Fiat Shares Tumble As Wall Street Questions Growth Plans

Fiat-Chrysler CEO Sergio Marchionne has an ambitious five-year plan to more than double profit and increase annual deliveries 61 percent. So far, investors aren’t buying it.

Fiat shares fell as much as 9 percent, the most in 2 1/2 years, on skepticism that the CEO will be able to meet the 2018 targets he laid out during an investor presentation Tuesday.

The automaker’s weaker-than-estimated first-quarter results also cast doubt over the 55 billion euro ($77 billion) plan to expand Alfa Romeo, Maserati and Jeep into nameplates that can attract customers from Beijing to Berlin to Boston. In doing so, Marchionne is seeking to forge an automaker that’s big enough to challenge General Motors Co. and Volkswagen AG.

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MattDarringer - 5/7/2014 8:01:36 PM

-2 Boost

FCA has an all new 5 year plan every 10 minutes. Fiat is killing Chrysler and Marchionne is a moron.

skytop - 5/8/2014 5:27:37 PM

+1 Boost

But Fiat says they will double their sales withing 3 years.

mini22 - 5/9/2014 12:15:22 AM

+1 Boost

Based on Marchionne's track record with Chrysler I would not bet against him. In 2009 he predicted that Chrysler would again be profitable and sell competitive vehicles in all segments of the market. He has had a few misses(Dodge Dart) but overall he has been pretty much on the mark. Since a lot of the new cars coming are going to be exported out of Italy I think there is a good chance of success.He does need to prove himself with Alfa, however. Specifically this is what made some investors skeptical. There have been so many plans for Alfa that have not come to be that it is a bit hard to believe. However with the complete acquisition of Chrysler Fiat has some leverage to commit money for R and D that was not there previously. Also Maserati sales have dramatically improved. With the Alfieri and Levante Maserati should have some decent sales within the next few yrs. With the nourishing of Jeep global sales should explode.