Fiat Chrysler Automobiles' five-year plan for each of its nine core brands doesn't sound realistic to analysts. Automotive News Europe reports that analysts cannot see FCA achieving its goal of doubling or tripling sales without investing a lot of money, something FCA doesn't quite have at the moment. Analysts believe for FCA to pull this monumental plan off, they'll need to cut some brands out.
“The problem is PowerPoint presentations are a lot easier than real life. These brands need a huge amount of work to get where they need to be. The world changes very slowly and you have brands at the bottom of the pile in many regions. It’s not going to happen overnight,” said Harald Hendrikse, a London-based analyst with Nomura Holdings.
CEO Sergio Marchionne disagrees with analysts, saying that FCA’s advantage is that “we now have brands in the marketplace that are not butting heads.” Marchionne also pointed out that plan already eliminated two brands; Lancia and SRT.
Marchionne also responded to comments that Chrysler and Dodge should be combined.
“Co-mingling Dodge and Chrysler would have cost us a lot of share. That combination doesn’t work in our view,” Marchionne said.
Source: Automotive News Europe (Subscription Required)