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]

If you liked the article, share on:

Topics: fiat, chrysler

Comments

Recommended

We’re willing to bet that the Bentley Bentayga is not the first thing that comes to mind for most people who are into off-roading and outdoor activities. It just doesn’t...
by - November 23, 2017
The other day, it was confirmed that Volvo will finally bring the XC40 to US soil, where it will first make an appearance at the 2017 Los Angeles Auto Show....
by - November 23, 2017
There is no question that the new BMW M5 (F90) high performance sports sedan is more powerful, faster and more enticing than the previous model. But for interested customers in...
by - November 23, 2017
Following the Tesla Roadster’s electrifying revelation on Thursday, Musk’s highly ambitious goals have skyrocketed when he tweeted about his future plans for the new sports car. Well, kind of. The...
by - November 23, 2017
Earlier in November at the 2017 SEMA Show in Vegas is when Hennessey unwrapped the Venom F5 to all of us. But it was actually first introduced as a concept...
by - November 22, 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