If YOU Were In Charge Of FCA, What Brands Would You Spinoff, Sell or Keep?

So, a Chinese automobile manufacturer, Great Wall Motors, would totally love it if Fiat Chrysler Automobiles flung the Jeep brand its way. Who wouldn’t? In the mid-1980s, Jeep was the ruby in AMC’s crown, and its new (and highly profitable) Cherokee line had Chrysler Corporation chairman Lee Iacocca salivating at the thought of where he could take the brand if given the chance.

Three decades later and Jeep is FCA’s biggest asset, not just due to current volume, but future volume in untapped markets. CEO Sergio Marchionne wants people the world over to drop what they’re doing and buy a Jeep. Having global Jeep models that are popular in numerous regions would act as a hedge against trouble in, say, North America, where its Chrysler, Dodge and Fiat brands aren’t exactly setting sales charts on fire.

qwertyfla - 8/25/2017 2:46:58 PM

+2 Boost

I'd spin off Sergio...His "brand" is bad for business!

senft - 8/25/2017 3:54:23 PM

+2 Boost

Wait! FCA can afford to have any choice?

malba2367 - 8/25/2017 3:59:33 PM

+3 Boost

Give Fiat to the Italian government and let them deal with it...then there will be plenty of buyers.

MDarringer - 8/25/2017 6:44:13 PM

0 Boost

On that thought, I'd say give Fiat/Alfa-Romeo/Maserati to the Italian government and sell Chrysler/Dodge/Ram/Jeep to the Chinese.

TomM - 8/25/2017 5:21:55 PM

0 Boost

FCA does not have anything to offer other than Jeep right now.

In Europe - its Fiat division is now an also ran - sells well only really in Italy - and the offerings all need new platforms - new engines - and new styling.

Chrysler is gone except minivans which are basically North America sales. Dodge also has almost Nothing as well.

WHile Ram trucks are selling well- Both Ford and GM are moving ahead with lighter weights and better efficiency. Unless they come up with a new Platform for Ram - it will sputter out as well - as it did before.

THe problem is - FCA is already 1 generation behind with most of its products - and maybe more than that for many of them. EVEN Jeep cannot keep its sales up with some of the marginal product they have.

MDarringer - 8/25/2017 6:35:51 PM

+1 Boost

The only things worth spinning off are Jeep and Ram, but if they do that, all they would have left are the loser/money-pit brands.

I would...
Keep Maserati but lower prices
Kill Alfa-Romeo and make the Stelvio a Maserati.
Kill Fiat in USA
Kill Chrysler
Find a Chinese partner from which to source new products for Dodge
Raname Ram as Dodge
Keep Jeep

TomM - 8/25/2017 7:15:59 PM

+1 Boost

Frankly - I agree with some of the stuff- although I would kill Dodge and keep Chrysler (THe Mini-van still sells and as a Chrysler it can be upscale too)

However - the Alfa - Maserati thing is something else to think about.
Frankly - I would move Maserati back into the Ferrari/Porsche area - a true exotic - and move the sedans back into Alfa and Alfa prices.

valhallakey - 8/26/2017 6:31:57 PM

+2 Boost

Interesting thoughts both Matt/TomM. I was thinking to merge Alfa and Maserati with Maserati branding on sedans and Alfa branding on the sports cars. I would not kill Chrysler or Dodge, however I would merge them and then resurrect the storied names of both and simply name the cars appropriately. Fiat - probably kill it, or just rebrand Dodge/Chrysler products in Italy. Obviously keep Jeep and expand the market.

CANADIANCOMMENTS - 8/25/2017 7:52:09 PM

+3 Boost

I would do the following

Dodge/Ram/Jeep/Chrysler are sold as a unit to the highest bidder
Ferrari buys Alfa-Romeo and Maserati + Parts business
Fiat is sold to Chinese with the Italian Gov't taking a stake or wound down and the plants are sold to interested parties.

mre30 - 8/25/2017 9:03:50 PM

0 Boost

This whole exercise is like rearranging the deck chairs on the Titanic. FCA cannot afford to sell Jeep (cash flow would vaporize) and nothing else has any value.

Next automotive crisis - US Govt does GM-style bankruptcy and loan guarantees to keep Jeep American (or else Chinese buy it) and the rest of it gets puked out somewhere or else socialized by an European country.

qwertyfla - 8/26/2017 9:22:18 PM

0 Boost

Why the hell was Chrysler sold er "gifted" to FIAT in the first place and not to Magna Int'l who know how to make parts and assemble cars??? Aside from mine -this was the dumbest forced marriage ever.

MDarringer - 8/27/2017 9:07:03 AM

0 Boost

When you elect a man for the color of his skin, but not the content of his character, you get what you paid for. Obama bin Barack took the first deal he got for the photo opportunity. Given his desire to destroy the American middle class, giving Chrysler to Fiat was a genius move.

CANADIANCOMMENTS - 8/27/2017 10:35:00 PM

+1 Boost

QEW- Hard to say really. Magna would have been a great partner. With all their debt, union pension obligations and plants, I don't think there were too many (if any) other partners. The deal seems to have been take it, but instead of cash add in IP and small engine/small car making expertise and technology. Funny because the focus since then seems to have been Hellcats, Demons, SUV's and Jeeps. And while we can all point fingers at "Barry", he did serve 2 terms with healthy wins. I bet he is missed now by a large part of America, but not the 30%. Boring, intelligent, calm and predictable is a good thing in a chief executive. Let the negative voting begin! :)