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Fiat Could Build Model 3 Rival in 12 Months Claims Its CEO
FiatChrysler chairman Sergio Marchionne said at the company’s annual meeting last Friday that if the Model 3 is profitable, Fiat could build a car like it with Italian styling in 12 months.
Sergio Marchionne at FCA annual meeting in Amsterdam on April 15. Credit: FCA
Sergio Marchionne, CEO of FiatChrysler, said during the company’s annual meeting in Amsterdam last Friday that if Tesla can make money on the Model 3, Fiat will build a competitor and have it on the market within 12 months. Those are brave words for a man whose Chrysler division is planning to stop making mid size sedans entirely.
Saying he has nothing but the highest regard for Elon Musk, Marchionne also said, “I am not surprised by the high number of reservations” (400,000 and counting) for the Model 3. “But then the hard reality comes in … making cars, selling them and making money doing so.”He added, if Elon “can show me that the car will be profitable at that price, I will copy the formula, add the Italian design flair, and get it to the market within 12 months.”
Unlike most car company CEOs, who tend to speak in measured terms, Marchionne has a reputation for blurting out whatever is on his mind. His remarks are viewed by many as proof that he has little to no understanding of how the automotive market is shifting beneath his feet.
They see him as the poster boy for how most automakers are still clueless about the electric car revolution and have no effective plans to join it. Several compare traditional car companies to the likes of Kodak and Polaroid — industry giants who simply could not adapt fast enough to digital photography tehcnology. IBM is another prime example of a once mighty company decimated by technological change.
Just a few years ago, Marchionne was begging people not to buy the Fiat 500e electric car because his company lost $14,000 on every car sold. Earlier last week, he told Automotive News that he sees Toyota, Ford, or Volkswagen as companies that could potential merge with FiatChryler. In other words, Marchionne is looking for a suitor who will buy the company while it still has value.
The decision to stop building the Dodge Dart and Chrysler 200 is instructive. By all accounts, both are pretty good cars that match up well against the competition. Neither has been particularly profitable, but the decision to stop making them is rooted in the arcane provisions of the federal regulations. Under the CAFE rules, the average fuel economy a company has to achieve varies according to the “footprint” of its fleet. The larger the vehicle it sells, the lower its CAFE numbers can be.
In this era of low gas prices, Chrysler is killing it with its Jeep lineup and sales of hulking pickup trucks. By ditching mid size sedans, it can sell more vehicles with atrocious gas mileage and be in compliance with CAFE mandates. At the very least, it will have to buy fewer credits from other companies. Does that sound like a company that it looking to the future?
There are so many problems with Marchionne’s position, it’s hard to know where to begin. The thought of a Model 3 clone that looks like an Alfa Romeo may have some surface appeal, but where is the network of recharging stations for customers travelling away from home? Where are the autonomous driving systems or the interior that will “feel like a spaceship,” in Elon’s words?
Is anyone at Tesla worried by Marchionne’s idle boast? If they are, they aren’t showing it.
Source: Fortune, Photo credit: FCA.com
Tesla has made two big interior changes to several Model Y vehicles in its lineup, and the changes come just as the new model year begins production.
Last year, Tesla launched the Model Y Standard, which separated the previous models into the “Premium” category. The Standard vehicles lack several features, including more premium interior materials, acoustic-lined glass, and storage.
@teslarati There are some BIG differences between the Tesla Model Y Standard and Tesla Model Y Premium #tesla #teslamodely ♬ Sia – Xeptemper
The Model Y “Premium” trims are now getting several new upgrades, which come after the company launched a seven-seat configuration of the vehicle last night in the North American market for an upcharge of $2,500.
The new Model Y seven-seat configuration did not come with just an additional row of seating; it also came with a slew of other goodies that now come standard and were previously only available on the Model Y Performance, which was launched late last year.
All Black Headliner
The new Tesla Model Y Premium trims will now come standard with a black headliner, something that many owners have been requesting for some time.
The previous grey headliner and trim within the vehicle is now gone; it will be all black on all of the Premium trims from here on out, a welcome change:
Credit: Tesla
Larger and Higher Resolution Center Touchscreen
The center touchscreen in the new Model Y Premium configuration is now larger and has a higher resolution than the previous version.
In last year’s Model Y configurations (apart from the Performance), the center touchscreen was 15.4″. Now, Tesla has decided to go with the 16″ version across all Premium trims, which is a nice step up. It was nice to see this in the Performance, but it is really great to see Tesla include this in the Model Y’s more Premium trim levels.
Tesla Model Y Seven Seater
Tesla launched the latest iteration of the seven-seater for the Model Y on Monday night. Traditionally, the Model Y seats five passengers in total, but there were calls for a more spacious version several years ago.
Tesla released it, but it was extremely tight in the back, basically reserving those back seats for only small people or children.
Credit: Tesla
The new configuration looks to be slightly more spacious in the third row, but not as much space as most would require or want. Instead,
Elon Musk
Lufthansa Group to equip Starlink on its 850-aircraft fleet
Under the collaboration, Lufthansa Group will install Starlink technology on both its existing fleet and all newly delivered aircraft, as noted by the group in a press release.
Lufthansa Group has announced a partnership with Starlink that will bring high-speed internet connectivity to every aircraft across all its carriers.
This means that aircraft across the group’s brands, from Lufthansa, SWISS, and Austrian Airlines to Brussels Airlines, would be able to enjoy high-speed internet access using the industry-leading satellite internet solution.
Starlink in-flight internet
Under the collaboration, Lufthansa Group will install Starlink technology on both its existing fleet and all newly delivered aircraft, as noted by the group in a press release.
Starlink’s low-Earth orbit satellites are expected to provide significantly higher bandwidth and lower latency than traditional in-flight Wi-Fi, which should enable streaming, online work, and other data-intensive applications for passengers during flights.
Starlink-powered internet is expected to be available on the first commercial flights as early as the second half of 2026. The rollout will continue through the decade, with the entire Lufthansa Group fleet scheduled to be fully equipped with Starlink by 2029. Once complete, no other European airline group will operate more Starlink-connected aircraft.
Free high-speed access
As part of the initiative, Lufthansa Group will offer the new high-speed internet free of charge to all status customers and Travel ID users, regardless of cabin class. Chief Commercial Officer Dieter Vranckx shared his expectations for the program.
“In our anniversary year, in which we are celebrating Lufthansa’s 100th birthday, we have decided to introduce a new high-speed internet solution from Starlink for all our airlines. The Lufthansa Group is taking the next step and setting an essential milestone for the premium travel experience of our customers.
“Connectivity on board plays an important role today, and with Starlink, we are not only investing in the best product on the market, but also in the satisfaction of our passengers,” Vranckx said.
Elon Musk
Tesla locks in Elon Musk’s top problem solver as it enters its most ambitious era
The generous equity award was disclosed by the electric vehicle maker in a recent regulatory filing.
Tesla has granted Senior Vice President of Automotive Tom Zhu more than 520,000 stock options, tying a significant portion of his compensation to the company’s long-term performance.
The generous equity award was disclosed by the electric vehicle maker in a recent regulatory filing.
Tesla secures top talent
According to a Form 4 filing with the U.S. Securities and Exchange Commission, Tom Zhu received 520,021 stock options with an exercise price of $435.80 per share. Since the award will not fully vest until March 5, 2031, Zhu must remain at Tesla for more than five years to realize the award’s full benefit.
Considering that Tesla shares are currently trading at around the $445 to $450 per share level, Zhu will really only see gains in his equity award if Tesla’s stock price sees a notable rise over the years, as noted in a Sina Finance report.
Still, even at today’s prices, Zhu’s stock award is already worth over $230 million. If Tesla reaches the market cap targets set forth in Elon Musk’s 2025 CEO Performance Award, Zhu would become a billionaire from this equity award alone.
Tesla’s problem solver
Zhu joined Tesla in April 2014 and initially led the company’s Supercharger rollout in China. Later that year, he assumed the leadership of Tesla’s China business, where he played a central role in Tesla’s localization efforts, including expanding retail and service networks, and later, overseeing the development of Gigafactory Shanghai.
Zhu’s efforts helped transform China into one of Tesla’s most important markets and production hubs. In 2023, Tesla promoted Zhu to Senior Vice President of Automotive, placing him among the company’s core global executives and expanding his influence beyond China. He has since garnered a reputation as the company’s problem solver, being tapped by Elon Musk to help ramp Giga Texas’s vehicle production.
With this in mind, Tesla’s recent filing seems to suggest that the company is locking in its top talent as it enters its newest, most ambitious era to date. As could be seen in the targets of Elon Musk’s 2025 pay package, Tesla is now aiming to be the world’s largest company by market cap, and it is aiming to achieve production levels that are unheard of. Zhu’s talents would definitely be of use in this stage of the company’s growth.
Tesla makes two big interior changes to several Model Y vehicles
Lufthansa Group to equip Starlink on its 850-aircraft fleet
