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

RV Group Expands Carolina Footprint
Blue Compass RV Columbia Northeast is the 13th RV dealership owned by Blue Compass in the Carolinas.
Read More →
Agent Acumen
An Agent Summit panel of people who’ve been supporting auto dealers for years gave both timely and timeless advice for those starting out or mulling the prospect.
Read More →
Missed Maintenance Creates Opportunity
As families get back on the road and into daily school routines, service drives have an opportunity to capture customers who are behind on recommended vehicle maintenance.
Read More →
Mitsubishi Unveils U.S. Plan
The automaker announced a strategy that includes an expanded lineup and dealership presence, along with more ‘rugged’ and electric models.
Read More →
Selling to Grow
The question of whether you should sell your agency and if so, when, is up to you. But it’s a question worth asking to ensure you keep the business on the right path for yourself, employees and clients.
Read More →
Recalled Vehicles Hit 5-Year High
Though the number of events has fallen so far this year, impacted units are up significantly. Meanwhile, regulators consider consumer notification changes.
Read More →
Auto Group Acquires Top-Performing Rooftop
Car Pros sold its Kia Huntington Beach location to Sutherlin Automotive Group, marking the buyer’s third location in Southern California.
Read More →
China as Pacesetter
Automotive leaders huddled on where North America stands in the global picture and how it can strengthen its position against the Asian juggernaut’s surging industry.
Read More →
BMW Concept Car Makes Fuel to Burn
The prototype developed in concert with a South Carolina university engineering team generates more solar energy than it uses in a typical daily commute.
Read More →
South Carolina Auto Group Downsizes
Florida-based group Holler-Classic has acquired four rooftops, its first in South Carolina, from Dick Smith Automotive Group.
Read More →