Sos Italy

Italy 4 English Speakers

The future of Car Industry

with 4 comments

Mr. Marchionne, the CEO of Fiat stated, a few months ago, that in Europe there is place only for one automobile manufacturer, while, on the rest of the world there will be only two or three more. This means that the battle will be very hard. We cannot understend the immininent agreement between Chrisler and Fiat without the idea of a car market dominated by a small number of great actors.

Fiat 500 in USA?

The demand of small and eco-compatible cars, in USA, seems to be very strong, on this side of the Atlantic and this seems to be a good deal for the European car industry. One of the main issue is that a lot of manufacturers do not have a distribution network on the US. The eldorado for small cars constructors need to be conquered quickly, but the most of European brands has not dealers in North America and, now that car factories are sold, in USA, such as we were on a sale off, FIAT got his chance. Perhaps, it’s since 2005 that Marchionne’s guys are trying to come back to North America. One of the first ideas circulating in some environment was that FIAT could use the Ferrari dealers network, but it was not so developed as the Chrisler’s one. So, considering all this variable, you might soon find a small and sexy FIAT 500 on Main Street.

Is it Only a Commercial Agreement?

I, actually, do not know. One of the very immediate ideas coming into my mind is that FIAT has desperate need of fresh money. An agreement with a US manufacturer can give the Turin factory the chance to put their hands on the money Team Obama is spending to save the stars&stripes car industry. Otherwise it is very difficult to understand what sense does this decision make. Under the industrial point of view, it makes not sense: it is a common place, for example, that US plants are not tecnologically very developed. So, why should FIAT buy Chrysler?

Fiat Rulez, Maybe

I do not know if FIAT will survive the crisis. The problem is how well the Chrylser operation will work. I do not know. Witch model will Chrysler build? Renamed FIAT ones? who knows. What is important is that the operation will work for everyone.


Written by Francesco Piccinelli Casagrande

04/18/2009 at 12:56 pm

Posted in Politics

Tagged with , , , , , , ,

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  1. […] Sunny wrote an interesting post today on […]

  2. […] Original post by Sos Italy […]

  3. […] Original post by Francesco Piccinelli […]

  4. […] triscribe placed an interesting blog post on The future of Car IndustryHere’s a brief overview…understend the immininent agreement between Chrisler and Fiat without the idea of a car market dominated by a small number of great actors. […]

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