Fiat to Return to the U.S.

[doh]

http://www.businessweek.com/lifestyl...mpaign_id=yhoo

After a 25-year absence, the Italian automaker is looking for partners to make Alfas and the popular 500 subcompact in North America

Italian automaker Fiat (FIA.MI) is looking for partners to manufacture its Alfa Romeo brand and its 500 subcompact in North America. Although the company hasn't finalized plans for its return to the U.S. market, an announcement could come later this year, Fiat Group CEO Sergio Marchionne said Friday. "The U.S. market is very large, and we're not looking to occupy a premier position," Marchionne said. "But I think we do have a couple of brands and products that we can sell successfully there."

Marchionne didn't lay out any precise schedule for the return to the U.S., though he said he expects to be producing one of the brands by 2010 at the latest. "We need to make sure that when we enter the U.S. we're able to produce what we need," he said in an interview at a meeting of the Council for the United States & Italy in Venice.

Partnering Up
Marchionne believes the only way to sell Fiats profitably in the U.S. is to build them in North America. He said he's "having discussions with everybody," though he also didn't rule out building a factory. While Fiat has an existing partnerships with Ford (F), another potential alliance partners is Mercedes-Benz (DAI), which is interested in building passenger cars in North America in addition to the SUVs it builds in Alabama. Nissan (NSANY) has excess plant capacity at its Mississippi plant, and seems interested in replacing some of the SUV capacity it has there with passenger cars. Fiat already shares engineering with Ford on the U.S. automaker's Ka minicar in Europe. Ford is expanding its small car manufacturing in Mexico to build the Ford Fiesta, and would also be a logical partner.

But it's not as though Fiat has to go begging for a partner. In fact, says David Cole, chairman of the Ann Arbor (Mich.)-based Center for Automotive Studies, with an established and successful small car platform in the 500, and U.S. automakers looking to increase their small car offerings as gas prices climb, "Fiat isn't having any problems getting a meeting." Cole says Chrysler and Ford are the most likely partners for Fiat among U.S. carmakers, since General Motors had a painful and expensive divorce from an alliance with Fiat a few years ago.

[ARCANGEL]

I CAN'T WAIT!!!! Love Alfa's and the 500!!!

[steinravnik]

Hopefully their cars are more reliable this time.

[ARCANGEL]

they have made huge leaps in quality, my family in italy has many, the need a good dealer network with proper mechanics!

[paul8488]

Imagine GM and Fiat had been able to keep their cooperation going... GM could have potentially been able to work a deal to 'free up' some space at some of their North American plants. I'd love to buy a Canadian-made 500!

[Rocket 88]

Isn't this one of the signs of the Apocolypse???

[61BelAir]

Originally Posted by Rocket 88

Isn't this one of the signs of the Apocolypse???

nahhh...more like the rise and decline of Western Civilization.

[igor]

I very much hope Ford snatches them (they have the capacity) and in a related move brings out the Ka in US - sure the Ka will be a small niche player, but it will be an image makeover car ... and Fiat in modifying the 500 for US can pick up most of the cost ... it is a WIN WIN

WIN WIN WIN - if you count consumer choice ..

it is a no brainer to me

Igor

[wescoent]

Originally Posted by igor

I very much hope Ford snatches them (they have the capacity) and in a related move brings out the Ka in US - sure the Ka will be a small niche player, but it will be an image makeover car ... and Fiat in modifying the 500 for US can pick up most of the cost ... it is a WIN WIN

WIN WIN WIN - if you count consumer choice ..

it is a no brainer to me

Igor

The Ka and 500 are mechanical twins... not sure if many people here know that.

If the 500 does pass US requirements, I don't see the problem in bringing the Ka as well.

[chevydlrmn]

Originally Posted by igor

I very much hope Ford snatches them (they have the capacity) and in a related move brings out the Ka in US - sure the Ka will be a small niche player, but it will be an image makeover car ... and Fiat in modifying the 500 for US can pick up most of the cost ... it is a WIN WIN

WIN WIN WIN - if you count consumer choice ..

it is a no brainer to me

Igor

That would be good for Ford. Throw 'em in the St Paul Ranger plant and be green for the effiency of the dam powered plant producing good mpg cars.

[ChevroletRevived]

Awesome news, espessially about the 500 coming over here. I'd expect that to do very well, with gas prices and all. It's a car that looks cool inside and out, yet is affordable and good on gas at the same time. Sounds like a winning combination!

[sonjaab]

Fix It Again Tony !!!!!!!!!!!!!!!

[King Riffle]

Now would be the most logical time to bring over small European cars. The high gas prices means that people are shopping for that sort of thing. Add the "cute" factor of a car like the 500 and success is almost a certainty.

[chaseabryant]

I can't wait to see Alfas over here. I'm especially interested in the MiTo...

The 500 seems like a pretty interesting little vehicle as well. I think that it may need to get to a second generation before I really like it, some things on it need to be refined (design-wise that is) .

-Chase

[paul8488]

Very good idea Igor... a US Fiat plant that cna also pump out the Ka. Those are the kinds of deals and relationships (I hate the word synergy!) that can keep US plants running.