Some more musing from Sergio Marchionne
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Some more musing from Sergio Marchionne
And here I was thinking that my fellow Canadians are quiet, modest, unassuming people...
Source: Autoblog Minute
Source: If Tesla Model 3 is successful, Sergio Marchionne will copy it
Fiat Chrysler CEO Sergio Marchionne said this week that Toyota, Ford, and Volkswagen are potential merger options for his automaker, according to Reuters. Now he told the wireservice, quote, "The door never closed. The need to consolidate does not go away." End quote. Now Marchionne has been vocal in his ideas to link Fiat Chrysler with a partner before he retires in 2018. He also reportedly would like to team up with tech giant Apple. Now Fiat Chrysler has been vocal in trying to find a partner because it's among the smaller global automakers and adding a partner could ensure its future.
If Tesla Model 3 is successful, Sergio Marchionne will copy it
Fiat Chrysler CEO Sergio Marchionne hasn't hidden his disdain for electric vehicles, but he would copy the Tesla Model 3 if it is successful, according to Automotive News Europe. If Elon Musk "can show me that the car will be profitable at that price, I will copy the formula, add the Italian design flair and get it to the market within 12 months," Marchionne told Automotive News Europe during FCA's annual meeting in Amsterdam.
...
The FCA boss is a noted skeptic of EVs. In 2012, he said that the company only built the 500e because of California's zero-emissions vehicle mandate and to give engineers experience with the technology. He doubled-down in 2014 when he claimed FCA lost $14,000 on each 500e and said he would rather people didn't buy them. More recently, he infamously said "you'd have to shoot me first," before he'd allow a fully electric Ferrari.
Fiat Chrysler CEO Sergio Marchionne hasn't hidden his disdain for electric vehicles, but he would copy the Tesla Model 3 if it is successful, according to Automotive News Europe. If Elon Musk "can show me that the car will be profitable at that price, I will copy the formula, add the Italian design flair and get it to the market within 12 months," Marchionne told Automotive News Europe during FCA's annual meeting in Amsterdam.
...
The FCA boss is a noted skeptic of EVs. In 2012, he said that the company only built the 500e because of California's zero-emissions vehicle mandate and to give engineers experience with the technology. He doubled-down in 2014 when he claimed FCA lost $14,000 on each 500e and said he would rather people didn't buy them. More recently, he infamously said "you'd have to shoot me first," before he'd allow a fully electric Ferrari.
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Yeah, good luck with that!
Why would any reputable, established automaker want to link up with Fiat/Chrysler when Fiat makes some of the most unreliable cars anywhere and Chrysler has so little product in the tiller? He has even indicated they will be discontinuing the 200, which basically leaves them with the new Pacifica and the ancient (but still decent) 300.
Why would any reputable, established automaker want to link up with Fiat/Chrysler when Fiat makes some of the most unreliable cars anywhere and Chrysler has so little product in the tiller? He has even indicated they will be discontinuing the 200, which basically leaves them with the new Pacifica and the ancient (but still decent) 300.
Last edited by dseag2; Apr 15, 2016 at 08:06 PM.
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Yeah, good luck with that! Why would any reputable, established automaker want to link up with Fiat/Chrysler when Fiat makes some of the most unreliable cars anywhere and Chrysler has so little product in the tiller? He has even indicated they will be discontinuing the 200, which basically leaves them with the new Pacifica and the ancient (but still decent) 300.
Why would any reputable, established automaker want to link up with Fiat/Chrysler when Fiat makes some of the most unreliable cars anywhere and Chrysler has so little product in the tiller? He has even indicated they will be discontinuing the 200, which basically leaves them with the new Pacifica and the ancient (but still decent) 300.
Yeah, good luck with that! Why would any reputable, established automaker want to link up with Fiat/Chrysler when Fiat makes some of the most unreliable cars anywhere and Chrysler has so little product in the tiller? He has even indicated they will be discontinuing the 200, which basically leaves them with the new Pacifica and the ancient (but still decent) 300.
Why would any reputable, established automaker want to link up with Fiat/Chrysler when Fiat makes some of the most unreliable cars anywhere and Chrysler has so little product in the tiller? He has even indicated they will be discontinuing the 200, which basically leaves them with the new Pacifica and the ancient (but still decent) 300.and by any standards fca is 'established' declaring itself as the 7th largest auto maker in the world.
i also just read that fca has a parent company, exor, (31% owner) that i'd never heard of.
https://en.wikipedia.org/wiki/Exor_(company)
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This is not the first time that Marchionne has tossed himself and his corporation at other automakers. It's apparent, to me at least, that he's just looking for somebody else to pay his company's bills, and doesn't really care much who it is.
Lead Lap
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From: TX
besides chrysler branded models fca also has jeep, alfa romeo, dodge, ram trucks, maserati, and of course fiat.
and by any standards fca is 'established' declaring itself as the 7th largest auto maker in the world.
i also just read that fca has a parent company, exor, (31% owner) that i'd never heard of.
https://en.wikipedia.org/wiki/Exor_(company)
and by any standards fca is 'established' declaring itself as the 7th largest auto maker in the world.
i also just read that fca has a parent company, exor, (31% owner) that i'd never heard of.
https://en.wikipedia.org/wiki/Exor_(company)
fca is profitable. not hugely, although according to their 2015 financials, part of the low profit was because they paid off some 6Bn in debt... impressive.
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Lexus Fanatic
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Even after the debt load you mention, I, for one, don't really see how Fiat makes a profit in the U.S. in the first place. They run a limited number of dealerships here that usually don't share any facilities with any other brand, they only have a very limited range of new models (mostly subcompact or minicar in size), and the dealerships keep many vehicles on the lot whether they sell or not, thereby increasing the amount of expense involved in keeping them in stock. They also have to perform a fair amount of warranty work due to (by today's standards) the basic unreliability of their products.
Last edited by mmarshall; Apr 16, 2016 at 07:58 PM.
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Let's not forget that the (possible) merging of Fiat with another, larger automaker has been tried before, but unsuccessfully.
Fiat entered into the alliance because...
Source: Academic paper
GM entered into the alliance "in order to prevent rivals DaimlerChrysler AG or Ford Motor Co. from buying Fiat".
Source: UPI Business News
By 2005, the alliance had ended.
In 2014, VW was allegedly looking at buying Fiat, which would have increased the number of brands that VW controlled from 12 (Volkswagen, Audi, etc. including truck brands) to 17 (Fiat, Alfa Romeo, etc. but probably not Fiat and Maserati), increased VW's sales by 50% (to 1.5 million, making it much larger than Toyota or GM). But nothing happened. The talk was that Volkswagen was not doing well enough (making only 2% profit producing and selling cars, than Toyota's and Hyundai's ability to make a 8+% profit) to seriously consider entering into an expensive venture.
There are analysts who say that merging Fiat Chrysler into VW would have worked.
Source: Autocar
I find this all rather interesting. I think that Sergio Marchionne is right: Fiat is unlikely to survive in the long run, and maybe his efforts to save Fiat (as a very "typical" Italian carmaker) are commendable and should be applauded.
But I think that, in the long run, the mass market auto industry in Italy (and perhaps in France as well) will be sold off, to be controlled by larger, multinational, "faceless" (not recognizable as Italian, French, German, American, etc.) automakers. Sweden has already lost control of its automakers, as has Britain. French automakers Renault and PSA Peugeot Citroën cannot seem to keep going without some sort of inside (government) or outside (German) help. Automaker Proton in Malaysia is going through the same "will it survive without being swallowed by some large multinational" problem.
- In 2000 Fiat and GM enter into a ‘strategic and industrial alliance (Fiat acquires a 5.1% stake in GM and GM acquires a 20% stake in Fiat).
- The agreement included a ‘put option’, which stipulated that Fiat would have the right to sell the remaining 80% to GM after 4 years at a fair market value.
- Fiat entered into the alliance to save its declining auto division (losses since early 90’s)
- GM entered to keep pace with consolidation trend and to help its European and Latin American divisions.
- Synergies like cost savings, cross sharing of automotive technologies were focused upon.
- By 2004, Fiat planned to exercise the ‘put option’, but GM rendered it void because Fiat had sold its financing arm and had recapitalized.
- The agreement included a ‘put option’, which stipulated that Fiat would have the right to sell the remaining 80% to GM after 4 years at a fair market value.
- Fiat entered into the alliance to save its declining auto division (losses since early 90’s)
- GM entered to keep pace with consolidation trend and to help its European and Latin American divisions.
- Synergies like cost savings, cross sharing of automotive technologies were focused upon.
- By 2004, Fiat planned to exercise the ‘put option’, but GM rendered it void because Fiat had sold its financing arm and had recapitalized.
- It was faced by declining market share in Italy, western Europe and South America. It had overcapacity and its revenues declined.
GM entered into the alliance "in order to prevent rivals DaimlerChrysler AG or Ford Motor Co. from buying Fiat".
Source: UPI Business News
By 2005, the alliance had ended.
In 2014, VW was allegedly looking at buying Fiat, which would have increased the number of brands that VW controlled from 12 (Volkswagen, Audi, etc. including truck brands) to 17 (Fiat, Alfa Romeo, etc. but probably not Fiat and Maserati), increased VW's sales by 50% (to 1.5 million, making it much larger than Toyota or GM). But nothing happened. The talk was that Volkswagen was not doing well enough (making only 2% profit producing and selling cars, than Toyota's and Hyundai's ability to make a 8+% profit) to seriously consider entering into an expensive venture.
There are analysts who say that merging Fiat Chrysler into VW would have worked.
Source: Autocar
I find this all rather interesting. I think that Sergio Marchionne is right: Fiat is unlikely to survive in the long run, and maybe his efforts to save Fiat (as a very "typical" Italian carmaker) are commendable and should be applauded.
But I think that, in the long run, the mass market auto industry in Italy (and perhaps in France as well) will be sold off, to be controlled by larger, multinational, "faceless" (not recognizable as Italian, French, German, American, etc.) automakers. Sweden has already lost control of its automakers, as has Britain. French automakers Renault and PSA Peugeot Citroën cannot seem to keep going without some sort of inside (government) or outside (German) help. Automaker Proton in Malaysia is going through the same "will it survive without being swallowed by some large multinational" problem.
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