Dan's Papers - June 5, 2009

I'm excited about the proposed Fiat and Chrysler merger. To those of you who have been reading my "Classic Car" column for the last 25 years, it's no secret that I have an affinity for both small cars and cars with small-bore efficient motors. Fiat, as we all know, is probably the world's leader in building small, utilitarian automobiles. This is just what America needs now and definitely for the foreseeable future.

However, unless there are major changes in the mindset of the executive management of both the Chrysler and Fiat, this merger is doomed to fail. First, Fiat has less than a stellar reputation here in America. The old joke that Fiat stood for "Fix it again, Tony" was earned by the fact that around 15 years ago, when Fiats were sold here in the United States, they had a reputation for being fragile, undependable and rust prone cars. That being said, Fiat also made some of the most interesting, affordable and fun to drive cars ever imported into America. There has always been something about Italian cars of any size or style that has set them apart from other manufacturers. Maybe it's because of the way the Italians historically have enjoyed driving responsive cars of any size and price with enthusiastic brio. Also remember, all Fiats built today have a little Ferrari DNA in them.

Today, Fiat's build quality has come a long way from when they were last imported into America. The Fiat group has become a European success story. They will also be building Alfa Romeos and Iveco trucks, as well as Ferraris and Maseratis. They are on their way to becoming one of the world's largest carmakers. But - and it's a big but - they still must further improve their quality. America's a tough market, and most American car buyers today have zero tolerance for automotive problems. If Fiats can be made to run as well as the Asian competition, they will make it here in America.

Chrysler also has a problem. Like most other American manufacturers, it has to get rid of what I call the NASCAR mentality. I'm a little worried that Chrysler is still going to hawk its large SUVs and Dodge Ram pickups, all powered by gas consuming motors. I've got news for you boys - this is not a NASCAR nation anymore. Americans are done drooling over oversized, overpowered, tire smoking, muscle machines. What really scares me is that I have a two-page color ad I ripped out of Sports Illustrated for a 2009 Ford F-150 pickup. In large bold type, Ford proudly proclaims the truck gets 21 MPG. That's one MPG better than last year's "gas hog" Ford F-150. Ford's no different than GM. There is no mystery to why Detroit's in trouble. Chrysler, if you have this mindset, don't even get involved with Fiat. Fiat makes some great small engines, as well as well proven diesels. Food for thought.

Don't kid yourself. Gasoline prices will go up again as soon as the economy strengthens. So those of you considering buying a new car should certainly factor in fuel efficiency. I predicted years ago that fuel prices would rise, as well as the fact that Chrysler would fail. In fact, I dropped President Obama a note with some automotive advice relating to these matters. I also told him to get rid of the current president of General Motors. I doubt if it was my voice that made a difference, but I did receive a nice note from F. Michael Kelleher, the director of Presidential Correspondence, thanking me for my advice. I was disappointed President Obama didn't write. Maybe he was a little busy.

If the Chrysler/Fiat merger happens, what really excites me as a car enthusiast is that the Alfa Romeo brand will most likely be under the Chrysler wing. Finally there will be some affordable Italian cars for the American consumer. There are some great products in this Fiat/Alfa line. The diminutive new Fiat 500 is supposedly the first car Chrysler will import. I guarantee you will want this car. It is literally an affordable Mini Cooper type vehicle, only cuter, if that's possible. Alfa has a reputation of building the most beautiful, affordable sedans and coupes in Europe. Long considered to be the poor man's Ferraris, any Alfa is a joy to behold and drive. What a great addition for the American consumer and car enthusiast. Chrysler, if you screw this one up, you deserve to fail. Best of luck to both companies.