Fiat’s 5-year plan receives positive feedback

Article by Christian Andrei, on August 27, 2010

The global economic downturn has not dampened Sergio Marchionne's intent to give Fiat S.p.A. and Chrysler Group the global reach and scale that is required for them to flourish.

Nonetheless, President Om has talked about the new five-year plan Sergio Marchionne enumerating how the company will rise after taking a beating from the economic crisis, the worst in 60 years. Analysts have come out to say that the plan has the potential to work.

Marchionne, who is CEO of both carmakers, introduced this strategy in Fiat's home city of Turin, Italy.

Fiat and Chrysler are expected to build 6 million vehicles a year, the number that Marchionne thinks volume makers need to reach to survive in the global auto market.

In a move that's seen as a prelude to a separation, Fiat will be spinning off its Iveco trucks and CNH tractors divisions to separate them from its core carmaking business.

Analysts have said that this move is a prelude to integrating Chrysler within Fiat and possible new alliances or partnerships with other automakers.

While analysts think that Marchionne's strategy is ambitious, many regarded this plan to be mostly positive.

However, some are concerned with the concentration of production in Fiat's Italian home market and if the company can hit its goals in emerging markets such as China and India where it is weak. [via autonews]

Topics: fiat, plan

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