By on February 1, 2016

car-brands

FCA’s sweater-in-chief Sergio Marchionne has a plan to turn around the debt-laden and ailing automaker: stop building cars that lose money. That sounds like common sense, so long as oil prices stay low and the demand for trucks, SUVs and crossovers remains high.

But that plan introduces a new set of problems, chief among them the fact that ditching the car market leaves FCA exceptionally exposed to future volatility in oil prices. Crude prices affect prices at the pump, which affects the demand for certain types of vehicles. Sergio is betting oil prices will stay low by focusing on vehicles with ever-increasing price tags and ever-growing gas tanks.

Still, there will always be some demand for small cars. It was true in 1950 and it is true today. So what will Mr. Sweater do to meet that demand? Simple: he’ll buy those vehicles from another automaker and badge engineer them the old-fashioned way.

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By on December 13, 2015

2015 Chrysler 200 S AWD front angle

According to a report from Allpar, Chrysler’s model mix might be getting a major re-shuffle compared to Sergio Marchionne’s much touted five-year plan shown in 2014. While Allpar doesn’t list a source, a recent investor presentation marked Chrysler’s future lineup as “under re-evaluation”.

The five-year plan called for a new C-segment sedan, which was dubbed Chrysler 100, and a slew of other new product.

With fuel prices expected to stay at their current level until at least 2020 and the market eschewing smaller cars for crossovers, the time may not be right for the Chrysler 100 in North America, reports Allpar.

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By on May 14, 2012

An article in Automotive News lavishing praise on the Chrysler/Fiat merger of equals marriage inadvertently spilled the beans on a couple upcoming products from Marchionne’s minions.

(Read More…)

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