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Fiat Could Help Chrysler With Small Cars

If the proposed alliance between Chrysler and Fiat goes through, the company could produce a total of six new models—ranging in size from small to smaller. The terms of the deal would give the European carmaker a 35 percent stake in Chrysler. In exchange, Fiat’s small car experience could give Chrysler the opportunity to reduce its dependence on larger vehicles. Chrysler suffered a sales decline steeper than any other automaker in January—down 55 percent from January 2008. The decline spanned most of the lineup, but car sales were hit hardest. Two of six future vehicles would be from the smallest ‘A’ segment, two from the subcompact ‘B’ segment, and two from the compact ‘C’ segment. The ‘A’ cars are the Fiat 500 retro 3-door liftback, as well as the 5-door liftback version of the Fiat Panda. The car based on the Panda would probably be badged as a Chrysler or Dodge. In the subcompact category, one of the vehicles could be the Alfa Romeo MiTo—Alfa Romeo is owned by Fiat. The other vehicle is not yet known, but will most likely be placed under the Dodge brand. A brand new vehicle built on Fiat’s ‘C’ platform could be the replacement for the Dodge Caliber. The Caliber is Chrysler’s only compact car and is currently being redesigned for the next model year. The second C-segment car to be introduced would be the Alfa Romeo 147. It would probably retain its name for the US market. read more

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Fiat Could Help Chrysler With Small Cars

German Hybrids: Coming Thick And Fast

Just five years ago, only Toyota and Honda offered hybrid gas-electric vehicles—the Prius and Insight, respectively. Now, there are more than a dozen carmakers—including Audi, BMW, Mercedes, and Volkswagen—that offer, or have plans for, hybrids. Here’s a roundup of news just over the last few days about hybrids coming from the homeland of Rudolph Diesel. Audi Q5 Hybrid (2010) Audi Q5 Hybrid At last month’s Detroit Auto Show , Audi announced that it would offer a Q5 Hybrid. Hybrid versions of the Q5 and Q7 have been on and off the table several times in the past year. Now, it’s back on. The new small sport utility goes on sale in the US next month with a gasoline engine; the hybrid will follow for 2011. Audi still strongly prefers diesels to cut consumption and emissions, since they cost less to develop and build than hybrids. Its lukewarm attitude surfaces in a quote from Wolfgang Hatz, head of powertrain development for the VW group. “We have to do hybrids to show people that we are able to do them,” he said, noting the Q5 would compete with the Lexus RX450h . We’ll see if Audi takes its hybrids seriously. BMW 7-Series ActiveHybrid BMW 7-Series ActiveHybrid The maker of “ultimate driving machines” will offer a mild hybrid sedan, the 7-Series ActiveHybrid, to face off against the Mercedes-Benz S400 BlueHybrid. Like the Benz, it will use a lithium ion battery pack to add stop-start capability to its V8 engine, for about a 15 percent bump in fuel economy. BMW is now just finishing up with prototype testing . read more

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German Hybrids: Coming Thick And Fast