Fiat v. VW: European rivalry comes to America via $1K rebate

[nadepalma]

Marchionne brings rivalry with VW to U.S.
Fiat CEO will use special rebates to lure current VW owners
By Mathieu Rosemain | Bloomberg News
December 8, 2012

Fiat SpA Chief Executive Officer Sergio Marchionne, who was re-elected Friday to head Europe's main carmaking lobby group, is taking his rivalry with Volkswagen AG to their home region overseas.

Marchionne, who also runs Michigan-based Chrysler Group LLC, is offering $1,000 rebates to current VW owners in the U.S., where VW is much smaller, if the customers to buy a Fiat or Chrysler vehicle.

Marchionne has been in a war of words with VW over auto pricing in Europe, where VW commands 25 percent of the market, suggesting in July that the German automaker was creating a "bloodbath" in the region. Stephan Gruehsem, VW's chief spokesman, responded that Marchionne wasn't qualified to lead the ACEA lobby group.

The dispute, which included VW and Turin, Italy-based Fiat each threatening to quit the ACEA, highlighted a growing financial gap between German manufacturers with premium brands and their unprofitable, volume-oriented French and Italian counterparts, which are losing sales with low-margin, mid-range models.

The U.S. rebate offer is only for buyers who currently own or lease a VW vehicle, according to Chrysler's website. Customers don't even have to give up their VW to qualify.

CONTINUE AT: http://www.detroitnews.com/article/2...12080319/1148/

[Stéphane Dumas]

Looks like a replay of the "price wars" between Ford and Chevy in 1953-54.

I won't be surprised to read DeLorenzo's rant critizising the 1K strategy. On the other hand, another tactic then Chrysler-Fiat could apply is an extension of the warranty.

[baloo]

Is this a real customer acquisition strategy that also makes sense on paper, or is this Marchionne going on an ego trip with shareholder money?

[njtex]

Does the VW Routan qualify for the $1k Fiat/Chrysler rebate?

[Burnout Czar]

Is this a real customer acquisition strategy that also makes sense on paper, or is this Marchionne going on an ego trip with shareholder money?

One of Marchione's ego trips. FIAT is a dead man walking.

[richmond2000]

I can see VERY few taking them up on that offer as FIAT/Chrysler offer virtually NO overlap

[01sunfire01]

I cant wait for fiat to bring more of here cars to the US. Ill be buying one. When i was in italy i had one and loved it.

[Burnout Czar]

I cant wait for fiat to bring more of here cars to the US. Ill be buying one. When i was in italy i had one and loved it.

You must be a glutton for punishment.

[AMERICA 123]

And now , for some of the rest of the story.....

The Germans apparently are only too happy to saddle up the French and Italian automakers with additional Asian country 'free trade agreements' - thinking it won't bite them in the ass later and will then rid the world of French and Italian auto capacity.

Marchione is hugely in the right with all this - and yeah, this could actually work........

[richmond2000]

nd now , for some of the rest of the story.....

The Germans apparently are only too happy to saddle up the French and Italian automakers with additional Asian country 'free trade agreements' - thinking it won't bite them in the ass later and will then rid the world of French and Italian auto capacity.

there is also VW's quest to "conquer the world" and right now can "see" a way to do it EX if the FRENCH makers go down and Opel gets "knocked back" then H/K and Chevy are below VW and FORD is the only DIRECT competitor as Europe has not taken kindly to Japanese cars as well as Americans have + the FRENCH makers are solid in central/south America

[AMERICA 123]

Odd, seems more like a back door way to restoring the natural order of things in at least a partial sense.

And to kneecap some of their long standing, close to home - most important competition - also in a partial sense.

And of course,there are likely other considerations to be received - that we don't fully appreciate.

The elimination of the British, the marginalization of Volvo and Saab, the Japanese success, the massive and long running American failure including ending up with just three, the lack of a large Euro presence in the US by numbers - and then the Korean's coming on like gang busters... seems more like the aberrations...... and 'the conquer the world' stuff.

Besides, Ford's just giving up on big chunks of their former European volume anyway.

[Syclonus]

Stick it to Vw marchione.
The wanker brand with exploding gearboxes.

Did they use concentration camp inmates as slave labour as vw did during ww2?

[mchicha]

I can see VERY few taking them up on that offer as FIAT/Chrysler offer virtually NO overlap

Ditch and Audi A4 for a SRT 8

[kateean2]

The wanker brand with exploding gearboxes.

[mr_raider]

Is this a real customer acquisition strategy that also makes sense on paper, or is this Marchionne going on an ego trip with shareholder money?

Does it matter? Money is money. Good for the consumer.