Fiat names Sergio Cravero as head of Alfa Romeo

[Scott Farquharson]

TURIN, Italy, Jan 14 (Reuters) - Fiat (nyse: FIA - news - people ) SpA on Wednesday named Sergio Cravero chief executive of its flagging Alfa Romeo sports car brand, replacing Luca De Meo, whose surprise resignation sent its share price lower.

De Meo was seen as a rising star on a mission to revive the iconic Alfa marque and his departure on Monday dealt a psychological blow to Fiat, Europe's sixth-biggest car maker by unit sales.

Like other manufacturers, Fiat is facing the worst industry crisis in decades and says it is looking for a partner to help it survive.

In fresh evidence of anaemic demand, a source at Fiat told Reuters the closure from Jan. 12 to Feb. 8 of Alfa's main plant at Pomigliano d'Arco near Naples had been extended to Feb. 15 with a further production halt scheduled for Feb. 23 to March 8.

A week-long production stoppage at its Cassino plant starting Feb. 2 was extended until Feb. 15, the source said.

Italy's welfare minister, Maurizio Sacconi, added his voice to calls for an alliance on Wednesday, saying Fiat should find a partner in the short term.

'It needs to find a big partnership urgently,' Sacconi told reporters in Rome.

Fiat shares were up 0.1 percent at 5.205 euros in Milan. The DJ Stoxx auto index was up 0.33 percent.

REORGANISATION

A wider reorganisation of the group's core car division will see Cravero, head of marketing at Alfa since 2005, lead product development at Alfa Romeo as well as the two other car brands, Fiat and Lancia.

De Meo was the third executive to resign from Fiat's car business in about a year.

In July, Roberto Ronchi quit as head of Maserati, a small luxury car brand managed outside the division. Antonio Baravalle left Alfa Romeo in December 2007, making way for De Meo.

La Repubblica newspaper quoted De Meo as denying reports that he was leaving because of disagreements with the group's overall head, Sergio Marchionne.

He declined to comment on reports that he could take charge of marketing at Germany's Volkswagen

[1750GT]

Oh dear, more turmoil in the Fiat group for the umpteenth time. Fiat was once all conquering and one of the most advanced manufacturing companys in the world, how the mighty have fallen. They just cant seem to leverage their brands properly and persist with this one size fits all (front wheel platforms in particular) even for their premium brands like Alfa. I certainly hope they dont get into bed with the wrong partner if they go that way, like the previous hook up with GM and I certainly hope it's not with a German manufacturers (although they seem to be the ones that look like they are going to survive this turmoil the best) and thankfully the yanks are out of the picture. Although I have alot of respect for some of the performance stuff the Germans are doing I can imagine a "germanised" character-less italian sports car? just would not be an Alfa.

1750GT

[k76]

The german influences has worked quite well in the case of Lamborghini,not too bad for Land Rover and  the new Mini either. I see you  point though, but I think the important thing is someone who will look after the brand, not just stick the badge on some generic car.

If I remember correctly I think Fiat was setting up a technology center in China a couple of years back, teaching the chinese how to build cars. I wouldn't be surprised if something came out of that.

[Scott Farquharson]

India more likely (with Tata) - Germans are actually in a lot of trouble given their dependance on the USA.

[k76]

Maybe Chrysler?
http://news.smh.com.au/breaking-news-business/fiat-in-talks-with-chrysler-report-20090120-7l0m.html


They have the common trait of being able to make nice cars for a few years, then forget it all and make complete duds for a few years. At least Chrysler has a soul, they just need to remember where they put it...

[Sheldon McIntosh]

JOINT PRESS RELEASE

FIAT GROUP, CHRYSLER LLC and CERBERUS CAPITAL MANAGEMENT L.P. ANNOUNCE PLANS FOR A GLOBAL STRATEGIC ALLIANCE

Fiat S.p.A., Chrysler LLC (Chrysler) and Cerberus Capital Management L.P., the private investment majority owner of Chrysler LLC, announced today they have signed a non-binding term sheet to establish a global strategic alliance.

The alliance, to be a key element of Chrysler's viability plan, would provide Chrysler with access to competitive, fuel-efficient vehicle platforms, powertrain, and components to be produced at Chrysler manufacturing sites.

Fiat would also provide distribution capabilities in key growth markets, as well as substantial cost savings opportunities. In addition, Fiat would provide management services supporting Chrysler's submission of a viability plan to the U.S. Treasury as required.

Fiat has been very successful in executing its own restructuring over the past several years. The alliance would also allow Fiat Group and Chrysler to take advantage of each other's distribution networks and to optimize fully their respective manufacturing footprint and global supplier base. The proposed alliance would be consistent with the terms and conditions of the U.S. Treasury financing to Chrysler. Per the U.S. Treasury loan agreement, each constituent will be asked to contribute to Chrysler's restructuring effort including: lenders, employees, the UAW, dealers, suppliers and Chrysler Financial. Such steps would greatly contribute to Chrysler's long term viability plan.

Completion of the alliance is subject to due diligence and regulatory approvals, including the U.S. Treasury. As a consideration for Fiat Group's contribution to the alliance of strategic assets, to include: product and platform sharing, including city and compact segment vehicles, to expand Chrysler's current product portfolio; technology sharing, including fuel efficient and environmentally friendly powertrain technologies; and access to additional markets, including distribution for Chrysler vehicles in markets outside of North America, Fiat would receive an initial 35 percent equity interest in Chrysler.

The alliance does not contemplate that Fiat would make a cash investment in Chrysler or commit to funding Chrysler in the future.

"This initiative represents a key milestone in the rapidly changing landscape of the automotive sector and confirms Fiat and Chrysler commitment and determination to continue to play a significant role in this global process. The agreement will offer both companies opportunities to gain access to most relevant automotive markets with innovative and environmentally friendly product offering, a field in which Fiat is a recognized world leader while benefitting from additional cost synergies. The deal follows a number of targeted alliances and partnerships signed by the Fiat Group with leading carmakers and automotive suppliers over the last five years aimed at supporting the growth and volume aspirations of the partners involved," the CEO of Fiat Group, Sergio Marchionne said.

"A Chrysler/Fiat partnership is a great fit as it creates the potential for a powerful, new global competitor, offering Chrysler a number of strategic benefits, including access to products that compliment our current portfolio; a distribution network outside North America; and cost savings in design, engineering, manufacturing, purchasing and sales and marketing," said Bob Nardelli, Chairman and CEO of Chrysler LLC. "This transaction will enable Chrysler to offer a broader competitive line-up of vehicles for our dealers and customers that meet emissions and fuel efficiency standards, while adhering to conditions of the Government Loan. The partnership would also provide a return on investment for the American taxpayer by securing the long-term viability of Chrysler brands in the marketplace, sustaining future product and technology development for our country and building renewed consumer confidence, while preserving American jobs."

"This is great news for the UAW Chrysler team and we look forward to supporting and working with them to ensure Chrysler's long term viability," said Ron Gettelfinger, President United Auto Workers (UAW). "We're on board with this important strategic initiative as it will help preserve the long-term viability of our great company, its brands and of course UAW-Chrysler jobs," said General Holiefield, Vice President, United Auto Workers (UAW).

Turin, Italy – Auburn Hills, MI, USA. January 20, 2009

[Scott Farquharson]

The Fiat Valiant....or the Alfa Charger......or...what about a Lancia Sigma.....mouthwatering....or a 159 Pacer...I could go on......

[Sheldon McIntosh]

what about a Lancia Sigma.....

How prescient....they both did a Scorpion.....

[alfagtv100 (Biggus)]

As a 159ti V6 owner, I am left wondering if this announcement will have a positive, or negative influence on the future resale value of my car?  Will my car be considered a "classic" one day, or simply; "the pretty, car Alfa stuck a Holden engine in, that drank like a fish"?

Regards,

Worried.

[Sheldon McIntosh]

Dear Worried of Doncaster.

Get your hand off it.  If you were worried about resale you would have bought the BMW that you admitted was a better car anyway.  No-one buys an Alfa as a sensible purchase, much less with an eye to resale value. 

Cheers

PS  ready for a bike ride soon?

[Scott Farquharson]

An Alfa badged Chrysler 300 - for Italian gangsters and rap stars....

[John Hanslow]

Well, no there is apossibility of production facilities for Alfa and also access to small car platform for Chrysler.

So as tatra & jag our out of the picture (sort of) then lets hope Alfa can get a luxury car platform for the long delayed production of the 169 and rear wheel drive and all.   Crikey - hopefully not a rebadged 300C !

[k76]

Lancia has been short on taste lately, imagine the grille off a thesis on the 300c? If they did an integrale I'd be willing to forgive a lot though

[1750GT]

Yes a 159 PT cruiser or a 164 Voyager for the family man but best of all a rear driver with  Hemi V8, or an Alfa Dodge Viper, the dodge is an interesting part of the name.

Some of the rear drive paltforms which Chrysler has access to in the 300C etc. are actually previous gen Mercedes rear drive, perhaps not up to BMW standard but certainly better than the GM US junk they were thinking of using for their rear drive platforms and I am sure that Alfa could take the creases out of the platform and steering(eg. the dodgy steering kick back of that previous Merc platform). Me suspects however that as with other Fiat partnerships with US mogrels, I mean mogels, is that Fiat always gets the wrong end of the bargain. At least this time their not paying over any cash and may just get some access to the 5bil.

Will be interesting to see what comes out of this one, an unlikely thought six months ago.

1750GT

[Scott Farquharson]

Nah, bring back the Charger......replacement for the Brera...