[Xenatecgroup]

[AN/AP]

[Autonews]

[WCF]

[CNN]

A news report from the Advertising Age is criticizing Olivier Francois, CEO of both the Chrysler and Lancia brand who was appointed by the Fiat Group, for his decision to choose an Italian ad agency over Chrysler Group's longtime partner, BBDO Detroit, for a 30-second TV Spot on the Chrysler 300.

The author of the report, Jean Halliday, says that Francois decision "may not sit well with American taxpayers, who bailed out the ailing Chrysler earlier this year with billions of dollars in loans" and that "several hundreds of staffers of Chrysler Group's longtime ad agency, BBDO Detroit, will be out of work at the end of January when the contract expires."

As expected, the somewhat one-sided report, which was also posted on Autonews, goes on to pass judgment on the advertisement saying that it's very similar to a 2008 Lancia commercial calling for the release of Aung San Suu Kyi, Burma's pro-democracy leader and 1991 Nobel Peace Prize Laureate, and that it does not connect to American consumers.

Chrysler's CEO, Olivier Francois said: "We produced the TV film in honor of all those who put their lives at stake in the hopes of making the world a better place. For Chrysler, this is a chance to use our brand image to join with others in the fight for peace and to knock down the walls that divide us. We at Chrysler believe in doing the right thing and making a difference."

Julie Roehm, a former Chrysler Group marketing chief said: "The message is a disconnect to what matters to people here. Americans are focused now on getting back to work and the economy back on track. I don't think the vast majority of Americans know who this woman is or frankly care. They have no idea who their customer is in the U.S. or have a clue how to connect with them."

Playing the devil's advocate, we must note that for one, we don't have all the details on the topic including the cost of the advertisement. Maybe the Fiat Group had a special deal going on with the agency - we don't know.

What we do know from Chrysler is that the spot was initially created as part of the Lancia brands sponsorship of the 10th World Summit of Nobel Peace Laureates in Berlin Nov. 10-11, 2009. Furthermore, the spot first aired in Europe (on Nov. 12).

In other words, it's a global ad that doesn't only focus on U.S. consumers and more importantly, Chrysler joined Lancia's efforts, it didn't create a new type of ad.

We won't even touch the subject that nobody cares about who Aung San Suu Kyi is (nobody cared about smaller-sized fuel efficient cars here in the States a few years ago, and look at how the former Big Three are trying to catch up now...).

Unfortunately, some people do not understand that we live in the age of globalization. For any automaker or group of brands to survive today, they need to reach many different markets, both in terms of products and marketing.

If you want to sell cars all over the world, you also have to accept the fact that you will produce vehicles and hire people, agencies, etc, etc, from other countries. That's the way the game works, not only for American automakers but for everyone.

And if you want to criticize the Fiat Group for something, start from asking the Italians what's going to happen to the $73 million grant that Chrysler received from the Obama administration for the manufacturing of 220 plug-in hybrid and electric pickup trucks and minivans in St. Louis and in Michigan, now that the group's CEO Sergio Marchionne reportedly pulled the plug from the EV fleet.

Source: Adage & Autonews

Can't say that were fans of "badge engineering" especially when it comes to brands with a completely different mind-set and background, but like it or not, chances are that Fiat's tie up with Chrysler will most likely give birth to at least a couple of vehicles that will only differ in grilles and badges. The U.S. automaker's recently revealed five-year product plan hints at a few cars of this sort, but photoshop wiz, Theophilus Chin, took it upon himself to create a trio of 'Chrysler-ized' Lancias and vice-versa.

These include a proposal for a Lancia Thesis replacement based on Chrysler's well-received 200C mid-size sedan hybrid concept that was displayed at this year's Detroit Show, as well as Lancia-masked Chrysler Voyager and a Chrysler version of Lancia's premium compact hatchback, the Delta.

Just over a year ago, the Chrysler Group's newly formed Envi division unveiled a series of production-based electric cars that it planned to put on sale. Fast forward a few months, Chrysler went in and out of bankruptcy, sealed a deal with the Fiat Group and then, in August 2009 under the leadership of its new CEO, Sergio Marchionne, secured a $73 million grant from the Obama administration for the manufacturing of 220 plug-in hybrid and electric pickup trucks and minivans in St. Louis and in Michigan. Well, guess what;

According to a news report from Reuters, as part of the Marchione's recently announced five-year business plan to revitalize the Chrysler Group, Fiat has pulled the plug on the automaker's Envi division as well as the development of the test fleet for which it had received the government grant.

Chrysler spokesman Nick Cappa told Reuters on Friday that Envi, which was responsible for the EV range, will be absorbed in the normal vehicle development program and its former chief Lou Rhodes will head an electric car division for both Fiat and Chrysler.

The group's CEO Sergio Marchionne told reporters that for the time being and with the current technology available, he doesn't believe much in EVs and that electric cars would represent just "one or two per cent" (less than 60,000 vehicles) of Chrysler's sales by 2014.

"Until the (battery) storage gets resolved, I think electric vehicles are going to struggle," Marchionne said.

As of yet, there's no official word from Chrysler, but if the report from Reuters concerning the part about the scrapping of the 220 plug-in hybrids turns out to be true, one should wonder what's going to (or what should) happen to the $73 million grant that the automaker received. Post your thoughts in the comment section below.