Marchionne insists Fiat Chrysler needs 9 brands; market watchers disagree

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Fiat Chrysler Automobiles aims to increase global sales 60 percent to 7 million by 2018 from 4.4 million last year. To reach the goal CEO Sergio Marchionne wants to boost Chrysler, Fiat and Jeep’s combined sales by more than 2 million vehicles in the next five years. The CEO also will invest 5 billion euros in the chronically underperforming Alfa Romeo brand in a bid to boost sales fivefold to 400,000 by 2018. Here is a brand-by-brand breakdown of the expectations (listed in alphabetical order).

Alfa Romeo

2018 target: 400,000; 2013 sales: 74,00

Key points: Alfa will get a completely new lineup featuring eight models based on a new rear-wheel/all-wheel-drive architecture. The first model — a mid-sized sedan – is due in late 2015. Marchionne said he expects Alfa’s 2019 sales to exceed a half million. Alfa and Jeep are the main pillars of the automaker’s global expansion plan.

Chrysler

2018 target: 800,000; 2013: 350,000

Key points: Chrysler will be expanded to six models that cover 65 percent of the global market from three models that cover 25 percent of total sales. The three additional models – the 100 compact sedan, a mid-sized crossover and full-sized crossover – are expected to add about 275,000 sales by 2018. Chrysler also is expected to win about 175,000 customers a year from sister brand Dodge after it stops making the Avenger mid-sized sedan and Grand Caravan minivan in 2018.

Dodge

2018 target: 700,000; 2013: 800,000

Key points: Dodge’s global volume will decline as it eliminates models and is turned into a performance brand.

Ferrari

2018 target: 7,000; 2013: 7,000

Key points: Ferrari aims to protect its exclusivity by limiting sales to 7,000 supercars a year. Four-model range will feature two cars with V-8 engines and two with V-12s. Ferrari will debut a new or revised model each year and give its models an eight-year life cycle.

Fiat

2018 target: 1,900,000; 2013: 1,500,000

Key points: Fiat brand foresees no sales growth in Europe during the five-year plan as 2018 sales are expected to be flat at 700,000. Growth will come from Fiat’s largest sales region, Latin America, where it expects to sell 800,000 vehicles by 2018, up more than 100,000 from last year. Marchionne wants Fiat to triple sales in Asia-Pacific to 300,000 and double volume in North America to about 100,000. Fiat’s U.S. sales should get a boost from the 500X subcompact SUV, which is due to debut in Europe later this year, and a two-seat roadster derived from the new Mazda MX-5. The roadster is due in late 2015 and will be sold worldwide.

Fiat Professional LCVs

2018 target: 600,000; 2013: 431,000

Key points: The vans unit expects to maintain European market share, grow in Russia and Latin America and strengthen its presence in the Middle East and Africa.

Maserati

2018 target: 75,000: 2013: 15,400

Key points: Maserati will grow to six model lines from three during the next five years with the additions of the Levante, the company’s first SUV, in 2015, the Alfieri coupe (2016) and cabriolet (2017), and the redesigned four-seat GranTurismo (2018).

Jeep

2018 target: 1,900,000: 2013: 732,000

Key points: Jeep’s manufacturing footprint will be expanded to 10 plants in six countries from four U.S. plants. Jeep production will be added in Italy, Brazil, China and India. In the next five years Jeep’s U.S. capacity will be stable at 1 million while Europe will grow to 200,000 units a year. Jeep’s dealer network will expand to 6,023 outlets in 2018 from 4,706 now to cope with the growth.

Ram

2018 target: 620,000; 2013: 463,000

Key points: Ram’s U.S. range will add models derived from the Fiat Ducato and Doblo and add diesel powertrains.

Luca Ciferri and Jennifer Clark

http://www.autonews.com/article/20140611/COPY01/306119966/marchionne-insists-fiat-chrysler-needs-9-brands-market-watchers

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