by Frank Beeton
auto alert
A probing review
of significant global
motor industry news
6,6-litre turbocharged diesel for its bigger
truck models.
VM Motori – the Hidden
Diesel Force
The name VM Motori S.p.A. is probably not
very well known outside of the corridors
of the motor industry, but the company,
which is located in Cento, Italy, has
occupied a very substantial position as a
supplier of diesel engines to major brands
after entering the market for high-speed
automotive power units in 1979. Since
then, the customer list has included Alfa
Romeo, Rover (including Land Rover),
Hyundai, Chrysler (including Jeep), Ford,
and General Motors (including a licensing
agreement with GM-Daewoo). Originally
a private venture, the company has had
numerous recent owners, having been
taken over by Detroit Diesel Corporation in
2005, and subsequently passing into the
joint ownership of the Penske Corporation
and DaimlerChrysler. DaimlerChrysler sold
its stake via Penske to General Motors
in 2007, and, after an abortive 2008
attempt by Russian manufacturer GAZ
to purchase the Penske shareholding, it
was eventually sold to Fiat Powertrain
Technologies in 2011. The final act was
played out in October, 2013, when Fiat
Group Automobiles purchased the GM
shareholding, to become the sole owner of
VM Motori.
The company’s current customer base
understandably lies mainly within the
Fiat Chrysler Automobile family, although
non-automotive marine and defence
versions of its power units are still
produced. Prior to the GM sell-off, which
was reportedly prompted by the American
manufacturers’ entry into Chapter 11
bankruptcy protection in 2011, VM was
developing a 3,0-litre V-6 turbodiesel for
a Cadillac application, but this awardwinning engine has since found its way into
Chrysler’s Ram 1500 full-size pickup. GM
subsequently decided to develop its own
in-house diesel engines for the Cadillac
CTS and ATS sports sedans, primarily for
the European market, as well as a new
While on the subject of Cadillac, we have
noted with interest the recent statement
by Uwe Ellinghaus, the brand’s global
marketing chief, saying that its current model
designation strategy “has got to improve”.
The model lineup is presently made up
of CTS, SRX, XTS, ATS and ELR models,
with the odd man out being the properly
named Escalade SUV. The feeling now
is that the Escalade is easily the brand’s
most recognizable product, and that the
alphabetical designators of the others do not
adequately indicate the market positioning
of the product range. GM intends increasing
the Cadillac brand’s model diversity, with
the objective of becoming more competitive
with the likes of Mercedes-Benz, BMW and
Audi. This will require considerably improved
penetration of key luxury car markets such
as Europe and China, so a more “userfriendly” designation system is definitely on
the agenda.
FCA Rethinks Alfa Romeo
With the emergence of Fiat Chrysler
Automobiles, one subject that has come to
the surface is the need to restore the Alfa
Romeo brand to its former glory. Before
the merger was completely put to bed, Fiat
Group Automobiles S.p.A had made some
efforts to develop Alfa Romeo closer to
its full potential, by launching some highly
| words in action
attractive models carrying the marque’s
distinctive badge. However, it has proved
very difficult, in recent years, to regain,
and improve on the circa 100 000 units per
annum global sales level that had been the
norm earlier in Alfa’s history. Fiat’s future
plans for Alfa Romeo, as reported earlier, had
called for the introduction of five additional
models by 2016, including an SUV, a Giulia
sedan and station wagon, and a large sedan
specifically for the North American market.
Some early pegs have now been put in
the ground to indicate the direction that is
to be followed. Sergio Marchionne, FCA’s
charismatic CEO, has stated emphatically
that all Alfas will continue to be built in Italy,
and nowhere else (interestingly, Alfas were
built in South Africa up to 1985, before the
Italian parent company was absorbed into
the Fiat Group). While this commitment
to Italian manufacture may be seen as
something of a political statement, given the
national sensitivity surrounding Fiat’s future
commitment to its home country, it also
makes sense to build cars in Italy when cost
is not the most important single factor. If the
intended positioning of Alfa as a desirable,
sporty, high-tech niche brand is successful,
it will not need to be sold at a bargain
basement price. It does seem, however,
that the previously announced co-operative
programme between Fiat and Mazda to build
new MX-5 based rear-drive roadsters, which
was originally intended to provide an Alfa
product, may now be diverted to the Fiat or
Abarth brands.
➲ “Alfa Romeo 4C – a ‘halo’ car for brand rejuvenation”
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may 2014