FIVE BILLION FOR ALFA ROMEO, 1,9 MILLION JEEPS IN 2018
MARCHIONNE: "A NEW WORLD, LET'S BREAK WITH THE PAST"
“Today we are starting to write a new book” and “we are not just opening a new chapter” says Sergio Marchionne in Detroit, at the start of the "big day", i.e. FCA Investor Day, the public birth certificate of Fiat Chrysler. But more than a book, judging by the biblical times envisaged by the programme, it makes sense to speak of an encyclopaedia. Or a marathon, which began with the presentation of the industrial objectives of the various brands which will be followed by financial data, including data for the first quarter of 2014 (the penultimate before the corporate marriage) and which will culminate in the question and answer session with the analysts and the press conference when dinner time will have already passed in Italy.
The first relevant industrial novelty concerns Alfa Romeo. Alfa Romeo will launch 8 new models on the market between the fourth quarter of 2015 and 2018. This is what emerges from the slides delivered during the presentation of the business plan. Investments are estimated at 5 billion euros. The head of the brand, Harald Wester, estimates a sales volume of 400.000 units in 2018 compared to 74.000 in 2013.
Also for the Fiat brand the key number is eight. There will be many new models that will be presented between 2014 and 2018 in the EMEA area, which includes Europe, the Middle East and Africa. This is what emerges from the slides of the Fiat brand manager, Olivier Francois. The new models are the 500 X, which should arrive in 2014; a compact sedan and an unspecified 'Specialty' will arrive in 2015. 2016 will be the year of a compact hatch, a compact station wagon and a B-segment car. A Cuv (cross utility vehicle) will arrive in 2017 and the new Panda in 2018. The target? A worldwide sales target of 1,9 million units in 2018 against 1,5 million in 2013. In detail by geographical area, a doubling in the Nafta area is expected (from 2013 to 2018) to around 100 thousand units, a an increase in Latin America from around 700 to around 800 and substantial stability in the EMEA area (Europe, Middle East and Africa) at around 700. The greatest growth will be recorded in Asia Pacific (Apac) at around 300 units in 2018 (from 70 in 2013).
Also for Jeep, the 2018 goal is 1,9 million units against 732 in 2013. Sales will be driven by Latin America in 2014-2018, with a 50% increase in sales, and Asia-Pacific with +45%. In Europe the increase in sales is expected to be 35% while in NAFTA it will be 10%. Jeep Plants to Grow from 4 in One Country to 10 Plants in 6 Countries: Plants Not Located in North America to Produce 900.000 Vehicles by 2018. Jeep Global Production to Climb 138% to 1,9 Million Units in 2018 2016. Jeep's growth will also be entrusted to new models or restyling: the Renegade which will make its debut this year; in 75, the year of the 2017th anniversary of Jeep, it will be the turn of the 'C SUV', while in 2018 the new models or restyling of the Wrangler and the Grand Cherokee are expected; in XNUMX it will be the turn of the Grand Wagoneer.
For Chrysler brand the goal in 2018 is set at 800.000 vehicles.
Fiat ProfessionalFinally, the commercial vehicle division has set a 2018 sales target of 600.000 units, up 40% on 431.000 in 2013. This is what emerges from the slides by Reid Bigland, head of the Fiat professional, Ram and Ram Commercial brands . A goal that can be achieved with the introduction of five new models.
Ambitious promises, especially as regards Alfa and Jeep. But already partly expected. And that can only be evaluated together with the financial scenario of the plan. This probably explains the coldness of the market. The Fiat share, a few minutes after the closing, in fact dropped 1,7% after having sailed in the morning between 8,42 and 8,78 euros. But these numbers are the tip of the iceberg of what Marchionne, with his usual black sweater, defined as "a plan represents a break with the past" just to underline that the new FCA will not look anything like the old Lingotto or the old Chrysler , a little-known regional brand outside the borders of the States. It's a new world. And it is no coincidence that Marchionne closed the presentation of the works thus: “Welcome to this world. Welcome to Fiat Chrysler Automobiles”. “A new world – he spelled out from the stage – where people don't let things happen. They make it happen, they don't leave their dreams outside the door but they get involved and take risks. They leave their mark. It is a world where every day and every new challenge brings with it the opportunity to create a better future”. “It may not be a perfect world – concedes Marchionne – and certainly not easy. No one sits on the sidelines and the pace can be furious because these people are passionate, very passionate, about what they do. Those who choose to live in this world believe that taking responsibility gives deeper meaning to their work and their lives.”
