Fiat Chrysler Wants to Play Major Role in Industry Consolidation: CEO
Chief Executive Sergio Marchionne wants Fiat Chrysler Automobiles to play a key role in a consolidation of the global auto industry which he sees as inevitable to manage prohibitive capital costs, reported Reuters. Speaking on Thursday to shareholders in Amsterdam, away from Fiat’s historic roots in Turin and Chrysler’s in Detroit, Marchionne said: “We don’t ... Read More »
Chief Executive Sergio Marchionne wants Fiat Chrysler Automobiles to play a key role in a consolidation of the global auto industry which he sees as inevitable to manage prohibitive capital costs, reported Reuters.
Speaking on Thursday to shareholders in Amsterdam, away from Fiat’s historic roots in Turin and Chrysler’s in Detroit, Marchionne said: “We don’t want to stay behind in a process that is changing the industry, that is not a possibility.”
Marchionne declined to comment about the chances of a tie-up between the world’s seventh-largest carmaker and U.S. rival General Motors, but said the company was talking to many parties, without giving details.
“We have talks ongoing with various operators on various topics,” he said.
Fiat completed its buyout of U.S. arm Chrysler last year and moved the primary listing of the merged group to New York. The company is now incorporated in the Netherlands and has its headquarters in London.
Marchionne said work to spin-off and list luxury unit Ferrari was ongoing and he expected the floatation to happen this year, although he suggested the process may spill over into 2016.
He said the company had no plans to list any other brands.
Last year, the carmaker decided to spin off Ferrari, sell a 10 percent stake via a public offering and distribute the rest of FCA’s stake in the luxury sports car brand to its shareholders.
Marchionne reiterated that FCA might introduce a loyalty share scheme as part of the spin-off, which could give long-term investors multiple voting rights, although there was no final decision. This could allow Fiat’s founding Agnelli family to keep their grip on Ferrari even with fewer shares.
“We are evaluating it, it’s a solution that has worked well for CNH Industrial and FCA,” he said.
Marchionne confirmed the company’s targets for this year, even though its individual geographic areas are yielding different results than initially expected.
In two weeks, the carmaker will inaugurate a new plant in Brazil. Marchionne has previously said he expected the Pernambuco plant to help FCA return to double-digit profit margins in that market.
Marchionne said margins in the North American region were recovering, dismissing concerns from industry analysts suggesting that FCA’s use of incentives was too aggressive.
“Our pricing policy is in line with that of our competitors,” he said, adding that some models were sold at lower prices because they had less advanced technology than those of competitors.
More Industry

Pennsylvania Dealership Under New Retailers
The sale of the Chrysler Dodge Jeep Ram store puts a family auto group on a leaner path as first-time dealers take the helm.
Read More →
Battery Storage Takes Priority Over EVs
U.S. automakers are prioritizing battery energy stationary storage over electric-vehicle production as the consumer demand for EVs lags the rest of the world.
Read More →
Auto Dealers Feel Better But Not Great
A second-quarter Cox Automotive poll of franchised retailers and independents found better views of the current market after a good spring but anticipation of third-quarter storminess.
Read More →
New-Vehicle Sales Picture Relative
A May forecast is complicated by last spring’s trade tariff effects on auto retail. Despite continued hard realities, many consumers took advantage of ways to bite the bullet.
Read More →
Auto Group Acquires Third Nissan Rooftop
Iowa-based Coleman Automotive Group recently acquired its seventh dealership, McGrath Nissan, which it renamed Nissan of Elgin.
Read More →
April Less Affordable
Based on prices, reduced incentives and slower household income growth, consumers found it more challenging to buy new last month, Cox Automotive reported.
Read More →
Building an Extraordinary F&I Agency
Work to determine your specialized talent, because that fact will determine everything about your agency’s future.
Read More →
Recipe for Compliance
The secret to both amazing barbecue and compliance is the same: understanding the basics and committing to a process.
Read More →
EVs Getting More Attractive
A growing percentage of U.S. consumers are open to switching and fewer are adverse to the idea, according to a recently completed survey. That’s despite the end of a tax break.
Read More →
EV Sales Drop in April Following Surge
North American electric-vehicle sales were down 28% year-over-year, a sharp contrast from global EV sales growth of 6%.
Read More →