FCA looking for a partner - AGAIN

[SunnySideUp]

Does this signal storm clouds on the horizon? Will owners of new Fiats get to "enjoy" being abandoned like we were with our classic Spiders and X1/9s back in the 80s?
http://www.freep.com/story/money/busine ... /26567541/

It was the attempted merger with GM back in the late 70s- early 80s that helped killed the Spider in favor of that tugboat Cadillac Allante. If Marchionne does go after a merger I hope is with a game-changer like Apple or Google. Imagine if Tesla was game - now THAT would be interesting!

[So Cal Mark]

inside reports point to Mitsubishi or Suzuki

[aj81spider]

Using his logic the auto industry would be most profitable if there was one company building one car that never changed. R&D and capital investment would be minimal.

My reaction is that if he spent more time thinking about how to build good cars, and less time thinking about financial engineering maybe FCA would be more successful.

I don't want to make any off the aficionado's cranky, but I'm pretty sure no one will maintain that Fiat has the best line in America (or anywhere for that matter), and the idea that a small Euro car designed for the crowded streets of 2000 year old cities would be successful in America is being proven to be wrong.

I'm also pretty sure the presidents of Honda and Toyota aren't wringing their hands about the cost of R&D and capital and thinking about merging with someone else. I'm pretty sure they are focused on continuing to turn out good cars that lots of people want to buy.

[baltobernie]

inside reports point to Mitsubishi or Suzuki

That would make sense; two second-tier car makers joining forces to stave off elimination.

There's an interesting article in this months "Automobile" magazine regarding Apple. They are sitting on more cash (adjusted for inflation) than NASA spent on its moon project. Apple has hired several high-power engineers from Ford and MB. The author supposes that Apple would forgo traditional automobile manufacturing and marketing. Instead, he thinks they would become the largest car-sharing company. "To drive an iCar, you would deal only with Apple. No showrooms, no salespeople, no repair shops. Just click and drive."

Particularly in light of the way most young people view driving, I would not bet against Apple.

[76was124]

The author supposes that Apple would forgo traditional automobile manufacturing and marketing. Instead, he thinks they would become the largest car-sharing company. "To drive an iCar, you would deal only with Apple. No showrooms, no salespeople, no repair shops. Just click and drive."

When Tesla started they tried going the unconventional route of breaking the mold on "traditional automotive engineering and sales"

It took them two years on their own before they hired a bunch of "traditional automotive engineers" to get them through the crash tests, regulations and manufactureabilility issues. ( think about it, who wouldn't want yo leave Detroit for Sunny CA?
Tesla has also have been suing in multiple states to be able to sell direct to consumers without dealers. Some they won, most they lost. Apple would have the same challenges. Consolidation makes sense for all but the big boys, but how it goes about will likely tell the story on success or failure for any given company.

Being actively involved in the automotive world here in Detroit, it's still amazing to me the expertise and technology involved in an industry that is regularly berated. For all the hype of the hi-tech companies and their market capital, i feel much more secure knowing we still have industries that manufacture something in this country with the ability to transform what it is in short order.

[spidernut]

Though quality is very important (sorry Fiat that you're almost at the bottom of the Consumer Reports initial quality list), there are other factors that motivate buyers to purchase a car. Design and function is critical. You must, absolutely MUST have a vehicle that is attractive to a large enough market segment that you will have the sales needed to maintain any semblance of profitability. Manufacturing and advertising costs have to be low enough as well. Price is important, but less important than the other factors. People will pay for perceived style and actual quality.

Fiat has merged before and will most likely merge again. To be more competitive in the Japanese markets without the ridiculous tariffs, they may not have a choice to merge with a Japanese company. I think Marchionne was correct when he said that you must have a strong presence in three continents to be competitive.

I really don't personally care one way or another since I do not like any of the current models offered by Fiat...sorry 500 fans, but it just isn't my cup of tea. I'd rather have my Spider.