When investment in innovation pays off

You might ask: But how has Fiat managed to buy 35% of Chrysler in the midst of a crisis hardly hitting car makers all around the world?

The answer is the successful launch of two models onto the market – the Fiat 500 and the Fiat Punto – and a successful investment in making its operations more efficient, says Forbes.com.

How much has Fiat paid for its stake in Chrysler? Fiat has paid technology.

In fact, Fiat did not even pay  single cent into the company but has instead agreed to transfer its technology in the production of small and mid-sized cars.

Simply put, this is an example of the benefits of years of investment in innovation.

If Fiat can do it, everyone can.

Euro car industry, Latvia are running low on fuel

€40 billion is needed to save the European car industry from collapse, European car maker association president Carlos Ghosn said today. This news came as reports suggest that more than 1,300 employees could face the sack in troubled car make Jaguar-Land Rover.

Car makers in Europe were urged to keep a close eye on the outcomes of the proposed plan by President Obama to bail out US car makes, argued EU Industry Commissioner Geunter.

Latvia is also in need of help. The Finance Ministers of the European Union agreed to give the troubled Baltic EU member state a €3.1 billion loan.

Meanwhile, Fiat announced it acquired a 35% stake in Chrysler. The New York Times reported, Sergio Marchionne,  the chief executive of Fiat saying in a statement:

“This initiative represents a key milestone in the rapidly changing landscape of the automotive sector and confirms Fiat and Chrysler commitment and determination to continue to play a significant role in this global process,”

Jurys Inns, a small British hotel chain, was a rare source of good news as it announced the creation of 300 jobs as it intends to build new hotels in Newcastle-upon-Thyne, Portsmouth and Glasgow.

Jobs and Cars trouble continues as Wall Street waits

Everyone’s waiting for what Obama will say, and do, on the economy even stock traders as CNNMoney reports that stocks on Wall Street are set to go down in value today.

Meanwhile there’s a mix of bad and good news on the other side of the Atlantic Ocean as Times reports that inflation in Britain has stumbled to 3.1% in the last three months of 2008. RBS’ shares, which yesterday announced the biggest loss in British corporate history, are today trading at higher prices. 

This is however overshadowed by news that food firm Vion and clothing firm Burberry are set to axe jobs. 

European car-makers urgently need money, said Renault’s Chief Carlos Ghosn at a summit in France today. More than 10% of France’s workforce is employed in the car industry. France is preparing a plan to inject more cash in the industry.

Toyota’s also in trouble as it fired its President today after the company reduced its sales by 4%.

Fiat confirms it’s in talks with Chrysler

Fiat just confirmed it’s in talks with American carmaker Chrysler.

Uncle Sam says: Buy a car!

American car web site Edmunds.com is offering $10 million of its advertising space for adverts encouraging Americans to buy cars, AdAge.com reported yesterday.

The ad, which will run for 90 days, argues that this is a great time to buy a car in the US as there are huge discounts available.

Jeremy Anwyl, CEO of Edmunds.com argued that his company felt impelled to show its support to the American car industry. ‘We’ve got to shock people into the market,’ he said.

Ford hopes green will take it out of the red

What a switch for American carmaker Ford, at least on paper.

The crisis ravaging among carmakers has persuaded the troubled firm to start selling small electric cars by 2011.  Ford executives at the Detroit Auto Show promise that the fully charged lithium battery-powered car will be able to drive for more than 100 miles.

Meanwhile the same car maker presented another one of its gas guzzlers today – the Ford Shelby GT 500 (see video).

My question is: who will afford to buy the Shelby when the US has one of the highest jobless rates since WWII?

Going green doesn’t necessarily mean employing nutty managers Mr Ford.

Maserati sells 17% more cars in 2008

Some good news for carmakers. ANSA reports today that Italian luxury carmaker Maserati sold 17% more cars with 1% more cars being sold in recession hit US in 2008.

The star and striped cash-strapped land remains the carmaker’s largest market. Last year was also the first year when Maserati participated in Detroit’s Motor Show presenting the Quattroporte which you can see here:

Unless you have between $115,000 to $120,000 to spend on a car, then you are part of those 83% who still opted not to buy a Maserti last year.