FCA to bet future on Jeep and Maserati
Jeep and RAM brand to go global while Maserati could combine with Alfa, says latest reportSergio Marchionne has laid the groundwork to radically shake-up Fiat Chrysler Automobiles (FCA) in a bid to boost profitability and the company's worth following a string of failed mergers.
According to a new report from Bloomberg, in his last meeting with key shareholders ahead of him stepping down as CEO, Marchionne will unveil radical plans to reshape FCA that will see the car-making giant bank its future on Jeep SUVs and Maserati.
Speaking to insiders close to the brand in the meeting held at FCA's Balocco test track in Italy, the 65-year-old CEO will announce his plans for restructuring soon.
Those plans will involve rolling out both Jeep and RAM globally -- which could lead to factory right-hand drive pick-up production -- and combining Alfa Romeo and Maserati into a single division in Fiat's financial reporting.
Dragging FCA from bankruptcy to profit, today FCA is worth 10 times what it was when Marchionne took control 14 years ago.
The outspoken FCA chief's new five-year plan reportedly includes plans to double Jeep sales by 2022. Investors are likely to celebrate the plans since the US SUV brand currently generates more than 70 per cent of FCA profits.
Asia, Brazil and Europe will be key markets and Marchionne is also primed to announce hybrid and plug-in hybrid versions of many Jeep models with sales beginning next year.
According to Bloomberg, Marchionne is confident of doubling the group's profit in just five years on Jeep sales alone.
As well as winning the hearts and minds of investors, the FCA CEO is also set to attract intense criticism within Italy as Marchionne is expected to announce plans to effectively abandon mass-market cars.
Fiat, for example, will have its model line-up culled to just the 500 micro-car family and the Panda.
Sales of Fiat cars will also be limited to Europe, Brazil and emerging markets, with an expected withdrawal from the US and even China, where the brand has failed to make an impact.
Insiders suggest that FCA's western European factories will then be retooled for premium cars, like Maserati and Alfa Romeo.
According to the report, Marchionne's successor will not be announced at the meeting but later in April 2019, suggesting it will be an internal candidate.
Other rumours suggest US brand Chrysler could be a victim of the restructuring.
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