Fiat Chrysler Automobiles signaled that it will have more cash on hand than debt on its books by the end of this month for the first time since the merger that created it in 2009 during a presented in Balocco, Italy.
CEO Sergio Marchionne, in his final year atop the automaker, revealed a blue necktie, a signal of achieving the company’s long-term financial goals, improving its margins, and generating big global profits.
Among its product plans, the company focused on four brands: Jeep, Ram, Alfa Romeo and Maserati, saying it would electrify much of its lineup, offering new battery electrics, and move into new segments with new vehicles like a midsize Ram pickup, a three-row Grand Cherokee, and a Maserati midsize crossover.
However, the long-term fates of mass-market brands Dodge, Fiat and Chrysler remained unresolved, with no specific product presentations offered. A company spokeswoman said Thursday that those brands would not be fully eliminated.
-- Automotive News staff
7:34 a.m. ET - Alfa's global plan lowers volume expectations
Fiat Chrysler presented its latest ambitious plan for Alfa Romeo -- a plan that looks similar to one presented in 2014, albeit with a global volume of 400,000 instead of 700,000.
New Alfa Romeo head Tim Kuniskis said the brand would reintroduce the 8C luxury sedan, eliminate the small and aging MiTo in the subcompact segment, refresh the Giulia and Stelvio and add a larger crossover to its lineup by 2022. Kuniskis also promised to bring back the GTV on a new sports car, and that Alfa would add stretched wheelbase versions of most vehicles to its lineup.
“Not surprisingly, much of this five-year plan is very ambitious, as have been FCA plans of the past,” said KBB.com Senior Analyst Michelle Krebs.
If analysts and journalists gathered to hear FCA’s latest business plan were skeptical, they had every right to be. Alfa Romeo’s last five-year plan in 2014 predicted global volumes of 700,000 and eight new vehicles for the resurrected brand by 2018. Those vehicles -- and global sales rates -- have not materialized.
-- Larry Vellequette
6:18 a.m. ET - Maserati plans Tesla fighter sports coupe; 32 more dealerships slated in North America
Maserati plans to add 32 dealerships in North America by 2022, and will aim squarely at Tesla with a new high-performance plug-in electric hybrid sport coupe based on the Alfieri concept, new brand head Tim Kuniskis said.
The brand will move from 153 to 185 dealerships in North America by 2022 as part of an ambitious plan to double worldwide volume in that timeframe with a new lineup, he said.
The all-wheel-drive EV will come in a droptop model as well and will feature an aluminum frame for weight savings, with a top speed above 186 mph. It will replace the GranTurismo in Maserati’s lineup.
Maserati will also launch a new midsize crossover plug-in hybrid by 2022, slotting below the Levante, Kuniskis said. Kuniskis, the former head of Dodge, said the new crossover would feature 50/50 weight distribution and a best-in-class power-to-weight ratio to boost its performance against competitors in the crowded segment. The same attributes will be imbued into new planned versions of the Levante and Quattroporte, which are planned to appear in the next four years.
Kuniskis said Maserati would eliminate use of diesel powertrains in its vehicles, although diesel Maseratis are not available in the United States, in favor of a greener move to plug-in hybrids and full electrics. He said Maserati would offer four full-electric models, and eight hybrids by 2022, but combustion engine powertrains would come from Ferrari.
Kuniskis said Maserati volumes should top 100,000 units by 2022, double the brand’s current volume.
-- Larry Vellequette
5:50 a.m. ET -- Ram's expanded truck lineup will add midsize pickup
Ram will bring a production model of its 2015 Ram TRX off-road pickup to market, aiming squarely to take on the popular Ford F-150 Raptor, Ram brand head Mike Manley told investors today in Balocco, Italy.
The move is intended to aid Ram’s average transaction price, which lags major competitors from Ford and Chevrolet largely because of the age of the old model Ram 1500 pickup, Manley said. He said Raptor transacts at a level that is $28,000 above Ford’s average in the segment. Manley said he believes Ram can achieve similar results with the TRX, which features a supercharged 6.2-liter V-8 engine.
The brand also hopes to improve its pricing with the introduction in 2019 of a new Heavy Duty version of its Ram pickup, which will significantly update the technology of its existing line. The current Heavy Duty Ram transacts at an average of $50,000, about even with Chevrolet, but far below the $56,000 average enjoyed by Ford in the segment, Manley said.
Manley also promised that Ram would enter the midsize pickup race soon, joining the Chevy Colorado/GMC Canyon and the return of the Ford Ranger. He did not say if the new midsize pickup would revive the Dakota nameplate used when pickups were under the Dodge brand.
On the commercial van side, FCA will bring a new version of the Ram ProMaster City, its small commercial van, by 2022, but will leave the current larger ProMaster commercial van, without a significant update, Manley said.
-- Larry Vellequette
5:22 a.m. ET -- Jeep launches broad expansion of North American products, electrification, subscription services
Jeep will expand its model portfolio in North America, electrify all of its vehicles in some way, and then open a subscription service and other sharing options to allow its fan base access to those vehicles, according to a product plan presented Friday in Balocco, Italy.
Jeep brand head Mike Manley told investors that the marque plans to expand its global lineup into the smaller A-segment market -- a move it's considered for several years. Jeep also will broaden its portfolio in North America with a new three-row version of the Grand Cherokee, as well as a return of the Wagoneer and Grand Wagoneer.
Manley said the brand will electrify all of the vehicles in its portfolio in some fashion by 2022, with 10 plug-in hybrid versions and four full-electric models by 2022. The brand will also launch subscription and mobility services in North America to allow Jeep fans full access to its models. Jeep will also begin offering use-based insurance, important for off-roading, and fleet management for the first time, Manley said.
Globally, the longtime Jeep brand boss said he sees Jeep, which now represents one in 17 sales of utility vehicles globally, expanding by 2022 to account for one in 12 utility vehicle sales globally, a goal that analysts onsite called "ambitious." The brand over the long term aims for 20 percent of the global utility market, which has been a long-term goal since Manley assumed control of Jeep in 2009.
-- Larry Vellequette
5:09 a.m. ET Friday: Marchionne dons tie, claims victory in Fiat Chrysler debt pledge
BALOCCO, Italy -- Fiat Chrysler Automobiles CEO Sergio Marchionne kicked off his final strategic road map presentation for the Italian-American automaker on Friday, and he didn’t disappoint.
Appearing onstage at the Balocco test track near Turin, the CEO first took a victory lap, recounting his accomplishments in saving Fiat SpA from bankruptcy in the mid-2000s and following that up with the rescue of Chrysler five years later. Then he unzipped a nondescript black sweater and, paraphrasing Oscar Wilde, revealed an “arguably well tied” blue tie.
With that, Marchionne declared victory in one of Fiat Chrysler’s long-held and most ambitious goals -- to become net cash positive this year. “I expect that when we close the books at the end of June, we will report a net industrial cash position,” he said.
The event marks 14 years to the day since Marchionne took the helm at a struggling Fiat SpA on June 1, 2004. His concluding task is to offer investors a compelling vision for the company that will endure once he’s left the stage. Marchionne, hired in the dramatic hours after the death of Chairman Umberto Agnelli when Fiat was on the brink of bankruptcy, returns to the place where, in July 2004, he presented his survival plan for the manufacturer.
One optimistic sign for shareholders: At the event in Balocco, Fiat Chrysler has handed out candy boxes inscribed: “Net cash: How sweet it is.” The show’s about to begin.
Fiat’s value has increased by more than 10 times during Marchionne’s tenure. The stock rose 3.1 percent to 19.99 euros ($23.41) as of 9:38 a.m. in Milan. That would mark a record high, based on closing prices.
-- Bloomberg
4:30 a.m. ET Friday: Fiat Chrysler to be in net cash position by end of June, Marchionne says
Fiat Chrysler will end the second quarter in a net cash position, CEO Sergio Marchionne said on Friday, kicking off the company's five-year strategy presentation.
The 65-year-old, whose black crew neck sweaters have become his calling card, took the unusual step of wearing a tie to celebrate the milestone.
"As you can see from my arguably well tied tie we will report a net industrial cash position at the end of June," Marchionned said.
-- Reuters
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