Motor Authority - blog Tag: Sergio Marchionne

The Fiat-Chrysler partnership has been brewing since well before the economic meltdown and federal loan bonanza of late 2008, but it's still taking shape as the automakers find ways to work to their mutual benefit. The combined companies’ new CEO Sergio Marchionne is set to reveal the future plans for both Fiat and Chrysler in just a week’s time but we already have much of the details on hand.

According to people briefed on the plans, Alfa Romeo is set to return as a volume player in 2012. Fiat will be here too, although the only model planned is the 500 minicar, which should in early 2011.

Don’t feel too bad Fiat...

The Fiat-Chrysler partnership has been brewing since well before the economic meltdown and federal loan bonanza of late 2008, but it's still taking shape as the automakers find ways to work to their mutual benefit. The combined companies’ new CEO Sergio Marchionne is set to reveal the future plans for both Fiat and Chrysler in just a week’s time but we already have much of the details on hand. According to people briefed on the plans, Alfa Romeo is set to return as a volume player in 2012. Fiat will be here too, although the only model planned is the 500 minicar, which should in early 2011. Don’t feel too bad Fiat isn’t coming here in full force. Chrysler will introduce several new models that rely on Fiat platforms and technology. The first of these will be a new mid-sized sedan from Chrysler based on Fiat’s C-Evo platform, followed by new hatchback and a compact Jeep. There will also be redesigned versions of the Jeep Grand Cherokee and Chrysler 300 arriving as early as next year. Several models will be dropped from Chrysler’s U.S. lineup as well. These will include a number of Dodge models, such as the Caliber, Nitro, Avenger, and several Jeep models, too, such as the Commander, Compass, and Patriot. Other vehicles getting the axe include Chrysler’s PT Cruiser and Sebring. Instead, we’ll get to enjoy several new Alfa Romeos. In the pipeline are the MiTo and Milano hatchbacks as well as the replacement for the current 159, the Giulia mid-sized sedan. All three models are due after 2012 and are destined for production in North America. All will depend on how Chrysler copes with the next two years as the struggling automaker will have to rely mostly on its current model range. Chrysler’s U.S. market share dipped to 8.3% in September, down from 11.1% the year before, and with next-to-no models in the small car segments this figure is likely to deteriorate further. [Wall Street Journal] Read More

With Chrysler’s new partner Fiat making the hard and fast decisions, the automaker is now on track to return to profitability. Even with the still-floundering U.S. economy and fluctuating exchange rates, new CEO Sergio Marchionne is confident Chrysler will be profitable within the next two years.

On November 4 Marchionne will divulge Chrysler’s five-year business plan, which he has revealed will include plans to make public the company’s quarterly financial statements next year and launch an initial public offering for stock as early as 2011.

The financial sector seems to agree with Marchionne. Analyst Adam Jonas of Morgan...

With Chrysler’s new partner Fiat making the hard and fast decisions, the automaker is now on track to return to profitability. Even with the still-floundering U.S. economy and fluctuating exchange rates, new CEO Sergio Marchionne is confident Chrysler will be profitable within the next two years. On November 4 Marchionne will divulge Chrysler’s five-year business plan, which he has revealed will include plans to make public the company’s quarterly financial statements next year and launch an initial public offering for stock as early as 2011. The financial sector seems to agree with Marchionne. Analyst Adam Jonas of Morgan Stanley said Chrysler could report an operating profit of $841 million in 2010, but end the year with a net loss of $169 million. For 2011 Jonas is predicting an operating profit of $2.48 billion and net income of $952 million--numbers Chrysler could only dream of not too long ago. Under the control of former parent Cerberus Capital Management Chrysler was listed as a private company so had no obligation to release financial results. However, reports claimed that Chrysler’s losses could have topped as much as $6.8 billion as recently as 2007. Thanks to bankruptcy, however, Chrysler (and General Motors for that matter) has shed much of its liabilities and is currently sitting on a good balance sheet. [The Detroit News] Read More

Though Sergio Marchionne joined Jim Press at the top of the Chrysler executive food chain when Fiat made its investment in the company, the Deputy CEO position was thought to be a solid one until today. Reports claiming that Press will be leaving the company by the end of the year are spreading, and the company isn't denying it.

It does stand to reason that Press would like to move on with his career now that the transition from bankruptcy to Fiat-based management is effectively complete. Press, formerly vice-chairman and president at Chrysler, was the only top-tier Chrysler executive to survive that transition, and serving as advisor to...

Though Sergio Marchionne joined Jim Press at the top of the Chrysler executive food chain when Fiat made its investment in the company, the Deputy CEO position was thought to be a solid one until today. Reports claiming that Press will be leaving the company by the end of the year are spreading, and the company isn't denying it. It does stand to reason that Press would like to move on with his career now that the transition from bankruptcy to Fiat-based management is effectively complete. Press, formerly vice-chairman and president at Chrysler, was the only top-tier Chrysler executive to survive that transition, and serving as advisor to Marchionne is a job that can only go so far. During his time at Chrysler, Press fought hard, against the prevailing weight of the market and economy, to help change perceptions about Chrysler's brands, including Dodge, Jeep and Chrysler itself.Officials at Chrysler won't confirm or deny the reports of Press's impending departure, but the fact that they aren't being vehemently denied tends to speak for itself. Where Press might head next - either within the automotive industry or without - isn't yet clear. His entire career has been in the automotive sector, however, with his stint as Chrysler's co-chief preceded by a 37-year run at Toyota. The 62-year-old Press has not commented on the matter yet either. [The Wall Street Journal] Read More

On the back of falling sales and a model run that has lasted more than nine years, Chrysler decided back in January to end production of the PT Cruiser by the middle of this year. In June, we brought you word that the retro-styled wagon would live on for at least another year, and now Chrysler has made the news official.

The rather brief official announcement made it plain that Chrysler isn't just sticking with the PT Cruiser for its good looks, but because it thinks the car is a successful and desirable model.

“The heritage-styled Chrysler PT Cruiser continues to be a global success story,” said Peter Fong, President and... On the back of falling sales and a model run that has lasted more than nine years, Chrysler decided back in January to end production of the PT Cruiser by the middle of this year. In June, we brought you word that the retro-styled wagon would live on for at least another year, and now Chrysler has made the news official. The rather brief official announcement made it plain that Chrysler isn't just sticking with the PT Cruiser for its good looks, but because it thinks the car is a successful and desirable model. “The heritage-styled Chrysler PT Cruiser continues to be a global success story,” said Peter Fong, President and Chief Executive Officer – Chrysler Brand and Lead Executive for the Sales Organization, Chrysler Group LLC. “With more than 1.3 million PT Cruisers sold in more than 60 countries since 2000, we’re excited to announce we’re re-energizing the iconic and award-winning PT Cruiser.” Back in June, Marchionne told Automotive News that production could continue at the car’s Toluca plant in Mexico, and that's exactly what will happen. Released in 2000 with retro looks and an affordable price, the PT Cruiser immediately became an icon for many, allowing dealers to inflate their prices to suit the demand. Fast forward to today and the car remains almost untouched, barring subtle styling changes made in 2006. Sales peaked in 2001, with numbers reaching 144,717 units. Last year Chrysler sold 50,910 units but so far this year the automaker has only managed to move 8,591 units. Keeping such an old vehicle in its lineup may appear an odd move for Chrysler but it’s important to note that the car still sells with essentially zero marketing costs and the tooling required to build it has been fully paid off.Chrysler PT Dream Cruiser Series 5 Read More

With Chrysler’s bankruptcy process now well and truly behind it, and the appointment of a new name and CEO taken care of, the final steps of the company’s restructuring are finally coming to head. Today the company announced the appointment of additional members to its board of directors, completing the nine-member board that will provide oversight to the Chrysler Group.

First and foremost is Sergio Marchionne, who is sitting as CEO of the company as well as CEO of Fiat and a board member as well. Next in line is C. Robert Kidder, who also sits as acting chairman of the board.

Joining Marchionne and Kidder are: Alfredo... With Chrysler’s bankruptcy process now well and truly behind it, and the appointment of a new name and CEO taken care of, the final steps of the company’s restructuring are finally coming to head. Today the company announced the appointment of additional members to its board of directors, completing the nine-member board that will provide oversight to the Chrysler Group. First and foremost is Sergio Marchionne, who is sitting as CEO of the company as well as CEO of Fiat and a board member as well. Next in line is C. Robert Kidder, who also sits as acting chairman of the board. Joining Marchionne and Kidder are: Alfredo Altavilla, CEO of Fiat Powertrain Technologies; James Blanchard, former U.S. congressman and governor of Michigan; George F.J. Gosbee, chairman, CEO and president of Tristone Capital Inc.; Douglas Steenland, former CEO of Northwest Airlines; Scott Stuart, a founding partner of Sageview Capital LLC; Ronald L. Thompson, chairman of the board of Trustees for Teachers Insurance and Annuity Association (TIAA); and Stephen Wolf, chairman of R.R. Donnelley & Sons Co. Importantly, Chrysler Group will remain a private company for now but the newly appointed board will focused on supplying the governance that would be expected of a public company – after all the public do have a great deal invested in the company thanks to auto industry bailout. Read More

Last week we brought you news of Alfa Romeo's plans for the U.S. and the support and enthusiasm that's growing over Alfa's attractive designs. This week there's news of cars going the other way across the Atlantic, this time Dodges to be re-branded as Alfa Romeos for Europe.

It's not the only brand-switcharoo planned for Fiat and Chrysler, but it might be the most significant for Americans. Finding a way to meet Alfa Romeo's needs with re-purposed Dodge vehicles could help reinvigorate U.S. production and supply chains.

Marchionne sees a lot of overlap between the Dodge and Alfa Romeo brands. “Dodge is the American muscle car, while... Last week we brought you news of Alfa Romeo's plans for the U.S. and the support and enthusiasm that's growing over Alfa's attractive designs. This week there's news of cars going the other way across the Atlantic, this time Dodges to be re-branded as Alfa Romeos for Europe. It's not the only brand-switcharoo planned for Fiat and Chrysler, but it might be the most significant for Americans. Finding a way to meet Alfa Romeo's needs with re-purposed Dodge vehicles could help reinvigorate U.S. production and supply chains. Marchionne sees a lot of overlap between the Dodge and Alfa Romeo brands. “Dodge is the American muscle car, while Alfa Romeo is the European muscle car. How we dovetail these two brands is very important,” said Marchionne according to an Autocar report. The implication is that the Alfa Romeo brand would compete with Dodge if it were to be offered side by side, and so Marchionne is also believed to be considering selling all Alfas in the U.S. as Dodges. There are also reports that Fiat vehicles, not well-loved for their last stint in the U.S., may be re-branded and sold as Alfa Romeos. Such a plan would sidestep the sticky issue of the Fiat brand reputation in the U.S. while still allowing an outlet for all brands both here and abroad, yet avoiding undue competition between brands. Returning to the issue of selling Dodges as musclecars in Europe for a moment, consider what an Alfa Romeo re-body of a Dodge Viper might end up like. Remember, too, that Fiat was recently handed the reins of the Viper business. Now that's a partnership to look forward to.Dodge Viper SRT 10 ACR2009 Alfa Romeo 159 Read More