VW CEO Piech Says Germans Could Quadruple Alfa Romeos Sales

In yet another episode of the ongoing verbal battle between the Fiat and VW Groups over Alfa Romeo, the German automaker's CEO Ferdinand Piech said that Volkswagen could nearly quadruple the annual sales of the Milanese brand if the Italians would agree to sell the company.

Speaking to journalists at the Geneva Motor Show, the CEO went on to say that within five years Volkswagen could increase the sales of the money-losing Italian brand to 400,000 cars every year. Alfa Romeo ended 2010 with 112,000 units sold.

As we previously reported, Fiat CEO Sergio Marchionne isn't keen on dropping Alfa Romeo, and hopes to revive the historic brand and make it a major player in the European premium segment. The Fiat boss repeatedly refused admitting to even consider selling the brand: "As long as I am CEO of Chrysler and Fiat, Mr. Piech will never have Alfa Romeo,” Marchionne stated at a JD Power automotive conference in the US.

The Italian firm's CEO even suggested Piech should try and fix the SEAT brand before thinking of Alfa Romeo. But apparently, the Germans can't take no for an answer. "Volkswagen has time," said Piech in Geneva, a sentence that could be interpreted as a hint at the poor financial status of Alfa Romeo that could make the Fiat Group's shareholders lose patience.

In a recent interview with Forbes, Marchionne admitted that the brand was losing money during each of the seven years he has been at the helm of the group. “I'm not sure if it ever really made any money,” were his exact words. Could this mean he is finally open to negotiations? Only time will tell.

By Dan Mihalascu

Source: Reuters

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Geneva Show: Fiat 500 Coupé Zagato Concept [Updated]

This year's edition of the Geneva Motor Show is buzzing with concept models of all sorts of sizes and shapes. The one you see pictured above is based on the popular Fiat 500 mini and is the result of the collaboration between the Fiat Group Automobiles' Centro Stile and the Zagato design house.

Showcased at the Fiat stand, the "500 Coupé Zagato" is said to have been inspired by the namesake predecessor built in the 1950 by the famous Italian bodyworker on the chassis of the original 500.

From the window line and below, the 500 concept is identical to the standard three-door hatchback model. However, the concept gets a completely new top with a sloping coupe-like roof featuring Zagato's trademark double-bubble design.

Other features include the burnished chrome exterior elements, 17-inch chrome shadow alloy wheelss with a brand new double spoked shape and synthetic inserts wrapped in 205/40 R17 tires and 4 perforated brake discs.

The concept is 3,550 mm long, 1,630 mm wide and 1,490 mm high, with a 2,300 mm wheelbase. Inside, Fiat says the 500 Coupe gets a 2+2 seating layout and a bespoke interior with sporty "diamond" seats trimmed in black and yellow two-tone leathers and other unique features.

Power for the 500 Coupé Zagato is provided by Fiat's turbocharged two-cylinder gasoline unit with 105 HP at 5,500 rpm and 155 Nm (114 lb-ft) of peak torque at 2,500 rpm, which promises reduced fuel consumption and CO2 emissions of just 95 g/km.

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Ferrari CEO Made €8.7 Million in 2010 or Twice as Much as Fiat Group CEO Sergio Marchionne

It's no secret that top car executives make big money, but the situation at the Fiat Group is particularly interesting. How else could one describe the fact that in 2010, Ferrari's chairman, Luca Cordero di Montezemolo, was paid more than twice the amount of money than the CEO of the entire Fiat Group, Sergio Marchionne?

The Ferrari boss pocketed €8.7 million in 2010 (US$12 million), while Marchionne received a paycheck of €3.5 million ($4.8 million). For his role at Ferrari, di Montezemolo received €7.549 million, with the rest of the amount being awarded for his contribution as Fiat CEO between 2004 and 2010. Marchionne's compensation was €3.05 million as head of Fiat and €423,300 for his role at Fiat's Swiss branch.

Let's face it, running a business like Ferrari can't be twice as difficult as running the entire Fiat Group. But it sure pays a whole lot better. The third best paid executive in the group last year was Angelli heir and Fiat Group chairman, John Elkann, who earned €589,000, while all other board members made between €65,000 and €95,000 each.

By Dan Mihalascu

Source: AutonewsEurope

Très Chic: New Special Edition of the Fiat 500 by Gucci Heads to Geneva

As they say, good marketing always finds a reason to celebrate. This time, Fiat's marketing team is feeling festive about the 150th anniversary of the unification of Italy and Gucci's 90th anniversary. As a result, the automaker has joined forces with Gucci for the creation of a new special edition version of the 500 mini that will be showcased at next week's Geneva Salon in a dedicated Gucci pop-up store within the Fiat stand.

The limited edition version of the 500 was customized by Gucci Creative Director Frida Giannini in partnership with Fiat's Centro Stile. It will be available in two flavors, either in black with detailing in shiny chrome, and a two-tone black and white interior, or with a white exterior paint with satin chrome detailing, and ivory and black interior.

Both versions get 16-inch alloy wheels wrapped around 195/45 R16 tires with the hubcaps featuring the interlocking GG logo in the same color of the body of the car, plus the Italian fashion house's signature on the rear hatch and B-column, and Gucci’s signature green-red-green stripe, which runs along the entire perimeter of the car. In addition, the version equipped with the 100HP 1.4-liter engine comes with rear break callipers in Gucci green.

The Italian fashion house's stripe also appears inside on the seats, on the gear shift, the key-cover, the carpets, and on the seatbelts.

The new '500 by Gucci' will be initially be available from April 1st to June 30th exclusively by pre-order online at www.500bygucci.com, with pricing in Italy starting from €17,000 (equal to US$23,300). Regular sales will start in Europe in July, followed by the rest of the world at the end of 2011.

And for those buyers that would like complete the look with some personal goodies, Fiat has also collaborated with Gucci to create a special collection for the 500, including travel accessories, small leather goods, drivers, tracksuits, driver gloves, sunglasses and a watch, which will all be available in select Gucci stores and online at www.gucci.com from April 2011.

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Geneva Preshow: Jeep Adds New 3.0-liter V6 Turbo Diesel to Grand Cherokee Range

Given that over forty per cent of all cars sold in Europe are diesel-powered, any brand that wants to be successful in the market must have diesel options in its range. Following the presentation of its new 3.0-liter V6 turbo diesel on the Chrysler 300's European clone, the Lancia Thema, the Fiat Group is now introducing the oil-burner to the Jeep Grand Cherokee range for Europe and other diesel markets around the world.

The new V6 diesel engine is built by VM Motori and has been developed together with Fiat Powertrain, which is a subsidiary of the Fiat Group. The 3.0-liter unit features Fiat's MultiJet II system which enables up to eight injections per cycle, with the possibility of managing the two main injections in a single modular profile (IRS – Injection Rate Shaping). It is also fitted with a single Garrett VGT 2056 turbocharger with variable turbine geometry.

In the Grand Cherokee, the 3.0-liter V6 diesel is offered in two guises, the most powerful of which produces 241HP at 4,000 rpm and 550 Nm (406 lb-ft) of peak torque at 1,800-2,800 rpm, with the company claiming a 10 percent gain in power and eight percent more torque than the engine it replaces.

Despite the improved performance, Jeep said fuel economy for the 241HP version returns 8.3 lt/100km (equal to 28.4 mpg US) on the combined European cycle, an improvement of 17 percent over the prior diesel engine. CO2 emissions (are also reduced by 17 percent, now at 218 g/km.

Jeep will also offer a lower-output version of the 3.0-liter V6 turbo diesel rated at 190HP at 4,000 rpm and 440 Nm (324 lb-ft) of peak torque available from 1,600 to 2,800 rpm. The low-output version of the turbo diesel engine will be standard on Laredo models and optional on the Limited

The new 3.0-liter turbo diesel variants of the Grand Cherokee will receive their world premiere at the Geneva Motor Show next week and be available in Europe by the end of the first half of 2011.

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Abarth Scorp-Ion Sports Coupe Concept by IED Turin Students to Debut at Geneva Motor Show

Even though Fiat executives have been coy on a stand-alone sports car for the Abarth brand, the Italian firm went ahead and collaborated with the Istituto Europeo di Design of Turin (IED) for the creation of design study that will receive its grand premiere at the Geneva Motor Show in about a week's time.

The sports coupe is named Abarth Scorp-Ion and it was designed by seven IED students who worked under the supervision of designers Luca Borgogno from Pininfarina, and Luigi Giampaolo from Maserati.

The goal was to design a bespoke compact-sized sports car with lines that evoke the scorpion (the official symbol of Abarth) without any references to the Fiat brand, with which Abarth is often identified.

The result is a futuristic looking two-seater coupe that measures 4,010 mm in length, 1,905 mm in width, 1,192 mm in height, and rides on a 2,350 mm long wheelbase.

The Scorp-Ion is motivated by four electric motors, one on each wheel, but that's about all Abarth had to share with us for now. Further details are to be released at the Geneva Motor Show.

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