Marchionne Presents 5-Year Plan for Fiat-Chrysler
Marchionne emphasized the fact that Fiat and Chrysler need to build around 6 million vehicles a year, a figure which he believes volume car makers need to achieve in order to survive in the global auto market. Although the plan was largely well received, some analysts still remain cautious and call the target a bit bold, especially after the industry’s worst crisis in 60 years.
Fiat-Chrysler’s 2010-2014 plan focuses on several key parts:
- Separating the Iveco trucks and CNH tractors divisions into a different entity
- Increasing the group’s exposure in important emerging markets like China, Russia and India. The 5-year plan looks at an expansion of Fiat’s joint venture in Russia with Sollers to build around 280,000 units a year by 2014. Strengthen the Chinese newly created joint venture with Guangzhou Automobile Industry Group Co., to produce around 300,000 units a year by 2014. In India, where it has a joint venture with Tata Motors, the group aims to boost sales from 21,194 last year to 130,000 units by 2014.
- Doubling revenues to EUR51 billion from 26.3 billion last year
- An investment of EUR21 billion between 2010 and 2014 to launch 34 new models and 17 refreshed ones.
- Alfa Romeo will try to achieve a sales volume of 500,000 units in 2014, up from 101,000 last year
- Increasing Fiat’s South American sales from 799,000 last year to 1.12 million in 2014
- Selling Chrysler models rebadged as Lancia in Europe in order to achieve a boost in sales volume from 123,500 to 300,000 units in 2014.
"When you look at it and you are an absolutely rational human being, your instinctive reaction is to express some level of doubt about its achievability," said Marchionne according to Autonews.