Posts Tagged ‘Fiat S.p.A’

Fiat and Sollers Announce JV in Russia

More than $3 billion will be borrowed to produce cars and SUVs.

by on Feb.11, 2010

Exports to North America will be controversial, if it is part of the deal.

Fiat S.p.A. and Sollers announced in Naberezhnye Chelny, Russia, today the establishment of “global alliance,” which initially will include a joint venture for the production of passenger cars and sport utility vehicles.

Vadim Shvetsov, CEO of Sollers and Sergio Marchionne, CEO of FIAT Group, in the presence of Vladimir Putin, the Prime Minister of Russia, signed a memorandum of understanding. Ownership will be split 50%/50%.

Planned production capacity of the new JV will be 500,000 vehicles per year by 2016. Nine new models in the C and D segments and SUVs  will be marketed on the Russian market.

Fiat said up to six will be made from a new global compact  Fiat-Chrysler platform. Chrysler will receive some of the income for intellectual property rights and the sale of Jeep kits or components.

Sollers already assembles Fiat Albea cars and Ducato vans.

Sollers already assembles the Fiat Albea car and Ducato van, and has annual sales of about $2 billion.

At least 10% of the produced vehicles will be shipped to export markets.

It was not immediately clear if this  includes North America, where Canadian and U.S. taxpayers have bailed out Chrysler.

The Russian auto market has been hit unusually hard by the Great recession, with annual sales running at 1.4 million units, which is down more than 50%.

The factory will be located  in Naberezhnye Chelny, about 1,000 Km East of Moscow in the Republic of Tatarstan.

An existing Sollers production site will be expanded, and a technology park added for component production, including engines and transmissions.   (more…)

Marchionne on Chrysler Group Status

CEO dismisses share concerns; says wait until November.

by on Oct.02, 2009


"September is not an indication of future performance. I’m not apologizing for it ...

Sergio Marchionne, the Chief Executive Officer of both Chrysler Group LLC and Fiat S.p.A posted an explanation of Chrysler’s status yesterday on a Chrysler blog site.

Marchionne was not made available to reporters, and Chrysler has suspended its long-standing sales result press conferences. The privately held company, in which U.S. and Canadian taxpayers hold a ten percent stake, also does not publish financial results.

In the Chrysler bailout, the U.S. Treasury has invested a combined $14.3 billion in the new and old entities, including $1.5 billion for Chrysler Financial and $280 million for the Chrysler warranty program.

Chrysler Group reported yesterday that total U.S. sales in September were 62,197 units, a decrease of 42% compared with September 2008.

Marchionne: “On the issue of Chrysler I think that one of the things you need to be absolutely careful about is that when you start looking at market share data, for any of the automotive producers in the U.S., there are a number of things that have impacted on market share, volumes in the month of September. We have just come off a substantial inducement to consumption that was associated with the Cash for Clunkers program, and that in and by itself is a disturbance that, at least from Chrysler’s standpoint, one, was unexpected and was announced at a time in which our industrial machine was just about ready to get started up and running. Effectively, most of our plants had been out for a substantial part of the spring and part of the summer; and the machines had not come back on until the end of July.

“Secondly, this is a process that we’re going through, and we have been through this on the Fiat side. When I arrived in 2004 we had to go through the same type of painful process of watching market share decline as we cleaned up our commercial practices in the field. And so a lot of the inducements that were being offered in the marketplace by American car manufacturers are beginning to disappear.


We Share!

(Chrysler was averaging incentives of about $5,500 a vehicle in the months preceding its bankruptcy this spring -KZ)