Sollers Ends Negotiations with Fiat Group for Joint Venture in Russia, Then Signs Deal with Ford

Italian automaker Fiat SpA and Russia's Sollers OJSC, backed out of a potential partnership today following the signing of a Memorandum of Understanding (MoU) in February 2010 for the launch of a Russian joint-venture to produce passenger cars and SUVs.

Fiat, which controls US automaker Chrysler, and Sollers did not give any explanation for the breakup of negotiations, with both companies simply stating that they intend to continue expanding their existing operations and activities in the region. The 2.4 billion-euro deal signed last year was aimed at producing as many as 500,000 cars annually by 2016 and would have been supported by a 1.2 billion- euro loan backed by the Russian government.

Literally only minutes after the joint statement by Fiat and Sollers, Ford Motor Company came out with a press release announcing that is has signed a Memorandum of Understanding with Sollers, under which the two parties intend to launch a new 50:50-owned joint venture called Ford Sollers for the production and distribution of Ford vehicles in Russia.

Under the new proposed joint venture with Ford, Sollers, which is the second largest producer of passenger and light commercial vehicles in Russia, local plants in Vsevolozhsk (St. Petersburg region) and in the Republic of Tatarstan, will manufacture a range of Ford passenger cars and light commercial vehicles at local production facilities.

“We are delighted to be taking this next step for Ford in Russia with our proposed partner, Sollers,” said Stephen Odell, chairman and CEO, Ford of Europe. “This is a great opportunity, and will provide Ford customers in Russia with more products and better service.

“We are inspired by the opportunity to work with Ford,” said Vadim Shvetsov, general director of Sollers. “We are confident that our mutual efforts on the development of manufacturing facilities, new product launches and localization of parts content will ensure success for our strategy, and a leading position for the future joint venture company on the Russian market.”

Ford, which has been producing cars in Russia since 2002, did not disclose the financial terms of the deal with Sollers.

Geneva Preshow: Fiat Publishes New Photos of Freemont Crossover

The star of Fiat's exhibition area at the Geneva Motor Show and the first Fiat-branded vehicle to come out of the partnership with the Chrysler Group is the new Freemont 7-seater crossover. It doesn't take a rocket scientist to see that the Freemont is a re-badged 2011 Dodge Journey, but if for whatever reason you weren't satisfied with the first batch of official photos, the Italians have just released a more comprehensive set that includes pictures of the interior as well.

We'll remind you that the Freemont is due to go on sale in Fiat dealerships across Europe from the second half of 2011. The Italian firm's newcomer will initially come with front-wheel drive and a Fiat-sourced 2.0-liter turbo with 140HP and 170HP, linked to a manual gearbox. By the end of the year, Fiat will also offer two four-wheel drive versions fitted with the 170HP 2.0 MultiJet diesel, and Chrysler's 276HP 3.6-liter V6 petrol unit. For more details on the Freemont, check out our previous story here.

Marchionne gets Nasty, Tells VW Boss Piech to go and Fix SEAT Instead of Eyeing Alfa Romeo

Speaking at the J.D. Power and Associates International Automotive Round-table in San Francisco, Fiat Group and Chrysler LLC CEO Sergio Marchionne bluntly reiterated that the Italians won’t sell Alfa Romeo to the Volkswagen Group, or anyone else for that matter.

“As long as I am CEO of Chrysler and Fiat, Mr. Piech will never have Alfa Romeo. It's hands-off. I told him. I will call him and I will email him”, Marchionne said.

According to Automotive News Europe, Marchionne also took a shot at VW, saying that the group's Chairman Ferdinand Piech should try to turn around Seat, its struggling Spanish brand, instead of eyeing Alfa.

“I'm not the one who bought Seat. He's the one who bought it. I don't know if he can [fix it], but he needs to try”, the Italian official commented.

We’ll remind you that selling Alfa Romeo has been a hot topic for the past year or so, but Fiat never confirmed the rumors, periodically stating that it prefers to revitalize the Milanese company. Prior to Marchionne’s latest remark, it was Fiat Chairman John Elkann who also said that Alfa is not for sale.

“We would not sell Alfa even if we were offered tons of money”, Elkann told reporters on the sidelines of last month’s Detroit Auto Show, adding that the brand will be relaunched in the U.S. in 2012.

VW Golf Tops European Sales Chart in First Half of 2009, Ford Fiesta Finishes Second

Despite the heavy competition from the new Ford Fiesta that increased its sales in Europe by a hefty 34.2 percent to 243,340 units in the first half of 2009, VW's Golf continues to dominate the sales charts in the Old Continent with sales up 12.7 percent to 254,023 units in the same period, according to data released by Jato Dynamics. The rest of the top five list was rounded out by the Peugeot 207 with 193,778 units (-20,6 percent), the Opel - Vauxhall Corsa with 181,751 units (-14.1 percent) and the Renault Clio with 144,512 units (-28.0 percent).

Notably, the first ten places were occupied exclusively by European automakers - okay Opel / Vauxhall (at least for the time being) and Ford are controlled by their American parent companies.

Volkswagen was also Europe's top-selling car brand in the first half of the year with 842,787 vehicles sold, up 0.7 percent over the same period in 2008. Ford finished in second place with 666,548 units, down 3.6 percent over last year, followed by GM's Opel - Vauxhall division with 557,739 units (-16.8 percent), Fiat with 542,115 units (-1.4 percent) and Renault with 520,763 units (-18.4 percent).

Data: Jato Dynamics

Marchionne: Fiat and Chrysler Could Merge into a Single Entity in a Few Years

Speaking at the J.D. Power and Associates International Automotive Roundtable, Fiat and Chrysler CEO Sergio Marchionne today told reporters that the two companies could merge into a single entity based in the U.S. in the near future. Until then, Chrysler first has to refinance its government loans and launch an initial public stock offering, but Marchionne hopes that both will happen this year.

“Who knows? In the next two or three years, we could be looking at one entity. It could be based here”, said Marchionne. The companies are considering various “alternatives and scenarios. First we need to integrate them operationally and then look at governance”, he added.

Ever since the Fiat Group acquired a stake in Chrysler, in June 2009, the Italian company's main goal was to revamp the American brand’s portfolio. Models like the recently introduced 2011 Chrysler 200, 2011 Chrysler 300 and 2011 Chrysler Town & Country are just the tip of the iceberg, as the automaker wants to launch a total of sixteen all-new or revised models in 2011.

The automakers are also working on sharing an increasing number of platforms and technologies, which will help them to further expand their lineups. For example, early 2012 will mark the debut of a new Dodge compact sedan, built using Fiat underpinnings, with other models expected to follow afterwards.

Fiat currently owns 25 percent of Chrysler, a stake that could rise to 35% if a series of performance-related targets are achieved.

VIDEO: Fiat Engineer Explains the Differences Between the US- and Euro-Spec 500

During the U.S. presentation of the new 2012 Fiat 500, the Italian company's Chief Engineer Fabio Dimuro explained to journalists the main differences and changes compared to the European specification model. These include - but are not limited to- exterior and interior improvements, the introduction of a more appropriate for American consumers Aisin 6-speed automatic transmission, additional insulation that helped reduce powertrain noise levels from 76 db to 71 db, the addition of MultiAir intake system to the 1.4-liter engine, while Fiat and Chrysler also worked together to redesign the car's rear-axle. Hop over the jump to watch the video.

Lancia Ypsilon 'Collection 2011' Flies to Los Angeles for Promo Shoot

The Fiat Group is trying to make the best of its newly found contacts in the U.S. after its partnership with Chrysler LLC as the Italian automaker chose the city of Los Angeles to shoot the promotional photos as well as a new TV spot for its limited edition Lancia Ypsilon 'Collection 2011', which goes on sale in Europe this month. The special edition version of the ageing Ypsilon adds some unique styling touches such as bespoke color options for the body work and cabin trim, plus an upgraded interior with new fabrics and leather surfaces with contrast piping.

The 'Collection 2011' or as it is called in Italy, 'Collezione 2011', will be the last hurrah for the current Ypsilon as Lancia will unveil an all-new model at the forthcoming Geneva Motor Show. The next generation will be the first ever model in the Ypsilon series to be offered with a five-door body style.

Fiat Group to Make an Offer to Buy Carozzeria Bertone

The Fiat Group's appetite for acquiring automakers has yet to lose its edge. Today it was confirmed that Fiat S.p.A will make a 'non-binding offer' for Italian automotive design and contract manufacturing firm, Carrozeria Bertone that could be sold as part of a bankruptcy proceeding. It is reported that the deadline to make bids for the Italian coachbuilder is Thursday, July 16 with court administrators planning to have the sale completed by the end of the month.

Other companies interested in buying Bertone are said to include Chinese automaker FAW, an unnamed Spanish consortium and Italian entrepreneurs Gianmario Rossignolo and Domenico Reviglio.

Aside from the Carrozeria Bertone's design and engineering capability for specialty vehicles and concept cars, the firm also has a manufacturing plant in Turin. According to the coachbuilder's official site, the Grugliasco factory covers a total area of 310,000 sq.m. and has a potential output of around 70,000 vehicles per year.

The maker of the Corvette ZR-1 based Mantide concept supercar currently employs 1,140 people, down from 1,450 at the end of 2007.

Fiat 500 Abarth Competizione: Limited Edition Model with a Hefty Price Tag

It's been about a year since Fiat's sporty Abarth firm returned to the Dutch market and to commemorate the event, the brand decided to release a special edition version of the Abarth 500 bearing the Competizione moniker. The model is special in the sense that only 10 will be built with a price tag of €24,995 - that's about $34,800 ahem, ahem... So what will those lucky Dutch buyers get for €3,000 over the price of a standard Abarth 500?

On the outside, the Competizione's features include a black roof top, unique 17-inch alloy wheels finished in black and graphics above the side skirts. Inside, the package adds a set of leather sport seats embossed with the Competizione logo while the standard equipment list now includes a navigation system, climate control, and an upgraded audio system.

In standard form, the 500 Abarth is powered by a 135HP 1.4-liter turbocharged four while Fiat also offers the Essesse kit which boosts output to 160HP.

Via: Autoblog.nl

Fiat gets Adventurous with new Panda 4x4 Edition

The 'evergreen' Panda 4x4 Adventure is the latest addition to the range of Fiat's small off-road model. Available for order across Europe, the new series that comes with an automatic four-wheel drive system is offered with a choice of a 1.2-liter petrol engine with 60 horsepower and a 1.3 Multijet16V diesel that makes 70 horsepower. Prices in Italy start from €14,100 ($19,750 US) for the petrol model and from €16,000 ($22,400 US) for the diesel - now that's what we'd call an 'adventurous' price range.

Aside from the green paintjob and the color-keyed bumpers, the Panda 4x4 Adventure is distinguished by the gray central badges, the 'bronzed' head- and tail lights and the tinted windows plus the matt black finish for the pillars, the roof bars, the side bars and the mudguard arches.

A set of 14-inch rims painted in dark grey and wrapped in 165/70 M+S tires along with the black framing of the rear lights complete the exterior changes of the new Panda 4x4 variant.

Fiat did not release any photos of the interior but claims that the Adventure features a washable and anti-tear technical fabric in black as well as scratch-resistant floor mats.

Mechanical upgraded are limited to the reinforced suspension that allows a maximum load of 445 kg. Fiat said that it also offers buyers of the Panda 4x4 Adventure the option of ordering the vehicle with just the front seats which increased the rear compartment space to 1,000lt.

Fiat Group and Guangzhou sign Agreement on China Car and Engine Production

Italy's largest manufacturer, the Fiat Group and China's Guangzhou Automobile Group (GAC) have signed an agreement for the establishment of a 50/50 joint venture that will produce cars and engines for the Chinese market beginning from the second half of 2011. According to the plan, the two parties will invest more than €400 million (about $560 million US) for the construction of a new, 700,000 square metre plant in Changsha, the capital of Hunan province in south-central China.

The Chinese plant will have an initial production capacity of 140,000 cars and 220,000 engines per year but Fiat said that capacity could be increased to a maximum of 250,000 cars and 300,000 engines annually.

The first model to be launched by the joint venture will be Fiat's C-segment Linea sedan while the first engines to come out of the factory will be the Italian firm's 1.4-liter four-cylinder gasoline engine in naturally aspirated and turbocharged forms producing 120HP and 150HP respectively.

Fiat said that the industrial project is qualified to receive support from the development plan recently established by the Chinese government to promote new investment in six provinces in central China.

Fiat Preparing Limited Run Abarth 500 in Gulf Livery [Updated]

We've received several e-mails tipping us off on a new limited edition version of the Fiat Abarth 500 Essesse dressed in the Gulf racing livery, which will reportedly be offered exclusively in Luxembourg in a limited run of 10 cars priced at €25,000 (plus VAT) a piece. While we appreciate all tips sent in, that doesn't mean we aren't going to -or at least try our best to- perform a background check and either confirm or debunk a story.

In this case, we didn't find a press announcement, but that doesn't necessarily mean the story is not true. However, the picture that has been floating around on several websites has definitely been doctored, and we say this not only because the colors are off, but mainly because we found the original image. Hoax or not, we must say that the 500 Abarth looks awesomely cool in those traditional racing colors.

*Update 1: Un point to the folks at Auto55 for sending in the official press release from Fiat Belgium (added after the jump) confirming the Gulf model - but not the photo, as we've already proved.

*Update 2: The guys from Autofan e-mailed the press photo in its original compression. Apparently, Fiat mastered the photoshoped image...

Source: Auto55 & Autofans & Vroom