Marchionne says Jeep, Ram focus of 5-year FCA plan
Chrysler still ‘relevant’ but spotlight will shift to Jeep, Ram, Maserati, Alfa Romeo
Jeep, Ram, Maserati and Alfa Romeo vehicles will be the focus of Fiat Chrysler Automobiles for the next five years, says Sergio Marchionne.
The CEO and chairman of FCA addressed investors on Friday in Balocco, Italy — his last major presentation before his expected retirement in 2019. According to the Detroit Free Press, company executives described aggressive growth for the Jeep and Ram brands in other presentations during FCA’s Capital Markets Day.
“At FCA, we’ve learned to live with uncertainty and we are prepared to face any challenge,” Marchionne said in his presentation. Regarding media speculation that there would be discussion of ending the Chrysler brand, Marchionne dismissed it as “talking nonsense.”
“This presentation’s focus is on global brands,” Marchionne said, as reported by the Detroit Free Press. “I think Chrysler is going to continue to be relevant in the U.S. Don’t expect it to be a global brand.”
The company’s plan shows that the Chrysler, Dodge and Fiat brands will receive only 25 per cent of FCA’s capital investments over the next five years.
But Chrysler was also referenced as the supplier of Pacifica hybrid minivans to self-driving auto technology company Waymo. On Thursday, FCA announced a deal with Waymo that will send 62,000 more Pacificas to join Waymo’s autonomous vehicle fleet.
Meanwhile, FCA’s new Jeep agenda calls for two launches every year in an effort to make Jeep the dominant utility vehicle brand worldwide.
In North America alone, FCA hopes to increase Jeep manufacturing by 500,000.
The aim is for one in every 12 utility vehicles sold around the globe to be a Jeep by the year 2022 — with an ultimate goal of that ratio reaching one in five. Mike Manley, FCA’s head of Jeep and Ram, said the figure nine years ago was one in 23. There are also plans to launch 10 hybrid models and four fully electric models under the Jeep brand by 2022. FCA’s Ram plans call for one million Ram vehicle sales around the world by 2022. This year, sales are forecasted at 770,000. The goal is to raise Ram’s current No. 3 spot in the North American market to No. 2. Automotive industry analyst and consultant Dennis DesRosiers said the heavy future investment in Jeep and Ram doesn’t mean FCA’s other brands are in jeopardy. “(Marchionne) is not saying we’re no longer going to invest in Fiat, Chrysler and Dodge. He’s saying we don’t need to do much there, because they are already well-positioned,” DesRosiers said.
“I don’t see where’s the controversy. Certainly, I do not see a threat to the Windsors of the world.”
DesRosiers said he considers Marchionne’s focus on global brands to be “exactly what (FCA) needs to do.”
“In five years, the auto industry is going to be radically different from today. He’s saying this company needs to get its product programs, management and structures in place for where the auto sector will be by that time: globalization, and what’s referred to as ‘ACES’ — autonomous, connected, electric and shared.” “Just like Wayne Gretzky said, you skate to where the puck is going to be.”
Regarding the scope of Marchionne’s career with FCA, DesRosiers had praise. “He kept (Chrysler) from going bankrupt ... Without Sergio, we wouldn’t have Chrysler today.”
I don’t see where’s the controversy. Certainly, do not see a threat to the Windsors of the world.