Chrysler success 5 years since near-collapse means 5 more years of work

Article by Christian A., on April 30, 2014

Chrysler Group chief executive Sergio Marchionne is bound to detail the carmaker's five-year product and business plan on May 6, and that would mean five more years of tough effort even after the company successfully warded off financial collapse in 2009. The plan is expected to address three areas of concern – fuel economy, earnings and production capacity.

Chrysler’s current fleet mileage as well as profit margins are far behind from those of its major rivals in the in the United States like Ford Motor Co. and General Motors. Likewise, Chrysler sites have already reached their full production capacity for key vehicles like Jeeps and some Ram full-sized pickups.

The new product and business plan would probably address hindrances that have been Chrysler’s worries like its corporate average fuel economy for domestic cars that ranked lowest among the largest carmakers in the US in 2013 at 32.1 mpg. Also its position among light-truck carmaker is only slightly more competitive.

Chrysler is also behind some carmakers in electric vehicle sales. The carmaker’s profit margin in 2013 is only 3.9 percent of revenues, far behind its local rivals – GM and Ford posted profit margins of 7.8 percent 9.9 percent, respectively.

Chrysler is being integrated into 100-percent parent Fiat, with the new company to be named as Fiat Chrysler Automobiles (FCA). FCA has set aggressive global sales targets for both Jeep and Alfa Romeo, but has find ways to achieve them.

While Jeep is aiming to deliver at least 1 million units this and post further growth, output of its Grand Cherokee and Wrangler SUVs has already reached maximum capacity. On the other hand, Alfa Romeo don’t have enough products to achieve its global sales potential. [source: automotive news - sub. required]

If you liked the article, share on:

Pin It

Comments

Recommended

Has Toyota started the production of a new electric supercharger? Well, a patent that was recently published indicated that they might have. And this electric supercharger looks more durable and...
by - March 27, 2017
The Tesla Model S has finally arrived in South Korean soil and is now available for test drive. But, there’s a catch. You’ll have to wait several months if you...
by - March 27, 2017
Sorry to say this to the Sport Quattro Concept fanatics. If you guys have been hoping for the production of this iconic concept to begin, prepare for your dreams to...
by - March 27, 2017
South Korean car company SsangYong recently revealed sketches of their upcoming SUV. We’re not always impressed by Korean car designs, but this one looks quite promising. Yup, it is the...
by - March 26, 2017
Twenty-eight years after the company was first launched by Toyota, which was initially targeted to the United States market only, Lexus has already made its way to over 70 countries....
by - March 26, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries