Posted on Tuesday 15 April 2008
The worsening exchange rate differential between the strengthening euro and weakening U.S. dollar means importing European manufactured models to North America is now significantly more expensive than just a few years ago. It’s a problem Alfa Romeo has to juggle with as it attempts to re-establish itself in the U.S. next year, but there’s hope for the Italian carmaker in the form of idle capacity at American auto plants.
The CEO of parent company Fiat, Sergio Marchionne, has hinted at production of Alfa Romeo cars in Mexico and has also confirmed there are talks in place with the Detroit 3 carmakers. There was even a rumor that BMW could build cars for Alfa Romeo at its U.S. plant, but latest reports are claiming executives are in talks with Chrysler.
Germany’s Handelsblatt newspaper said talks between the two carmakers are advanced. Chrysler recently announced a major supply deal with Nissan and has stated it was open to further partnerships.
At the same time, Fiat chief technology officer Harald J. Wester revealed there are two new small cars in the works and the 500 minicar (pictured) will be sold in North America, although he didn’t give a timeline. He also confirmed the car would be produced at either a U.S. plant or one of Fiat’s existing facilities in South America.
The first of the new small cars Fiat is planning will replace the Palio range, while the second will be positioned between the current Panda and new Grande Punto.
Fiat in talks with Chrysler, confirms 500 for U.S.
Fiat chief technology officer Harald J. Wester revealed there are two new small cars in the works and the 500 minicar (pictured) will be sold in North America, although he didn’t give a timeline. He also confirmed the car would be produced at either …
WooHoo! But, I want the Abarth version, hopefully arriving at the same time.
abarth might not be available. in fact I’d bet on it. should be interesting to see if they price this to compete with the fit, the yaris, the wave, and the fiesta,.. or if they take the high road and try to compete with cooper.
More likely the 500 will be priced to compete with the Mini rather than the Fit/Yaris. This would put the base 500 around $20K and the Abarth at $25
jim, seeing as it’s fiat, I would agree with you, except the point of the article is that chrysler may end up building it. it could end up being a very cheap car. but if fiat were smart, they’ve push into north america with an image of quality, not quantity. have chrysler put this thing on a low volume line, and pay two late twenties women who know their cars, but who have OCD to inspect every one of these things on the way out.
Chris, quite likely the 500 in the US will be low volume, put that together with cheap to buy and its a money loser. Having not seen a 500 in person, I don’t know if the car has Mini or Aveo fit and finish. There is also the cost of setting up a dealer network, even if you use existing stores that cost needs to be amortized.
If Fiat and Chrysler are smart (which may be a problem), they’ll make sure they use good materials in the interior and price the 500 just below the Mini. And I agree with you about OCD inspectors.