FCA Master Plan Is To Focus On Producing Profitable Models And Outsource The Rest

FCA Master Plan Is To Focus On Producing Profitable Models And Outsource The Rest
 Fiat Chrysler Automobiles' brave new strategy -- basically to get out of the commodity car business and focus on its most profitable products -- may be the best chance for FCA to overcome a perilous lack of resources and find the merger partner it craves.

It's also loaded with risk. Oil prices could start climbing again, or Americans might fall out of love with trucks.

But CEO Sergio Marchionne has few attractive alternatives to the revised strategy he unveiled Wednesday, Jan. 27. FCA is the only major automaker with net debt at what is widely viewed as the top of the business cycle.


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PUGPROUDPUGPROUD - 2/1/2016 10:36:41 AM
+1 Boost
Desperate moves for desperate situation. Cannot help feeling there is a better option for playing the hand he dealt himself.


Vette71Vette71 - 2/1/2016 11:38:00 AM
+2 Boost
So it is back to Chrysler's core strengths; Jeep, Dodge Trucks and Dodge Minivans. All "trucks". Basically he is saying Fiat has added little value beyond the platform for the Cherokee and the Renegade. His many strategies have not worked. The question is will that combo have enough cash flow to fund the platforms etc. to keep those fresh and competitive?


carsnyccarsnyc - 2/1/2016 12:16:21 PM
+2 Boost
Jeep is their most prized item. A total cash cow
Trucks are all ok
Dodge is a little less than ok
Minivan, I'm not so sure anymore. I'd buy a Kia instead.
300 is now ancient and customers got tired thus they are moving on
200 is just a rental fleet car
Fiat will never grow more than it has.
Alfa will sell in even lower numbers


Vette71Vette71 - 2/1/2016 12:29:58 PM
+1 Boost
Agree on current minivans but new Pacifica changes the picture. Hybrid, AWD, coupled with FCA's Uconnect and great all speed automatic cruise control/braking put it way ahead of the asian contingent. Once you have that FCA combination it is hard to go back to vehicles that do not have it.


dumpstydumpsty - 2/3/2016 10:22:57 AM
+1 Boost
Either Chrysler or Dodge needs to have a full lineup of available vehicles.

Large BoF truck
Midsize Truck
Midsize CUV/performance
Small CUV
Large Car/Entry-level luxury/AWD/RWD/performance
Midsize Car - FWD
Midsize Car - RWD/sporty/sedan/coupe/performance
Small Car/Wagon/Hatch/performance
Compact Car/Wagon/Hatch

Then FCA can decide which of those can be used in their more specialized brands.

Jeep
Large SUV
Midsize SUV/CUV/performance
Midsize Truck
Small CUV/Wagon/performance

Dodge
Large Truck (RAM)/commercial
Midsize Truck/CUV/performance
Small CUV
Large Car/AWD/RWD/performance
Midsize Car/wagon - FWD
Midsize Car - RWD/sporty/sedan/coupe/performance
Small Wagon/Hatch/performance
Compact Car/Wagon/Hatch


MDarringerMDarringer - 2/1/2016 7:06:48 PM
0 Boost
Hugging Toyota which has Mazda, Subaru, and BMW in its wheelhouse has been suggested elsewhere. Yes brands would die, but the volume of Ram and Jeep would be worth it for Toyota. Maserati could be like Aston Martin and leverage BMW parts.

Hyundai/Kia also makes sense. If the Genesis had Maserati clothes and the name people would rave because the Genesis is an excellent vehicle.


dumpstydumpsty - 2/3/2016 10:11:56 AM
+1 Boost
lol...this is getting hilarious. Marchionne is operating the Chrysler Group like some garage operation out in southern Cali. They have descent catalog but they only put out a few vehicles from the listings.

This new strategy only shows that Fiat had no clue how to build & sell small & midsize vehicles in the US. This will be "easy money" for anybody willing to build these cars for FCA. They'll be laughing at FCA the whole time b/c every automaker knows Chrysler/Dodge/Jeep SHOULD be able to build their own small & midsize vehicles...in the US & make descent profits. And this plan may fail b/c these cars will have to be priced a bit higher (than they'll actually be worth) so FCA can earn a profit. So they'll have a expensive small/mid-size offerings that are basically rehashes of some other brand's competing cars. Oh, the consumers & reviewers are goinna love this.

Chrysler/Dodge issue is that they don't have enough products to sell. So the brands are constantly trying to compete on uneven footing in just about every vehicle category. How are you supposed to compete if you aren't selling anything? Like having a large warehouse but no products on the shelves. Why would consumers even walk in the door?





dumpstydumpsty - 2/3/2016 11:26:14 AM
+1 Boost
And just like MINI, Fiat will need 4-5 bigger & more relevant offerings in the US to be remotely viable in a few years. Hopefully when the "partner" is revealed all of this will make sense.


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