Fiat Chrysler will be stronger in 2018 even if some targets are missed, CEO says

Article by Andrew Christian, on May 16, 2014

Fiat Chrysler chief executive Sergio Marchionne is confident that the carmaker will be much stronger than its current self at the end of his five-year business plan in 2018, even if it fails to achieve targets he set last week. Marchionne remarked even if he misses the targets by 10 percent, Fiat Chrysler would have grown to large proportions by 2018.

He suggests that the US-Italian carmaker would still prosper, whether or not it fails to meet some of the ambitious goals set. Marchionne unveiled a five-year business plan last week that aims to sell 7 million vehicles globally and hike its net profit fivefold by 2018. A number of Wall Street analysts have expressed concern that Fiat Chrysler would fail to meet those lofty goals.

According to Marchionne, the targets were meant to rally his troops to greater heights after the first five-year plan that ran from 2009 to 2013. He remarked that the bold objectives he has set for the plan were meant to provide direction for the carmaker, noting that the plans were not for the benefit of the capital markets.

Fiat Chrysler is targeting to sell 150,000 Alfa Romeos in North America by 2018. As of today, Fiat Chrysler is not selling any Alfa Romeo models in United States or Canada, although it has decisive plans to re-launch the premium brand in North America as part of the five-year effort.

Fiat Chrysler may also increase production of Jeep in United States by expanding existing sites in the country, as it continues to log strong demand for the brand’s SUVs. Marchionne remarked that right now, Fiat Chrysler can’t keep up with high volumes for Jeep.

The carmaker saw sales of Jeep in the US surge 46.5 percent in the first four months of 2014, with it existing Jeep plants in Toledo, Ohio and Detroit already working at production capacity for the Wrangler and the Grand Cherokee. [source: automotive news - sub. required]

Topics: fiat, chrysler, ceo

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