Fiat-Chrysler emulates UK’s auto industry in its recovery plan

Article by Anita Panait, on March 6, 2014

The Fiat-Chrysler of today sounds like the auto industry in the United Kingdom when it reached a low point in 1982 – weak and aging models, grumpy unions and idle plants. Because of that, Fiat is seeking to replicate the success of the UK auto industry in making a comeback by adopting similar measures implemented by British carmakers.

For instance, Fiat is finally re-launching its Alfa and Maserati marques, with which it has vowed to revive Italian production – trying to achieve what Mini and Jaguar have managed to do under foreign ownership.

The 2014 Geneva Motor Show happening this month may offer early indications of Fiat’s plans as it rolls out a cabriolet version of the Alfa Romeo 4C coupe and the first Italian-made Jeep. Marchionne said in February that Fiat’s site has a bright future building "premium segment, high-quality products with reduced competition, more attentive customers and higher margins."

Like the UK auto industry, which exports 80 percent of its car production, Fiat is also targeting to export its products – a move that could more or less mitigate losses from a six-year slump in its core southern European markets.

Chief executive Sergio Marchionne, however, is facing challenges like a big investment outlay and a hardy Italian business climate as well as heavy unionization among its 62,000- strong workforce. "For a premium brand you need a broad offering of cars, but that's very expensive and takes time," said Commerzbank analyst Sascha Gommel. "I'm not sure Fiat can deliver that." [source: Reuters]

Topics: fiat, chrysler, uk

If you liked the article, share on:


Login or Create new account to add a comment!


It wasn’t too long ago when Maserati took the wraps off what appears to be the most gorgeous concept coupe ever made. The Alfieri coupe premiered at the 2014 Geneva...
by - October 23, 2016
Many have been excited with the impending arrival of the next-generation Jeep Wrangler and the new 2019 Jeep Grand Wagoneer, which is slated to be the brand’s new range-topping model....
by - October 21, 2016
Chevrolet has taken the wraps off its new Chevrolet Colorado ZH2 at the fall meeting of the Association of the United States Army (AUSA). Tagged as the most extreme fuel-cell-powered...
by - October 21, 2016
Honda has unveiled the fifth generation of its hot-selling SUV – the 2017 Honda CR-V. The latest iteration of the CR-V should help it maintain its benchmark status in the...
by - October 21, 2016
Many are already expecting BMW to launch an ultra luxurious SUV that will serve at its new flagship by late 2018. Larger than the X5 and X6, the new X7...
by - October 21, 2016