Photo: edited by autoevolution
Fiat Chrysler is no stranger to spinning off subsidiaries. The mould was set last year, when Ferrari S.p.A. was separated by restructuring the automaker into Ferrari NV. Thus, Ferrari now has its legal headquarters in the Netherlands, and Agnelli family-owned Exor N.V. controls 22.91% of the manufacturer. The question is, are Jeep and Ram Truck next?
The Detroit Free Press asked Fiat Chrysler and Ferrari big kahuna Sergio Marchionne if the 4x4 and pickup brands could be spun off into standalone companies at some point in time, and the answer comes in the form of a cryptic “Yes.” The head honcho didn’t offer any other information on the subject, neither did Sergio say if the divestiture will be made separately or if the brands will go together.
As a rule of thumb, spinoffs happen for two reasons. Obviously enough, one scenario is that the subsidiary is experiencing little profit growth. The second reason revolves around losses. The thing is, however, Jeep and Ram do perfectly fine in both areas. Given this circumstances, Marchionne might be thinking about streamlining FCA’s operations. This, however, is not exactly the best time for Fiat Chrysler to give up on Jeep and Ram Truck.
Imagine what a potential divestiture would mean for Dodge and Chrysler, two automakers that are struggling to make ends meet. As for Fiat, Alfa Romeo, and Maserati, these brands sell too few vehicles in the United States to even matter. Whatever intentions Sergio has on its mind, don’t forget he’s the architect that created Fiat Chrysler following DaimlerChrysler’s break-up ten years ago.
Adam Jonas, who works as an analyst for Morgan Stanley, valued Jeep in January 2017 on a standalone basis at $22 billion. As for Ram Truck, that would be $11.2 billion. In related news, El Sergio is also interested in selling auto-parts division Magneti Marelli, with Marchionne hoping to strike a deal by the end of 2018.
As a rule of thumb, spinoffs happen for two reasons. Obviously enough, one scenario is that the subsidiary is experiencing little profit growth. The second reason revolves around losses. The thing is, however, Jeep and Ram do perfectly fine in both areas. Given this circumstances, Marchionne might be thinking about streamlining FCA’s operations. This, however, is not exactly the best time for Fiat Chrysler to give up on Jeep and Ram Truck.
Imagine what a potential divestiture would mean for Dodge and Chrysler, two automakers that are struggling to make ends meet. As for Fiat, Alfa Romeo, and Maserati, these brands sell too few vehicles in the United States to even matter. Whatever intentions Sergio has on its mind, don’t forget he’s the architect that created Fiat Chrysler following DaimlerChrysler’s break-up ten years ago.
Adam Jonas, who works as an analyst for Morgan Stanley, valued Jeep in January 2017 on a standalone basis at $22 billion. As for Ram Truck, that would be $11.2 billion. In related news, El Sergio is also interested in selling auto-parts division Magneti Marelli, with Marchionne hoping to strike a deal by the end of 2018.
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