The state of the (Fiat) union

By Jonathan Mellberg

Of all the exciting things going on in the world of the automobile, I’m not quite sure anyone has packed so much nail-biting anticipation as what Fiat S.p.A. has announced within the last few weeks. And I’m not just talking about Ferrari; we’ll get to that. I’m talking about everything else, including the much more pedestrian Chrysler, Dodge, Jeep, and Fiat. There’s been a lot of change, and more to come.

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(all-new Jeep Renegade shares mooches off of Fiat's platform)

Let’s start with Jeep. I just read that the next Jeep Wrangler could be very different than the one we enjoy now. Things like IRS (Independent Rear Suspension) to replace the current live rear axle, different/newer/smaller engine options (aside from the hit 3.6 Pentstar V6), and aluminum bodies, reportedly based on parent company Fiat S.p.A’s close review of how Ford has been applying aluminum to the all-new Ford F-150 to help shed unwanted weight. But here’s the rub; Wranglers wearing new aluminum bodies could mean moving production away from the only home the Wrangler has ever known: The Toledo, OH plant. As the factory is too old to feasibly retrofit for the use of aluminum, this means a new factory, or at least a new location. How do you think Americans -building one of the most iconic American vehicles ever- feel about some bespectacled, Italian-Canadian CEO telling them they can’t build the Wrangler where it’s always been built because of some stupid new fad like aluminum bodies? You tell me…

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(707hp-equipped SRT Challenger Hellcat)

There’s other news at camp Jeep. The all-new Renegade has been drawing some harsh criticism; (some) opponents say it’s not a real Jeep. They should quit their bitching; Jeep’s already produced its fair share of off-road posers like the current Liberty and Compass (both will be axed in 2016 by the way). I assume what diehard Jeepsters hate is that the new Renegade’s underpinnings are based on the 500X, a new Fiat model that will dip one toe into the pool of (minor) off-road capability. That a Jeep should share anything with Fiat probably disgusts many 4x4'ers, but it’s time to face reality. Fiat owns Chrysler, which means Fiat owns Jeep. Badge-engineering isn’t a new concept, it’s been happening for decades; get over it. If Fiat is to successfully bring back Dodge, Chrysler, and Jeep, it needs to do it smartly. That would include building an all-new Jeep that shares its bones with an all-new Fiat; this drives down the cost of production, and helps expand possible profit margins which helps both companies in their respective pursuits of global expansion. In the specific case of the Renegade and its Italian brother the 500X, this is a smart move for Fiat. Fiat can enter the market with its own little 4x4, and Jeep can offer an entry-level off-roader for someone who perhaps isn’t quite ready to rip off their side doors, remove their roof, and tackle the Rubicon trail with their first Jeep-buying experience. It makes sense, even if you don’t like it. But while one might hate what the Renegade represents (to them), remember this; without the boring, best-selling cars, we wouldn’t have amazing cars like the Lexus LFA, the Ford GT, or even the Bugatti Veyron. Major automakers are able to build such righteous supercars by leveraging hundreds of thousands of “boring” cars sold each year in order to build just a handful of truly amazing automobiles. Now what's wrong with that? 

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(Dodge Viper, formerly known as SRT)

Moving on. There’s been a major shakeup at both Chrysler and Dodge. We’ll take Chrysler first. Gone is the slick, new “Imported from Detroit” mindset. Chrysler will no longer tout its cars as upscale American alternatives. In fact, they’re moving downstream. The new Chrysler will be the everyman’s car. They may no longer offer the 300 in SRT-trim and will leave all other general sportiness to their Dodge sibling. Sounds boring right? Yeah, I agree. And this won’t help matters: Chrysler will soldier on after the year 2015 as the only Fiat-owned brand to offer a minivan; in other words, the Caravan is dead. Gets yours now if you love them so.

The standalone SRT (Street and Racing Technology) brand will implode and come back under the fold of Dodge (it’s probable that Chrysler and Jeep will drop all SRT-equipped vehicles from their respective lineups). That means the SRT Viper will once again become the Dodge Viper (base price has also dropped $15K though it's apparently unrelated to the brand change). Dodge will solely shoulder the responsibility of sporty offerings, which will include the SRT Charger, Challenger, Viper, and the future SRT Dart. Whether Dodge will offer a SRT SUV to (assumedly) replace Jeep’s SRT Grand Cherokee remains to be seen. Speaking of SRT, if you haven’t heard of the new Challenger Hellcat, you’ve obviously been living under a rock. With 707 horsepower, it’s America’s most powerful anything and certainly 'Merica's most powerful muscle car. Dodge is doubling down too, offering a Hellcat Charger; hooray for over-the-top, bragging-rights horsepower! Oh, and Ram trucks will continue as their own brand, at least for now…

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(all new -including to America- Alpha Romeo 4C)

In case you care, Fiat’s other babes are going through some changes of their own. Maserati will be releasing its first-ever SUV called the Levante. It’ll be offered with several different turbo-charged engines with six or eight cylinders, not to mention a turbo-diesel option that may or may not find its way stateside. Fiat, aside from its aforementioned 500X model, with also build an electric model, called (you guessed it), the 500E. Way to get creative with your nomenclatures, fellas. Italy’s most exciting export to America (aside from any Ferrari, ever) is the long-awaited (by some) return of Alpha Romeo! The new 4C is a gorgeous little pea-shooter, powered by a 1.7Litre inline-four that musters up 237hp and 258lb-ft of torque while weighing less than 2500lbs! This puts the 4C’s 0-60mph acceleration times right around 4.5 seconds with help from its six-speed, dual-clutch auto (no manual will be offered). This mid-engine, rear-wheel drive awesome auto is just what the doctor ordered; after the initial 500 special edition 4C’s are sold (for just under $70K each), base price will start around $55K. Sign me up; when I have money, that is.

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(Luca di Montezemolo, former head for Ferrari)

And now we come to the heart of the matter: Ferrari. In case you didn’t know, Fiat S.p.A. (soon to be Fiat Chrysler Automobiles) not only owns Chrysler, Dodge, and Jeep, Fiat, Maserati, and Alpha Romeo, but Ferrari as well. Whether it was Ferrari’s embarrassing F1 racing season or its CEO’s bullish declarations of Ferrari’s purposely limited production volumes, a changing of the guard happened a few weeks ago in spectacular fashion. Luca di Montezemolo, who has headed up Ferrari for the last two decades, abruptly announced his departure from Ferrari seemingly out of nowhere (his official end date is mid-October). Current Fiat S.p.A. boss, CEO Sergio Marchionne, will take over. At first (and probably even still), rumors quickly scampered regarding the implications this switcheroo would manifest, the most-dreaded being the possibility of Ferrari following all the other supercar brands and building either a four-door Ferrari or perhaps even worse, a Ferrari SUV (cue the shrieking, dreadful music). The less-concerning speculation was that Ferrari would amp up its production volume; di Montezemolo had long sang that Ferrari would remain exclusive and not push production past its current 7,200 units per year (the Ferrari factory in Maranello is capable of building 10,000 cars per year). And while Marchionne has commented on the (sometimes) ridiculous wait times in purchasing a new Ferrari, its sounds as though -for now- he will not be increasing production. Even so, don't be surprised to see a modular increase over the next few years; I’m guessing at least 250, 500, maybe even 1,000 more units per year, in time. Small potatoes, I know. Toyota sold around 400,000 Camry’s last year (one of over twenty models that Toyota offers). But then again, a Toyota isn’t a Ferrari. It ain’t even close, not be a damn sight. 

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(The head honcho: CEO Sergio Marchionne)

My worry? Marchionne has the pleasure of now running all the companies under Fiat S.p.A. Above all he must surely keep these companies profitable, or at least keep them on path to becoming more profitable. I worry that Marchionne isn’t the Ferrari purist in the way that di Montezemolo was, and that sooner or later Ferrari brass will cave under the pressure of the success their rivals are basking in. Look at Porsche, Aston Martin, and Maserati, all enjoying the fame that the four-door sports cars have brought them (especially Porsche). Look at Bentley, Lamborghini, Rolls Royce, and again, Porsche; all these marques are bringing super-SUV’s to the market (Porsche already has the Cayenne and the new Macan). To pick on Porsche, the boys from Stuttgart have shown us just how amazing a sports car-turned four-door sedan (or SUV) can be. And everyone else is lining up to get a slice of this newfound market share. Why shouldn’t Ferrari do the same, you may inquire. If you have to ask, you just don’t get it. Everyone else can do whatever they want. Rival automakers sold their souls, long ago. Only one brand has remained unsullied; only one brand has stayed the course. Only one brand, through nearly seventy years of building (street-legal) cars, has escaped the taint of giving in. To Enzo Ferrari, it was bad enough building street cars just to fund his endless racing addiction. That venture of building unique, desirable, and insanely fast sports cars has never wandered off track. And now it has become the one of most recognized labels of lust-worthy desirability the world has ever known. So please, Mr. Marchionne, do what you want. Build front-wheel drive Jeeps, build dumbed-down Chryslers, market Dodge as a sporty brand, and build little Italian autos with four-wheel drive. Just don’t mess with Ferrari; you owe me -and the world- that much.

Post script:

This blog was inspired, in part, by Motor Trend magazine’s August 2014 issue, which did a splendid job of distilling the myriad changes within Fiat S.p.A. I highly recommend you read it.