Fiat and Chrysler to Benefit from Technology Sharing
Chrysler LLC and Fiat recently announced a partnership and is set to share their technology platforms and components to improve their range of vehicles offerings.
Fiat (more Fiat car news here!) is said to have a 35% stake in Chrysler (more Chrysler stuff here!) but will eventually take over a 55% share of.
Chrysler suffered a 30% drop in sales in 2008 because of the skyrocketing fuel prices. The company’s loss was the steepest among the major players of the automotive industry. It can also be pointed to the dependence of Jeep SUVs and Dodge Rams on stocky Hemi V8 and V8 engines to power its vehicles.
Fiat, on the other hand, uses engines suitable for the needs of the European market where gasoline is in the area of $7 per gallon. The company invested in various technologies that will help in lowering down the emission and improve fuel efficiency of their vehicles.
Fiat uses the stop-start technology in its cars. This technology shuts down the engine and gets it on again when the driver gives the cue to accelerate.
The European company will not benefit from the V8s of the Chrysler line but will tap into its Maserati unit to produce lightweight V8 components for the Alfa Romeo sedans and sports cars.
Reduction of cost may be met by utilizing the Chrysler factories in the United States and Mexico to produce the needs for the European range of vehicles. The assembly of the engines drives the costs of expenses for Fiat very high.
Fiat is also on the drawing boards designing a V6 engine for the Chrysler. Insiders disclose that the engine will be able to meet the strict emission guidelines in 50 states in the US.
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