Everyone's trying to figure out exactly what Fiat stands to gain
from a no-money-down, one-third acquistion of Chrysler
, other than loan money backed by U.S. taxpayers. A story in today's Inside Line
news suggests Fiat might be very interested in Chrysler's Toluca, Mexico plant, which currently builds the Chrysler PT Cruiser and Dodge Journey.
The PT will be going out of production in summer 2009, freeing up production capacity that could be used to build small Fiats for markets throughout the western hemisphere.
Fiat already has a major presence in Brazil, but it's not much of a player in Mexico. And undoubtedly it would like to be. We'd bet that buyers in Mexico are apt to be much more receptive to subcompact Fiat 500s, Pandas and Grande Puntos than, say, U.S. consumers. In addition, meeting crash and emission standards is also likely to be a much simpler proposition in Mexico than the U.S.
Inside Line News: New Chrysler Link Could Bring Fiat Cars to U.S. via Mexico
firstwagon says:
04:39 PM, 01/30/09
Small cars are in right now and they will only become more popular when the price of oil goes back to more normal levels in the next year.
It will also give them access to the Canadian market which buys a a LOT of small cars.
billt9 says:
05:04 PM, 01/30/09
Small cars are for environmentalists.
Normal people should buy an American sized vehicle, like a Ford Taurus or a Nissan Maxima.
firstwagon says:
05:10 PM, 01/30/09
"Normal people should buy an American sized vehicle...
You mean fat people?
jederino says:
05:57 PM, 01/30/09
This is a good conspiracy story of how, yet again, Americans could get screwed out of interesting European vehicles. I wonder if the Fiats will comply with Californian emissions standards? Because, you know, Californian legislators know how things she be done right across the whole country...
FromBrazil says:
06:39 PM, 01/30/09
aiaiai. Mama mia.
If Fiat cars pass (arguably stircter) EuroCrash standards, how could they no do so American standards? It just blows any serious person's mind.
FWIW, Fiat want to gain access to Chrysler's distribution network. Why are Americans so resistant to get another brand into their market? More competition, more options, all better for average joe on the lookout for a new car. Jeeeez. Seems like a lot of people are afraid of some more competition. C' mon what have you got to lose? At the very least you'll have access to some of Europe's best engineering.
billt9 says:
07:30 AM, 01/31/09
firstwagon,
You're not fat? That's right, you're not American. Americans are as depicted in American movies like Wall-E. And Americans are darn proud to buy American sized cars. Fee fi fo fum... little man can fit in car smaller than Ford Taurus... that's impossible.
laguna1 says:
10:32 AM, 01/31/09
Billt9, you need to stop living in la-la land. Small cars are for environmentalists? WTF? Small cars are becoming more and more popular in the U.S. Look at the Honda Fit or Toyota Yaris for example. You need to learn to accept that the U.S car market is slowly changing, and not all Americans are fat FFS! Only an estimated 5% or 15m people are.
firstwagon says:
11:05 AM, 01/31/09
"Fee fi fo fum... little man can fit in car smaller than Ford Taurus... that's impossible."
I don't really understand your comment there.
Even if they got the same mileage as a large car, I would still choose a small car first. Why?.. Because they are fun to drive.
Hauling around more the 3700 lbs of Taurus is no fun. I would much rather drive a Fit or Mini and would love the chance to drive a Fiat 500.
All the extra bulk of a large car gains you very little. The small cars still seat 4 people and as much cargo as the average person carries. (more in the Fit's case).
I can see why people buy minivans, pick ups or SUV's if you've got lots of people or stuff to move.
Large cars can easily be replaced by small cars though.
And I'm no enviromentist and at 6"2", 200 lbs, I'm not small either.
brn says:
01:14 AM, 02/ 1/09
"You mean fat people?"
That seems a little uncalled for.
firstwagon says:
09:11 AM, 02/ 1/09
It was a scarcastic response to an insulting and ignorant statement that small cars are only for environmentalists.
Sorry if it seemed harsh.
billt9 says:
01:32 PM, 02/ 1/09
The Honda Fit isn't a small car, it's a midsized car! Damn that thing is biiiiig!
moparbad says:
09:21 PM, 02/ 1/09
Belvidere is more efficient and is capable of building four different models, although right now it has Caliber, Patriot and Compass.
When Nissan/Renault were in discussions with Chrysler the buzz was Compass would be eliminated and Renault Logan would be built in Belvidere on one or two lines and sold as a Nissan and Chrysler slotted below the Caliber and Versa.
I'm partial to the Logan Pickup, though I'm sure it was not one of models under consideration for North America.
Renault-Nissan is a better long term match for Chrysler IMHO.
Wonder if this Fiat deal will work?
Cerberus just can't find anyone willing to catch their hot potato.
dougtheeng says:
06:30 AM, 02/ 2/09
I sincerely hope we don't get screwed out of more small cars. Canadians definitely want them but our car market is greatly affected by the US. It'd be nice for some of the European companies to open up some dealerships in Canada. I like what MB did with the Smart - test it out for sales in Canada first. C'mon Fiat/Renault/Peugot/Alfa Romeo! We want you!