Chrysler Weighs Third Pickup Plant Marchionne Doesn't Really Want

TTAC Staff
by TTAC Staff

Automotive News is reporting that last week’s conference call on Chrysler’s quarterly financials and the structure of the newly merged Fiat Chrysler Automobiles, CEO Sergio Marchionne said that Fiat Chrysler managers were considering whether or not to build a third pickup truck assembly plant to cope with high demand for Ram light and heavy duty trucks. Marchionne had earlier vowed to never build another assembly plant in North America and in the conference call he reiterated his preference to run existing pickup plants in Warren, Mich., and Saltillo, Mexico, “flat-out.”

Marchionne said he believes Chrysler can increase pickup truck production by 15-20% without requiring an additional factory, placing the odds of building a new plant “under 50 percent.”

Sales of Ram pickups, which were redesigned for 2013, out performed the market last year. Ram pickups were Chrysler’s best selling vehicle, up 21% in 2013 to 355,673, compared to the pickup market in general, which was up 17% over 2012 figures.

TTAC Staff
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  • Deanst Deanst on Feb 04, 2014

    On the call yesterday to refinance the VEBA debt, Marchionne emphasized that he is more interested in getting the optimal usage out of the existing factories. There was also no mention of a new factory in his capex plans. A new factory is not happening.

    • Bobman Bobman on Feb 04, 2014

      Good move. Why on earth would anyone suggest that Sergio build another plant when he can increase output by 15% to 20% with current capacity available. Too many other important projects seeking the few resources available at the moment.

  • Big Al from Oz Big Al from Oz on Feb 04, 2014

    Fiat has a considerable amount of overcapacity in Europe. Mexico doesn't have the restrictive labour practices as the US's UAW driven 'model'. Why would you want to have a factory in the US? Here's an interesting link, look at where this company is headquartered and it's customers. Many of our TTAC readers will be mildly surprised. Like I stated why build in the US, especially when you still have at least 20% more capacity. Innovation could improve that even further. http://www.metalsa.com/

  • Guevera Guevera on Feb 05, 2014

    "Marchionne had earlier vowed to never build another assembly plant in North America" Damn. My wife really, really, really wants a new 200 convertible (actually she wants the Lebaron convertabile she drove as a teenager...but they stopped making 'em 20 years ago). And now we can't buy one. Sucks. I know every CEO is all about stabbing American workers in the back at every opportunity. But when one is that flagrant about it I can't buy from his company.

    • And003 And003 on Feb 05, 2014

      @guevera: Considering the problems Fiat has with manufacturing overcapacity in Italy, why should Marchionne build another assembly plant in North America or anywhere else, especially if he can satisfy demand with the plants that FCA has now?

  • Billfrombuckhead Billfrombuckhead on Feb 10, 2014

    I hate to say this for a variety of reasons but Chrysler needs an aluminum "world Ram" that can also be the basis for the next Wrangler. Build the Jeep in Toledo and the truck in Brasil and China.

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