Fiat buys 50% of VM!

[Sir Sam]

Can't believe we haven't talked about this:

http://www.businessweek.com/ap/financialnews/D9LAMJFG1.htm

 

 

So Fiat buys 50% of VM from Penske. I think this signals a clear move on fiat/chryslers part to push for more diesels into the product lineup.

 

I think part of this may come out of the fallout from the mercedes OM642 no longer being considered for the new Grand Cherokee due to the high purchase cost from mercedes.

 

Since the VM 3L is being certified in the WK2 I think this marks an effort to lower costs from buying the engine from a third party. Though I'm not sure how much owning half a company will reduce the cost of buying engines from that company.

 

Hopefully this could also signal that other diesels will make it into the NA market.

[mvusse]

The image car manufacturers have is that the general American population is not interested in diesel engines, so it is unlikely a diesel will be widely available here.

 

The exception is FS trucks, where the diesel war is over HP, not mileage.

[Sir Sam]

The image car manufacturers have is that the general American population is not interested in diesel engines, so it is unlikely a diesel will be widely available here.

 

Maybe, but there has been a shift in that image recently. I would point towards evidence from the small Diesel KJ and WK production runs for the US.

 

Plus with Sergio Marchionne tending the helm this may mean different things for future diesel prospects.

 

However, we can all look at the latest allpar news and see the same rambling rumors, the latest two bit line that might have something interesting in it.

 

But here is something concrete and tangible, that appears to have passed most people by. I'm not sure what it means, but you have to admit that owning 50% of the company that makes the diesel engines you use worldwide has to mean something.

 

 

For example, the CRD JK is a $1500 option in Europe.

The CRD KK is a $4000 option in Australia.

 

When the CRD KJ was sold in the US it was a $3000 option(which used CRD's are selling for typically $3000-3500 over used gasser KJs).

 

So what if the CRD option on a nice new KK or JK(since they use the same engines) was $1500? In a time of rising fuel costs(because they are going up, and will be high again soon) having a smaller diesel SUV may once again be appealing to the "common folk".

 

Mercedes has bumped up diesel sales in the US, Audi is selling diesels for the first time in 25 years in the US. And the TDI Jetta's cost only $1250 more than the gasser, and the dealers cannot keep em on the lots. I've you ask me I think the US market is prime for a diesel SUV like the KK in about 1-1.5 years(about the time it would take for certification). I'm thinking this move by Fiat is an indication of them wanting to increase diesel sales by lowering costs of production.

[robfg67]

I don't think this means anything for cars sold in this country. About 50% of all vehicles on the road in Europe have diesel engines. This is a growth strategy for GM abroad.

[Automan2164]

As a rule, I think most Americans are pretty dumb. That said, even though it gets 40 miles to the gallon, its still $0.50 more at the pump per gallon.

 

I don't think too many lazy Americans can get over that hump.

Rob L.

[Sir Sam]

As a rule, I think most Americans are pretty dumb. That said, even though it gets 40 miles to the gallon, its still $0.50 more at the pump per gallon.

 

I don't think too many lazy Americans can get over that hump.

Rob L.

 

Tell that to all the TDI diehard owners out there.

 

I think a 2L TDI patriot could be a good seller.

[somnus]

has anyone seen this site. http://hpamotorsports.com/tdiconversions.htm

i am waiting for a reply on the xj(mj :brows: ) convertion.

[fiatslug87]

I bought what? :hmm: ;)