Piston.my

Sergio Marchionne

The new company formed by the merger of Fiat Chrysler Automobiles (FCA) and the PSA Group will see 14 brands – mainly European – coming under one group. That’s a lot of brands to manage and in an age when economies of scale are paramount, there’s the big question mark of whether some brands will be discontinued. Or if they are retained, will they lose their uniqueness and be just badge-engineered products that are needed for certain regions where the brand has been popular?

Carlos Tavares (currently PSA’s chief), who will be the CEO of the new combined company, has said that no brand will be axed while acknowledging that it will be a challenge to manage so many brands. But these are early days and the new company has not even started business; once the new management starts to look at the numbers and formulates long-term plans, it may be necessary to make the hard decisions and cut off some brands that just cannot deliver revenues.

Alfa Romeo

A struggle to be kept in existence
One brand that many worry about is Alfa Romeo. The sporty Italian brand has a history spanning over 100 years and has a strong following of alfisti all over the world. Fiat acquired it in 1986 but struggled to get it to make money for the past 20 years. When former FCA CEO Sergio Marchionne was alive, he tried to boost the brand but three efforts still failed. His successor, Mike Manley, was less sentimental about the brand and had announced decreased investments for it.

There is a glimmer of hope for Alfa Romeo though, simply because 61-year old Tavares is a true car guy. His first job after university was as a test driver at Renault and apart from a strong  personal interest in cars, he also goes racing on many weekends (though that may have to be sacrificed in future). So while he is also known as a cost-cutter like his former boss (Carlos Ghosn), he may well make a decision ‘from the heart’ and keep the Italian brand going somehow.

Carlos Tavares
Carlos Tavares, who will be the CEO of the new combined company, is a real car-guy. And like Akio Toyoda, he also goes racing!

Trying unconventional ideas like the SZ
He may look at unconventional ideas to breathe new life into Alfa Romeo, as Vittorio Ghidella, President of Fiat in 1986, did when he initiated the ‘Experimental Sportscar, 3.0 litre engine (ES30) project. Ghidella specified a puristic coupe with the sporty performance and sensational design as the target for the development contract.

Alfa Romeo SZ 1987

Three teams took care of the second point of the task description in parallel – the Alfa Romeo design department, Fiat Centro Stile and design studio Zagato (responsible for some of the most spectacular and most successful models from Alfa Romeo in racing). This team of three was also given a low weight and the most efficient aerodynamics including ground effect possible, as in a Formula 1 racing car, which was supposed to suck the finished model onto the road through the wind.

The result was an avant-garde design with narrow, square triple headlights, a distinctive wedge shape with a high beltline and a short hatchback. The ES30 was undoubtedly the most radical thing there was at the time as a production vehicle. The coupe corresponded entirely to the aesthetics at the time of Italian design in furniture and fashion.

Alfa Romeo SZ 1987

The elaborate body was made of a glassfibre-reinforced synthetic resin. A new process ensured a particularly smooth surface. A steel skeleton served as the load-bearing structure, which, in addition to high torsional rigidity, also guaranteed low weight. The light metal aluminium was used for the roof skin. The finished car would finally weigh a comparatively low 1,256 kgs.

The drag coefficient of 0.30 was also excellent for the time. Wind tunnel tests indicated a top speed of 245 km/h and a time of 7.5 seconds for the sprint from 0 to 100 km/h. In order to achieve the required ground effect, however, the body had to have such a low ground clearance (around 6 cm) that it would have led to problems with, for example, driveways. The solution was an electrical level control, with the help of which the body could be raised by 5 cm when necessary.

Alfa Romeo 75 technology
As the other requirement was to keep the development costs low, the team used the proven technology of the Alfa Romeo 75. However, the chassis with the gearbox on the rear axle (transaxle design) was in some places know-how the Alfa Romeo racing department adapted to the desired performance. The torsion spring bars on the front axle gave way to conventional McPherson struts, stiff Uniball joints instead of the conventional rubber elements, eliminating inherent movements in the chassis.

Alfa Romeo SZ 1987

The technicians selected the V6 petrol engine with 3 litres displacement from the 75 America model as the drive source. They increased its output to 210 bhp through sharper camshafts and newly programmed engine electronics (Bosch Motronic).

Zagato even developed a racing version of the ES30, which appeared in its own one-make cup in 1993 as part of some Formula 1 races. But the comfortable driving behaviour also proved itself in everyday life, even long tours were a pleasure in the two-seater coupe.

After just 19 months of development, just in time for the planned world premiere at the Geneva Motor Show in March 1989, the ES30 project was ready for production. Since production at Zagato was to take place in the Milan suburb of Rho, the company remembered a legendary combination of letters – SZ for ‘Sprint Zagato’. Despite the relatively high base price, 1,036 cars were sold between 1989 and 1993.

PISTON.MY

Sergio Marchionne, the CEO of Fiat Chrysler Automobiles (FCA) who was very recently replaced by Mike Manley due to failing health, has died. He was 66.

WXYZ-TV Detroit shares this video report.

Another report from CNBC Television honours the man that brought FCA back from the brink…

Rest in Peace Sergio, thank you for all you’ve done.

In its entirety with no editing, this is the news Piston.my received today.

London, 21st July 2018 – With reference to the health of Sergio Marchionne, Fiat Chrysler Automobiles N.V. (“FCA”) (NYSE: FCAU / MTA: FCA) communicates with profound sorrow that during the course of this week unexpected complications arose while Mr. Marchionne was recovering from surgery and that these have worsened significantly in recent hours.

As a consequence, Mr. Marchionne will be unable to return to work.

The Board of Directors of FCA, meeting today, firstly expressed its closeness to Sergio Marchionne and his family and underlined the extraordinary contribution, both human and professional, that he has made to the Company in these years.

The Board resolved to accelerate the CEO transition process that has been proceeding over the past months and named Mike Manley as CEO. The Board will therefore propose to the next Shareholder Meeting, to be called in the coming days, that he be elected to the Board and serve as an executive director of the Company.

In the meantime, in order to provide for his full authority and operational continuity for the company, the Board has with immediate effect granted Mr. Manley all the powers of CEO. He will also assume responsibility for the NAFTA region.

Mr. Manley and his management team will proceed with the implementation of the 2018 – 2022 Business Plan as presented on 1 June this year, a plan that will further assure FCA’s strong and independent future.

Featured Image from F1 Undercover.com

After the recent announcement made by Liberty Media, the owner of F1 regarding certain changes to powertrain specifications, several engine suppliers are up in arms about it. The issue surrounds the proposed idea of standardizing powertrains.

Several automakers, especially those who have worked tirelessly through R&D to develop competitive technology, aren’t willing to forgo this in order to allow for a more level playing field. Ferrari is one such team, and has threatened to walk away from the sport as reported by Motor Authority.

Ferrari isn’t too happy with the proposed plan which was made vocal by its CEO and Chairman, Sergio Marchionne. He likened the move of standardizing such mechanicals to similar rules that define how NASCAR racers are developed and built.

Unlike other Motorsport categories, NASCAR’s rule book dictates pretty much everything that include body dimensions and mechanicals need to be built to a certain code. This effectively ensures that very little can be altered by each team, making sure that the spotlight is shone on driver talent rather than massive R&D budgets.

Renault and Mercedes-AMG, two other major players in F1 share Marchionne’s sentiment. Like Ferrari, they too are engine suppliers to a number of other teams in Formula One and as such, aren’t too happy with having their hands tied during R&D.

This isn’t the first time that Ferrari have threatened to leave, it has done so several times in the past when it didn’t agree with the path F1 was taking. These threats haven’t amounted to anything in the past, probably because whether Ferrari realizes it or not – the two share a symbiotic relationship.

These new regulations haven’t been set in stone and once each team has given its own two cents, certain changes will probably be made to keep the big guns happy. Till then, stay tuned and we will let you more about this issue as it unfolds.

Source: Motor Authority

Fiat Chrysler Automobiles CEO and effectively head honcho of Ferrari, has confirmed that a Ferrari SUV or a FUV if you will, is in the cards. Sergio Macrchionne confirmed to Bloomberg that the Italian automaker will be building such a vehicle but admitted that they won’t be rushing into anything.

Marchionne’s reasoning behind this is, the brand needs to understand the new relationship and ensure that the new vehicle remains exclusive while still remaining attainable. Unlike Porsche with the Cayenne, Ferrari isn’t interested in creating a high volume SUV to improve its bottom line.

Rather, the automaker wants to make an SUV that is blessed with Ferrari credentials, be able to build them in a ‘sufficient enough volume’ yet, making sure that like many vehicles that preceded it, a certain level of exclusivity is maintained for added value.

Regarding rumours of a potential sell off of Jeep to Chinese automotive giant Great Wall, Marchionne refuted the claim stating that such a move was not be in the company’s best interest at the moment. Jeep holds great value to FCA and though it is opened to a tie up with other automakers to improve its product portfolio, it won’t happen overnight.

This comes after rumours surfaced in August that Great Wall Motor had placed a bid to FCA for the aqquistion of its highly coveted SUV brand, Jeep. In recent years, Chinese automakers have been attempting to establish a beachhead in western markets. Like Geely with the acquisition of Volvo and Lotus, Great Wall may be trying to mimic the move with Jeep.

Whatever the case maybe, FCA’s decision to turn down the proposal, will enable Ferrari to employ the expertise of Jeep’s engineers and their wealth of knowledge as the Italian firm goes to work on creating their very own SUV. Much to the dismay of Ferrari purists, the allure of luxury SUVs has proven too strong for the automaker to resist.

In as little as 30 months, we might be able to get a glimpse of the new SUV, which is the timeframe that Marchionne has given before they decide on production details. This, is a case of never say never, which begs the question, when will we see another Lamborghini SUV?

Source: Bloomberg

Lately, many high-end luxury car brands have taken notice of the SUV craze and have decided to build one of their own. Porsche has the Cayenne and Macan, Bentley has the Benteyga, Maserati has the Levante SUV and Rolls-Royce will be coming out with one too.

Luxury SUVs have been in high demand for quite a while and automakers have noticed this and are capitalizing on it. Now, Ferrari, the most respected name in motoring wants ‘in’ on the action, as well.

Based on an article from the US edition of the Bussiness Insider, CEO of Ferrari’s parent company, Fiat Chyrsler Automobiles (FCA), Sergio Marchionne said that he wouldn’t rule out the possibility of the Italian sports car maker building an SUV. Though stopping short of revealing the time frame, he did imply that the possibility was quite real.

He added that it would be a crime to prevent Ferrari engineers from exploring the possibility of building a Ferrari version of a vehicle with ‘utilitarian features, to travel through uncharted territory’.

Marchionne went on to admit that the SUV market and demand for such vehicles were too big to ignore, and mentioned that Ferrari sees potential in building such a vehicle. However, when asked if the automaker would follow in the footsteps of Porsche with the Cayenne, he replied, “hell no.”

The news seems rather vague, but there is no doubt in our minds that Ferrari is mulling over the idea of creating a Porsche Cayenne rival albeit, more expensive and built in smaller numbers. Ferrari is adamant that unlike Porsche, it want’s to maintain a certain level of exclusivity with its vehicles.

As such, expect more hair-raising news from Ferrari in the coming months when it divulges more about the potential of creating its own SUV. This will definitely seem like stomach-churning news for the Ferrari tifosi and purists alike – so stay tuned.

Source: Business Insider

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