and sales. The Italian company's boss Sergio Marchionne is well aware of this and that's one of the reasons he doesn't want to sell Alfa Romeo to Volkswagen, despite Ferdinand Piechs' persistent efforts.

However, one of the most pressing problems with Alfa Romeo is the constant delays, be that for the successors to models like the 159 series or the company's long-awaited return to the U.S. market.

Suffice it to say, there's no way of being sure that the Fiat Group has managed to sort out the time schedule-related problems when it comes to Alfa Romeo. Nevertheless, at a recent event for investors, the Fiat Group introduced an updated plan for the Milanese brand, which it hopes will revitalize Alfa Romeo through the presentation of new models.

The company's product plan calls for the introduction of two types of cars, described as "brand igniters", which refers to vehicles designed to strengthen the brand's image, and the mainstream "brand sales pillar" models to improve sales.

The first new vehicle to arrive is the carbonfiber-bodied, mid-engined 4C supercar that will also signal Alfa Romeo’s return to the US market in 2013. Although it will be a low-volume seller, the two-seater model's design and advanced technology promise to act as 21st century reminder of Alfa’s sport history and credentials.

The second model that falls under the “brand igniter” umbrella is the brand-new 2014 Spider. According to Alfa Romeo, the roadster will offer both sporty driving characteristics and distinctive styling, while its low weight construction will give it a high power-to-weight ratio.

Of much more importance to Alfa’s expansion and financial viability is the new Giulia saloon and sportwagon, which will be based on an enlarged version of the Giulietta platform. It will replace the 159 in 2014, two years later than originally planed.

Since Alfa will cease production of its current mid-size luxury model at the end of 2012, this will leave the company without a contender in the Audi A4 / BMW 3-Series segment for more than a year. The reason for this gap is that Fiat Group CEO Sergio Marchionne has reportedly rejected the Alfa Romeo styling team’s proposals more than once.

The second volume-seller in Alfa’s “brand pillar” range will be a compact SUV available worldwide. Along with the Giulia, it is expected to contribute greatly to the carmaker’s goal of reaching 400,000 units by 2014 – quite a leap from the 155,000 sales expected this year.

The compact SUV, which will be built in Italy and compete with the likes of the VW Tiguan and Ford Kuga, promises to combine the typical attributes expected in this category with "true Alfa Romeo" styling, handling and performance.

Fans of the brand will be glad to hear that Alfa will launch the first mass-produced rear-wheel drive model since the 75 (sold in America as the Milano) gave its place to the FWD 155 in 1992. The as-of-yet unnamed sedan will be the brand’s luxury flagship model and will most likely share its platform with the Chrysler 300. Apart from being RWD, Alfa has also revealed that it will be powered by a V6 engine with production set to start in 2014.

Central to Alfa’s plans will be the new, all aluminum, direct injection 1.8-literturbocharged engine that will be fitted to a wide range of Alfa’s models producing up to 300-horses.

Last, but not least, Alfa Romeo has also revealed plans about its current portfolio. The Brera/Spider duo will be discontinued towards the end of 2011, while the MiTo will get a five-door version in early 2014 and the Giulietta a mid-life facelift the same year.

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Alfa Romeo and Maserati Brands.

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The Fiat Group has revealed plans to produce a new four-cylinder gasoline direct injection turbo engine for Alfa Romeo at the firm's FMA plant in Pratola Serra beginning in early 2013.

The Italian company said that the all-aluminum powerplant has a displacement of 1.8-liters and will feature advanced technologies such as a 200-bar gasoline direct injection system, dual variable timing and a high-efficiency turbocharger. It will be offered in numerous versions the most powerful of which will develop 300-horses.

While the Fiat Group did not give out any details about the models scheduled to get the new engine, it did say that it has been designed for use in both transversal and longitudinal applications and that it will be compliant with future emissions standards in both Europe (Euro 6) and the U.S. (Tier 2 Bin 5).

The upcoming 4C sports coupe and the delayed Giulia premium sedan that will replace the current 159 will most likely be the first cars to get the new powerplant.

“This is an extremely important step for Alfa Romeo, as we continue to reposition our brand and prepare it for global distribution. The United States remains our primary objective as we prepare for a 2013 introduction of our models,” said Harald J. Wester, Fiat’s Chief Technology Officer and head of the Alfa Romeo and Maserati Brands.

“The dedication of Group-wide resources to develop specific powertrain solutions for the specific needs of Alfa Romeo is a reflection of the renewed thrust we are placing on the development of this brand. This is a first step in a series of initiatives to be implemented in the near future which will reconnect Alfa Romeo to its historical roots as a premium Italian sports car brand,” he added.

Alfa Romeo Giulietta PHOTO GALLERY

Novitec is a German tuning company known for wheedling more ponies from anything that rolls on four wheels and is produced in Italy. This time, the tuner has set its eyes on the Alfa Romeo Giulietta hatchback with the release of a comprehensive styling and performance package.

On the outside, Novitec's goods include a subtle but attractive ground effects kit (perhaps with the exception of the somewhat over-the-top rear diffuser, which in our opinion, would have probably looked better in a matte black finish).

The car's looks are further enhanced with quad exhaust pipes, a choice of alloy wheel designs in a gray or black finish with sizes ranging from 18-inches to 20-inches and a sports suspension kit that lowers the ride height.

To improve the Giulietta's performance, Novitec offers a variety of kits for both gasoline and diesel engines. For example, the 1.4-liter TB petrol can be bumped up to 195HP, while the flagship 1.8-liter TBi is pushed from 235HP to 261HP.

Story sources: Novitec via Autoblog.nl

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Alfa Romeo-Derived / U.S. Made Dodge Photos

A new U.S. market compact sedan to be developed by Fiat and built by Chrysler is set to make its debut appearance at the 2012 North American International Auto Show in Detroit in the beginning of next year, according to a report from the Wall Street Journal.

The as-of-yet unnamed model will be badged as Dodge and powered by a Fiat-derived 1.4-liter turbocharged gasoline engine. It’ll also do 40 mpg combined, or at least it will if Fiat wants to net itself a further 5% of Chrysler from Mr. Monopoly Uncle Sam.

The Italian automaker wants to expand its 46% share in Chrysler & Friends by an additional 7.5% courtesy of the U.S. Treasury and Canadian government on top of the 5% it’s expected to get by pushing the 40 mpg envelope.

The new model will be built in Chrysler’s Belvidere plant in Illinois, which the brand is currently spending US$600 million retooling for the job. Production is expected to start later this year. Dealers, such as David Kelleher of David Dodge Chrysler Jeep of Glen Mills, PA are naturally very excited:

“We have never had a viable compact car. This will allow us to reach the entry level customer and it's a perfect fit for Dodge which has been faced with challenges.” [Like having to share a lot with the Chrysler Sebring, for one…]

The Caliber, the closest thing Dodge currently has to a Honda Civic / Ford Focus / Chevy Cruze competitor at present, does a paltry 24 mpg in automatic guise.

The new model will share the same basic floorplan as the Alfa Romeo Giulietta hatchback, which will also be used to underpin five new models over the next three years.

There’s no word yet on a name, but I’m willing to discount Aires, Neon and Stratus as possible contenders.

ALFA ROMEO GIULIETTA