Joeb427

iTrader: (1)

By Bernie Woodall and Jennifer Clark
DETROIT/MILAN (Reuters) - Carmaker Fiat's (FIA.MI) first-quarter profit slumped more than expected as its U.S. unit Chrysler's sales suffered from the phase-out of the Jeep Liberty pending a new model launch.
"We knew we would be limping in the quarter. I just didn't think I was going to limp that much," said Sergio Marchionne, chief executive of both Chrysler and its parent Fiat, on a conference call with analysts and reporters.


http://finance.yahoo.com/news/chrysl...130933268.html

Hoovey689

iTrader: (16)

Puts a damper on Fiat trying to absorb the rest of Chrysler

spwolf

fiat is in dumpster already...

mmarshall

Except for some dedicated Off-Road-Enthusiasts (where the Liberty, like the smaller Wrangler, does quite well), I never have understood its popularity on dry pavement. Also like the Wrangler, take it out of its natural Boonie-environment, put it on the street, and it is relatively crude, noisy, uncomfortable, and unrefined. That, however, is the way that most people today drive their SUV's.......on hard pavement, though the percentage of Wranglers that go off-road, for obvious reasons, is somewhat higher than average for SUVs.

TangoRed

Marchionne warned everyone this was going to happen over a month ago. Launching all of these models at once while taking a volume leader offline will do this to you. I wouldn't cal this distressing news given the situation.

As for the Liberty's popularity- some people like trucky vehicles. I liked the liberty but found it too small- that's why I have a 2011 Pathfinder in the stable, another uncompetitive BOF SUV.

Aron9000

The drop in net income is not due solely to the lack of production of one single vehicle. I think Chrysler is using this bs "we stopped produciton of the Jeep Liberty" excuse to hide the fact that they are in some deep doo-doo.

Seriously, the Jeep Liberty isn't even that popular.

Sales of Jeep vehicles 2012 in the USA . . .

1. Grand Cherokee 157,734
2. Wrangler 141,669
3. Liberty 75,483
4. Patriot 62,010
5. Compass 40,235

Figures are on www.goodcarbadcar.net

TangoRed

...nor did he say that was due to the drop of a single vehicle. Did you read the article at all?

Significant investment had to be put into the 8 and 9-speed transmission factories, complete retooling of the Liberty factory + associated costs of launching the new Cherokee, heavily facelifted Grand Cherokee, and heavy duty RAM. That'll do the trick.

mrraider

No mention of the fact that the Dart absolutely bombed in the critical compact sedan market. GM and Ford actually managed to eat in to the Japanese dominance of the segment, in stark opposition to Chrysler.

Couple that with no really serviceable product in the mid size category, except the aging and pathetic 200, and Chrysler has no play in the two biggest car segments. Other than the 300, there is precious little at Chrysler I would drop my money on.