Hoovey689

iTrader: (16)

Report: Fiat raises Chrysler ownership to 30%

Last week ,we told you that Fiat had plans to increase its stake in Chrysler within the next couple of weeks, and the automaker is apparently running ahead of schedule. The Detroit News reports that the Italian concern has officially purchased an additional five percent of the Auburn Hills, MI-based automaker, bringing the total to 30 percent. It's the second ownership increase for Fiat in 2011, as the automaker only announced that it was increasing its stake to 25 percent in January.

The second five percent comes after met a condition stipulating that Fiat sell a Chrysler product in 90 percent of dealerships in Brazil while also achieving $1.5 billion in revenue outside of North America. The automaker reportedly struggled to reach an agreement with dealers in Brazil to sell Chrysler-badged vehicles, so a second stipulation was rewritten to account for Chrysler vehicles re-badged as a Fiat. That vehicle is the Fiat Freemont shown above, which is essentially a Dodge Journey with a Fiat badge.

The Detroit News says Fiat likely won't hit its final bogey of achieving 35 percent ownership until the fourth quarter, when a Fiat-based Dodge hits the market. That vehicle will need to hit 40 miles per gallon in highway driving, which suggests the vehicle may be based on the Fiat 500.

http://www.autoblog.com/2011/04/12/r...nership-to-30/

spwolf

is there any small hatchback that gets 40mpg on highway? Nope.

Why? Because they use smaller engines who are not as efficient at highway speeds and because their overall shape is not that aerodynamic.

so there is no way that Dodge would be 500 based... Dodge does not need such car at all. It needs to be small sedan with 1.8l engine.

mmarshall

In the American market, with EPA ratings, among non-hybrids, some versions of the Ford Focus, Fiesta, Hyundai Elantra hatchbacks do....so does the VW Golf TDI diesel. There may be some others too, but I don't have time to individually check each one. Small Hybrid hatchbacks like the Honda Insight and Toyota Prius, of course, do even better.

Gearing also plays a factor. In general, unless it is down to the point where the engine is lugging from too-low RPM, taller gearing will give you better mileage, fewer RPMs and less wear on the engine, and shorter gearing will give you more RPMs, lower mileage, and more wear on the engine.


I don't see, though, what an arbitrary figure like 40 MPG (or any other EPA figure) has to do with Fiat's percentage-stake stake in Chrysler.

JessePS

Someone down the street from my work has a Fiat 500. I had to stop and look at it. I am actually surprised they are already for sale in Canada.

whoster

the 500s are also available here in Socal. Dealerships are starting to take shape and some dealers have already taken delivery--even if the dealership itself isn't open yet.

spwolf

Fiat 500 is car significantly smaller than Focus, Fiesta, even Yaris.

mmarshall

Like I said in the earler post, could be the gearing. Shorter gearing, which is sometimes necessary with smaller engines to overcome the lack of torque (especially with us big, heavy Americans on board), can contribue to lower mileage, even on a smaller car. The U.S.-spec Fiat 500 engine is only 1.4L.....and has less than 100 ft-lbs. of torque. That means that a fair amount of throttle pressure, and short gearing, may be needed to help it keep up with traffic.

IS-SV

Some facts (for a change) about the Fiat 500:

6 speed tranny setup: 4:03 rear end with .672 top gear
5 speed tranny (manual) setup: 3.73 rear end with .766 top gear

mmarshall

What I said about the Fiat 500's U.S.-spec 1.4L engine was a fact.....it has only 101 HP and 98 ft-lbs. of torque. My statement on the gearing was part speculation and part fact.

mmarshall

Wonder if Uncle Sam is getting any of that money from Fiat. The U.S. government holds part of Chrysler's present shares, and if Fiat is buying up more of them, then someone else has to own less...and pocket from the sales.

IS-SV

Here we go again with the part speculation and part fact, not that anybody cares. Because nobody cares.

All I did was bring more facts into the disucussion on gearing.

IS-SV

I was wondering the same thing, good question on the exit strategy for US.