Marchionne Drops A Bombshell By Acknowledging Jeep And Ram Could Be Spun Off

With one word on Wednesday, Fiat Chrysler Automobiles CEO Sergio Marchionne dropped a bombshell.

Marchionne was asked whether the automaker's Jeep and Ram brands, either together or separately, could be spun off into a separate, standalone company.

"Yes," Marchionne said.

The idea is likely jarring to workers and many others but is not out of the question for Marchionne, the mercurial CEO of the Italian-American automaker who has engineered a number of mergers, acquisitions and spin-offs.

MDarringer - 4/28/2017 4:23:01 PM

+1 Boost

Translation, he wants to sell the part of FCA that has value.

malba2367 - 4/28/2017 4:30:09 PM

+2 Boost

This is the most profitable track for the Agnelli family who controls Fiat...big problem is that special interests such as the labor unions will convince politicians to block this "bust-out" of FCA. If Jeep and Ram are sold or spun off, FCA can not remain in business in its current form.

MDarringer - 4/28/2017 5:04:26 PM

+1 Boost

Jeep and Ram are sold off to plow money into Fiat/Alfa Romeo/Maserati that is then requited with Ferrari. The Dodge and Chrysler brands names are sold to Chinese companies wanting to break into the market in the USA.

xjug1987a - 4/28/2017 5:13:22 PM

0 Boost

And VW buys Jeep & Ram...

MDarringer - 4/28/2017 5:17:20 PM

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Or Hyundai/Kia

or Geely

Vette71 - 4/28/2017 6:51:16 PM

-2 Boost

It's Marchionne!! His credibility is less than Musk.

MDarringer - 4/28/2017 10:26:02 PM

+1 Boost

So true, but FCA is much nearer implosion than Tesla.

Vette71 - 4/29/2017 9:50:35 AM

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What about the "Jeep curse"? Jeep is an iconic and successful brand. But history shows that whoever owns it always gets into financial trouble. Kaiser, AMC, now Fiat. GM will stay away from it because Mary is focused on streamlining brands and growing profits, and won't risk the hassle of integrating an acquisition; i.e. avoid the curse. VW, Hyundai, et.al.?

MDarringer - 4/29/2017 10:18:55 AM

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But NOT because of Jeep. Jeep always performs well for its owner, but every owner has learned that Jeep cannot save them from their own business ineptitude.

Vette71 - 4/29/2017 1:06:43 PM

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Agreed. Jeep alone cannot carry a lot of sick brands surrounding it, especially if it starts to get used as a cash cow to aid weaker siblings.

skytop - 4/29/2017 3:08:48 PM

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Don't laugh. The South Koreans are wildly successful. One walk in any parking lots will show about half the cars/SUV's are either Hyundai or Kia.
They have the deep pockets to purchase the iconic RAM and Jeep brands and bring them into the modern era.

MDarringer - 4/29/2017 5:03:01 PM

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More importantly those are two market segments where they are NOT well represented.