Rumors and even some confirmed reports are going around tying together Chrysler, Fiat and Tata. Starting in the U.S., Chrysler may partner with Tata to sell Jeep Wrangler’s to the Indian market. What is alarming about this plan came from an investment banker watching the deal. "You could definitely see this evolve into something," the banker said. "It would make sense for Tata to buy Jeep if this partnership went through ... and Chrysler could really do with selling a brand and getting some cash." Jeep, America’s brand for sale! Say it ain’t so Chrysler.
Chrysler also has extra manufacturing capacity from the SUV sales slowdown, and Fiat may lease factory space to bring production to the U.S. This may also tie Chrysler’s dealer network into the possible return of Fiat brands including Alfa Romeo.
Fiat and Tata are already attached to a deal that will have Fiat provide
financing for Jaguar and Land Rover, In return, Fiat would possibly sell the Tata’s ultra-economy Nano in Europe.
In a way, this could set up Lee Iacocca’s “Global Motors” dream of over 30 years ago. Iacocca thought about bringing together an American, European, and Japanese car company to make a worldwide automotive conglomerate. The idea allowed for utilizing the U.S.’s manufacturing strength, European style, and Japanese knowledge of good economy cars. Although Tata is not Japanese, the Indian firm is looking to show the world it knows how to make an inexpensive car. So, if all this goes through, someone better build a chart to keep track of what car is coming from where.
For those who visited the Chicago show back in 2005, the Ragster Concept would have given you some idea on what was being planned, but then VW remained tight-lipped about the developments. News last month suggested the upcoming bug arriving sometime in 2011 will see a version with its top removed and even a small-sized SUV will feature in the list. VW will get there by using the 6th generation Golf platform to make the hatch and it would not be built stateside.
But now, Motor Trend reports that VW is considering another Beetle based on the VW Up!. The Up! debuted at the 2007 Frankfurt show and received a lot of positive response, especially from the American audience. So, VW might have decided to make use of it as a base to serve America exclusively with this iconic and hip car.
If the car is going to be based on the Up!, then it makes it a rear-engined, rear wheel-drive layout bringing it ever so close to the original version. The renderings are neat and the car should in all probability look like them.
What does all this mean. Simple-another sub-brand for VW. With the amount of waves the Beetle has created in America, launching these two vehicles under a brand new banner makes a whole lot of sense.
The rumors are swirling once again – Chrysler Corp LLC may be headed for Chapter 11 Bankruptcy. Currently there are official denials of any problems with liquidity and Chrysler spokesman Dave Elshoff said “The rumor is without merit”. However, let’s take a moment and reflect back about 30 years ago when Chrysler had similar woes.
It’s 1979 and the Chrysler Corporation had petitioned the US Government for $1.5 billion in guaranteed loans to stave off bankruptcy. Congress reluctantly agrees and then President Jimmy Carter signs the loan into law. What caused all of Chrysler’s problems? It was two-fold: 1) the 1970’s oil crisis which triggered unbelievable price increases in gasoline and long lines at the pump. Americans turned to the more economical Japanese auto makers while US manufacturers were left holding the bag with their big, overbearing, gas guzzling behemoths; and 2) Chrysler Corporation was so far behind on updating their factories that they we unable to even retool in order to catch up with the Japanese. Fortunately, Chrysler had the foresight to hire Lee Iaccoca away from Ford Motor Company and the rest is history. The K-Car saved the company and Chrysler was able to repay their debt in record time.
Today, the picture is a little different; the Chrysler Corp. LLC is run by Cerberus Capital Management, one of the largest private equity investment firms in the United States. The company was formed in 1992, some 67 years after Chrysler was established. The business of CCM is to make money for its investors through choosing solid companies to purchase. Now, while this is nothing new in the world of big business, it does seem odd for CCM to purchase a company that even the world renowned Daimler AG could not keep afloat. Although CCM does seem to have a penchant for buying barely treading water companies like Target and GMAC, but retail and finance are very different animals compared to auto manufacturing.
Consider this; earlier this week, Chrysler Corp. LLC drew on a $2.0 billion line of credit from Daimler AG and Cerberus at an interest rate of 7% over the London interbank rate. Chrysler lost more than $1.6 billion in 2007 and sales are down over 23% so far this year. So what does all this mean? If Cerberus and Daimler AG, who still has a 19% stake in the company, decide to dismantle Chrysler, the economic ramifications will reverberate through the US and the world. Chrysler employs more than 100,000 people and many more thousand worker jobs depend upon the company purchasing the products designed and/or manufactured at their company. The blow to the US economy would certainly be catastrophic considering the seesaw slide we are on right now. A company with good liquidity does not tap their $2 billion line of credit unless something is wrong. Let’s hope it is just a rumor, otherwise we are in for a huge wallop.
First rumors about the X7 started to surface three years ago. Back then was just a buzz, and that’s it. But now, company insiders revealed that BMW is working on a super luxury SUV. The future X7 will be built as a competitor for the Land Rover Range Rover.
BMW is waiting to see what will happen with the US SUV market and after will decide the faith of the X7. If things won’t get better, probably the X7 may be canceled. Another important thing to know is that the X7 would only work if alternative fuels like hydrogen and hybrid technology become mainstream.
Well, we will need to wait and see!
Is not the first time you hear about this. You heard it at TopSpeed for sure back in 2007 when first rumors started to circulate around the internet. But today we bring you AutoBild’s rendering of the future model.
According to the same magazine, the future "Porsche Golf" will be a compact car that will remain a secret until 2012.
We agree that the idea is pretty absurd, but after all Porsche already created a luxury sedan, so why not a hatchback too? Maybe they try to compete with BMW, who knows!
Until then, you can check the newest informations about the new generation 911, or read our preview for the Panamera.
As recently as the Detroit Auto Show in February, a top Cadillac design official specifically denied that Cadillac was considering a wagon version of the CTS. With the next generation SRX on display at the show in concept car form – the Provoq – this executive flat-out said that Cadillac did not want to risk cutting into its sales with a CTS wagon.
Seems that statement is inoperative. Exactly the vehicle this executive denied was being considered is, in fact, very much alive and driving, at least according to information posted at AutoBlog and spy shots captured by the famous team of Doane and Priddy.
The fact is that a poorly disguised CTS wagon is circulating, with only the back and very front of the vehicle hidden by shrouding.
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Or, at least that’s the prevailing opinion. This mule was circling the Fiorano test track, Ferrari’s home base proving ground, doing hot laps.
The car, the existence of which Ferrari adamantly and unequivocally denied for months, is internally designated as the F149, but is thought to be named ether the Dino or GT California when it hits the market. It is expected to be a four seater with a retractable top, and is expected to use a 4.7 liter V-8 shared with certain Maserati models. Indeed, rumor has it that the new Ferrari may actually be assembled by Maserati. Both names are properties of Fiat.
Ferrari is expected to unveil the car at the Paris Auto Show this fall.
The word had been out that the freshened 3 Series from BMW, due in 2009, would be getting the updated and improved version of the iDrive system, the multifunction system that has maddened BMW owners in its previous incarnations, been copied by other manufacturers, and been a constant source of criticism by automotive journalists.
Various sources, including BMW Blog, had reported last week that the new version of iDrive, reportedly currently under testing, would be part of the new 3 Series.
But, BMW Blog now says that they were misinformed, or at least that they are now better informed. BMW sources have told BMW Blog that there’s zero chance if the new iDrive showing up in the facelifted 3 Series.
Instead, the new iDrive goes into the 5 Series.
So, all you’ve got to do if you want it is spend more money.
When you are asked by someone that owns part of your company to help with his or her hobby, you probably don’t feel inclined to say no.
That’s the position of Daimler, AG in dealing with Aston Martin, which is owned in substantial part by the investment arm of Kuwait. Kuwait also happens to own seven percent of the stock of Daimler, AG.
The hot rumor circulating this week-end has Mercedes-Benz – that would actually be Daimler – buying Aston-Martin, or at least a big stake in it. AutoBlog even purports to specify particulars of the deal: in exchange for Daimler buying a stake in Aston, the Kuwaiti Investment Authority would receive a seven percent interest in Daimler. (So, would that be another “seven percent”? Or is it possible that the AutoBlog j is confusing this with the seven percent in Daimler that Kuwait already owns?)
Aston is the manufacturer of 7,000 cars a year. If it reaches its goal, it’s going to build 9,000 per year.
Daimler built 39,000 buses last year. In other words, just counting buses, Daimler’s production was four times that of Aston. Daimler sold 1.28 million automobiles last year.
Aston isn’t worth seven percent of Daimler. Not even close.
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The hot question is what’s going on with “Project D?”
The man who was heading Chrysler’s most important product development project has quit the company – only two months after getting promoted to the job.
Chrysler claims there’s no acrimony, but that’s neither the version reported by the Wall Street Journal nor what the circumstantial evidence suggests:
The Journal says that the departure of Michael Donoughe, who held the position of vice-president and was in charge of Project D, which is the development of a new mid-size platform to replace the current Dodge Avenger and Chrysler Sebring, was the result of conflicts with top-level Chrysler management.
At Chrysler, that phrase is a euphemism for Bob Nardelli.
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