Fiat Chrysler selling holdings to raise cash for upscale brand expansion

Article by Christian A., on June 23, 2014

Fiat Chrysler is planning to sell 3.5 percent of Fiat shares and 2.5 percent of CNH Industrial to American investors – all valued at around EUR602 million ($820 million) – providing the carmaker cash to expand of its upscale brands, chief executive Sergio Marchionne said.

The move is expected to help the carmaker build relations on Wall Street as it gets ready to set up its primary listing in New York in the first two weeks of October.

The new company -- Fiat Chrysler Automobiles NV -- targets to more than double profit and boost annual sales by 61 percent over the next five years, as supported by a EUR55-billion investment plan that entails expansion of the upscale Maserati and Alfa Romeo brands as well as transformation of Jeep a global nameplate.

Marchionne’s plan is already making some progress, with the Maserati brand expecting to double its dealership network to around 500 by 2015 as it prepares to support growth for offering like the new Ghibli compact model, brand chief Harald Wester told Bloomberg in an interview on Thursday.

The carmaker expects the expansion to help it at least achieve the same level of sales in full year 2013 in just six months of 2014. It delivered a total of 15,400 vehicles in 2013. Marchionne is hoping that Fiat’s EUR5-billion ($7 billion) investment into the re-launch of Alfa Romeo will help the brand finally post gains in sales and a profit.

He is planning to introduce eight new Alfa Romeo models to help the brand achieve global sales of 400,000 vehicles in 2018 from just 74,000 units in 2013.

Fiat finally wrested full control of Chrysler in January to pave way for a merger that would be large enough to take on major global carmakers like Toyota Motor Corp., Volkswagen Group and General Motors Co. [source: automotive news europe - sub. required]

Topics: fiat, chrysler

If you liked the article, share on:

Comments

Recommended

One of the executives at Volkswagen tagged in the so-called Dieselgate scandal has pleaded not guilty to a list of allegations surrounding the carmaker’s actions to cheat emissions regulations in...
by - February 27, 2017
When the Crown De Luxe saloon was first released in 1972, it was at that time the most lavish Toyota model available to British customers. Both unusual and exclusive, one...
by - February 27, 2017
The ride-sharing fleet of sharing Lyft Inc. will soon include thousands of specially fitted self-driving Chevrolet Bolt electric vehicles, courtesy of General Motors. If plans push through, Lyft’s clients would...
by - February 27, 2017
J.D. Power has officially released the 2017 Vehicle Dependability Study, an annual list of the most dependable brands in the auto industry. Once again coming on top is Lexus, the...
by - February 26, 2017
Citroen revealed that its entry to the Chinese market is moving forward with the planned release of the new generation C5. While still on sale on this part of the...
by - February 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