March 9, 2016

FCA. That King of Delusion out in Auburn Hills - aka Sergio Marchionne - actually believes that if FCA allows Fiat dealers to combine showrooms with Chrysler-Jeep-Dodge-Ram stores that they'll hang around for a little while longer. But as I said three weeks ago it won't matter one bit: "Marchionne and his espresso-swilling posse have had a good run. They absconded with Chrysler’s assets for a song and they rode on the backs of the True Believers out in Auburn Hills, turning their tremendous efforts on Jeeps, pickups and a smattering of hot rods into pure gold. But now, Brother Sergio’s Traveling Salvation Show isn’t just out of gas, it’s broke down and busted at the side of the road. The grim reality behind Marchionne’s egomaniacal bluster never goes away. FCA is bleeding cash despite selling Jeeps and pickups hand-over-fist, and the margins are so razor thin that the whole thing is teetering on the edge of oblivion. And FCA is doing this while writing a large percentage of subprime loans, which means they will leave a devastating financial legacy with consumers for years to come. Marchionne’s Alfa Romeo ploy was an amazingly disastrous trip down the Boulevard of Broken Dreams, one that was bound to end badly. But as absurd as it was, this chaos unfolding with Fiat could very well be the End Game because it is coming at a most inopportune time, what with Sergio peddling FCA’s wares to any and all prospective suitors. The dramatic debacle at Fiat is something Marchionne is desperate to keep under wraps, convinced he can talk enough dealers to re-up so he won’t be embarrassed, while keeping the true ramifications of his ruinous strategy from getting exposed. Well this just in: It’s too late. This likely will be the denouement for Marchionne and his posse, and it won’t be pretty. A most unwelcome Waterloo, this Fiat fiasco is bound to force Marchionne and his espresso-swilling minions into an inglorious buyout, one not on his terms. And there’s no amount of Sergio bombast and pontificating out loud to the press that is going to change that fact either." Do you want to know what the overwhelming response by Fiat dealers will be to FCA's latest plan? Drop Dead. -PMD

Tim Kuniskis. The head of FCA's passenger car brands actually said this to Automotive News, who broke the FCA story today: “We’ve added a ton of product, and we’ve seen no increase in sales -- none,” Kuniskis said. “Every single car has been substitutional to the other ones.” Or as an esteemed colleague put it: “'Ton of product'?  Let’s see, 500, 500L, 500X.  Maybe that’s 'short ton.”' And, "'Every single car has been substitutional to the other ones'? Let’s see: Fiat 500 wheelbase: 90.6 inches. Fiat 500X wheelbase: 101.2 inches. Fiat 500L wheelbase: 102.8 inches. Maybe the dealers can turn their Fiat 'studios' into full-blown cappuccino bars." -PMD

(Porsche images)
Porsche AG's "Rolling Museum" will again set out on the world's roads to appear at some of the most prestigious classic car events around the globe. The "Rolling Museum" made over 280 vehicle appearances in 2015 alone. This year the historic cars will be taking to the international stage at events including the California Mille, the Targa Florio Classica on the island of Sicily, the Historic Grand Prix at Monaco, Paul Pietsch Classic, the Austrian Ennstal Classic, the Saxony Classic and the Top City Classic Rally in China. Porsche factory cars appearing at some, but not all of the events will include a 1955 356 Speedster 1500 and a 1956 365 A coupé; a 1958 Porsche 356 Speedster 1600 S; a 1973 911 Carrera 2.7 RS; a 911 RSR; a 1962 Porsche Formula 1 car and 1960 Formula 2 car; a rare 1991 944 Turbo convertible; a 1967 911 2.0 Targa; a 1957 550 Spyder and a 1961 356 Abarth.