Chrysler’s parent company bet big on their little automobile, last seen on US-soil in 1984. After sluggish sales, a huge decline of interest online (not to mention at dealer lots), and poor crash test ratings, Fiat may become Chrysler’s greatest disappointment.

A recent blow came from NHTSA Crash Test Results. Fiat 500 scored a three-star crash test rating, considered very poor in today’s world of high tech safety and futuristic metals:

Fiat 500 returned stateside with an uproar – JLo danced and sang around NYC in her drop-top variant, and newly erected Fiat dealerships reported high demand for the three door compact.

Unfortunately for Fiat, Chrysler is witnessing three consecutive months of declining sales figures for the 500.

The Italian auto maker’s original goal was set for 50,000 vehicle sold each year. However, less than 16,000 have sold in seven months. 29 of Fiat’s 130 dealers in the US “didn’t sell a single Fiat last month,” according to USA Today. The company has a six-month supply backed up, and is countering with $500 rebates on new vehicles.

For the sake of Chrysler’s renewal, Fiat’s survival, and the ability to market fuel efficient cars in North America, 2012 better improve the auto maker’s performance.

It will be distinguished by special badges, a small rear spoiler and 15-inch alloy wheels. The interior is outfitted with two-tone sport seats, revised instrument cluster, and special floor mats.

According to official specifications, power will come from a 1.4-liter engine producing 100 hp and 97 lb-ft of torque. This enables the car to accelerate from 0-62 mph in just over 10 seconds, and hit a top speed of 113 mph. Production will be limited to 28 units.

Source: WorldCarFans

This car is small, in fact it’s almost as small as Smart Car’s “fortwo” model. The Italian auto maker is betting that 130 dealerships in the nation will be selling these vehicles like hot cakes to American buyers.

As far as performance, 500 comes with a 1.4-liter MultiAir four-cylinder engine. The 101 hp powerplant pushes the 2500 lb-ft of torque two-door with ease. 500 takes each turn like a little speed demon. Handling is smooth and responsive with this engine, though Fiat plans to introduce an Abarth 500 with more power sometime in 2012.

Fiat reports an EPA estimated gas mileage of 33 mpg combined in manual, 30 mpg with its automatic.

Fiat claims there are “more than half a million ways to configure the 500.” Pricing starts at $15,500 for the base Pop variant. This includes: Power windows and locks, remote keyless entry, air conditioning, cruise control, and a CD stereo with an MP3 jack are all standard.

Add in other options to the Lounge or Sport models, including moon roof, portable TomTom GPS or fog lights, and a 2012 Fiat 500 still only tops off around $24,000.

(Interior shots and article source: Kelsey Mays | Cars.com)

“The pricing is the pricing. The younger generation doesn’t haggle. They don’t feel comfortable with it. They hate the experience,” said Laura Soave, head of the Fiat brand in North America.

“Dealers have been given advertising standards that include prohibitions on promoting vehicles for less than the manufacturer’s suggested retail price,” Soave said. The company limited its number of US Fiat franchises, in hopes to minimize competition.

Chrysler will introduce the 500 to a waiting US market at the same time it prepares a newly redesigned Chrysler 300 flagship sedan. These are among 16 models Chrysler has redesigned in the past year.

The 500 and redesigned 300 “really represent that this company is coming together,” said Rebecca Lindland, an industry analyst with IHS Automotive.

“Early next month, Chrysler is bringing together about 300 people from the 130 U.S. Fiat dealerships for special training in handling customers and selling the car which can be configured in 500,000 ways,” Soave said. Dealers “need to be able to take the customers and show them how to accessorize the vehicle,” she said.

Sales “consultants” will take a non-traditional role, which includes being the customer’s contact point for vehicle service, Soave added.

Source: Auto News

Dealerships that accept the invitation will attend the Fiat Experience on August 30 in Detroit. At that time, Chrysler will detail its plans for the Fiat dealership network and ask interested dealers to submit proposals by September 22. Dealers will be chosen in October 2010.

“The requirements for Fiat are straightforward: separate sales and display at launch, transitioning to a full dealership facility as the volume grows,” said Chrysler Vice President of Dealership Network Development Peter Grady. In addition to selling Fiat vehicles, dealerships may get the opportunity to sell Alfa Romeos, as the brand is scheduled to return to the U.S. in 2012.

No firm details have been set about expanding the Fiat network to include Alfa Romeos, but Chrysler spokesman Ralph Kisiel commented that the Fiat network “might be expanded as more new products are added to the lineup.”

Want to know if your local dealership is going to supply the country with Fiat 500′s? Contact the ones near you off our Find A Chrysler Dealer page.

“Fiat 500 on sale in U.S. at end of the year”

That’s 1 – 2 years sooner then we thought Fiat vehicles would be on sale at Chrysler lots in the States. Fiat may have to adapt their tiny city cars to go along with US highway safety standards and fuel economy. Still, this is very exciting news!

The Italian invasion of America’s auto industry has begun. Starting next year, Chrysler will begin building Fiat’s1.4-liter, Four-cylinder Turbo FIRE Engine in the United States. It’s good news for the residents of Auburn Hills, Michigan, and those working in local auto factories. The motor will be produced under the supervision of Chrysler-Fiat at the Midwestern plant.

Chrysler’s Dundee facility will create 155 new jobs to compensate, bringing in a total of 573 for the entire project. The plant will have an annual capacity of 100,000 engines, but you won’t ride with any in the States. Fiat’s FIRE is being built for Mexico’s Fiat 500 units. Wait, aren’t the Mexican’s supposed to build things for us? Press Release follows:

“Chrysler Group LLC Introduces Fiat’s 1.4-liter, In-line 4-cylinder, Fully Integrated Robotized Engine with Multiair Technology to Powertrain Lineup

Auburn Hills, Mich., Dec 17, 2009 – Chrysler Group LLC will debut Fiat’s 1.4-liter, in-line four-cylinder Fully Integrated Robitized Engine (FIRE) featuring Multiair in the Fiat 500 starting in 2010. The engine, well-suited for a small car application, delivers 100 horsepower (75 kW) at 6,750 rpm and 95 lb.-ft. (129 N•m) of torque at 4,250 rpm. A turbo version also will be available in future applications. The 1.4-liter FIRE features Fiat’s Multiair technology, which significantly reduces emissions while improving fuel economy and power delivery.

The 1.4-liter FIRE features four valves per cylinder and incorporates state-of-the-art technology for Fully Variable Valve Actuation (FVVA), also known as MultiAir. Multiair is a sophisticated technology that delivers an increase in power up to 10 percent and a reduction in fuel consumption and emissions up to 10 percent when compared to similar engines. A turbo version of the engine is also planned and will produce a fuel economy improvement up to 25 percent when compared to a V-6 engine with equivalent power.

The MultiAir system consists of electro-hydraulic variable valve actuators filled with conventional oil, which is interposed between the camshaft and each valve. A solenoid valve is energized every 360-degree camshaft rotation, regulating the quantity of oil addressed to the actuator or to a reservoir. The lift of the valve is a function of the quantity of oil addressed to the actuator, ranging from full lift to complete valve closure. Each solenoid valve may also delay application of the actuator in advance, leading to late valve opening or early valve closing.

MultiAir is exclusive for Chrysler Group in North America and is based on a series of Fiat Powertrain patents related to hardware, combustion strategies and controls that allow for full control of the lift and timing of engine valves.

In the early 1970s, robotics in assembly plants was not common. The term “FIRE” came into existence when Fiat integrated the use of robotics in the production process of manufacturing plants. Although mechanized assembly is commonplace today, the brand name FIRE has remained with Fiat’s powertrain lineup.

The 1.4-liter FIRE with Multiair is the world’s first mass production engine to incorporate such technology to control the intake valves. Dedicated components have been developed to accommodate four “bricks” (one for each cylinder), which package relevant components. MultiAir technology can be adapted to different types of engines, including Diesels for enhanced NOx control, and is planned for Chrysler Powertrain’s four-cylinder World Gas Engine and all-new Pentastar V-6.”

The Source: WCF

According to the Free Press: “There’s only two times in my life when I have seen the Supreme Court act quickly,” said Jennifer Shaw, a retired bankruptcy attorney who has closely followed the Chrysler case. One was the Bush v. Gore recount, she said, and the other was whether President Richard Nixon had to comply with U.S. District Judge John J. Sirica’s order that Nixon turn over his tapes.

One of the only hurdles left is a small group of Indiana shareholders, who on Sunday filed product liability claims in order to save pensions. One of the terms of this sale states Fiat faces no risk from product liability lawsuits filed against Chrysler related to vehicles produced or sold until the day the sale closes.

According to Automotive News, “Just days after agreeing to take a 20 percent stake in Chrysler, Fiat is expected to announce plans to purchase GM Europe’s core brands of Opel, Vauxhall, and Saab.”

Apparently Fiat has had the hots for Opel these past couple of decades. However, this is the first time the Italian auto maker has made moves towards purchasing a percentage of the O-P. This Superpower of Automotive Worldwide might would consist of Fiat, Lancia, Alfa Romeo, Chrysler, Saab, Opel and Vauxhall. It would be the second largest automaker, selling 6 to7 million vehicles a year and posting annual revenues of $106 billion dollars. Let’s see President Obama stop this one!

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In an interview with Financial Times, Fiat’s Sergio Marchionne said “From an engineering and industrial point of view, this is a marriage made in heaven.” He went on to say that Fiat and Opel could save nearly a billion euros a year by sharing platforms and technology. We’ll stay on top of this one, and continue to praise Fiat and all the good work they are doing, as we await their rise to be our new overlords.

Fiat has decided that picking up a stake in Chrysler on the cheap is a ripe opportunity. And how cheap is that? Real cheap, as in, they don’t have to shell out a dime. Fiat will provide Chrysler with models and the platforms and technology to build them, as well as management services and business cooperation in exchange for what will initially be a 35 percent stake in the company, which may be taken past 50 percent to full ownership at a later date.

Will Fiat be able to exploit Chrysler as a low-cost manufacturing base in the US? Will they revive the Chrysler and Dodge brands and put successful models into dealerships that people will want to buy, despite the stigma of bankruptcy? That’s the multi-billion dollar question.

Chrysler, and the Obama administration which has pushed the company towards a bankruptcy declaration and hopes to usher the automaker through a streamlined Chapter 11 proceeding, says it hopes to emerge from bankruptcy with the proper restructuring done within weeks. If they can pull it off maybe, just maybe, they have a chance at surviving and one day prospering again.