The tiny Italians are coming! That’s right gentle readers, Fiat has dropped two little baby 500s off inside COBO Hall – and one of them’s electric. Let’s start with that one, the uninspiringly titled Fiat 500 BEV (background). The suffix stands for “Battery Electric Vehicle.” Let’s call it truth in advertising. The powertrain is carried over from the work Chrysler’s now defunct ENVIgroup had been working on for the past couple years. We can’t say too much more (hint, hint), but rumor has it that this sucker is fast. Also, no tail pipe(s).

Fast is good, however, and the Cinquecento that sets our hearts all a flutter is (obviously) the 500 Abarth SS. Or as they say in Italy, Abarth Esse Esse. That last part of the name is significant, as it indicates this particular 500 doesn’t have 133 horsepower, but rather 160 hp. The beauty part? After standing next to the Abarth for a few moments it becomes uncomfortably obvious that its much smaller than the Mini. Meaning… all sorts of wonderful things.

Other than that, the Abarth SS has five-point harnesses tied into racing seats and perhaps the best badging in the industry. Scorpions are every where. Take a close look at the shot of the wheel. Not only does the center cap sport a scorpion, but the valve-stem cap does, too. It’s all about sweating the small stuff. Lusting over it, too. No specific information is available on the time line/likelihood of either car ever showing up in a Chrysler dealer near you.

[Source:Autoblog]

You are looking at… well, no one at the Chrysler booth seemed to know exactly what this is. They didn’t even have a proper name for it. But that tiny little fact will not be stopping us. You are looking at what they call a Chrysler Lancia, or more correctly, a Chrysler-badged Lanica. Specifically, a Lancia Delta with Pentastar badges. All of which begs the question: what makes a Lancia Delta?

Ah, well, we are happy you asked. On the surface it’s a small crossover/tall wagon-type people mover/MPV with some fancy electronic driving aids. But that sells the Delta short, as Lancia’s website is loaded with the sort of florid PR language that will warm the cockles of the most jaded car-hack’s heart.

Here’s a sample, “Luxury that is never flaunted: an originality that avoids useless overstatements, that always preserves elegance.” Sounds keen, huh? But wait, there’s more, “A concentrate of evolution, a hyperbolic expression of technology.” Ooh! Good stuff. Is this car for real? Will there actually be a Chrysler-badged Lancia? Probably, but we just don’t know. However, we are certain that Chrysler could really use, “A concentrate of evolution.”

[Source:Autoblog]

According to a report from Reuters, Chrysler has disbanded its ENVI program and integrated the group back into its normal product development organization. Former ENVI head Lou Rhodes will now take the title of group line executive in charge of electric vehicle development and will manage that group for both Chrysler and Fiat. Though we weren’t exactly expecting this change, the move isn’t entirely surprising.

At this point, we don’t yet know what this reorganization means for the electric vehicles that Chrysler had previously promised to put into production, the first of which was to be the Lotus-based Dodge Circuit that was hopefully supposed to be on the market by late 2010.

Fiat CEO and newly-appointed head of Chrysler Sergio Marchionne said earlier this week during Chrysler’s painfully long new product plan presentation that electric vehicles are still a very tough proposition with current battery technology. In fact, the automaker expects that less than two percent of its lineup will be electric by 2014, which would amount to fewer than 60,000 vehicles per year.

[Source:Reuters]

With the appointment of Lancia CEO Olivier Francois as head of the Chrysler motor division, we can expect the two companies to collaborate on future products and take advantage of economies of scale. With Lancia operating exclusively overseas and Chrysler primarily in North America, the two brands can share products without having to worry much about stepping on one another’s toes. But while that cooperation is expected to manifest itself in new models that have to be developed, new reports suggest that the tie-in could begin a lot earlier than that.

Although there doesn’t appear to be much to substantiate the claims beyond extrapolation and speculation, word on the Italian street is that the current Lancia Delta could make it over here – together with the Fiat 500 and a handful of Alfa Romeos – as a Chrysler. Although the quasi-premium hatchback has quirky styling, we’ve found the execution of Lancia interiors to be top-notch. Whether car buyers in America would be interested remains to be seen, but there could be a business case to be made for giving Chrysler a competitor to the likes of the Audi A3 and BMW 1 Series without the cost and time involved in developing a new vehicle.

[Source: AutoBlog]

Chrysler and Daimler have been divorced for nearly three years, but the two automakers are still very much entwined when it comes to product. The Chrysler 300, Dodge Charger, and Dodge Challenger use a platform and several components sourced from Daimler. Chrysler’s short-term product plans include more Daimler DNA in the the Mercedes-Benz M-Class architecture that forms the basis for the new Jeep Grand Cherokee and Dodge Durango underpinnings.

Unfortunately for the Pentastar, Daimler doesn’t seem to want to play parts pimp for its former underling, as it is shorting the company of vital components required to continue operations. In August, Chrysler filed suit against Daimler because the German automaker was withholding parts like torque converters and steering columns. That suit has reportedly been settled, but now Chrysler alleges that the 2011 Jeep Grand Cherokee launch is now in jeopardy. As such, Chrysler has filed a second suit to force Daimler to provide rear axles and other components in a timely fashion, stating that the company needs the parts to build new Grand Cherokee models for testing in advance of the vehicle’s May launch.

Daimler spokesman Han Tjan reportedly told The Detroit News that his company feels the situation could be handled outside the courts, but Chrysler doesn’t seem inclined to agree. It appears Chrysler is trying to hedge its bets by filing suit, as company spokesman Michael Palese told the News that the company needs the parts in the next 20 days and the company wants Daimler to finalize the contract to supply the parts. Palese added, “Chrysler has too much at stake to take a chance. These are important vehicle programs at a critical point in their launch cycle. We can’t afford any delays.”

This parts battle is part of a larger war (so to speak) between Daimler and Chrysler over diesel engines. Daimler wants $80 million from Chrysler to cover expenses the former incurred when Chrysler didn’t purchase as many diesel engines as expected from Daimler to service the overseas market. Daimler wants the $80 million as a make-good for the lost volume. Chrysler says its recent bankruptcy shields it in this particular conflict, saying that the process resolved any lingering contract disputes, and that its new master, Fiat, isn’t on the hook for the money. Ultimately, it boils down to this: Auburn Hills wants the courts to rule that all past contracts are still in effect — ensuring a parts supply flow from Daimler for the affected new vehicle programs — and that the Detroit automaker doesn’t owe the Germans any money. If things don’t go Chrysler’s way, it looks as if life could get really ugly for Fiat’s new ward.

[Source:Autoblog]

Great news, midsize sedan buyers! The Italian/American brain trust at the helm of the Pentastar has decided to keep the Chrysler Sebring and Dodge Avenger around for another two models years. Previously, past owners Cerberus had signaled its intentions to cull the slow selling duo after the 2010 model year, but according to reports, Fiat says that there weren’t really any solid plans to replace the twins and it’s not really feasible to pull out of the segment entirely until its own Italian-bred successors are ready.

Perhaps the automaker’s new owners can find a way to make the platform a bit more competitive for its final two years in production. Next year’s Sebring will see a few minor updates that should at least improve the ugly duckling’s appearance, not the least of which is the deletion of the car’s awkward ribbed hood. Current projections indicate that a more extensive freshening is in the works for 2011 for the Sebring and possibly a wee bit earlier for the Dodge Avenger, which isn’t in quite so dire need of a facelift.

[Source:Auto Week]

The last new Alfa Romeo to be sold in the U.S. market prior to the recent low-volume 8C Competizione was the 164 sedan. Fittingly, perhaps, it now appears that its descendant could be among the first Alfas to be produced in North America.

Seemingly reconfirmingg earlier rumors, Inside Line is reporting that the successor to the (now discontinued) 166 is expected to shift from a front-wheel drive to a rear-drive platform shared with the next generation Chrysler 300 and Dodge Charger. While the current LX platform shares much of its suspension architecture with a previous-generation Mercedes E-Class, the new model is expected to be developed in-house by Chrysler.

The new big Alfa sedan will likely be built exclusively in Brampton, Ontario and exported to Europe. Inside Line is also reporting that the new rear-drive platform could be shortened and used for the next Brera and Spider as well. We expect to find out more some time in November when Chrysler/Fiat plans to further clarify their forthcoming product lineup.

[Source: Inside Line]

For the last couple of decades, there has been a genuine dearth of affordable Italians autos for us Americans. Sure, you could buy a lightly used Alfa Romeo Milano or a derelict Fiat Strada, but then you’d be a braver person than us. Or maybe you could get your hands on a severely fire-damaged Ferrari 308, but that’s a entirely different level of sadomasochism. One that we’re not comfortable with. But in reality, the cheapest piece of Italian four-wheeled machinery available to us Yanks has come with a trident badge. In other words, a $100,000 Maserati.

But hey, there’s some good news for working class Italophiles — the Fiat 500 is coming! Finally, Italian design and craftsmanship in an affordable package. Only thing is, the Cinquecento is going to be Italian design and Mexican craftsmanship. Er, make that Italian design and Mexican/American craftsmanship. According to an Associated Press report, Chrysler Group LLC is planning on building U.S.-bound 500s at their Toluca, Mexico assembly plant where they build the PT Cruiser. Not only that, but the engines that power the little-bitty Fiats might be built in Trenton, Michigan. Hmmm. Not really so Italian after all, is it?

Chrysler is reportedly also planning on building another very small car along with the 500. No official word on any of the other Fiat or Alfa Romeo products that might be heading our way – yet.

[Source:Autoblog]

What do you do with a program that is driving so many customers into your showrooms that inventory is now running low? If you are Chrysler, and it’s the popular incentive plan tied to the government’s C.A.R.S. (a.k.a. “Cash for Clunkers”) program, you extinguish it and replace it with a new, less attractive version. Really.

The Wall Street Journal is reporting that as of Tuesday, Chrysler Group LLC will no longer automatically add another $4,500 of its own incentives on top of the $4,500 CARS rebate. Instead, the company will vary the size of the rebates based on vehicle brand and model.

The about-face is the result of a near-unbelievable turn of events for the struggling automaker. An overabundance of inventory forced Chrysler to shut down its factories earlier this year… and now it is faced with dealers complaining about low inventory levels on key vehicles like the Town and Country and Jeep Wrangler, with swelling waiting lists as the incentive program has proven too fruitful.

[Source: The Wall Street Journal | Image: Scott Olson/Getty]

Over the past dozen years, the domestic auto industry has worked hard to shrink its brands to more reasonable levels. Gone are Eagle, Plymouth, Pontiac and Oldsmobile and some would speculate that Mercury should have joined the extinction club long ago. Of course, Ford has sold off Jaguar, Land Rover and Austin Martin, while GM is in the process of jettisoning Saab, Hummer, Saturn, and Opel.

However, if Autoextremist’s Peter DeLorenzo is to be believed, the Chrysler portfolio could grow instead of shrink. DeLorenzo says he’s hearing rumblings around Motown that Chrysler could break off the Ram from the Dodge, with the truck line becoming a dedicated brand. Doing so would make Dodge a car outlet, while the Ram brand would be all trucks, all the time, including the Dakota.

We don’t get how this could possibly be a good idea, considering Chrysler’s financial position and struggling sales. Why spend money marketing a new brand, while asking battle-weary dealers to invest in more signage and differentiated floor space? At this point, its just speculation and we’re hoping it stays that way.

[Source:Autoblog]