Five-Year Plan for Chrysler, Fiat, Alfa Romeo, and Ferrari

[Sheriff!]

Fiat has outlined its targets for the next few years, and they are ambitious to say the least. CEO Sergio Marchionne announced the separation of Fiat's automotive business—which includes Alfa Romeo, Lancia, Ferrari, and Maserati, as well as Chrysler—from the rest of the company. The remaining part, Fiat Industrial, is less glamorous, but its sales of trucks, farm tractors, and construction machinery make it more profitable. The logic behind the split: Fiat Industrial could be worth more without the burden of the auto business, and the auto business will be more nimble and agile in pursuing alliances with other carmakers. "We can finish the [separation] project within six months," predicts an ever-optimistic Marchionne.

The independence of Fiat's auto business will make a complete fusion with Chrysler far easier, and the company does need to identify and nurture cooperation opportunities if the alliance is to make any sense.

Alfa Romeo: Coming to America in 2012 (Probably)

Marchionne says Alfa Romeo will add a number of new/redesigned vehicles, including the new Giulietta, a new MiTo subcompact, crossover and SUV models, a sedan, and a Spider convertible. By 2014, Marchionne expects Alfa to account for 500,000 annual sales worldwide. That's up from about 100,000 in 2009. The U.S.-market launch is planned for late 2012, with the first models being a mid-size sedan—it may be called the Giulia—and a crossover model based on the Giulietta platform. A five-door variation of the MiTo follows in 2013, while the Giulietta-based stuff (we smell an America-friendly sedan) comes in 2014 after the model receives its first face lift. Sales are likely to be through Chrysler dealerships.

Fiat

U.S. sales of the cute 500 have already been announced, complete with an electric version developed by Chrysler. If small cars really catch on over here, Fiat could even bring the next iteration of the Panda, which will be launched in Europe next year. By the end of this year, Fiat will launch a turbocharged two-cylinder gasoline engine on the continent. Not the stuff of dreams, but it could perhaps make an appearance in small U.S. Fiats and Chryslers if oil prices go through the roof for the long haul. It‘s worth noting that should the 500 be the only Fiat to make it stateside, it may not wear Fiat identification at all, using only its numerical moniker to avoid dealing with the company’s ”Fix It Again, Tony” rep among American consumers after reliability and rust disasters in the ’70s and ’80s.

Chrysler, Dodge, and Jeep

Marchionne didn’t forget the Chrysler brands, although the details were a bit more vague. Of what’s imminent, we of course know about the 2011 Jeep Grand Cherokee, the redesigned Chrysler 300, and a new Dodge Charger. Beyond that, the five-year plan only said to expect new Chrysler product and a more global Jeep brand, plus a Dodge brand with a clear "U.S. identity” that focuses more on performance.

Lancia

The Lancia brand, which has been in a state of apparent death for years, will get eight new models, six of them based on Chrysler products. Let’s hope for Europeans’ sake that they aren’t treated to anything spun off the current Sebring’s mechanicals, just as we hope to avoid something like the Lancia-based Chrysler Delta concept shown at this year’s Detroit auto show.

Ferrari and Maserati

In a bit of a surprise, the plan also detailed the immediate future for Ferrari and Maserati. For the Prancing Horse, 2011 will bring the 458 Italia Spider as well as a replacement for the 612 Scaglietti. In 2012, enthusiasts get treated to a new 599GTB and the next Enzo-style supercar. And for 2013, pencil in the launch of the lightweight 458 Italia Scuderia and the not-so-light, face-lifted California.

Maserati, positioned below Ferrari in the corporate hierarchy, will soon get a completely restyled Quattroporte and an as-yet-unspecified entry-level model, which we’re told will be priced around $50,000. While Maserati’s current stable of products is pretty fabulous, the idea of a cheaper model has thoughts of the cheesy Chrysler TC by Maserati dancing through our gray matter. All kidding aside, we anticipate something better than that car.

It Makes Sense

The logic behind Marchionne’s machinations makes sense, as every single brand is slated to receive—and desperately needs—new metal, a requirement to raise a blip on customers’ radar both here and around the world. But engineering the new products will require mountains of cash, and we have to wonder: How will Fiat pay for all of this? Platform and powertrain synergies certainly will help keep costs down, and among the platform-sharing, Fiat is slated to use Chrysler’s new Pentastar V-6 to replace an old Holden V-6 that dates back to the old Fiat/GM tie-up. Chrysler will take advantage of Fiat’s Multiair valve-lift system, too.

Even if these plans are fully financed and the products appear without a hitch, increasing awareness and regaining consumer trust both here and abroad are just the first steps. The vehicles can’t only be new, they’ve also got to be good. In that regard, a large number of these brands have nowhere to go but up.

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