By on October 22, 2010

It’s easy to see why Sergio is feeling mighty pleased with himself. Fiat is predicted to turn a €400 million profit this year (that’s about $556m) and Fiat is expanding in Brazil, a huge car market. So can some of this good fortune rub off onto Chrysler? Possibly 35 percent of it can, if Sergio has his way.

The Freep reports that Sergio Marchionne, CEO of Fiat and Chrysler, has told analysts that Fiat is planning to raise its stake in Chrysler from 20 percent to 35 percent by the end of next year “barring unforeseen circumstances”. A big vote of confidence, indeed. When Fiat took its initial stake in Chrysler, it was given the option to increase its stake by 5 percent tranches, provided it could meet certain goals.

  • First goal: Launch the manufacture of the 1.4 liter, four cylinder MultiAir engine at Chrysler’s plant in Dundee, Michigan. This will be done by next year, says Fiat.
  • Second goal: Make Chrysler produce a car in the United States, which can achieve at least 40 mpg. Marchionne is confident that will happen by next year, too.
  • Third goal: Get Chrysler growing outside of the United States, particularly in South America. Fiat has a clear strategy of making Chrysler grow in Europe. Just stop calling them Chryslers. But what about South America? Theoretically, this should have been the easiest to do, given Fiat’s strength in Brazil. Marchionne says that meeting this goal is “fraught with difficulties”. He bases this on Brazil’s regulations with regards to dealer networks. Apparently, Fiat is still working on that one. The Freep says that Fiat should ask for another goal. If I were Marchionne, I’d opt for that.

So to recap, Fiat is posting good profits, is strong in Brazil, is on the way to achieving 2 of their objectives for Chrysler, and may ask for a replacement of the third goal. Good job, Mr Marchionne!

How about going all out for 51 percent? Whoa, Nelly, he says. “I’m not even playing with that notion today,” said Mr Marchionne. Probably a good idea. So what’s he playing with instead?

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11 Comments on “Fiat To Tighten Grip On Chrysler...”

  • avatar

    Here in Venezuela Chrysler has a relatively good name. Jeep sells well, the Neon sold like hotcakes (the Caliber not so much). The Sebring is too expensive for what it offers. The few 300C also sold quick.
    And they have a site here. Fiat Group would have 2 here: Iveco and Chrysler. Iveco has very good relations with the government

  • avatar

    Cammy – Does the American Rootes Group – I mean Chrysler, Dodge and Jeep – have much of a choice with regards to their eventual ownership by FIAT?
    It is an evolving story and one whose outcome won’t be known for another three years, at least.

  • avatar

    Classic Vinnie Jones pic. Love that one. (yes, it’s the same dude from the Guy Ritchie films)

  • avatar

    Whenever I read ‘Tighten grip’…. this picture immediately comes to mind! Poor Gazza….. he’s never been the same since.  :)  

  • avatar

    Did TTAC have an item the story yesterday concerning Chrysler’s decision on which dealers would get Fiat franchises and which would not? Here’s one link:
    Ought to be interesting!

  • avatar
    Tricky Dicky

    Loving the Vinnie – Gazza photo. For those of you who don’t understand proper “Football”, the player getting all the ‘attention’ sent a bouquet of flowers to his admirer that evening. Great players, real characters the pair of ’em. But I don’t think Sergio with his smoking habit could keep up with either of them.

  • avatar

    You don’t get many footballers like Vinnie and Gazza any more. It’s amazing that whilst one is now doing the rounds as the Holywood Brit ‘hard man’, the other has descended into a seemingly terminal, alcohol fueled decline. Football used to be all about proper characters on and off the field, now it’s all about vast amounts of money, sanitized stadiums and fancy haircuts whilst overpaid scuzzballs fall over at the slightest tap.

    Aaaand back to the article – I’m actually glad that Fiat see’s a future in Chryco, it all looked very bleak over a year ago.

    • 0 avatar

      just a couple of days ago I lamented the same thing. And it wasn’t even that long ago. Just a decade or so ago you could watch premiership and see Vinnie Jones, Julian Dicks, Duncan Ferguson, Paolo Di Canio, Schmeichel … not to forget Cantona. All mental muppets but such a pleasure to watch.

  • avatar
    Cammy Corrigan

    To anyone who’s interested, I’m glad you like my choice of picture.
    With regards to modern football. It’s a joke. Many people hail Cristiano Ronaldo as a genius footballer. In my opinion, he isn’t even fit to lick the boots of the REAL Ronaldo.

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