VIDEO: Top Gear Assembles Fleet of Police Cars

In one of their television flicks, Top Gear trio Jeremy Clarkson, James May and Richard -I love Rod Stewart's 1980s spiky hairpiece- Hammond create a fleet of police cars in their own unique way. The cars of their choice are a previous generation Lexus LS, a Suzuki Vitara 4x4 and a Fiat Coupe. Hit the jump and enjoy the two-part video.

European Sales Down 12.3% in April but Fiat Group and Hyundai Manage to Sell More Cars

Despite the fact that the new passenger car market declined for the twelfth consecutive month in Europe, totaling 1,251,862 units in April, or 12.3% less than in the same month a year ago, Hyundai and the Fiat Group that consists of the Fiat, Alfa Romeo and Lancia brands managed to buck the downward trend posting 9.7% and 4.7% sales gains respectively. Overall, the Fiat Group sold 121,671 cars in April while Hyundai, 27,454 units. With the exception of Skoda (+0,4%), Chevrolet (+4.5), Dacia (+60,4%), all the other brands recorded declines in the month of April.

Europe's largest automaker, the VW Group was down 4.2% to 284,607 units, while Daimler (Mercedes-Benz and Smart) and the BMW Group saw their sales tumble by 26.3% and 31.2% respectively.

The French PSA Peugeot Citroen Group posted a 14.7% drop, Toyota recorded a 22.4% decline, Renault a 14.0% decrease while GM and Ford posted a drop of 13.1% and 6.3% respectively.

Report Says Chrysler Bankruptcy Could Take up to Two Years and not 60 Days

In another twist to the Chrysler LLC imbroglio, a report from Bloomberg citing an unnamed administration official said that the automaker's bankruptcy procedure may take as long as two years and not the two months period initially projected by President Barack Obama. The administration official told the news agency that the 60 days announced by Obama at a press conference at the end of April only applies to the sale of Chrysler's best assets to a new entity held by Italy's Fiat S.p.A., an auto workers health trust and the U.S. and Canadian governments.

Lawyers seem to be backing the official's claims as they told the news agency that the firm's creditors would later on kick in fighting their cases in court over unwanted factories and other assets to get their money back.

"The unsold assets and liabilities may take years to sort out due to the complexities of resolving thousands of commercial, tort, future asbestos, dealership and employee claims," told Bloomberg Dewey & LeBoeuf LLP partner, Martin Bienenstock.

Via: Bloomberg

GM: Opel's New Owner to be Chosen by end of May

In a news conference in Detroit today, General Motors CEO Fritz Henderson told reporters that the company will single out a buyer for Opel and its British sister brand Vauxhall, before the end of May. "We are speaking with multiple bidders. We would like to have at least some understanding of what the agreement might look like no later than the end of this month, slightly before the end of this month," Henderson said. According to media reports, Italy's Fiat Group and Austrian-Canadian supplier Magna International have emerged as the two most serious bidders for GM's European arm.

Even though officially the German government will not have a say on which company should buy Opel, Henderson made it clear that GM's choice will be influenced by Berlin. "We are going to make sure any partner we pick is going to be suitable for them (the German government). We need their support," Henderson was quoted saying.

And by support, Hendersdon means the €2.6 billion or about $3.5 billion in loan guarantees that Opel is seeking from the German government in order to keep afloat.

GM has not disclosed any details on how much of Opel and Vauxhall it will sell, but it is clear that the American automaker would like to keep a minority stake in the new company. "We have indicated a willingness to move into a minority position. But we need to negotiate something before we say what it is," said Henderson

Via: AN (Sub. Req.)

King of Italy's 1939 FIAT Used to Chauffeur Hitler, Mussolini and Franco to be Auctioned by COYS

A Nazi-era 1939 Fiat Torpedo that was used by the King of Italy to chauffeur Germany's Adolf Hitler, Italy's Benito Mussolini and Spain's General Franco (the trio of doom...) around Rome on State visits is to be auctioned in Monaco next week by International Auction House, COYS. After the end of the Second World War, the luxury Fiat model became the official transport for the first prime ministers of Italy, Einaudi and De Nicola while it remained in the fleet of the Quirinale palace until 1963.

The London-based auction house expects the historically important Fiat Torpedo that has been featured the Villa d'Este Concorso d'Eleganza in previous years to fetch more than £250,000 which is the equivalent of €283,000 or US$377,000 with the current exchange rates.

Malignant Rumors: Can FIAT's World Domination Plans Crash the Toyota - VW Party?

The latest gossip around the campfire -i.e. the charred remnants of the auto industry- is the next stage in Fiat's plan for automotive world domination. What else could the Italian manufacturer be after, now that they've secured a 20% stake in Chrysler? Apparently Fiat CEO Sergio Marchionne and his gang are on a bit of a shopping spree, looking to pick up GM Europe and its subsidiaries/affiliates. For those just tuning in, that means Fiat could end up owning Opel, Vauxhall and other operations owned by GM over in the EU along with its Chrysler "partnership" in the US.

If this happens, Fiat will become one of the world's largest automotive manufacturers, competing against the likes of Toyota and Volkswagen with up to 100 billion dollars in sales annually and moving upwards of six million units a year. Why would Fiat do this? Consolidation, cost cutting, and sheer numbers. As is to be expected, there are pros and cons for this balls-to-the-wall crazy scheme.

The pros are plain as day. With the ability to pick and choose the best platforms from a variety of automakers, Fiat will be able to turn itself into one of the widest-spread carmakers on the planet in respect to manufacturing and market penetration. The idea would be to use Fiat's small car platforms worldwide (as Chrysler hopes to do), while adapting and updating GM Europe's midsize platforms and sharing them with its other brands. This would also allow certain manufacturers to remain, keeping a number of dealerships and factories open. Then there's the money.

Marchionne, the Godfather behind this scheme, argues that fusing GM Europe's platforms with Fiat's could potentially save the company around one billion Euros a year. Coincidentally, this is a little less than what Fiat originally offered the currently de-testicled General Motors for its European division, meaning that it is looking to have any losses recouped in less than a product cycle.

All this sounds well and good, but what about the cons? With Opel - a German subsidiary currently owned by an American company - possibly being absorbed by an Italian firm, problems are bound to arise. The biggies are the jobs and the cash, and in this case the two are inextricably linked.

Germany would end up loaning Fiat money for the purchase of Opel, which would lead to a consolidation of manufacturing facilities. The consequences are closure of factories and the resulting job losses. Also, some of the politicians seem to think that the money acquired from Germany would help offset the costs incurred by the Chrysler deal. This is a big no-no when it comes to public relations (however it is quite shrewd business-wise).

Will it happen? Well, that's up to Germany and its brethren in the EU. The trade unions and politicians will no doubt have a field day with this, but it is important for everyone to look at the big picture. People stand to lose their jobs; this is a fact. However, keeping some people employed instead of having all people lose their jobs is a hit that will have to be taken. Not everyone can walk away a winner. Too many companies have been near-sighted over the past several decades, and they have paid dearly.

Marchionne may be walking on a financial tightrope, but the man is no Rick Wagoner. He has turned Fiat around and now sees the perfect opportunity to expand while taking advantage of a bad situation. Corporate vulture? Maybe, but he is thinking about the long-term, and that's what matters.

By Phil Alex

Phil Alex was born in Rhode Island in 1985, yet for reasons unbeknownst to him moved to South Carolina. He graduated with degrees in Finance and German from Wofford College in 2007 and has had a strange obsession with cars and travel. When not back in Sparkle City, he resides near Japan's international airport in Narita. He makes no apologies for his articles and welcomes all feedback, as long as it is adamantly worded. Oh, and if for any reason you are inclined to vent some more, check out more of his posts on the Examiner here.

By the Numbers: Chrysler LLC vs Fiat Group

So now that the alliance deal between Chrysler LLC and Fiat S.p.A. has been sealed, let's take a quick look at some of the numbers concerning the two companies starting off from sales and their corresponding market shares. In 2008, the Fiat Group that includes the Fiat, Lancia, Alfa Romeo, Iveco, Maserati and Ferrari brands sold around 2.4 million vehicles compared to 2.0 million units of Chrysler LLC that consists of the Chrysler, Jeep and Dodge brands. The Chrysler-Fiat combination is the world's sixth- largest by vehicle sales, behind Ford Motor Co.

Surprisingly, even though Fiat sold only 20 percent more cars than its American counterpart, it has more than triple the number of employees according to the data provided by the two companies (Fiat: 180,227 employees at the end of December 2007, Chrysler: 54,007 employees at the end of December 2008).

As for regional market shares, North America aside where Chrysler dominates with 11.3 percent of the market compared to Fiat's or shall we say, Maserati's and Ferrari's combined 0.1 percent share, the Italians are better everywhere else.

	FIAT GROUP	CHRYSLER LLC
Worldwide Sales	2.4 Million	2.0 Million
North American Market Share	0.10%	11.30%
South American Market Share	19.10%	0.70%
European Market Share	7.60%	0.50%
Distribution	190 Countries	125 Countries
Worldwide Employees	185,227 (12/07)	54,007 (12/08)

Manufacturing Facilities Chrysler LLC: Overall, the Chrysler group operates twelve assembly, five engine, six stamping and seven transmission / casting / machining / axle plants (January 2009)

Manufacturing Facilities Fiat S.p.A.: Fiat has manufacturing operations in Italy (five plants), Poland (one plant), Brazil (two plants) and Argentina (one plant). Manufacturing also is performed through either joint ventures or licensing agreements in Italy (three), France (one), Turkey (one), India (one), Russia (one), Serbia (one) and Hungary (one).

Data: Fiat S.p.A and Chrysler LLC

No Comment: The New Chrysler LLC Logo...

OFFICIAL: Chrysler Files for Bankruptcy But Strikes Deal with FIAT, Nardelli is Out

It's been a long ride but today Chrysler is closing one chapter and opening another as the American automaker and its wholly owned U.S. subsidiaries officially announced that under the direction of the Obama administration, it has filed for Chapter 11 bankruptcy protection. It was also announced that Chrysler reached an agreement to form a partnership with Italian automaker Fiat S.p.A.

Furthermore, Chrysler LLC CEO Bob Nardelli revealed his plan to leave the automaker following the emergence of the new company from Chapter 11 and the completion of the alliance with Fiat. This of course, leaves an open door for Fiat's successful CEO Sergio Marchionne to take the reins of Chrysler. Hit the jump to read the official statements from both companies.

CHRYSLER LLC

Chrysler LLC today announced that, as a result of the comprehensive restructuring plan agreed to by many of its stakeholders, it has reached an agreement in principle to establish a global strategic alliance with Fiat SpA to form a vibrant new company. It will allow Chrysler and Fiat to fully optimize their respective manufacturing footprints and the global supplier base, while providing each with access to additional markets. Fiat powertrains and components will also be produced at Chrysler manufacturing sites.

"This partnership transforms Chrysler into a vibrant new company with a wealth of strategic advantages," said Bob Nardelli, Chairman and CEO of Chrysler. "It enables us to better serve our customers and dealers with a broader and more competitive line-up of environmentally friendly, fuel-efficient high-quality vehicles. Benefits to the new company include access to exciting products that complement our current portfolio, technology cooperation and stronger global distribution."

Chrysler initiated discussions with Fiat more than a year ago to develop plans for a global product alliance. Over the past several months, these discussions have evolved and expanded. Chrysler and many of its stakeholders worked tirelessly to agree upon concessions that will result in a significantly lower cost base and enable fulfillment of a broader strategic alliance.

"We want to personally assure everyone that the new company will produce and support quality vehicles under the Jeep®, Dodge and Chrysler brands as well as parts under the Mopar® brand. Chrysler employees will become employees of the new company. Chrysler dealerships remain open for business serving our customers. All vehicle warranties will be honored without interruption and consumers can continue to purchase our vehicles with complete confidence," explained Nardelli.

Despite substantial progress on many fronts, Chrysler was not able to obtain the necessary concessions from all of its lenders, which would have avoided the need for a bankruptcy proceeding. As a result, under the direction of the U.S. Treasury, Chrysler LLC and 24 of its wholly owned U.S. subsidiaries today filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code in U.S. Bankruptcy Court for the Southern District of New York.

"Even though total agreement was not possible, I am truly grateful for all that has been sacrificed, on the part of many of Chrysler's stakeholders to reach an agreement in principle with Fiat," said Nardelli. "My number one priority has been to preserve Chrysler and the thousands of people who depend on its success. While I am excited about the creation of the global alliance, I am personally disappointed that today Chrysler has filed for Chapter 11. This was not my first choice. "

Chrysler also will file a motion under Section 363 of the Bankruptcy Code requesting the swift approval by the Court of the agreement with Fiat and the sale of Chrysler's principal assets to the new company. The benefit of this type of filing is speed. It should allow a leaner new company to emerge in a matter of 30 to 60 days, well positioned for long-term viability.

Nardelli, who has been leading Chrysler since August 2007, also announced to Chrysler LLC's Board of Management and the U.S. Treasury his plan to leave the company following the emergence of the new company from Chapter 11 and the completion of the alliance with Fiat. He will return to Cerberus Capital Management LP as an advisor. "Now is an appropriate time to let others take the lead in the transformation of Chrysler with Fiat," said Nardelli. "I will work closely with all of our stakeholders to see that this new company swiftly emerges with a successful closing of the alliance."

During the restructuring process, the government will provide sufficient debtor-in-possession (DIP) financing to allow continuation of "business as usual." The company will seamlessly honor warranty claims, pay suppliers and keep our dealer body operating to continue to serve our valued customers.

"To create this vibrant new company, we are using this structured bankruptcy to rapidly implement tough but necessary changes, including: the agreed upon wage and benefit structure for active and retired employees that is competitive with those of transplant manufacturers; a reduction of debt and interest expense; the disposition of idle assets; a rationalized and more efficient dealer network; and sound agreements with our suppliers," said Nardelli.

Chrysler's Mexican, Canadian and other international operations are not part of any bankruptcy filing.

As part of the restructuring and with the backing of the U.S. Treasury, we have reached an agreement in principle with GMAC to become the preferred lender for Chrysler dealer and consumer business. GMAC will be able to offer the best long-term finance options for Chrysler dealers and customers with standard rate installment products.

When the transaction is completed, the Voluntary Employee Beneficiary Association (VEBA) will own 55 percent of the new company and the U.S. and Canadian governments will own proportionate shares of a 10 percent stake. Fiat will initially hold a 20 percent ownership stake in Chrysler. Fiat will have the right to increase its ownership stake an additional 15 percent in three increments as it meets the following criteria: 5 percent for bringing a 40 mpg vehicle platform to Chrysler to be produced in the U.S.; 5 percent for providing a fuel-efficient engine family to be produced in the U.S. for use in Chrysler vehicles; and 5 percent for providing Chrysler access to its vast global distribution network to facilitate the export of Chrysler vehicles. Fiat cannot become a majority owner until after all U.S. government loans have been completely repaid.

As a part of the restructuring, most manufacturing operations will be temporarily idled effective Monday, May 4, 2009. Normal production schedules will resume when the transaction is completed, which is anticipated within 30 to 60 days.

"We want to recognize the Administration, the U.S. Treasury, President's Auto Task Force, as well as Members of Congress and representatives at the state and community level and Canadian Federal and Ontario Provincial governments for their energy and efforts in helping to move this new company forward," Nardelli said. "It is also important to acknowledge Cerberus and Daimler, which provided the foundation for the alliance as well as Chrysler's many other stakeholders including the UAW and CAW leadership, employees, dealers and suppliers. Without their deep sacrifices, unstinting loyalty and enduring belief in Chrysler, the alliance would not have been possible. We look forward to our new partnership with Fiat. To be sure, there will be many changes as we move forward to implement our plans. But today, from many great parts, we begin to build a vibrant new company with less debt, a stronger balance sheet, richer product portfolio, supported by a well-positioned finance company."

FIAT S.p.A.

FIAT GROUP AND CHRYSLER ENTER INTO A GLOBAL STRATEGIC ALLIANCE

Fiat S.p.A. and Chrysler LLC announced today they have signed the agreements to establish a global strategic alliance. The Alliance comprises two elements: Fiat contributing to Chrysler rights in various platforms, technologies, and models, management services and cooperation and assistance in key areas of Chrysler's business, such as procurement and international distribution, and Fiat's acquisition of a shareholding in Chrysler.

1 Statement from the CEO of Fiat Group, Sergio Marchionne

"This transaction represents a constructive and important solution to the problems that have plagued not just Chrysler in recent years, but the global automotive industry as a whole. Bringing together Fiat's world-class technology, platforms and power-trains for small and medium sized cars, and its extensive distribution network in Latin America and Europe with Chrysler's rich heritage, strong North American presence and talented and dedicated workforce will create a powerful new automotive company, while helping preserve jobs and a manufacturing industry that is critically important to the U.S. and Canadian economies," the CEO of Fiat Group, Sergio Marchionne, said.

Our goal since we first entered discussions with Chrysler nearly a year ago was to leverage the strengths of both companies to yield the scale, efficiencies and cost savings necessary to create two stronger automakers able to compete more effectively on a global scale. This transaction is an important step toward achieving this objective.

Our work is just beginning, but together with our new partners at Chrysler we look forward to delivering on the vast potential this alliance holds and reintroducing to North American customers of some of our most popular brands, including Alfa Romeo and the award-winning Cinquecento.

We would not be here to announce this agreement were it not for the tireless dedication, focus and creativity of the US Automotive Task Force and their Canadian colleagues. As we worked our way through the myriad of obstacles and issues that arise in transactions such as these, they never lost faith in the project. Through this transaction, they have created the conditions for the reestablishment of Chrysler as a viable long-term participant in the automotive market.

Organized labor unions on both sides of the border have also made significant contributions in accepting reductions in benefits and equity in satisfaction of some of their claims. I would like to thank the leadership of both the United Auto Workers and the Canadian Auto Workers unions for all they have done and for constructively participating in our shared challenge of recreating a great Chrysler.

Over the coming weeks and months, I will be spending a great deal of time meeting with Chrysler employees and touring its facilities. While our agreement must necessarily go through the U.S. legal system for a few weeks, we will be preparing ourselves to reemerge quickly as a reliable and competitive automaker. I believe Chrysler can meet the challenges posed by today's difficult market conditions by tapping back into its innovative spirit, by focusing on quality as a cornerstone of its product offering and by listening to its customers and delivering the cars they want. It is a model we have strictly adhered to in the past few years at Fiat, and one I believe we can adapt here to write the next chapter in Chrysler's legacy.

The transaction which we have just finalized represents an historic moment for both Fiat and Italian industry. It is a significant step toward building a new and solid foundation for the future.

Today is also a day of great satisfaction for all women and men at Fiat. The fact that Fiat's know-how has been appreciated at the most senior levels of the US and Canadian administration – to whom I express gratitude on behalf of our Group's entire management team – is a source of significant motivation for the work ahead of us.

We are certain that a stronger and more international Fiat will emerge from this alliance, with an even greater capacity to compete in markets worldwide," the CEO of Fiat Group, Sergio Marchionne, said.

2. The transaction

The transaction will be implemented through an expedited sale of substantially all the assets of Chrysler to a NewCo pursuant to certain provisions of the US Bankruptcy Code. After intense consultations with the US Treasury and all the other constituencies, including, the government of Canada, the United Auto Workers (UAW) and the Canadian Auto Workers (CAW), Chrysler elected such route as the most effective to restructure its debt. As a consequence, today Chrysler will request the bankruptcy court in New York to approve the sale of Chrysler's business to a NewCo. Subject to the approval of the regulatory authorities, if the Court will approve the Transaction it will require the parties to complete the transaction as soon as possible.

Pending this approval, the current Chrysler will continue its normal business operations and the US Treasury and the Canadian government will provide the company with financing in order to allow the performance of all its obligations towards the employees and to fund its on-going needs.

From the beginning of May Chrysler will benefit of new wholesale financing arrangements entered into with GMAC which will also offer retail financing.

At closing of the Transaction, NewCo will assume the corporate name of Chrysler and become the owner of substantially all the Chrysler's business without certain debts and liabilities.

At closing NewCo will issue in favor of Fiat an equity interest equal to 20% (by vote and value) on a fully diluted basis and Fiat will enter into certain industrial agreements with Chrysler.

Similarly, at closing the Voluntary Employee Benefit Association (VEBA) will be issued an equity interest equal to approximately 55% on a fully diluted basis of Chrysler. Such equity interest will be administered by the U.S. Treasury. UST and the Canadian Government will collectively hold the remaining 10% equity interest (on a fully diluted basis).

The new Chrysler will also benefit from the recently agreed new collective bargaining agreements with UAW and CAW and of a facility of the U.S. Treasury of approximately US $ 6.5 bn.

The new Chrysler will be managed by a board of directors consisting of nine directors: three directors will be appointed by Fiat. One of Fiat's appointees must satisfy the criteria for independence under the New York Stock Exchange listing rules. VEBA and the Government of Canada will have the right to appoint one Director respectively. U.S. Treasury will have the right to make the initial appointment of four directors (three of whom must be independent).

Fiat will have right to receive up to an additional 15% equity interest (by vote and value) on a fully diluted basis. This stake can be obtained in three tranches of 5% each subject to the achievement of predetermined targets, in particular, achievement of regulatory approvals to produce the FIRE family of engines in the USA; achievement of sales of Chrysler vehicles outside NAFTA, and achievement of regulatory approval to produce a Chrysler model based on Fiat technology. Upon obtainment of such additional 15% interest, Fiat will also have the right to appoint another director of Chrysler.

In addition, Fiat will be granted an option to acquire an additional 16% shareholding (exercisable from Jan 1, 2013 until June 30, 2016). The price of such incremental equity will be determined in accordance to certain market standards but in any event will not exceed the then Fiat market multiple. This option will not be exercisable while the US Treasury outstanding loan exceeds US$3 billion.

Fiat's shareholding will be capped at 49% until Chrysler has repaid in full the loan granted by the U.S. Treasury.

3. Fiat's contribution

Fiat will contribute key technology and other resources to Chrysler.

In summary, the Fiat Contributions will consist of the following: licenses enabling Chrysler to use all Fiat Group Automobiles car platforms (and subject to any restrictive agreement between Fiat and any third party) for the production of Chrysler vehicles in NAFTA; licenses enabling Chrysler to use certain of Fiat's other key technology, such as engine technology; the on-going provision of management services in order to enable Chrysler to benefit from Fiat's expertise in operational and industrial recovery; participation in Fiat's purchasing and procurement programs; distribution of Chrysler vehicles outside NAFTA, in particular by giving Chrysler access to Fiat's distribution network in countries in which Chrysler currently has a limited presence.

The alliance, a key element of Chrysler's Integration Plan, would strengthen Chrysler viability for the long term with access to competitive, fuel-efficient vehicle platforms, powertrain, and components to be produced at Chrysler manufacturing sites.

The alliance would also allow Fiat Group and Chrysler to take advantage of each other's distribution networks and to optimize fully their respective manufacturing footprint and global supplier base. The alliance does not contemplate that Fiat would make a cash investment in Chrysler or commit to funding Chrysler in the future.

Chrysler - Fiat Deal Signed, According to Italian Newspaper

Citing inside sources, Italian newspaper Corriere Della Serra reported Thursday morning that Chrysler LLC and Fiat have signed a deal to forge an alliance. However, according to Automotive News, Fiat later denied this. We've yet to see any official announcement from any of the two involved parties, so we'll keep a close watch on the story throughout the day. Chrysler is a battle with time as the Obama administration is aiming for the company to file for Chapter 11 bankruptcy protection as early as today.

Late last night, Chrysler announced that UAW (United Auto Workers) members approved a cost-saving deal.

"We are thankful to the Chrysler UAW members for their support in ratifying this contract, especially during these challenging times," said Tom LaSorda, Vice Chairman and President
in a prepared statement. "This was a necessary step as we move forward in revitalizing this great Company. Today's vote enables us to continue our work to meet the conditions laid out by the U. S. Treasury Department. The entire Chrysler leadership team believes in and appreciates the men and women that make up our great workforce worldwide."

Via: Autoblog.it , Source: Corriere

Fiat Reveals Sedici Crossover Facelift with New Petrol and Diesel Engines

So you're wondering why from all the photos of the faclifted Sedici released by Fiat, we chose the one with the two Italian girls to open up this article. Well for one, their more interesting to look at than the Suzuki SX4's rebadged sibling and two, the cosmetic changes on the 2009 Sedici aren't that exciting. In fact, they're very difficult to spot as they're limited to a new front grille that falls in line with Fiat's design language, a retrimmed front bumper and well, that about sums it up.

The most important change concerns the introduction of two new powertrains, a 120 horsepower 1.6-liter gasoline engine that replaces the 107HP 1.6-liter unit and a 135 horsepower 2.0-liter Multijet 16v turbo diesel that takes the place of the 1.9-liter JTD producing 120HP.

Both engines can be combined with either a front-wheel drive layout or a four-wheel drive system. European sales of the Sedici facelift will begin in most markets by the end of May.

Ferrari Posts €54 Million Trading Profit in the First Quarter of 2009

Even though Ferrari was not completely unaffected by the financial crisis, the Prancing Horse ended the first quarter of 2009 with a trading profit of €54 million (versus €59 million for Q1 2008) which is the highest profit recorded in any of the various Fiat Group sectors. For Q1 2009, the Italian supercar maker reported €441 million in revenues, down 3.3% over the corresponding period for 2008 due to lower sales volume.

In particular, during the first three months of the year, Ferrari delivered 1,571 cars to the network, a 5% decrease over Q1 2008, while sales to end-customers totaled 1,480 units, down 10% from a year ago.

Chrysler and Fiat Reach an Agreement with Canadian Auto Workers

A tentative agreement between Chrysler LLC, the Fiat Group and the Canadian Auto Workers (CAW) on a new labor contract intended to cut costs by CD$240 million per year was reached late Friday night. Though far from complete, the new deal with CAW helps Chrysler LLC move closer to a partnership with Fiat and avoid bankruptcy. Under the new tentative agreement, Chrysler LLC would leave hourly base pay intact but cut a series of benefits.

Aside from the cost-saving provisions that were part of the contract negotiated with General Motors Canada in early March, CAW had to make additional 'sacrifices' including the elimination of semi-private hospital coverage, an increase in the waiting period for sickness and accident benefits, the eradication of employee car purchase and tuition rebate programs and a $3,500 vacation buyout.

"We are extremely grateful to the CAW leadership and to its hard-working members for their openness in this challenging environment to create a new strategy that will lead this company on a path to success," said in a statement Tom LaSorda, Vice Chairman and President of Chrysler LLC.

Al Iacobell, Chrysler's Chief Bargainer and Vice President – Employee Relations, said "The forthright discussions and final decisions made by the CAW not only benefit the Canadian represented employees, but help to ensure the Company's future competitiveness. The tentative agreement also helps move the Company one step closer to a partnership with Fiat SpA."

On the behalf of CAW, President Ken Lewenza issued this statement: "CAW members supported their union right through this process, rather than allowing themselves to be intimidated by crude threats. That has allowed us to bargain the very best agreement possible, imposing the minimum possible sacrifice on our members and their families, despite the incredibly tough times."