Chrysler to distribute Fiat 500

admin — Thu, 01 Oct 2009 11:52:13 +0000

Many in the U.S. have been hoping to receive the wildly popular Fiat 500 minicar for the past couple of years but a lack of interest in small cars has largely held it back. Now, with Fiat’s alliance with Chrysler in place the Italian auto giant has a gateway to the lucrative U.S. market and the first model to arrive under the new alliance will be the 500, though it’s launch is still more than a year away.

We can confirm today that the 500 will be sold in Chrysler dealerships and it will be the only Fiat-badged model in the U.S. market. It will come in four different versions, all of which will be manufactured at a Chrysler plant either in the U.S. or in Toluca, Mexico in late 2010 or early 2011.

Mexico is the preferred choice by Fiat because of a free-trade agreement with Brazil. Annual production is expected to top 100,000 units.

The four models that will eventually make their way to the U.S., meanwhile, include the regular hatchback, the new 500C convertible, a ‘Giardinetta’ wagon, and a high-performance model–possibly the Abarth version currently on sale in Europe. There is also a strong chance that a fifth, AWD SUV version will be launched further down the track.

According to Chrysler brand CEO and head of sales for all Chrysler Group brands, Peter Fong, the 500 will likely have a dedicated corner in Chrysler-brand showrooms rather than its own retail network like Mini–the 500’s expected nearest rival.

With news of Fiat bringing the 500 to U.S. shores, other automakers may feel compelled to compete with the little hatch. This could mean that we’ll be seeing Ford’s Ka coming to the States around the same time as the two cars share the same platform.

Nissan to shift some production from Japan to Mexico

admin — Thu, 26 Feb 2009 11:03:34 +0000

The rising value of the yen is making it ever more difficult for the Japanese automakers to turn a profit, which has forced Nissan to shift some of its Japanese production. In a bid to cut global costs and safeguard itself against the rising yen, Nissan will shift some of its production from Japan to Mexico.

According to Automotive News, Nissan will be shifting some of its vehicle production from Japan to Mexico. Nissan failed to specifically name which model or models will be making the move, but it’s widely believed the Tiida – marketed under the Versa nameplate here in the U.S. — will be one of the vehicles moving to Mexico. The Tiida is currently produced in Japan and Mexico, with the U.S. already receiving its supply of Versas from south of the border.

The strong value of the yen is becoming increasingly worrisome to the Japanese automakers, with the current collapse in new car sales only compounding the problem. Nissan estimates that every one-yen change in the yen-dollar exchange rate has an $85.7 million impact on operating profit, meaning the yen’s 15 percent growth against the dollar in the last six months has cost the company about $1.3 billion.

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Chrysler to distribute Fiat 500

Nissan to shift some production from Japan to Mexico