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Source: Automotive News Email Alert

NEW YORK (Reuters) -- Fiat is considering moving production of Alfa Romeo cars and Iveco trucks to the United States and is already talking to U.S. automakers about sharing manufacturing facilities, the Italian car giant's CEO (told) the Financial Times.

Such a move would save money for Fiat, which is suffering from the relative strength of the euro against the dollar, and mark a return of the Alfa Romeo brand to the United States after withdrawing it in 1995.

"I've always had the view that we had to produce in America," Fiat's CEO Sergio Marchionne said in an interview with the Financial Times published on Monday, adding that he planned to start North American production of Alfa cars by 2011 or 2012.

He said Fiat is already talking to Detroit's major carmakers about sharing production of Alfa Romeos in the United States.

Representatives of General Motors, Ford Motor and Chrysler could not be reached for comment on the matter.
 

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Re: Report: Fiat Talking To Detroit-3 To Produce Alpha Romeo Models In USA

My money is on Chrysler. They certainly have the excess plant capacity.
 

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Re: Report: Fiat Talking To Detroit-3 To Produce Alpha Romeo Models In USA

I like some of Alfa's cars but didn't GM use to have a deal with Fiat that end up costing GM $1 billon into the red?

Go ahead and give it to Chrysler, or maybe Ford (now that AM and Jag are gone).
 

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It seems all three have been fed-up with Europeans lately. Chrysler splitting form Mercedes, Ford giving up Jaguar/Land Rover, and of course GM shelling out 2 billion to get Fiat off their back.

It's interesting that GM had originally planned on facilitating the sale of Alfa's in the US a few years ago. And now after Fiat rebuilt the brand with the money from GM, they are here again.

I'm cool with it as long as they can make a 8C Competizione that I can afford. It'll never happen I know.
 

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GM should bid agressively for the job for two reasons: To get their job bank working again (will save them money), and to bring jobs to this country for blue collar folks. Let Alfa pick up the tab for utilities and work force but don't demand much else, as having these people off GM's payroll for a while is a very good thing. Alfa can pay their wages and contribute to their 401k or whatever retirement they get.

Hopefully these will be for US consumption too because Alfa makes some neat cars.

I am thinking that the Oklahoma City plant and the Moraine, Ohio plant could use the work....or the jobs bank.


There is a benefit to the weak dollar...and that is for the working class to actually have work. Let's hope the UAW doesn't screw this up. It's rare that someone wants to outsource work TO the USA, and you can bet that it isn't permenant.
 

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Where would Alfas be sold if GM or Chrysler were to build them? I thought I had heard that they would be sold through established Maserati dealers initially. Wouldn't it be great to see them sold alongside some Cadillacs?
 

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Re: Report: Fiat Talking To Detroit-3 To Produce Alpha Romeo Models In USA

ALFA, not Alpha.

...and yeah, with the severed connection with DaimlerBenz, Chrysler could sure use another dose of European flair to their ledger.
Yes indeed. ALFA (Anonima Lombardi Fabbrica Automobili).
 

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I love how he said,"I've always had the view that we had to produce in America," like we are last resort or something. It's like, I guess we'll go there.
 

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GM should bid agressively for the job for two reasons: To get their job bank working again (will save them money), and to bring jobs to this country for blue collar folks. Let Alfa pick up the tab for utilities and work force but don't demand much else, as having these people off GM's payroll for a while is a very good thing. Alfa can pay their wages and contribute to their 401k or whatever retirement they get.

Hopefully these will be for US consumption too because Alfa makes some neat cars.

I am thinking that the Oklahoma City plant and the Moraine, Ohio plant could use the work....or the jobs bank.
I was thinking Oklahoma too. Honestly, GM has the excess capacity, but it also makes me wonder if GM could possibly end up sharing some components with these Alfa cars. Remember the divorced said that Fiat could gain access to GM's Northstar family at some point. But we've also heard rumors that they'd want to use Sigma as a basis for a RWD mid-sizer here in the US.

If there is NO platform sharing, then Fiat hasn't much to gain by looking at sharing a factory. True, they get to share a "space" and get a building up an running sooner. But they also have to deal with the UAW and higher labor costs. It would be cheaper for them to just purchase a scuttled factory from Ford, GM, Chrysler that they have closed/intend to close (like Oklahoma).

Just my two cents.
There is a benefit to the weak dollar...and that is for the working class to actually have work. Let's hope the UAW doesn't screw this up. It's rare that someone wants to outsource work TO the USA, and you can bet that it isn't permenant.
Agreed. The dollar wont be weak forever. The US government will have to take steps to shore it up in the coming years -- if they dont then all other nations will end up dumping our currency as their reserve. Since it will be short lived, we must take what we can get and keep some manufacturing here in the US. The UAW certainly needs to keep this in mind if they go into negotiations.
 

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I'm not saying this couldn't be done, but I'd be scared to get involved with FIAT.

Assuming Fiat did end up using plant capacity from GM, Ford or Chrysler, I'd love to know what distribution network they'd use. You could sell them through Saturn for some real European credentials.
 

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Let them build in Oshawa....after the loosing the GP and Allure/LaCrosse, we have tonnes of room nestled snuggly between the 900's and Bumblebee lines :D
 

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And to what nadepalma said, here in Windsor, we have plenty of empty ford and chrysler buildings just aching for new tennants!
 

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Why talk to the Detroit 3.

All Fiat should do is acquire one of the idled plants.... invest in it.... and reopen it as an Alfa plant.
What Fiat is trying to do is enter the US market with even lower costs. What they want is a partner.
 

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This could be an opportunity for GM to get some of its money back from Fiat. There is certainly enouigh capacity in NA and GM now knows to watch their back wjhen dfealing with Fiat. It might also be an opportunity for platform sharing both ways. Just a thought!:)
 

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I was thinking Oklahoma too. Honestly, GM has the excess capacity, but it also makes me wonder if GM could possibly end up sharing some components with these Alfa cars. Remember the divorced said that Fiat could gain access to GM's Northstar family at some point. But we've also heard rumors that they'd want to use Sigma as a basis for a RWD mid-sizer here in the US.

If there is NO platform sharing, then Fiat hasn't much to gain by looking at sharing a factory. True, they get to share a "space" and get a building up an running sooner. But they also have to deal with the UAW and higher labor costs. It would be cheaper for them to just purchase a scuttled factory from Ford, GM, Chrysler that they have closed/intend to close (like Oklahoma).

Just my two cents.

Agreed. The dollar wont be weak forever. The US government will have to take steps to shore it up in the coming years -- if they dont then all other nations will end up dumping our currency as their reserve. Since it will be short lived, we must take what we can get and keep some manufacturing here in the US. The UAW certainly needs to keep this in mind if they go into negotiations.

"But they also have to deal with the UAW and higher labor costs."


You must be a tad behind the times .....don't forget the last GM contract where all the non value added jobs went to $14.20 / hour .......that is far cheaper than most other carmakers ........save the Alabama Hyundai plant.

There will be no jobs bank to speak of either the contract will force them to move to where there is jobs.

I suspect that the next round of GM contracts all will get the $14.20 after a buydown of sorts.
GM now has the cost advantage,how they manage it will tell the future!
 
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