Friday will mark the end of an era as Fiat Chrysler Automobiles CEO Sergio Marchionne will present his final five-year plan before he retires next year. Bloomberg has gotten a possible preview of what to expect from various sources.
The overall plan will see FCA focus their resources on "promising niches" instead of competing against such brands as Volkswagen and Toyota in the mass-market. This is possibly seen as a possible plus if FCA was somehow able to partner/merge with another automaker.
Jeep is expected to be the focal point of the new five-year plan. Currently, the brand makes up 70 percent of FCA's profits according to estimates from analysts. Marchionne wants to double the sales of brand by 2022 from 1.4 million vehicles sold last year. To do this, Jeep will expand its presence in Asia, Brazil, and Europe. The lineup will also expand with hybrid models arriving next year. Ram Trucks will also be expanded to other markets around the world. There is also talk about possibly combining Alfa Romeo and Maserati as "a single division in FCA's financial reports." Investors could see as a possible first step to a spinoff.
Meanwhile, Fiat's lineup is expected to be cut down to just 500 and Panda, with sales limited to Europe, Brazil, and emerging markets. This could mean Fiat withdrawing from the U.S. and China due to poor sales. The former could be problem due to dealer contracts. There is also talk about shrinking Chrysler, though we don't know how much smaller it could get aside from just disappearing.
We'll find out more details later this week.
Source: Bloomberg via Automotive News (Subscription Required)