Fiat boss Sergio Marchionne is open to the prospect of a tie-up with Swedish firm Volvo

Fiat boss Sergio Marchionne is keen to talk to Volvo as the Swedish firm’s hunt for a partner in developing small cars continues. “I’m interested in talking to everyone that wants to talk to me,” said Marchionne at the Geneva motor show.

Volvo has no long-term tie-up with Ford anymore after it was sold to Chinese firm Geely. The firm has developed a new range of four-cylinder engines and a scalable platform for mid-large sized cars, but a small car platform is absent from its armoury.

“We are open for partners,” Volvo’s chief executive Stefan Jacoby said in January. “We are open for collaboration in a win-win situation for sharing platforms, for sharing engines and for a general higher scale of economics.”

Marchionne also revealed he’d had talks with several Japanese companies, believed to include Mazda and Suzuki, regarding future alternative drivetrains, but he planned to persist with improving internal combustion engine technology due to the high costs of new alternative technology.

“There’s still lots of unexplored technology with combustion,” he said. “Future drivetrains need to be cheaper and more cost effective. You just won’t sell any cars at that price in the B-segment.”

An all-electric version of the Fiat 500 will be launched by the end of the year, which pools in technology from a whole host of companies to remove the costly development away from Fiat.

“I don’t want to trial a load of future solutions,” he said. “We will take the benefits of others’ work.”

On the subject of partnerships, Marchionne said he never tried to make a deal with PSA Peugeot-Citroen before the French firm made a deal with General Motors. “I would not like to be GM,” he said. “The integration for the cost does not go far enough and would not have met our requirments.”

Fiat did previously have highly-publicised talks with General Motors regarding a purchase of Opel-Vauxhall and Saab in 2009, and Marchionne said he could have “found a solution for the brands”.

Our Verdict

Fiat 500
The Fiat 500 is a small, cheap, utilitarian car that has become an icon

The Fiat 500 is a deserved success story for the brand, offering bags of style, a fine drive and low costs

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Comments
13

8 March 2012

S. Marchione is a great guy, but he don`t figure out how to move up Lancia and A. Romeo, how dare he to say it would have hands to deal with Opel/Vauxhall and Saab?

another troll in the business!

8 March 2012

The following statement seems strange considering they've about to release the V40 with Ford petrol engines and a Ford Chassis, both of which will be used for a minium of 6 years.

"Volvo has no long-term tie-up with Ford anymore after it was sold to Chinese firm Geely. The firm has developed a new range of four-cylinder engines and a scalable platform for mid-large sized cars"

 

Hydrogen cars just went POP

8 March 2012

[quote xxxx]

The following statement seems strange considering they've about to release the V40 with Ford petrol engines and a Ford Chassis, both of which will be used for a minium of 6 years.

"Volvo has no long-term tie-up with Ford anymore after it was sold to Chinese firm Geely. The firm has developed a new range of four-cylinder engines and a scalable platform for mid-large sized cars"

[/quote] I believe that the majority of development work on the V40 was done while the company was still under the ownership of Ford, as Geely only took ownership in August 2010. Hence the V40 sharing the platform and engines with Ford still.

8 March 2012

[quote rbrown89][quote xxxx]

The following statement seems strange considering they've about to release the V40 with Ford petrol engines and a Ford Chassis, both of which will be used for a minium of 6 years.

"Volvo has no long-term tie-up with Ford anymore after it was sold to Chinese firm Geely. The firm has developed a new range of four-cylinder engines and a scalable platform for mid-large sized cars"

[/quote] I believe that the majority of development work on the V40 was done while the company was still under the ownership of Ford, as Geely only took ownership in August 2010. Hence the V40 sharing the platform and engines with Ford still.[/quote]

That fact doesn't make sense of the statement. Why say Volvo has no long-term tie-up with Ford when for the next 6 years at least they're dependant on them.

 

Hydrogen cars just went POP

8 March 2012

[quote xxxx]

That fact doesn't make sense of the statement. Why say Volvo has no long-term tie-up with Ford when for the next 6 years at least they're dependant on them.

[/quote] I took that to mean that there was no long-term tie-up in terms of future development, given that by facelift time for the V40 I would imagine they would begin installing the in-house developed modular engine family.

8 March 2012

[quote rbrown89][quote xxxx]

That fact doesn't make sense of the statement. Why say Volvo has no long-term tie-up with Ford when for the next 6 years at least they're dependant on them.

[/quote] I took that to mean that there was no long-term tie-up in terms of future development, given that by facelift time for the V40 I would imagine they would begin installing the in-house developed modular engine family.[/quote]

Even if they did that they'd be putting them in a Ford Focus Chassis

 

Hydrogen cars just went POP

8 March 2012

[quote xxxx]

[quote rbrown89][quote xxxx]

That fact doesn't make sense of the statement. Why say Volvo has no long-term tie-up with Ford when for the next 6 years at least they're dependant on them.

[/quote] I took that to mean that there was no long-term tie-up in terms of future development, given that by facelift time for the V40 I would imagine they would begin installing the in-house developed modular engine family.[/quote]

Even if they did that they'd be putting them in a Ford Focus Chassis

[/quote]

Volvo's whole range are using Ford Chassis' except the XC90 I believe, S60,S80, V60,V70, XC60,XC70 all use Ford EUCD platform that was co-developed with Volvo.

Freelander uses the same EUCD platform and a mixture of Ford/PSA and Volvo engines. Ford will still require support from Volvo for the foreseeable future for the Volvo T5 engines it used in the Mondeo, S-Max and Focus.

8 March 2012

I do not see the benefit to Volvo co operating with Fiat.I think they would be better cosying up to former owner Ford to stay competitive and in the long term relevant

9 March 2012

[quote Citytiger][quote xxxx]

[quote rbrown89][quote xxxx]

That fact doesn't make sense of the statement. Why say Volvo has no long-term tie-up with Ford when for the next 6 years at least they're dependant on them.

[/quote] I took that to mean that there was no long-term tie-up in terms of future development, given that by facelift time for the V40 I would imagine they would begin installing the in-house developed modular engine family.[/quote]

Even if they did that they'd be putting them in a Ford Focus Chassis

[/quote]Volvo's whole range are using Ford Chassis' except the XC90 I believe, S60,S80, V60,V70, XC60,XC70 all use Ford EUCD platform that was co-developed with Volvo. Freelander uses the same EUCD platform and a mixture of Ford/PSA and Volvo engines. Ford will still require support from Volvo for the foreseeable future for the Volvo T5 engines it used in the Mondeo, S-Max and Focus.[/quote]

Ford doesn't use the 2.5 engine in either the Mondeo, s-max or focus anymore so going forward it's pretty much a one way street

 

Hydrogen cars just went POP

9 March 2012

[quote xxxx]

[quote rbrown89][quote xxxx]

That fact doesn't make sense of the statement. Why say Volvo has no long-term tie-up with Ford when for the next 6 years at least they're dependant on them.

[/quote] I took that to mean that there was no long-term tie-up in terms of future development, given that by facelift time for the V40 I would imagine they would begin installing the in-house developed modular engine family.[/quote]

Even if they did that they'd be putting them in a Ford Focus Chassis

[/quote]

I believe it would be more accurate to say Ford are putting the Focus on a Volvo developed chassis.

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