Investor Urges FCA To Sell European Brands, Spin Off Alfa And Maserati - Concentrate On US Market

Investor Urges FCA To Sell European Brands, Spin Off Alfa And Maserati - Concentrate On US Market
Fiat Chrysler Automobile’s board is being urged by a small investor to consider selling its European business and eventually spin off the Maserati and Alfa Romeo divisions to focus on its profitable U.S. brands.

ADW Capital Management, a long-time shareholder, is pressing these and other proposals to lift the automaker's shares and "eliminate its turnaround valuation," it said in a letter sent to the board on Thursday.


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PUGPROUDPUGPROUD - 11/9/2018 10:52:07 AM
+1 Boost
"What once was will be again"...Ecclesiastes 1:9 NIV


Vette71Vette71 - 11/9/2018 1:36:30 PM
0 Boost
The idea of GM buying JeepRam is way off the mark. The Mopar folks have done some creative things over time from minivans, Cherokees, the LH cars, etc. The recent success of JeepRam shows that the drive is still there, if they are left alone. Anything GM touches will be crushed by the GM culture and bean counters. JR needs a parent with some good platforms to leverage and who will leave JR alone to get creative.


scenicbyway12scenicbyway12 - 11/9/2018 2:01:27 PM
+2 Boost
I've got 12 bucks cash in my wallet, will that do it?


MDarringerMDarringer - 11/9/2018 8:02:07 PM
+1 Boost
Indeed. The only other viable brand is Dodge but that would need a LOT of investment. Chrysler is virtually dead. Alfa Romeo has failed miserably to meet its worldwide projections and has missed by a longshot. Maserati is just a bunch of old Chryslers showing their age. Fiat is viable in italy and in some Third World countries, but marginally so.


FoncoolFoncool - 11/9/2018 3:16:07 PM
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Currently what is taking place is that Maserati and Alfa are separating from each other. Alfa is going back to being part of the CDJ and Maserati will be independent again. In Europe mast Alfa dealerships are dualed with Jeep not Maserati, could be the direction they are heading in the USA.


malba2367malba2367 - 11/9/2018 3:30:13 PM
+2 Boost
Jeep and Alfa together is a smart move...both are storied brands with a lot of potential. They should move Jeep upmarket a little and sell the cheaper crossovers as dodge/fiat. Unfortunately spinning off fiat is not an option because nobody will buy it and they need the cash flow from Fiat to pay for all of its legacy costs.



FoncoolFoncool - 11/9/2018 3:47:04 PM
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Fiat does fine in Europe, production is being moved out of Italy to lower labor cost Eastern EU countries. The Italian plants will be producing upscale more profitable cars.


MDarringerMDarringer - 11/9/2018 6:34:45 PM
+1 Boost
Dumping Fiat, Alfa Romeo and Maserati and letting Chrysler move forward with a better partner is desperately needed.

Alfa has failed MISERABLY to meet the rosy sales projections. If someone will buy that turd, sell it.

Hyundai would make a good partner especially for Dodge and Chrysler. Geely could be waiting in the wings. Neither would want the Italian garbage that FCA is wearing like a boat anchor.

Let's get the sale going.


FoncoolFoncool - 11/9/2018 8:21:26 PM
+1 Boost
Isn’t going to happen, The current powers that be in Auburn Hills are on top of the world right now flush with cash from the sale of Magneti Marelli. They believe they don’t need a partner and feel they are back ready to challenge GM & Ford.

They plan on keeping Alfa and using the Giorgio platform to rebuild the product line. Maserati will become semi or completely autonomous again, and will probably move closer to Ferrari.

Hyundai would be a terrible partner as the understand upscale even less than Auburn Hills, their Genesis line is completely unsellable, nailed to the showroom floors.




MDarringerMDarringer - 11/9/2018 10:59:23 PM
+1 Boost
You grossly overestimate their windfall. The amount they got from the sale might design one or two new cars at most.

Hyundai has everything they need to rebuild Dodge and Chrysler.

Pitch Alfa Romeo and Maserati. They are dead for sales here and around the world. The gamble of big sales failed to materialize.


CANADIANCOMMENTSCANADIANCOMMENTS - 11/9/2018 9:31:50 PM
+2 Boost
Ferrari, Alfa Romeo and Maserati have value and history. Fiat and Lancia need to disappear. Alfa is the BMW of the group and should be priced accordingly. Maserati is the 4 door Ferrari brand and should compete price wise with Bentley. Fewer lines, higher margins, more profit per unit and a healthier European group over all. Chrysler is dead and Jeep, Dodge and RAM can carry on. $7.1B USD from the Magneti Marelli sale should help out a lot.


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