Sergio Marchionne says US incentive spending is not out of control

Article by Christian A., on January 15, 2015

Sergio Marchionne, chief executive of Fiat Chrysler Automobiles NV as well as FCA US, believed that incentive spending in the United States has not gotten out of control. He said that he believed that the auto industry as a whole is healthy and there is no need to sacrifice profits just to gain market share – just like before the financial collapse of Chrysler and General Motors in 2009.

He noted that there are two signs that indicate the state of health of the industry -- incentives and inventory levels. “We’re miles away from 2009,” he quipped. Marchionne also said that that the auto industry may have, on some instances, over-reacted on recalls. He said that in a lot of ways, the “all-encompassing issue to the airbag issue may have been overkill.”

FCA’s top honcho said the National Highway Traffic Safety Administration and the auto industry will be able to find an equilibrium over the next 12 to 18 months. He, however, said that that the costs incurred for the recalls will be ultimately passed on to consumers.

In late 2014, FCA expanded its regional recall of some vehicles fitted with Takata airbags to a nationwide one, despite claiming that its own testing and the reported incidents only discovered issues in areas of high, sustained relative humidity.

On the other hand, Marchionne said during his press conference at the Detroit auto show that the car will take “a very hard look” on whether there is need to shift the production of the Wrangler away from its Toledo site because the plant’s workers built over half of the record one million Jeeps that FCA sold globally in 2014.

“It’s something that cannot be ignored,” Marchionne remarked. He even called the Jeep sales record and the record output in Toledo a “huge accomplishments” for the carmaker and its employees. Marchionne confirmed plans to meet with Ohio Gov. John Kasich and Toledo Mayor D. Michael Collins over the future of Wrangler output in Toledo. He, however, noted the money issue since keeping Wrangler production in Toledo requires a large investment.

If you liked the article, share on:

Comments

Recommended

Mitsubishi finally introduces the new Xpander MPV at the 2017 Indonesia International Auto Show in Jakarta Indonesia. Replacing the previous Expander, the new multipurpose vehicle will be mostly sold at...
by - August 16, 2017
Infiniti revealed its retro Prototype 9 race car before its slated debut at 2017 Pebble Beach Concours d'Elegance next week. In a recent press release, the company not only disclosed...
by - August 16, 2017
In the United States, not many automakers offer crossovers with a diesel engine option, but Chevrolet does, with their 2018 Equinox. Those who opt for this engine will get some...
by - August 16, 2017
Here are some things that potential buyers of the Ford F-150 and Ford Expedition could look forward to for the 2018 model year. The 2018 models of the F-150 pickup...
by - August 15, 2017
We first saw the McLaren 720S earlier this year when it made its debut at the Geneva Motor Show, and we all agree that it is a beautiful car. But...
by - August 15, 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