By selling now SM will avoid the embarrassment of missing to deliver what he has announced: sell half a million Alfa Romeo by 2015. There is no way he can do it, unless he is thinking of a range of Chrysler derivatives that would carry the Alfa Romeo shield but would be rebadged Chrysler. This can work for Lancia. Not for Alfa Romeo.

The problem here is not that Alfa Romeo and Chrysler need some time and money to design and engineers new car. The problem would be the sale and service network. It takes more time to build this than to deliver a sexy and very attractive car with the virtues expected from an Alfa Romeo and the quality of any premium car.

But there is much more to it.

To keep Volkswagen anxiously waiting for the transaction might – perhaps – grant Fiat Group Automobiles (not Sergio Marchionne) a slightly higher income, but how much would any further delay costs to the Italian economy and the Fiat Group Automobiles employees?

It is time for Fiat and S.M. (Sergio Marchionne not Sua Maestà, Italian for His Majesty) to re-establish a friendship feeling with Italians and its own market, after too many years of a love-hate affair that is increasingly turning sour day after day.

The sentiment that a significant share of Italian citizens and buyers, union leaders and politicians are critical towards Fiat became vehemently obvious recently, after SM spoke to a most successful and popular talk show. What he said was absolutely right, pragmatic and factual.

But it was too straight perhaps, and positively out of its historic perspective. Looking at today and tomorrow, Marchionne ignored the past that has actually shaped the fortunes (and misfortunes) of Fiat, the Italian governments and politicians as well as the workers unions. What he said did not please a certain audience.

His statements on the lack of stability, the hardship for the industry to compete in a country that ranks 118 in a list of 139 for labour efficiency and 48^th for the competitiveness of its industrial system or the risk associated with a share of work-force that is not taking seriously its obligation to perform and go to work according to their contract (on some peculiar days – reads foot-ball matches and similar events – up to 50% of the work force fail to go to work and report to be “sick”) were considered “not politically correct”.

The claims were factual and responsible. What created scandal and furious reactions was Marchionne statement about the risk that Fiat (he) might eventually be forced by the circumstances to detour a € 400 m. investment for the production of the new Fiat Panda in Pomigliano (the factory close to Naples which used to build Alfa Romeos and would build Fiat in the future) elsewhere.

The day after the talk show SM was not portrayed like a hero (as he has been for long time in the past year and as he should probably be portrayed today) but as a sort of “cynic traitor” that was not talking “as an Italian”.

More recently SM has announced plans for the Mirafiori plant in Fiat hometown Turin. A new 40/60 Chrysler-Fiat JV would be established for the production of some 250 to 280 thousands Chrysler and Alfa Romeo cars, SUVs and Crossovers per year, with an investment of € 1bn (some € 1.3bn). It is a very welcome news but soon Marchionne and the unions crossed each other and SM did not wait to state he has “a couple of Plan B” options and is not on “someone else clock”.

Well, as soon as Fiat’s management and the union met to discuss the plan and the workers’ contract, they called off the meeting because of too different views on key issues such as the transfer of the plant to a NewCo and the  “national contract”

Within this setting, one step towards a new friendship with Italians would be to remember that Alfa Romeo was acquired by Fiat at what can be defined “cost zero” (as it was – in different circumstances – the case with Lancia) even though a payment had been agreed to be made years after the sale at a time of double digits inflation, and after Fiat has cashed substantial “financial contributions” from the Italian State (which eventually was forced by politician and workers unions to sell to Alfa Romeo rather than Ford).

It is useless to say, here again, that the history of the Italian motor industry through the past 25 years would have been quite different if Ford had bought Alfa Romeo. The competition would have certainly forced Fiat to do better in every respect, starting from the quality of its management (and some managers), its products, its suppliers base and its sales network, making it a stronger competitor on the international arena.

Perhaps SM does not know, or does not want to know, the dealing and wheeling Fiat orchestrated with politicians to prevent Ford establishing a production base in Italy. Nor does he seem to know the many and many promises Fiat committed to, before his time, and never kept. Closing factories and creating unemployment. Not to mention investigations into alleged bribery (that could not be proved)

This is why, considering past and present circumstances it would be a very elegant and fully justified move for Fiat to actually return to Italians the extra income of the Alfa Romeo sale to Volkswagen. Obviously I would not go as far as to ask for such a “beau geste”.

I would just be satisfied to see Alfa Romeo being assigned to a new family that has the love and means to grant this sick child with the potential of a champion and a bright future, with no further delay.

After all this would be just what happened to Chrysler when SM and the Elkann (Agnelli’s heirs) family accepted the challenge to take care of it.

Back to business, it makes more sense to look at this option from a very pragmatic perspective in typical so SM style.

By selling Alfa Romeo NOW, SM would also present a very precious gift to himself.  He has proved he is a financial wiz, a very honest and ethical man, a very hard worker and a creative strategist. He is much more exposed to risk mistakes when it comes to industry and products strategy and decisions.

His weakness on this front has emerged in the past months, when sales of his cars (no longer supported by eco-incentives all over Europe) have set record declining figures mainly due to he limited range of competitive products and the lack of new products the Fiat Group can offer. Fiat is late, very late.

Probably this is not entirely his fault. It is clear that Fiat’s controlling shareholders have long decided to invest their money in other business but cars and left him with not enough money to invest into a medium and long-term industrial and market strategy.

The Fiat-Chrysler deal was a Marchionne’s work of art he mastered without Fiat’s money so far. Money that he will need to invest, on both side of the Atlantic, in the next couple of years.

Trouble is that Fiat has not all the human, technical and financial resources, plus the time, it needs to develop the sort of products and commercial network required to be competitive as a world player.

Also it has not much time to be ready when the Chinese competition will make the current fierce competition even fiercer, if not irresistible.

By selling Alfa Romeo NOW Fiat:

• Would get a precious couple of billion Euros (or so) to invest in new Fiat and Chrysler vehicle;
• Would be better fit to focus on the other Fiat brands plans its limited human resources; accelerating plans and expanding its range, getting ready for its expansion in new areas;
• Would be more comfortable in seeking the third alliance SM has been looking for since the Opel option was lost.

There is probably only one counter-effect that is slowing down a decision that in Milan many sources give for done: the risk of a very critical reactions from the public at large. To cure the problem, Fiat has all the expertise and tools to prepare the public opinion for the news and in my opinion it is already working on this. However, SM can do even better: concede that the sale will benefit Alfa Romeo and the Italian economy much better than with Fiat at this time and the right thing to do.

Here the first official images of the all-new Ford C-MAX, whi

ch will make its global debut at the 2009 Frankfurt Motor Show next week.

The new Ford C-MAX takes its design cues from the stunning iosis MAX concept car unveiled at the Geneva Motor Show early last March and represents Ford of Europe entry in the compact MPV market. In Frankfurt Ford is expected to announce that the C-MAX will also be sold in the North American market.

The all new MPV comes with a clear personality and a coupé-like silhouette and sweeping roofline with no apparent compromise on the use of space.

According to Ford the C-MAX will introduce a host of new technologies such as an all-new 1.6 litre direct injection petrol engine, a semi-automatic parallel parking and a blind-spot detection system.

Ford says it will start selling the new C-MAX in the second half of 2010 as the first in a new generation of global vehicles developed from Ford’s new C-segment platform, scheduled for introduction over the next several years. The global range will also include the all-new Ford Focus due in late 2010.

Ford proved to be one of the most sentitive carmakers among those presenting a new concept car in Geneva. Its attractive Iosis Max is indeed a “scaled down” SUV that you could well quilify as a small-to-medium alternative to medium-to-large or large vehicles actually in the market. For its dimensions it fits between the “compact” Fiesta and the “middle-class” Focus. According to well placed sources its front design does anticipate more than a trait of the next generation (2010) Focus.

Ford says that its “second generation kinetic design” concept is powered by a 180hp, 1.6-liter turbocharged gasoline direct-injection four cylinder engine of the new EcoBoost family, with stop-start technology that can save up to 20% fuel in comparison with previous generation of equivalent performance.

For the complete photo gallery click on the image below:

Back from the Geneva Motor Show I choose to offer first a first selection of interior shots, either from the show itself or its carmaker. Part 1 shows the ones I liked. Part 2, tomorrow will show what could be better.

In these pages a selection, for the entire gallery click on the image at the bottom.

 Rinspeed iChange

 Rinspeed iChange

Ford 2009 Iosis MAX

Ford 2009 Iosis MAX

Lexus RX 450H

Lexus RX 450H

Hyundai ix-onic

Protoscar Lampo

Italdesign Giugiaro FN Namir

Click image below for the photo gallery:

Going to an international motor show is like going to the annual market. You meet a lot of friends and people, see many things and you come back home with the head full of information, impressions, news, comments and opinions. So much so that indeed you need a few days to arrange everything in some sort of order so that you get to the essence of the experience. This is all the same and yet all different every time. And I am not just talking of the cars.

As for cars, new cars I mean, I have come home with an incredible load of pictures and information.

I would have to share them all with you the very moment I sat back to my PC last Saturday but this is simply impossible. It takes a lot of time to put a label and classify more than 2000 images.

Now, having done just that I can start sharing with you some of the most significant. Or at least some that I image you want to see as soon as possible.

This is why, at this time I am offering you a series of photo galleries to look at. What you see is a combination of images shot at the Paris “Mondial de l’Automobile” and images provided by the press offices and design studio of the car makers.

I am giving priority to the latter ones, as the most attractive and unique.

Related information and comments will be posted shortly. Click on images below to access their photo gallery.

As the count down to the opening ceremony of the Olympic Games in China is coming to a close, the automotive industry – just back from the London Motor Show – has launched its count-down for the introduction of a wave of new cars at the Paris “Mondial de l’Automobile” Motor Show opening its gates to the public at large on October 4^th.

First on August 1^st to unveil its new baby is Ford.

The look of its new KA developed and engineered with the co-operation of Fiat and Italdesign-Giugiaro can now be seen in the first official pictures. The car is build in Poland on the industrial platform of the Fiat Panda and Cinquecento but its looks share nothing with the Italian rivals. The new KA looks charming and  attractive, a sort of miniature Fiesta but with a design and a personality of its own.

It comes with the bold trapezoidal lower grille, trendy large headlamps ad integrated fog-lamps. The cars looks tall and with a dome-like roof designed for interior roominess.

The Ka, does without the SUV-like architecture of the functional Panda and has no clue to cars of the past. Indeed the new KA is much more conventional and predictable than the first generation KA was when it was first launched, also at the Paris Show, 12 years ago. Once again marketing seems to have led the design, as the ultra-rich (for its class) interior design and equipment suggests.

The new Ford appear to belong to the new generation of eco-chic, small but upper class, cars that people concerned more with running costs (gasoline and insurance) that purchase prices will be in the market for in the coming years.

At this time no official information concerning powertrains, performance and prices are available but well placed sources confirms the small-and.-trendy Ford will be available with the powertrain of the Fiat 500, that is a 1.3 litre turbo-diesel and two gasoline engine of 1.2 and 1.4 litre displacement and 70 – 100 HP. The oil burner will obviously be the CO2 champion with emission expected to be under 120 g/km., only to be beaten by the 2-cylinder turbocharged 900 cc gasoline engine with stop-start technology currently under development at Fiat Powertrain Technologies (FTP)