Suzuki Moves Ahead without VW and Signs New Diesel Engine Deal with Fiat

Regular readers will no doubt remember the clash between the Volkswagen Group and Suzuki Motors with the Germans refusing to let go of their 19.9 percent equity stake in the Japanese company and Suzuki taking the matter to the international court.

While the issue remains unresolved, Suzuki has already moved on and today, the company announced that it is further expanding its business relationship with the Fiat Group, which also owns Chrysler.

The two parties reached an agreement for the supply of Fiat's 1.3-liter Multijet four-cylinder turbo diesel with 75-horses to Maruti Suzuki, which is the Japanese company's Indian subsidiary.

Fiat India Automobiles Limited (FIAL), a joint venture between Fiat and Tata Motors, produces the diesel engine at a plant near Pune in Maharashtra State.

Under the deal, Fiat will supply up to 100,000 1.3L MultiJet 75hp SDE engines per year, starting from January 2012 and for a maximum period of three years. Fiat noted that these volumes will be in addition to the 1.3L MultiJet SDE engines already licensed by Fiat and manufactured by Suzuki Powertrain India Limited.

The 75HP diesel unit will be used on Suzuki branded vehicles produced in India exclusively for the local market.

 

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Fiat Rumored to Extend 500 Range With Mini-Rivaling Five-Door “Wagon”

On paper, Fiat’s return to the North American market after a 30-year absence was well planned. The first product introduced by the Italian maker was the 500 city car, which had already proven to be a hit in Europe, selling 770,000 units since 2007. Things looked promising in the U.S. as well.

While the 500’s mission was to rival BMW’s Mini, its 2011 sales of 26,000 units were almost half of original forecasts. Delays in the launch and the dealer network certainly played a role while Fiat CEO Sergio Marchionne also thinks that the company’s strategy was to blame.

“We thought we were going to show up and, just because of the fact people like gelato and pasta, people will buy it”, he told reporters last week. “This is nonsense”.

Dave Sullivan, a product analyst at AutoPacific Inc., commented: “There needs to be a reason for people to downsize and spend more for less other than fuel economy and good looks. Dealers would welcome with open arms something with more utility and space than the 500.”

According to Sullivan, that’s exactly what Marchionne plans in order to reverse the stylish 500’s fortunes: a bigger, five-door “wagon” version developed for the U.S. market.

Inside sources state that the as-of-yet unnamed model will be built at Fiat’s Serbian plant. Although it is aimed at the U.S., it will first become available in Europe.

Mark Cannon, a spokesman for Fiat’s largest American dealer AutoNation believes that extending the 500’s range is the right thing to do: “Mini started with a product everybody said would never work. They added more product, the pipeline was slowly built, and now everyone wants Mini dealerships.”

A couple of months ago, Timothy Kuniskis replaced Laura Soave who had been hired by Chrysler in 2010 to oversee the 500’s launch as head of Fiat in North America. He believes that the Jennifer Lopez commercials have raised awareness for the model, and his 2012 target is to sell 25,000 units in the U.S., and a total of 40,000 in North America.

Story References: Autonews

 

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Fiat Abarth 695 Tributo Ferrari All Chromed Up

The limited run Fiat Abarth 695 Tributo Ferrari special may come with its own bespoke Scuderia Red finish with contrasting grey racing stripes (among other unique features) but that hasn't stopped Japanese tuner Office-K from giving it a new shade – fortunately, not permanent.

The tuning firm covered the Ferrari-branded Abarth model's body in a flashy chrome vinyl wrap with racing stripes in the colors of the Italian flag.

Other than that, the hot hatch remains stock with its upgraded 1.4-liter turbocharged four-cylinder engine producing a little over 180-horsepower, which are transferred to the front wheels via a five-speed automated manual gearbox.

The Ferrari version of the Abarth 500 also comes with a different aero package, 17-inch alloy wheels in a unique design, a more powerful Brembo brake system and suspension tweaks.

Interior upgrades include a pair of carbon fiber bucket sport seats from Sabelt, a flat-bottomed black leather steering wheel with red leather inserts, carbon trim and a new instruments specially made by Jaeger.

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2013 Dodge Dart Photos Leaked Ahead of Detroit Motor Show Debut

There has been much excitement over the brand-new 2013 Dodge Dart as it's the first Chrysler product to be based upon a Fiat architecture – in fact so much that some couldn't just wait and unleashed a slew of pictures as well as the first video of the compact sedan on the road.

The Dart effectively replaces the Caliber in Dodge's lineup offering the Chrysler Group a direct rival to the Ford Focus and Chevrolet saloons.

It is based on a wider and longer version of the Alfa Romeo Giulietta's platform and will offer American buyers an initial choice of three gasoline four-cylinder engines including a pair of natural aspirated units with a displacement of 2.0-liters and 2.4-liters rated at 160 and 184-horses respectively as well as a 1.4-liter turbocharged engine from the Abarth 500 with 160-ponies.

The front-wheel drive Dart will debut with a Fiat Group-sourced 6-speed dual-clutch transmission and a six-speed manual gearbox but in 2013, it will gain a new 9-speed transmission that is currently being developed by the ZF Group.

We'll have all the details from the Detroit Motor Show but for now, enjoy the first official pictures and video after the break.

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