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07/31/2008, 11:31 AM

Chrysler

Chrysler in talks to sell Wrangler via Tata, build Fiats in North America?

Chrysler, which has previously announced it is open to partnerships with other automakers, is working hard to achieve these goals, recent reports find. It is apparently talking with India’s Tata Motors to sell a version of its Jeep Wrangler there and in nearby markets, while also making good on earlier rumors to build Fiat and / or Fiat-group vehicles in North America, including Alfa Romeo.

The Fiat deal would likely involve Chrysler leasing out its production facilities or part of their capacity to produce the Italian firm’s vehicles as well as helping with the dealer network in the U.S. market, as per sources cited in the U.K.’s Guardian daily. Fiat-owned Alfa Romeo has been looking to set up a North American production facility since last year, so it’s likely at least some of its products could be built by Chrysler. Either way, Fiat is expected to announce exactly how it will return to the U.S. market by the end of 2008.

Chrysler is also in talks with Tata about producing an electric version of the Indian automaker’s Ace mini-truck, although these talks are still in early stages.

In the meantime, a Tuesday announcement saw Fiat and Tata form a partnership, with Fiat agreeing to handle the financing of Tata’s newly acquired Jaguar and Land Rover brands after Ford’s finance firm left. On the flip-side, Tata would let Fiat sell it’s ultra-affordable Nano small car in Europe.

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07/31, 11:41 AM

posted by:

Nightblack_97

A tata wrangler… Maybe its just me, but I think it would lose a little of its rugged status.

07/31, 11:43 AM

posted by:

jumpoffit

is Tata going for world domination or what? they are buying everything that’s for sale

07/31, 11:46 AM

posted by:

beatusmongous

Seeing as how the Tata version wouldn’t be sold here, and since there are no Jeeps other than the ones our government may have over there, I don’t think the reputation of Jeep would be ruined. The buyers over there wouldn’t know the difference.

This story has some very interesting points. Chrysler may actually be able to turn this into a good profit.

07/31, 11:47 AM

posted by:

RaineMan

Tata has the cash to pass around… India’s car market is huge and only growing larger by the day. With US manufacturers hemmoraging nearly all they’ve got Tata is in a very favorable position.

07/31, 12:03 PM

posted by:

bigdawg

A Tata Wrangler sounds like the title for a manager of a strip club. LOL

07/31, 12:08 PM

posted by:

ktulu

tata will pas ford

07/31, 12:13 PM

posted by:

global_lightning

I think Cerebrus’ strategy is starting to emerge:
1. Sell or partner its remaining profitable brands
2. Become a contract builder for other manufacturers
3. Eliminate or minimize its own brand’s design, engineering, and manufacturing

07/31, 12:15 PM

posted by:

BuyAmericanOrLeave

did that on purpose. I actually know *Xyunya* aka Michael in real life, and hes a fat unemployed loser.Who has a Boyfridn by the way, for all you LLN bloggers that dont know.Didnt tell them you like men mike? HAHAHA now they know. So it bothers me that this flamer is behind a computer in OUR country bashing anyone who supports american. It seem that hes the first to complain about gas prices and hes driving a rice rocket. That flamer can eat a d*ck. He sits home all day in his mothers house and stares at his computer for hours. His sister is my best friend. Everytime i go over there hes running his fat mouth on forums. Im sick of it. Sorry for the hate, i just dont agree with hypocrits.He can eat a d*ck. Wait he already does :X

07/31, 12:17 PM

posted by:

inline6

Folks, READ THE DAMN ARTICLE.

Chrysler isn’t selling the rights, the production, or the brand to Tata. They’re trying to sell Tata the rights to build and sell it in India under their own brand.

This is almost non-news. It’s like when AMC sold Bejing the rights to build Cherokees in China in the ’80s. That didn’t mean that they were importing any from China. All of the Cherokees sold everywhere else in the world were built in Toledo, OH. If I’m not mistaken, they’re still building them there.

07/31, 12:19 PM

posted by:

RaineMan

You are probably very close to 100% right there Global_Lightning. Cerberus has only ever been known for breaking larger companies up into smaller ones and outsourcing the work all in the name of making a buck. Chrysler is on the road to become a good outlet for asian and european cars to be sold in the states.

07/31, 12:59 PM

posted by:

DrFill

First the end of the lease, now the Tata Wrangler!
I ddn’t know McCain took over Chrysler!
Now I understand………..
DrFill

07/31, 1:17 PM

posted by:

xyunya

Jeeps already manufactured and sold in a number of countries. In Europe they are manufactured in Austria and in Egypt they are the backbone of their military. It is not surprising. Good news that Chrysler is digging it’s way out of the hole.
Nice to know you BuyAmericanOrLeave. I agree, we all should by superior products especially made in US. Some are Hondas, some Toyotas. I am totally against Asian invasion of Daewoo/Chevy and Fords build in Mexico.

07/31, 1:32 PM

posted by:

johnnycanuck

There are so many automakers in bed with each other these days it’s starting to look like a porn flick. Let me know when they get to the money shot, and someone remember to change the sheets before they all get stuck together.

07/31, 1:38 PM

posted by:

inline6

Xyunya, why are you against GM’s Daewoo/Chevy strategy, and Fords built in Mexico? Are you also against VWs and Toyotas built in Mexico? Or Magna-Steyr building the BMW X3?

Daewoo is now only a market-specific GM brand. Why wouldn’t GM leverage its global resources to produce small cars at a profit? What’s wrong with that? We’ve already established that the American Three are at a gross disadvantage in every market with worker wages, legacy costs, and the tax relief the foreign companies get for building here. And nowhere does that hurt them more than with their smallest cars, which are low-margin as it is.

So what, exactly, is the problem?

07/31, 1:49 PM

posted by:

brassmonkey

Tata building Jeeps? That’s an upmarket move. Reliability can’t get much worse. Oh, wait, Ford and VW are still here.

07/31, 2:58 PM

posted by:

xyunya

inline6, I am against pseudo nationalistic distinction between “domestic” and “rice” or “jap”. I also happen to like cars. In my personal opinion, “jap” cars build in US by US labor are superior to “domestic” Daewoo build in Korea. I drove Daewoo as rental in US and in Europe on occasion (as a Chevy!) and find them far inferior to Toyota/Nissan and not in the same ballpark as Hondas.
BTW, I am former GM guy: my first family car was Citation wagon and I swore not to deal donate to GM (wasn’t much of a car, so I feel it was corporate donation and unappreciated one to boot).
“domestics” are looking for strategies to optimize profits with foreign labor, while “japs” are designing and building cars in US at a profit. You are asking why I am against “domestic” strategies? I would like Americans to work, sorry if it is not popular opinion. Also I realize that there is no “domestic” or “foreign” car manufacturer. Components are usually global in nature and the largest shareholder of GM stock is a Kremlin guy.
Lastly, union infiltration is work of corporate ineptness at labor relations. There are no unions (as far as I know) at Toyota, Nissan, Honda plants.

07/31, 4:07 PM

posted by:

inline6

1) There is no such thing as a Chevy Citation wagon. It only ever came in 3 body styles, hatchback sedan, hatchback coupe, and notchback coupe.

2) Union infiltration is stupid? Tell that to GM in the ’20s and ’30s when their workers shut the company down due to strikes BEFORE unionization. Tell that to the workers at Ford who were beaten by Henry’s henchman whenever they’d threaten to strike. Truth is, the playing field isn’t level. GM, Ford, and Chrysler can’t fire all their union workers and hire only non-union workers.

3) GM employs about 10x the Americans that Toyota, Honda, Nissan, Hyundai/Kia, BMW, and Benz do in this country. GM pays them higher wages and better benefits. So, thanks to the American three, more than 1 million Americans DO WORK. And at better wages and benefits than the foreign companies employ here.

4) Honda, Toyota, and Nissan have had plants here for less than 30 years, whereas GM, Ford, and Chrysler had to deal with unionization in the ’30s. Honda, Toyota, and Nissan built the bulk of their plants in locations strategic to unionization being unlikely. GM, Ford, and Chrysler don’t have that option.

5) How much does the Russian that owns GM actually own? And what percentage of GM profits go to him?

You’re incredibly naive and living in the past if you think that the GM that build your fictitious “Citation wagon” in the early ’80s is the same company that functions today. You’re incredibly naive about unions and the American auto industry, as well. And you’re unwilling to acknowledge how unfairly beneficial to foreign companies the practices our government has enabled or supported outright in this industry are today. I’m at least acknowledging that PART of the problem is that the American Three built lousy vehicles as recently as 5-10 years ago. So their struggles with the “perception gap” are fair.
The unlevel playing field in the industry, however, is not.

07/31, 4:22 PM

posted by:

xyunya

inline6, you are correct it was Celebrity wagon (my five owned Citation and we traded it up and out).
Of course Toyota/Honda/Nissan could not own companies in US as long as GM/Ford/Chrysler. However, if GM/Ford/Chrysler dealt with their labor in more humane way they would not need to deal with unions either. Unions or lack of them don’t account for corporate mismanagement, I believe that mismanagement attributed to much larger corporate losses then disparity of cost per car.
Link point to article about Derepaska’s stock purchase:
http://www.bloggingstocks.com/2007/08/08/russian-billioaire-buys-5-of-general-motors-gm/

BTW, his own factory build Sebring based cars.

07/31, 4:33 PM

posted by:

inline6

So 5% of GM is owned by a Russian. How big of a deal is that?

The “mistakes” the Big 3 made in the ’30s with their unions were not unique to the Big 3, but all American industries at the time. If you’ll notice, Honda, Toyota, and Nissan workers in Japan were striking like crazy in the ’50s and ’60s, too. And had Honda, Toyota, and Nissan had manufacturing plants in this country back then, they’d be unionized, too. You can guarantee that.

In this day and age, Toyota threatens to close a plant if their workers think about unionization. How’s that for employee treatment. Nissan successfully threatened to close its American plants if Congress didn’t give them a pass on CAFE standards in 2006. How’s that for working conditions and American labor?

07/31, 5:15 PM

posted by:

xyunya

inline6, I had a tour of Toyota factory. I saw firsthand kindergarten for employees children, company sponsored activities (baseball outing), the whole working atmosphere of cohesiveness. If you don’t see it you perhaps would not believe it. They care about their employees, maybe more so then their customers.
We can talk past indefinitely, the reality is today and reality is that GM/Ford/Chrysler have horrible labor relationship and not union only. And it’s all starts at the top. I have no issues with quality of product or staff, ’cause most of Toyota/Nissan/Honda cars and trucks for US market were developed by former “Big 3″ employees (designers and engineers).

We know of 1 Russian owning 5% because it is just under the NYSE limit of one-ownership. How many points sheiks and Chinese own we don’t know. I am sure a lot. By same token, Toyota shares are traded on NYSE. My point is: corporations are international and only difference between them is location of headquarters.

07/31, 5:35 PM

posted by:

inline6

And I’m not waving the flag except for who employs the most workers and in what conditions.

I’ll tell you what. Go to any GM plant. You bet your ass there’s daycare and community outreach…and like you’ve never seen. Go. Go to ANY GM plant.

07/31, 6:07 PM

posted by:

jayjc08

So Tata may in the future own Jeep, Land Rover AND Hummer.

Boy, what a bright future for off-road enthusiasts!

07/31, 6:19 PM

posted by:

inline6

jayjac, read the article for crimany’s sake! Tata is inking a deal with Chrysler to build Jeeps in India for the INDIAN MARKET. Tata is NOT in talks with Chrysler to buy Jeep.

07/31, 7:50 PM

posted by:

DeansterTJ

BuyAmericanorLeave, the only homo with a dick in his throat and a set of balls on his chin is your gay ringpiece raiding, gooch-sucking asspirate self. So do us a favor and go guzzle someone’s jizz, you walking cumreceptacle. Oh, and before I forget - your mother’s a ****ing whore and you’re her afterbirth.

07/31, 8:12 PM

posted by:

TomF

I’ve said it before and I’ll say it again. If Tata builds big, honkin’ Jeeps under license, they’ll sell like crazy. Who doesn’t like bodacious Tatas?

07/31, 9:31 PM

posted by:

Bubs Solo

brassmonkey
you mentioned than Ford quality was worse than chrysler ? Wrong ! Of the big 3 chrysler is dead last in quality. While GM and Ford have improved Chrysler hasn’t improved a thing. Just grab a CR magazine and find the one chrysler/dodge/jeep product with a check mark. Mean while Ford has 93% of its products with a check mark in front of it. Say what you want about CR but Chrysler’s quality is pitiful.
you were right about VW though.

08/01, 3:23 AM

posted by:

sanfranmac

Xyunya and the Deanster are the only people actually talking sense today on this topic. The rest of youa re pretty much spewing crap, and hate on top of that. Cool it down a bit, will ya all? If Tata and Chrysler decide to sell jeeps in India, why the heck must the rest of you tear each other up on a blog? Go out and get some fresh air. Drive a jeep maybe. But QUIT it with all this pathetic bashing.

08/01, 8:30 AM

posted by:

frylock350

lol @TomF

inline6, I like your posts more and more each day.

Let me lay it out for you xyunya,
Domestic vehicle built outside the USA/Canada = worthless to me
Foreign vehicle built anywhere = worthless to me
Domestic vehicle built domestically is the only thing I’ll buy, mine was built in Janesville.

Canada gets a pass because they embrace GM/Ford as domestic to them, their pay is at parity with the UAW, and they buy an awful lot of GM and Ford products. Its a mutually beneficial relationship, unlike ones with Japan.

Also in regards to GM/Ford factories here vs Asian transplants, the GM/Ford factories pay better, have better benefits, etc. Toyota BASES their pay off of UNION scale. Do you think they’d pay what they do if scale didn’t exist? Toyota’s benefits pale in comparison to what GM offers its line workers.

Toyota cares about its employees? They foster an absurd level of corporate loyalty and encourage employees to work “off the clock”. An engineer recently died from overwork at Toyota. If Toyota really does care for their employees why are they trying so hard to resist the UAW? If their plants are unionized the employees will get better pay + benefits. So if they care why not embrace it?

08/01, 8:31 AM

posted by:

frylock350

So we’ll have a Tata wrangler in India? At least one Tata will be reliable now.

08/01, 7:41 PM

posted by:

beatusmongous

I love Jeeps. They are just so much fun. And I don’t care who you are, everyone looks at a Jeep Wrangler when it passes by.

08/04, 8:07 AM

posted by:

JohnnyBlazE

I’ve never seen a Tata breakdown :P

08/04, 5:21 PM

posted by:

beatusmongous

Never seen a Tata breakdown, but I have seen them go flat and fall.

 
 
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