The whisperers have it that Bugatti may be borrowing from Bentley for a new sedan. What they can't seem to pinpoint is exactly what kind of sharing the two marques will be doing, and whether or not the resulting super Bug will be a supremely high-powered four-door to compete with the Rolls-Royce Phantom. If the two brands do indeed share something, like the next Arnage's platform, for instance, that might make sense. But just a few months ago, Bugatti said that its next product would be even more expensive than the Veyron, and lead man Josef Paefgen has also said that there will be no inexpensive Bugatti. A $400,000 sedan wouldn't be inexpensive, true, but compared to $1.6 million for a Veyron, it's a flat-out bargain. Besides, the $242,000 Arnage T, after all the bespoke options, would come perilously close to a $400K Bugatti in price, and the next Bentley Arnage is growing in order to fight the Phantom. So if a Bugatti sedan with Bentley underpinnings were that close in price to a Rolls Phantom... then who's Bentley meant to get in the ring with?
In the land of mergers and acquisitions, there are takeovers, there are hostile takeovers, and then there are I'm Gonna Git You Sucka No Matter What takeovers. Porsche's increasingly acrimonious battle to swallow VW is becoming that third option, and the brawl might threaten the short term plans of Porsche, VW and Audi. Porsche wants access to Audi engines and electronics, but VW, which owns more than 99-percent of Audi, won't allow it. Porsche has de facto control of VW, with a 35.1-percent share. The so-called VW Law, which allows the government of Lower Saxony ultimate veto power even though it has only a 20-percent share, has been the broadsword that both VW and Germany have been using to keep Porsche at bay. The law has been struck down at least three times by the EU Commission and a German Court, only to have politicians figure out how to rewrite it without changing the substance of it. VW's supverisory board recently declared it would need to approve any sharing between Porsche and Audi, and at the moment, Porsche can't overrule that decision. Ferdinand Piech, the head of VW, is in a battle with the Porsche family and Wendelin Wiedeking, the CEO of Porsche, over control, and neither is expected to budge. The risk is that since no one knows how this is all going to play out, a battle of egos and punitive reactions could interrupt development of and platform sharing between – and therefore the profits of – all three manufacturers' future products and technology.
Motor Trend is reporting that Chrysler is considering a few different options now for its 2012 midsize offerings. The first option is to stick with Project D, which is gobbling up engineering and design resources. Option two is to use either Fiat's premium midsize platform or the Nissan Altima platform, and design and engineer the rest of the vehicle from scratch. Chrysler can also decide to badge-engineer one of the vehicles, which would be a far cry from the original plan to have many vehicles spawned off one platform.
Since Fiat currently doesn't have any infrastructure in the U.S. and Nissan already has ties with Chrysler (Dodge will be building the next Nissan Titan and Nissan will be building the Hornet out of Versa parts), the Japanese automaker makes more sense.
Fiat wants to become the platform-sharing kings of Europe, and with deals with Tata, Suzuki, Ford, and PSA, the Italian automaker is well on its way. Fiat Group CEO Sergio Marchionne told Automotive News Europe that another cooperation would be announced tomorrow, but details were scarce. Suppliers in the know are saying that a new deal is imminent to share the next generation Punto platform with BMW. The platform would be used to underpin the third generation MINI, which would help keep BMW engineers out of the FWD business and cut costs for Fiat at the same time. Fiat has been trying to produce a competitor to the popular MINI Cooper, and now it appears the Italian automaker will be working with an even playing field when it comes to platforms.
When Fiat reorganized its divisions into independent companies, it appeared that the brands were being separated, when in fact, Fiat, Lancia and Alfa Romeo have been working closer together than ever. The so-called "separation" has also led to the centralization of certain shared operations, including design, marketing, engine development and purchasing. The latter division was reorganized at the beginning of this year, with Gianni Coda as its head. Coda has now revealed an ambitious plan to cut the company's overhead by outsourcing to "best-cost countries".
Of Fiat's €34 billion purchasing budget, components alone accounted for €25 billion last year, which is set to rise to €32 billion this year. 8% of those components were purchased from countries outside the European Union, which Coda intends to raise to 11 percent. All in all, Fiat wants to increase the €2 billion it spent last year on components from outside Europe to €3.5 billion by 2010. In return, Coda expects an 8% savings to justify the shift.
Meanwhile, Fiat Group chief Sergio Marchionne confirmed that, following Tata's purchase of Jaguar and Land Rover, his company plans to use Jaguar mechanicals to underpin Alfa Romeo's next flagship sedan, the replacement for the ageing 167. After withdrawing its interest in the Ford PAG subsidiaries, Fiat has been supporting Tata's dominant bid. In return, Tata plans to use Fiat's dealer network to bring the new Nano one-lakh budget car to Europe.
