Fiat Chrysler’s US performance crucial to five-year business plan

Article by Christian A., on June 3, 2014

A good performance by Fiat Chrysler Automobiles in the United States will be crucial in the carmaker’s five-year business plan, according to FCA chief executive Sergio Marchionne. FCA unveiled its business plan last month, which aims to grow globally by putting more focus on its Jeep, Alfa Romeo and Maserati brands.

The plan envisions a 60-percent surge in sales and a five-fold hike in net profit by 2018. Marchionne remarked that FCA needs cash from Chrysler’s booming US business to be able to fund its strategy in Europe, where Fiat has been suffering from weak demand and excessive production capacity.

Chrysler was granted a government-funded bailout when it filed for bankruptcy in 2009. Fiat then took control of Chrysler until it completed a full takeover early this year. The companies are being merged, with the resulting carmaker to be listed in New York by end of 2014.

According to Marchionne, Chrysler's financial strength as well as overseas commercial clout would help boost sales of Alfa Romeo. FCA is planning to spend EUR5 billion at Alfa Romeo to build eight new models by the end of 2018.

Marchionne disclosed seeing a prototype for one of the new models, saying that the carmaker is on the right track. He remarked that FCA may unveil the model in the third quarter of 2015.

Marchionne reiterated that all of Alfa Romeo’s vehicles would be sourced from its Italian sites at least until 2018. He added that he would also request the Italian government to take measures to facilitate exports like logistics and regulations, noting that he isn’t asking for financial aid. [source: automotive news - sub. required]

If you liked the article, share on:

Comments

Recommended

Bimmerpost has posted several cool pictures of the new BMW G30 540i and the new G31 generation BMW 5-Series Touring, with both wearing the brilliant Rhodonite Silver Individual colour. The...
by - October 23, 2017
A few years ago, Lotus tried to take on Porsche. They had a five-car plan to go against competitors like Ferrari and Aston Martin. Though it did not go well,...
by - October 23, 2017
To keep the Nissan Maxima interesting, the Japanese automaker gives the 2018 model year a number of small tweaks. Some of these include standard Android Auto, which is a new...
by - October 23, 2017
It looks as if Chevrolet has everything planned out in terms of production. Firstly, they have plans of introducing the Corvette ZR1 in a few months, which will then be...
by - October 23, 2017
While Tesla Motors continues to struggle with regards to the assembly of its much awaited Tesla Model 3, investment firm Oppenheimer & Co. is confident that its previous production estimates...
by - October 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