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Understanding Tradition

FEATURE BY MIKE LAWRENCE
16/09/2014

Luca di Montezemolo is the latest to see, or be shown, the door at Maranello. To judge from the diplomatic wording of his statement, and his 27 million Euro severance package, it is a fair bet that negotiations have been protracted. It is also a fair bet that part of the deal was that the announcement would be made after Monza. Di Montezemolo departs on the day that Fiat Chrysler floats on the stock market.

My guess is that we have seen the outcome of a classic boardroom battle, and a clash of cultures which Sergio Marchionne, Fiat's CEO, was bound to win. Marchionne was born in Italy and raised in Canada from the age of 14. His record is impressive, he turned Fiat around. General Motors was buying into Fiat and then paid more than a billion pounds to get out of the deal because Fiat seemed doomed.

Almost all industry observers thought that Fiat was a basket case and Fiat has a unique position in Italy because hardly anyone else makes cars, apart from niche makers like Pagini and Lamborghini.

Not only did Marchionne save Fiat, and hence the Italian economy, he turned around Chrysler which is now in profit. To do this he had to bring the notoriously difficult American trade unions on board. There is no arguing with the guy's business acumen, he works miracles, but I feel he may be lacking somewhat in history and tradition.

Luca di Montezemolo limited Ferrari to 7,000 cars a year to maintain exclusivity and thus be able to charge more. Despite its recent performance in F1, Ferrari is reckoned to be the world's Number One brand, out-stripping the like of Rolex, Chanel, Rolls-Royce and Cartier. That is some achievement and a Ferrari 458 is no less desirable because Alonso struggles to get on the podium.

Like any team in any sport, Ferrari has its loyal followers who stick with it, win or lose. Ferrari does not have to win, it is enough that it is competing and maintaining its tradition.

Tradition is important to many people who buy certain makes because it is tradition which makes a brand. Bugatti has value because it was once successful in racing. That was a long time ago, and for a surprisingly short period, but the name resonates.

Part of the Fiat plan is to increase Maserati production to 50,000 units a year and that must surely dilute the Maserati brand especially since the plan includes SUVs. Maserati has Fangio and Moss in its history, not some Mum on the school run.

Fiat has been involved with Mazda in developing the new MX5/Miata. Advance information indicates that the car will be an advance all round, not least in styling. The Italian version was to have Alfa Romeo engines and that is a dream ticket. An Alfa Romeo built with Mazda's build quality and reliability, I need to lie down. There would be a car in which Dustin Hoffman could carry off Katherine Ross and know that he was not going to be stuck at the side of the road with her family in hot pursuit.

Recently it was announced that Fiat would not be giving the new model an Alfa Romeo badge because, being made in Japan, was not part of Alfa Romeo's tradition. I can remember the Alfa Romeo Arna which was an Alfasud engine in a Nissan Cherry. It was an unlovesome thing but, unlike traditional Alfa Romeos, it did not come with the scent of ferrous oxide.

The announcement has yet to be made, but the successor to the Giuletta Spyder is likely to be badged Fiat or Abarth. Fiat is not the name one thinks of when considering a two-seat roadster. Over the years, on and off, it has made such, but you do not think of Fiat when considering roadsters. Most Abarths were modified Fiats so an Abarth version of the Fiat 500 makes perfect sense.

You have to be a petrolhead for Abarth to mean anything to you. I once owned a Fiat Seicento Abarth which was a standard car with extra trim and badges. As a petrolhead I was ridiculously pleased with the badges. It was no less Italian because it was made in Poland.

'Autocar' magazine has said that the Alfa Romeo 4C is a 'halo' model for Alfa Romeo, but the problem is that there is no range on which it can shed its lustre. Apparently, some larger saloons are planned and that, according to the magazine, is like sending an unarmed man into combat.

An Alfa Romeo version of the Miata would be one desirable car, it was a joint project, but Marchionne does not get that. He reminds me of when Donald Stokes took over the British motor industry. He axed the Mini Cooper because John Cooper was being paid a royalty of two pounds a car. Then came the movie, 'The Italian Job; starring Mini Coopers in the best example of product placement in history.

When BMW took over the marque and relaunched it as the MINI, from the start it made Cooper versions even though Cooper last made a racing car in 1968. The MINI Cooper has been a resounding success.

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1. Posted by Indy2003, 16/09/2014 15:30 (moderated by an Adminstrator, 16/09/2014 15:34)

"This comment was removed by an administrator as it was judged to have broken the site's posting rules and etiquette."

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2. Posted by jmgh F1, 16/09/2014 14:22 (moderated by an Adminstrator, 16/09/2014 15:34)

"Nice article Dr. Lawrence, but I might point out a few misconceptions. Marchionne's acumen is that of a carpet bagging CEO. He was gifted the keys to Chrysler by a bumbling President Obama in cahoots with said auto unions at the height of an economic depression. Fiat was only "saved" by the abundant cash flow generated by the selling of Jeeps and Ram trucks in the USA, a fact that was long since in the works before the carpet bagger showed up. I shudder to think what he might do to the Ferrari tradition."

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3. Posted by kiwi2wheels, 16/09/2014 12:53

"€27m ??!! I take my hat off to di Montezemolo.................with that payoff , why would he want to get involved with the Alitalia mess ?

Great article ( as usual ) Dr Lawrence."

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