By on October 21, 2015

Sergio Marchionne - FCA

Fiat Chrysler Automobiles chief Sergio Marchionne rang the opening bell Wednesday for Ferrari’s first day of trading on the New York Stock Exchange and shares of the supercar maker soared.

The stock, which was up as high as $60 per share, leveled off around $57 in mid-day trading.

“This is not really a car, it’s a unique expression of art and technology,” Marchionne told Bloomberg.

(Read More…)

By on October 13, 2015

Marchionne - Picture courtesy theglobeandmail.com

Like Al Pacino in “The Godfather 2,” Sergio Marchionne’s move to insulate himself further and tap future successors has claimed another victim. On Monday, former Fiat North American chief Jason Stoicevich resigned from the automaker, days after he was replaced as head of Fiat by Dodge CEO Tim Kuniskis.

Stoicevich was a longtime FCA employee, heading up the automaker’s California sales office and former head of Jeep operations before that.

His departure is the latest in a company-wide shakeup to consolidate most North American brands between fewer brand chiefs.

(Read More…)

By on October 12, 2015

Apple iOS in a Car + Ferrari LaFerrari

Fiat Chrysler Automobiles on Monday finally priced its initial price offering for Ferrari at $48 and $52 per share for 10 percent of the luxury carmaker when its stock goes sale, the Detroit News reported. The pricing values Ferrari at roughly $9.8 billion — less than the $12 billion reported last week — and analysts say the interest in the stock, which will trade under the symbol RACE, is roughly 10 times higher than available shares.

The IPO is part of FCA’s long-term strategy to raise cash for investment in its own vehicles in Jeep, Dodge, Fiat, Chrysler and Maserati brands. According to paperwork filed ahead of the IPO, 10 percent of the company will remain with Ferrari scion Piero, 80 percent will be distributed among Fiat family ownership.

(Read More…)

By on October 9, 2015

Ferrari-488-GTB-8

The supercar maker may be valued at more than $12.4 billion ahead of its initial public offering, which could happen as early as Friday, Bloomberg (via Automotive News) reported.

Ferrari may price its shares Friday night when it offers 10 percent of the Maranello-based automaker to the public. The remaining ownership of the carmaker will remain largely with the same ownership group, comprised mostly of the Agnelli family and Piero Lardi Ferrari.

Fiat Chrysler Automobiles CEO Sergio Marchionne said in July that Ferrari would be worth roughly $11 billion, which analysts balked at being a little ambitious. Since then, Ferrari’s value may have climbed as Marchionne told investors that Ferrari wasn’t necessarily an automaker, but rather a luxury brand that could be more profitable than a traditional carmaker.

(Read More…)

By on September 15, 2015

Sergio Marchionne. Photo courtesy Toledo Blade.

Representatives from the United Auto Workers and Fiat Chrysler Automobiles agreed Tuesday to extend their contract on an “hour-by-hour” basis, Reuters reported. Workers reported Tuesday for their morning shifts, but those workers could walk out at any time if talks stall.

On Monday, it became clear that the UAW would set its sights on FCA and their larger share of Tier 2 workers — workers hired after the recession at a lower hourly wage — as the union aims to “bridge the gap” between the two tiers.

According to the report, the union may opt to strike, stage a limited walkout or continue negotiations if talks reach an impasse.

(Read More…)

By on September 14, 2015

FCA_Location_1_Torino_Lingotto_high

The UAW has chosen FCA US to bat leadoff in the union’s contract talks with the Detroit Three, prompting CEO Sergio Marchionne to forgo Frankfurt.

The move by the union to go after the weakest of the Detroit Three is meant to establish how all of the contract talks this month will proceed, Automotive News writes, with the possibility of striking out should the union not receive what they seek; the last UAW strike occurred with General Motors in 2007.

(Read More…)

By on September 6, 2015

Sergio Marchionne - FCA

Speaking at the Formula One Italian Grand Prix this weekend, Fiat Chrysler Automobiles CEO Sergio Marchionne told Reuters that a merger with General Motors was at the top of his list.

“That discussion remains a high priority for FCA,” Marchionne told Reuters. “We consider it to be the best possible strategic alternative for us and for them. General Motors does remain the ideal partner for us and we represent a not easily replaceable alternative for them.”

(Emphasis mine. But what are the other “strategic alternatives?”)

(Read More…)

By on September 1, 2015

sergio-marchionne

Farmers are the ultimate craftsman when it comes to small-scale production. The level of management needed to stay competitive and above the high water line is, simply put, astounding. Consolidation in certain areas of agriculture has lead to factory farming, the widespread adoption of automation and genetically modified seeds that keep seed producers competitive. Private farmers are constantly at war with the market and their own budgets.

The agriculture industry has wholly transformed itself over the last 100 years. The automotive industry, which has only really existed for that same period of time, has seen similar levels of change. We are now building more cars, trucks, SUVs, crossovers, trikes and quadracycles than ever before, just like we are growing more food than we’ve ever seen in human history.

But, there’s one major stumbling block ahead — and Sergio Marchionne sees it.

(Read More…)

By on September 1, 2015

FCA US LLC HQ WTFBBQ

Mergers don’t excite me.

I’m not excited about the prospect of walking in to my neighborhood Jeep/Chevy/Buick/Dodge/GMC superstore and thumbing through the soul-less car stocks like a weekend trip to Costco.

Bark makes a good business case that Mazda and Subaru could help each other in worldwide sales, and brings up some interesting short-term mashups: rotary engines with all-wheel drive, a boxer in a Miata, et al. All those things sound fun like monster trucks and cans of Pabst on a Friday night.

But in reality, despite repeated calls from automakers that consolidation will mean the car business can stay “in business,” mergers don’t make better products — but they try to make shareholders happy, if they can even do that (see: Suzuki-Volkswagen, page 231 of your textbook). Shared R&D is often synonymous with “badge engineering” (Cimarron) and when it’s not, well, just look at Saab.

If history has taught us anything, mergers simply leave car people left out in the cold.  (Read More…)

By on August 30, 2015

Sergio and 1.4L Turbo MultiAir in better times at Dundee. Chrysler Photo

We have to hand it to Larry P. Vellequette at Automotive News for getting FCA’s Don Marchionne riled up. In addition to getting Sergio talking yesterday about automakers having a history of bending the unions over, the outspoken executive has now called for a General Motors takeover via a series of hugs increasing in their intensity each time.

“There are varying degrees of hugs. I can hug you nicely, I can hug you tightly, I can hug you like a bear, I can really hug you,” said Marchionne to Vellequette. “Everything starts with physical contact. Then it can degrade, but it starts with physical contact.”

And no, that’s not even the best part.

(Read More…)

By on August 29, 2015

marchionne

Sergio Marchionne seems to be taking a different tactic in this year’s UAW negotiations. Instead of threatening to take product out of North America and send it to China, the head of FCA is playing to the hearts and minds of the union membership, even going so far as to admit all automakers have screwed workers in the past.

“To be perfectly honest, we’ve all fucked with the UAW, right? We were threatened by them, so we took all the pickup trucks that we sell — and 90 percent of those pickup trucks are sold in this country, right — we took it away, and then we delocalized them” Marchionne told Automotive News’ Larry P. Vellequette.

(Read More…)

By on August 26, 2015

2014 Jeep Grand Cherokee Exterior-014

Fiat Chrysler Automobiles may be showing off a Dodge Barracuda convertible, a next-generation Charger, Jeep Grand Cherokee Trackhawk and a Grand Wagoneer — they probably put root beer in the fountains too — according to multiple media reports.

At the dealer meeting in Las Vegas, FCA executives outlined the future for the brands (Jeep, Chrysler, Dodge, Alfa Romeo, Maserati and Fiat) that may include up to 30 new or refreshed products within two years.

According to reports, FCA CEO Sergio Marchionne also addressed reports that the automaker was seeking a merger with another automaker, and any potential deal would be “to strengthen the competitive position of the companies involved,” he said according to Automotive News.

(Read More…)

By on August 5, 2015

Bob Lutz  Picture courtesy dailytech.com

My goodness, when isn’t former General Motors exec Bob Lutz just the best? The former GM chief recently appeared on an Automotive News panel and boy that guy has vision and the rest of us have bifocals.

Car and Driver correctly points out that Lutz makes good points regarding a merger between GM and Chrysler, but the sage’s wisdom doesn’t stop at the following quote:

“The knowledge that one is to be hanged in the morning focuses the mind wonderfully.”

(Read More…)

By on August 2, 2015

1438207098198

The court case against former FCA Australia executive Clyde Campbell is turning into a veritable who’s-who of decision makers at the company, reports The Age.

Campbell, who is charged with misappropriation of $30 million AUD of company funds, claims he had verbal permission from recently departed FCA executive John Kett, current company hotshot Mike Manley, and head of FCA Sergio Marchionne.

(Read More…)

By on July 30, 2015

Jeep Wrangler American flag

Fiat Chrysler Automobiles said strong North American sales and brisk worldwide Jeep sales propelled the company to a $364 million profit in the second quarter of 2015, despite record fines from the federal government.

Overall, the company earned a pre-tax profit of $1.4 billion, which is double the $650 million it made in the same quarter last year, the Detroit Free Press reported.

The earnings beat expectations for the company, whose profit margins are still below the other domestic automakers. FCA reports its margin was 7.7 percent in the second quarter, up from 4.9 percent last year, but well behind the double-digit margins of Ford and General Motors.

(Read More…)

Recent Comments

New Car Research

Get a Free Dealer Quote

Staff

  • Contributors

  • Matthew Guy, Canada
  • Seth Parks, United States
  • Ronnie Schreiber, United States
  • Bozi Tatarevic, United States
  • Chris Tonn, United States
  • Corey Lewis, United States
  • Moderators

  • Adam Tonge, United States
  • Kyree Williams, United States