Maserati Ghibli Forum banner
1 - 8 of 8 Posts

·
Administrator
Joined
·
2,521 Posts
It is very ambitious and as you indicate carry's very high risk should the investment not deliver the required return. I suspect they are counting on new cash infusion through sale of stock.

There are pros and cons with this growth.

The positives:
  • The best outcome to me would be an expanded cost effective, quality network of dealers, range of models and support for our cars.
  • Improved cashflow to invest in new technologies and/or performance enhancements (like better sound systems).

The downside:
  • Erosion of Maserati brand equity, product and/or service quality and a supply chain not designed to accommodate all this growth.

I wish them them the best.

Question now is to buy the stock or not???>:D
 

·
Registered
Joined
·
95 Posts
Ferrari and Maserati are doing well, however they are just a very small part of Fiat's business. Fiat is having quite a lot of problems, their cars aren't selling well and they are also investing a ton of money in Alfa Romeo and Maserati. It's going to take many many years if all goes well to see any return on investments. Fiat's boss was complaining of overproduction recently, and there was a rumor he was asking for EU money grants. Not sure how Chrysler is doing in the USA but the only model that is successful in Europe is the new Grand Cherokee. I know they sell a lot of Dodge trucks over there but that's about it.
 

·
Registered
Joined
·
112 Posts
I'm on board with what he's doing and really hope it succeeds, but just a little worried that it may turn out he's a bad juggler and all the plates come crashing down.
Fiat is an interesting company and somehow I think they will be able to pull it off. (That is to say, I think they will be a contenda:cool:)
 

·
Registered
Joined
·
312 Posts

·
Registered
Joined
·
159 Posts
The Chrysler/Jeep move was good for Fiat as it gave them cashflow from the US to counteract the soft European market.

Believe that the Maserati marque is already turning in good numbers in terms of sales and revenue. Ferrari always have and are posting YoY improvements. Alfa does need to be turned around so hopefully the 4C/8C models put back the allure in the brand. Fiat itself needs to move beyond the 500. They do recognise the weak areas and have plans in place to address them, but the risk is in the execution and whether or not the wider market sees things the same way they do.
 

·
Registered
Joined
·
312 Posts
Question now is to buy the stock or not???>:D
Apparently the market doesn't think Segio can pull this plan off...stock dropped 9% yesterday. Although that may prove a buying oppurtuinity.
 

·
Registered
Joined
·
95 Posts
The thing is, Fiat is not up to par with other European brands on reliability, build quality etc. Also even if their newer models are a lot better than before, it takes time for people to change their perceptions. This is a long term plan.

Other than the 500 I don't really see that many Fiats on the road. They don't have a large model line like the Germans/French do.

Alfa is a joke, currently only selling 3 models of which one is of limited production, the 4C. Only 2 mainstream cars in their lineup, Mito and Giulia. They need to expand their range of models dramatically. Alfa has great potential as there are many Alfa fans, and many of their past cars have achieved cult status in Europe, not sure if they have a following in the US. That's a great basis to build on, but they have to go back to their roots of awesome handling RWD cars. I owned a 2006 Alfa 159, an incredibly beautiful car to look at, and drove pretty well for a FWD car, but had a ton of issues with it, at one point I thought it was going to catch fire, as there was smoke coming out of the engine compartment. That stuff just doesn't happen to German cars. It turned out to be a minor issue but it was scary as ****! That said I loved the car and did about 100 k km in it, and the later 2008-2010 cars were better built and more reliable. I still turn my head when I see one on the road.

I also owned a 2002 Alfa 166, my first car. Great car to drive, and beautiful, but I was on first name basis with the people at their service department. In this day and age their customers are not willing to overlook such things anymore.
 
1 - 8 of 8 Posts
Top