You Agree? Fiat CEO Says Consumers No Longer Buy A Car Based On DNA Of The Brand

Fiat chief Sergio Marchionne spoke a lot of sense in his entertaining and insightful press conference at the Geneva motor show. He outlined how European car production problems should be addressed and spoke of potential future tie-ups in a wide variety of areas with other brands.

But perhaps most interesting of all was his reasoning on just how much car could share with one another to save costs. He believes consumers and car makers need to lose their “not invented here” mindset when it developing cars, and therefore more alliances “are needed so there’s no corporate waste”.

“A four-cylinder diesel engine is a four-cylinder diesel engine to a consumer,” he said. “No-one cares. No-one buys a car based on powertrains. Simplification of powertrains across brands is viable. We’re all smart enough to know this, and to argue that you need to do your own is stupid.



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xjprou - 3/8/2012 3:14:30 PM

+1 Boost

Exactly Marchionne!!!
The worst part is that employees like you whose DNA doesn't have to do anything with the brands they work as well, is what's causing lots of problems in today's auto industry.
I'm afraid that Fiat & Chrysler future is darker than ever!!!

dumpsty - 3/11/2012 12:27:57 PM

+1 Boost

Marchionne is partially right. Most consumers don't really care about where engine is made or where the stereo components are manufactured, but they do look at the overall character of brands that interest them. But if you walk into a BMW dealership looking for a 550xi, chances are you probably won't settle for Hyundai Genesis or Lincoln MKS.

LexSucks - 3/8/2012 3:51:18 PM

-3 Boost

Customers no longer purchase cars based on the DNA of the brand? He must not be an american where fanboy'ism runs wild.

PLAY - 3/8/2012 5:52:24 PM

+2 Boost

Not in the majority of consumers. Most car shoppers are looking for a good deal. Sharing powertrains can force down price and increase sales.

Boomslui - 3/9/2012 5:44:34 AM

+2 Boost

he really shows he is not a car guy, has no clue about branding, especially Italian cars are emotion and if that is true, what he says then he demolishes his own company, because what else than emotion and history does sell Fiat 500, Alfa and Ferrari. All others that are run as badges are too indistinguishable to be a success. His strategy with Chrysler/Lancia is going to be a disaster and his delay with Alfa the same.

ThierryHenry14 - 3/9/2012 9:41:51 AM

+1 Boost

I understand what he is trying to say, and both agree and disagree...

As a general rule, the majority of the consumers are not looking for the DNA of a brand, but that is of course, with brands that are mass produced and targeted towards the consumers who are purchasing the vehicle as a mode of transportation.

There are others who obviously purchase vehicles based solely on badge, history, DNA, and image (Myself Included). So as a CEO (Business Man), of course he is more concerned about cutting cost because Fiat, in general does not target those who are looking to purchase based on DNA, history, and symbol of the brand. But say that to Porsche, Ferrari, or any other high end brand consumer, then you would be a fool.

mini22 - 3/9/2012 11:49:46 PM

+1 Boost

I'm not sure I completely agree with him. However I partially agree with him.What I agree with is the sharing of components to cut costs when ever possible. However car brans like Mercedes, BMW, and Audi do have their own DNA. They drive and feel differently. Same goes for Porsche. Driving a Porsche feels different then driving a Corvette or a Ferrari. I think Marchionne is talking this way because he is trying to cut costs out of Fiat in car production.