Fiat alliance talks with Daimler broad-based, not just on engines

[nadepalma]

We have been having a discussion that touched on this on another thread titled, "Euro Competion: Alfa Romeo to return to RWD ". It has been an interesting dicusccion for anyone who wants to check it out.

However, this new information builds on the speculation many of us outlined in the aforementioned thread (My point number 3) and in part from an article on Automotive News that discussed a possible alliance.

If this were to actually happen, it may mean that Alfa will utilize Mercedes-Benz's network in the US and perhaps even Fiat's little Cinquecento may make it to the US shores and be slotted next to Smart. Or for that matter, maybe even Lancia could make a return.

It could also mean that a number of Fiat and Benz programs maybe done in cooperation. So the A- and B-Classes may share a Fiat platform, but future Alfa (and maybe Lancia?) models may utilize Benz RWD platforms as Alfa moves back to RWD....

Check out articles below:

Originally Posted by CNN

SOURCE: CNN
Fiat alliance talks with Daimler broad-based, not just on engines
November 07, 2007: 03:44 AM EST

MILAN, Nov. 7, 2007 (Thomson Financial delivered by Newstex) -- Fiat SpA's possible alliance with Daimler brand Mercedes is broad-based and does not just involve engines, according to reports in Italian dailies that cited Fiat's CEO Sergio Marchionne.

Il Sole 24 Ore cited Marchionne as saying that 'with Daimler we are speaking about everything, not just engines'.

Finanza & Mercati said this alliance could be reached by year-end.

According to the CEO, the group is ready to enter the US market not just through the Alfa junior model but also through the 500 model.

'We are observing the Smart phenomenon in the US. We'll see how it goes. Technically we are ready,' the CEO told daily la Stampa.

Mercedes launched the Smart model in the US in September.

Regarding the Alfa Junior model, Marchionne according to la Stampa noted that Fiat 'created it for this objective. It is one of the models that we are assessing to export.'

Originally Posted by Reuters

SOURCE: REUTERS
Fiat CEO says talking to Daimler about everything
By Gianni Montani

TURIN, Italy, Nov 6 (Reuters) - Fiat (FIA.MI: Quote, Profile, Research) is talking with German automaker Daimler (DAIGn.DE: Quote, Profile, Research) about everything, not just engines, the Italian car maker's chief executive, Sergio Marchionne, said on Tuesday.

Speculation has swirled that Daimler could seek a partner to work on the next generation of Mercedes-Benz A-Class and B-Class compact cars.

"We're not just talking with Daimler about engines, we're talking about everything," Marchionne told reporters on the margins of a conference.

He gave no details about the discussions.

Fiat, Europe's fifth-biggest car maker, said last month it was in contact with Daimler unit Mercedes-Benz about a possible alliance. Fiat has had similar contacts with other automakers.

Fiat signed a 2.4 billion euro ($3.49 billion) accord with Daimler in June to supply truck engines as part of a wider strategic agreement.

Marchionne also said he expects U.S. markets to recover quickly from the subprime mortgage crisis. The impact should be over by the end of the first quarter of 2008, he said.

[Robert Ryan]

IVECO are supplying engines to Mercedes...Hmmm does this mean a combined effort to buy PACCAR/ or International in the US eventually? PACCAR/International are in the gunsites of VW/ MAN as well.

[asrapid]

According to rumors alfa 159 GTA should get AWD and 400+ hp engine( v6 with turbocharger or even v8 from maserati/ferrari). N.g alfa 169 will probably get even stronger v8 engine.

[Stéphane Dumas]

Also, Mercedes still own 20% of Chrysler, I wonder if, even if it's only a pipe-dream from my imagination, some Fiat platforms of smaller models could be use for future smaller Dodge models?

[mkaresh]

Hard to believe Daimler would be looking to get hitched again so soon.

My advice: don't agree to any multi-billion-dollar payment if a merger is called off

[mike's 01ws6]

Isnt this the same company that raped GM of 2 billion? Why would anyone want to deal with them again?

[nadepalma]

Originally Posted by mkaresh

Hard to believe Daimler would be looking to get hitched again so soon.

My advice: don't agree to any multi-billion-dollar payment if a merger is called off

I don't think there would be any kind of an equity swap in this kind of alliance. Both partners could get quite a bit out of the relationship by just agreeing to cooperate.

And besides, I think both sides are a bit cautious of an equity swap. Diamler just got divorced and Fiat doesn't want another tie-up like the one they had with GM. Better for both partners to just cooperate rather than swap stock.

[gardnet1]

Fiat also has JV with Ford to build the 500/KA/Street KA. They are finally getting smart on the R&D side. However, their Italian factories are woefully inefficient and not very cost competitive. If they profit, it is because of Eastern Europe & South America.

[Frankster177]

Originally Posted by mike's 01ws6

Isnt this the same company that raped GM of 2 billion? Why would anyone want to deal with them again?

Noone twisted GM's arm to get into that deal.
They made a bad decision.

Forza FIAT.

[Bravada]

Originally Posted by gardnet1

Fiat also has JV with Ford to build the 500/KA/Street KA. They are finally getting smart on the R&D side. However, their Italian factories are woefully inefficient and not very cost competitive. If they profit, it is because of Eastern Europe & South America.

Absolutely true - though a lot has improved in Italy too (like the closing of the Rivalta plant even before Luca came).