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112 Posts
Discussion Starter · #1 ·
Fiat seems to be gaining momentum; 44% stock price jump since Jan 1 -- not bad.0:)

Fiat Chrysler bets on Jeep, Alfa revamp to go global | Reuters

Fiat Chrysler is betting on a breakneck expansion of its upmarket Alfa Romeo, Jeep and Maserati brands to transform itself into a global car making powerhouse within five years.

Fiat shares have risen 44 percent, outpacing a 5.4 percent gain for the broader sector .SXAP, since the Italian company announced a January 1 deal to take full control of Chrysler and create the world's seventh-biggest carmaker.

Marchionne is seeking to emulate rivals such as Volkswagen by building global brands and a strong position in the rapidly expanding and high-margin market for premium cars, particularly in Asia, where the group lags behind its main rivals.

The company forecast Alfa Romeo would multiply sales more than fivefold to 400,000 vehicles in 2018 as it invested 5 billion euros ($7 billion) to add eight new models and ramp up production.

Maserati sales would rise at a similar rate to 75,000 on the back of more than 2 billion euros of capital spending, while Jeep would double output to 1.9 million vehicles in 2018, almost half assembled at six new sites outside the United States.

112 Posts
Discussion Starter · #4 ·
Quo Vadis Fiat? -- No Mention of Maserati Though

Marchionne adds a little vision to Fiat Chrysler's muscle - May. 7, 2014

Whatever else you say about Fiat's Sergio Marchionne -- and he gets called lots of names in Detroit -- he does one thing few other CEOs in any industry are willing to do: He personally presents a five-year plan for his company with clearly measured goals, and he holds himself accountable for meeting those goals.

Focus of Fiat's 5 year plan:
- transform the Chrysler brand into a full-line contender
- the real muscle in Fiat Chrysler belongs to Jeep
- the Ram pickup

(remember Marlin Brando's famous line in On the Waterfront: "I coulda' been a contender.")

One little-noticed but important change in the corporate structure of the new company that Marchionne engineered is including Ferrari, which was not part of the old Fiat Automotive even though it was owned by Fiat Group. Ferrari is enormously profitable and limits sales to 7,000 cars a year to maintain exclusivity.

112 Posts
Discussion Starter · #5 ·
More On FCA's Future Direction

The following investor day slide show provides a thorough explanation of FCA's future direction:

- A common vehicle architecture (CVA) provides a broad range of products
- Common systems/components & unique modules deliver a range of products
- More than 70% of the variable cost for a new model can be leveraged across other models and much across multiple vehicle architectures
- Benefits of CVA:
• Speed to market
• Improved quality
• Manufacturing flexibility
• Common assembly plant process
and corresponding reduction in
capital expense
• ER&D expense reduction

Global standardization:
• A coordinated strategy for flexible Global Architectures which use standardized components and modules
• Proliferating vehicles from Global Architectures to maximize product functionality and differentiation, allowing us to meet unique customer needs and unique brand DNA
• Reducing the number of standard module/component families 54% by 2018
• Putting the right component families on the shelf to optimize quality, cost, weight and performance with improved speed to market
• Significant reductions in variable cost and investment
• Partnering with global, motivated and capable suppliers enabling the optimized industrialization of these components
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