Fiat News

Jeep's skinny profit despite mega sales
By Joshua Dowling · 31 Jul 2015
US car giant Jeep and its associated brands may not be paying enough tax in Australia, a document filed in the Federal Court has intimated.The car maker has made an average after-tax profit of just $14.7 million annually in Australia over the past six years -- despite turning over a whopping $4.8 billion during that time and increasing Jeep sales seven-fold.The average annual profit figures mean Jeep and its associated brands paid an estimated $5 million a year in taxes, which equates to about $30 million on a turnover of $4.8 billion over a six-year period.The figures were listed in defence documents filed by the lawyer for Clyde Campbell, the former Jeep Australia boss who is at the centre of a $30 million scandal into the alleged misuse of corporate funds.Transfer pricing is the industry term given to describe the movement of funds within car companiesThe profit listings given in the defence document refer to "net profit after tax and transfer pricing adjustments".Transfer pricing is the industry term given to describe the movement of funds within car companies.In the past, the Australian Tax Office has investigated Toyota and other companies suspected of moving profits offshore to pay less tax locally.Documents submitted to the Federal Court in Melbourne show over the past six years the US car giant has only made an average annual profit after tax of just 1.85 per cent of its turnover in Australia, despite unprecedented sales growth and favourable exchange rates.In 2004, the Herald Sun newspaper reported the Australian Tax Office was investigating Toyota for "transfer pricing", whereby profits were allegedly shifted overseas to be taxed at a lower rate.In 2010, Toyota made a one-off payment to the Australian Tax Office of $250 million.At the time Toyota refused to say what the bill was for, only offering that the tax bill was for "prior years"."Intercompany pricing is complex and we've had discussions with the Tax Office and overseas tax authorities," a Toyota spokesman said at the time."This settlement has been reached following a thorough review with the ATO on a very complex issue," the Toyota statement said in 2010. "We believe we conduct our operations according to all relevant rules and regulations regarding financial matters."Six weeks ago, News Corp Australia reported the ATO was looking at the Jeep brand ambassador program to see if Fringe Benefits Tax should be applied to the "hundreds" of cars loaned to suppliers, celebrities and sporting stars.Contrary to perception, it is the provider of the vehicle that is subject to FBT, not the user of the vehicle. News Corp Australia had spoken to recipients of Jeep "ambassador" vehicles who had been contacted by the ATO.FCA has denied there were "hundreds" of cars, however there have been at least 45 "brand ambassadors" at various times in recent years, as well as approximately 90 cars with the Richmond football club and 30 cars with the Gold Coast Suns.Each of the cars are typically replaced at least once a year so they can be sold as "dealer demonstrators" while the distance travelled is less than 10,000km.
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$30m car scandal goes to the top
By Joshua Dowling · 31 Jul 2015
Global Jeep bosses approved $30 million in spending in car industry scandal, new court documents claim
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Aussie market claiming scalps but the deals won't last
By Joshua Dowling · 31 Jul 2015
Want proof the Australian new-car market is getting tough? Several models have disappeared from showrooms because they can't handle the competition.
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Harry Kewell paid Clyde Campbell, court document claims
By Joshua Dowling · 02 Jul 2015
New court documents also claim Mr Kewell and his wife Sheree Murphy were holidaying with Simone and Clyde Campbell in the Maldives as recently as April this year.Car giant Fiat Chrysler Automobiles (FCA) alleges former CEO Clyde Campbell misused more than $30 million in corporate funds on deals it claims were "uncommercial", including providing loan cars to models, sport stars and TV personalities such as Jesinta Campbell, Shane Warne and Matt Preston.According to an amended Statement of Claim filed to the Federal Court in Victoria yesterday, FCA alleges Mr Kewell made four payments ranging from $580 to $8467 — which added up to $13,975 — between July and December 2013, months after Mr Campbell stepped down from his role as CEO in April 2013.The revised statement of claim says FCA is "not aware of any business reason why Kewell would deposit funds into Campbell's personal bank account".Sources close to Mr Kewell say the costs were reimbursement expenses incurred by Simone Campbell, a property lawyer, on Mr Kewell's behalf.The Kewell contract was "irrevocably" extended from January 2016 to December 2018The amended court document also notes that "photographs and comments on Instagram and Twitter by Mrs Campbell, Kewell and others show that Mrs Campbell and Kewell attended Amilla Fushi Resort in the Maldives" in April 2015.According to the original statement of claim, Kewell's sponsorship deal with FCA also included $2000 per month towards a rental property, assistance with school fees to a maximum value of $75,000 per year, and eight return business class airfares between Australia and Europe annually.According to the statement of claim, the Kewell contract was "irrevocably" extended from January 2016 to December 2018 on a company letter signed by Mr Campbell's successor, Veronica Johns, "on or about April 2014".Mr Campbell left FCA Australia in April 2013 to become an independent distributor of FCA vehicles in New Zealand, but has since sold his share of the business.The revised court document increased the amount of money FCA "suspects" was used to buy a boat, from $412,000 to $550,000, based on invoices paid to a third-party company called Maxus, which is now run by Mark McCraith.Mr McCraith was FCA Australia's marketing director from May 2013 and May 2015 and helped oversee the "brand ambassador" program and other marketing and sponsorship deals.Mr McCraith is now chief operating officer of media agency Maxus, which lists FCA Australia as one of its clients.The revised court documents also go into more detail about how much money was paid to a dealership part owned by former Mercedes-Benz executive Ernst Lieb, who was sacked from the Germany car maker in 2011 for misusing corporate funds.Mr Lieb and Mr Campbell worked together previously at Mercedes-Benz Australia.The lawyer for Mr Campbell, Sam Bond, and a representative for Harry Kewell, have been approached for comment on the amended statement of claim.A spokesman for FCA Australia, Andrew Chesterton, declined to comment on the new claims or answer questions as to why FCA still uses the Maxus media agency at the centre of the alleged boat deal.
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European brands most likely to speed in SA
By Miles Kemp · 22 Jun 2015
Owners of luxury European models and are up to four times as likely to be caught breaking the law compared to Japanese or Korean makes.Analysis of SAPOL and Transport Department figures shows Mercedes drivers are by far the worst in the state, recording 0.824 fines per vehicle in 2014/15.This compares to the least-fined of the large manufacturers, Isuzu with only 0.186 fines per car.Experts at a loss to explain the bias against luxury cars, and police have denied they give the drivers special treatment.Some of the more expensive vehicles are capable of extremely rapid accelerationIt is the first time the figures have become available because of a Weatherill Government reform called "open data", in which government departments are forced to release large amounts of information on their websites.RAA Senior Manager Road Safety, Charles Mountain said the nature of luxury cars, rather than driver behaviour may be to blame."Modern vehicles, particularly some of the more expensive vehicles are capable of extremely rapid acceleration and insulate the driver to such an extent that it may mask a driver's perception of speed," he said."Irrespective of the vehicle being driven, whether it be a luxury import or a reasonably priced runabout, it is important for their safety and that of other road users that they drive to the conditions and abide by the prevailing speed limits on the roads on which they are travelling."The type of vehicle doesn't determine if police take action, it is based on the nature of the offendingWhen asked a series of questions about the issue, SAPOL issued a one line response: "The type of vehicle doesn't determine if police take action, it is based on the nature of the offending".While Holden drivers amassed the most fines in 2014/15 with 72,847 there are 239,804 Holdens on the road.In comparison, Mercedes drivers were hit 13,157 times for only 15,959 registered vehicles.Only two non-luxury brands were in the top ten and six in the top 20 fined-per-registered-car for 2014/15.Other than Holden, which was the eighth most fined vehicle on the road, none of the large-volume, inexpensive makes is in the top 25 of most fined vehicles.There are some exceptions however, with the low-volume Dodge and Proton makes ranking second and third, Ferrari ranking thirty fourth and Jaguar thirty eighth.One of the cheapest vehicles on the road, the Chinese Great Wall is ranked highly at sixteenth.(Make - fines per car - total fines)1 Mercedes - 0.824 - 13,157 2 Dodge - 0.377 - 3183 Proton - 0.356 - 2684 Renault - 0.350 - 11495 Saab - 0.346 - 3886 Range Rover - 0.345 - 3517 Audi - 0.326 - 20748 Holden - 0.316 - 72,8479 Mini - 0.313 - 33110 Fiat - 0.309 - 31011 Daewoo - 0.305 - 147512 Jeep - 0.313 - 227013 Lexus - 0.293 - 95114 SsangYong - 0.289 - 21415 BMW - 0.284 - 503216 Great Wall - 0.284 - 290
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Federal Court case between Fiat Chrysler Australia and Clyde Campbell has been delayed
By Joshua Dowling · 27 May 2015
The biggest scandal to ever hit the Australian automotive industry is off to a stalled start.
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Best end of year van deals
By James Stanford · 30 Jan 2015
The major brands are keen for a good start to 2015 and that means a lot of sharp deals for the first two months of the year.Low profile brand Citroen currently has a hot deal on its Berlingo compact hauler, offering the 66kW diesel manual long body version for $25,990 drive away. It has also thrown in an extended warranty, covering it for five years/200,000km.Volkswagen has two limited edition vans available now, with special drive-away pricing.They are called Runner models and are effectively entry-level models.The Caddy Runner is based on the TSI 160 petrol version of Volkswagen’s small van. It is not loaded with gear, but does have airconditioning as well as stability control, and costs $23,990 drive away.The Transporter Runner, based on the TDI 250 diesel, is not completely void of features either and has just picked up Bluetooth phone connectivity and cruise control in addition to AC and stability control.Volkswagen is currently offering it for $32,990 drive away.Renault is receiving initial stock of the new Master large van, but there are a fair few of the old one left and that means bargains are to be had.The company hasn’t locked in incentives with the dealers, instead asking them to check in when someone is interested, so it might well be worth asking.The company does have an extended warranty offer in place at the moment to help its Kangoo compact van, which covers it for five years or 200,000km.Ford is offering two special deals with price cuts and extended warranty deals for its front-drive Transit Custom vans.The first is a short wheelbase model at $38,990 drive away and the second is the long wheelbase version for $40,990 drive away.These are keen prices, especially as Ford has now introduced an extended warranty that lasts for five years/200,000km.Both models are standard, but the Transit is very well specified and each van has a five-star crash safety rating, stability control, cruise control, Bluetooth connectivity, a bulkhead and even heated seats.There is only one transmission, a six-speed manual, as an automatic is still being developed, and only one engine, a 2.2-litre turbodiesel.Fiat is not doing any special deals on its just-introduced Doblo and Ducato vans, maintaining the strong pricing structure from the launch, including the well specified Doblo compact van from $22,000 for the petrol 1.4 and the larger Ducato with a 3.0-litre diesel from $38,000, but neither price includes drive-away costs.
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If you can't beat SUVs, join them
By Joshua Dowling · 12 Dec 2014
Are you tired of getting stuck behind an SUV? If you can’t see through them, you may want to join them.Australia is going to be crawling with a new type of SUV from next year: city-sized soft-roaders. Or as we like to call them, faux-wheel drives.They have the same tall driving position as a full-size SUV (to better navigate the traffic rather than the great outdoors) and yet have the economy of a small car because often they don’t even have all-wheel drive. Handily, they also fit in the same size parking space as a Toyota Corolla.The Suzuki SX4 (now known as the S-Cross) in many ways pioneered this segment; Holden and Nissan followed with pocket-sized high-riding hatchbacks with unusual designs.But Mazda’s CX-3 is the first one that appears to look just right. Due in March, it will soon be joined by the Honda HR-V, Fiat 500X, Jeep Renegade, Renault Captur and the reborn Suzuki Vitara (a sign of the times, now with car-like underpinnings rather than a 4WD chassis).Most of these vehicles will be priced between $20,000 and $30,000, the heart of the new-car market — and put SUVs in the driveways of those who want one but, until now, couldn’t afford it.If you thought it was already difficult to choose a new car in the world’s most competitive market, it’s about to get even tougher.
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2014 Fiat Professional Doblo | new car sales price
By Matthew Hatton · 13 Nov 2014
Fiat Professional Doblo van arrives in Australia for the first time, starting from $22,000.Fiat Chrysler Automobile (FCA) has added the Fiat Professional Doblo to the brand's Australian lineup, to sit beneath the existing Ducato and Scudo commercial vans.The Doblo will compete with the Volkswagen Caddy, Citroen Berlingo and Renault Kangoo small vans, targeting trade buyers after a compact workhorse.DIMENSIONSAustralian Doblos are available in a choice of two wheelbases; with the standard-length measuring 4390mm, and the range-topping Maxi stretches the wheelbase by 350mm to 4740mm.Cargo width is 1714mm wide (1230mm between the wheelarches) and 1305mm high for both bodies, while the 1820mm cargo length of the standard model expands to 2170mm for the Doblo Maxi.These dimensions combine to give the short-wheelbase model 3.4 cubic metres of PVC-floored cargo volume, and the Maxi 4.2 cubic metres.Maximum payloads are 750kg for the short-wheelbase model and an even tonne for the longer Maxi.The short-wheelbase Doblo boasts greater cargo space in all dimensions than the equivalent Citroen Berlingo, Renault Kangoo and Volkswagen Caddy models. However, the long-wheelbase Doblo Maxi is matched by the Caddy Maxi for cargo volume and is 80mm shorter in cargo length.All Doblos have sliding rear doors on both sides, and both side-hinged barn doors and top-hinged tailgates are available.ENGINES / TRANSMISSIONSThe front-wheel drive Doblo also comes with a choice of one petrol and three turbodiesel drivetrains.Short-wheelbase Doblos are available with a 70kW/127Nm 1.4-litre four-cylinder petrol engine and 5-speed manual transmission, or a 77kW/290Nm 1.6-litre four-cylinder turbodiesel paired with a six-speed manual. A 5-speed robotised automatic transmission is also available with a 66kW/200Nm version of the turbodiesel.The long-wheelbase Maxi is limited to a 99kW/320Nm 2.0-litre four-cylinder turbodiesel engine, with a six-speed manual transmission.FEATURESThe Doblo comes standard with electronic stability control with hill-start assist, ABS, electronic brake distribution, Bluetooth connectivity, and climate control. Fiat also boasts the lockable glovebox is large enough to store a laptop computer.Doblo variants with turbodiesel engines will also benefit from cruise control and parking sensors.Satnav can be added as an option across the range.
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Fiat Chrysler announces new Australian boss
By Matthew Hatton · 31 Oct 2014
Pat Dougherty to head Fiat Chrysler Automobiles in Australia.Fiat Chrysler Automobiles (FCA) has announced Pat Dougherty will become the group's next Australian CEO and President, taking over the role from Veronica Johns who announced her departure on Tuesday.Dougherty has been with the North American arm of FCA for over 30 years, and moves into the role on December 1, from his current position of Vice President of Mopar, the parts and service division of FCA.Prior to this, he was the Head of Fleet Sales, Network and Operations and Head of Fleet Sales in North America.Veronica Johns tendered her resignation from FCA in August of this year citing personal reasons, but her departure was only made public earlier this week.Ms Johns’ two-year tenure at the top of FCA Australia saw not only record sales, but also a dramatic shift in the treatment of women within the company’s Australian arm.John Kett, Corporate Vice President of FCA and General Manager, APAC Operations said the company will look to continue down the path Ms Johns crafted."We need to continue our focus on sustainable growth across all of our brands and imperative to this will be the further development of our after-sales business to ensure that FCA is one of the most customer-focussed automotive companies in the market," he said.
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