Fiat Chrysler is about to say goodbye to debt: “At the end of June we will have one positive net financial position”. This was announced by the CEO of the group, Sergio Marchionne, opening the Capital markets day underway at the Balocco Experimental Center in the province of Vercelli. "There remains work to be done this month to get to that point - she added - but we are confident that we will be able to achieve the goal". This is how Fiat Chrysler's number one responded to one of the key points on which the attention of analysts was focused and exhibited the tie that John Elkan had promised to give him in case of success, without giving up the typical blue sweater.
Marchionne underlined that for FCA “coming out of the shadow of debt represents a new paradigm in the way the company is perceived. It is a significant milestone because it heals a structural weakness that has weighed heavily on us for too many years".
The CEO defined the new plan as "solid and courageous: it is much more than a business plan, because it reflects the collective ambitions and determination of the women and men of FCA".
In detail, “at the brand level, our messages focus on Jeeps, Rams, Maseratis and Alfa Romeos – Marchionne explained again – which represent the most significant part of our revenues and our profits”.
Michael Manley, number one of Jeep and Ram, however, specified that the group intends to eliminate the diesel versions of the two brands from the EMEA area during the development of the plan, replacing these models with electrified options.
As for the market trend, Marchionne has removed a pebble from his shoe: "At the beginning of 2015, I expressed my point of view on the efficiency of capital in the sector and on the capacity for change, in the light of a historical series of distribution unacceptable value and returns on invested capital. Ironically, FCA's shareholder value has nearly doubled since then, excluding the increase in value at Ferrari, while the shareholder return of ten of our key industry competitors has been negative on average (6 %). I'm not here to brag about it, much less to start new speculation about a possible consolidation. But the thesis back then is even more valid today, given the increase in costs for the adjustments required at a technological and regulatory level”.
Finally, especially with reference to the electric mobility, the CEO said: “The idea that technologies are reshaping our competitive environment and our industry does not hold us back. We remain open to evaluating all alternatives and believe in a pragmatic and realistic approach. But following others along imprudent and unprofitable paths is not only naïve but also very dangerous”.
At the end of the morning the stock on the FCA stock exchange gains 1,5%, to 19,686 euros. Although positive, the performance is however lower than that of the Ftse Mib, which in the same minutes is up by 2,4%.
Below is the video of Sergio Marchionne's presentation taking place in Balocco at 12:20 on Friday 1st June.
