Marchionne: 2019 Ram Production Is a Headache, Levante Launch 'Sucked'

Steph Willems
by Steph Willems

Candid as always, Fiat Chrysler CEO Sergio Marchionne let off some steam during a first-quarter earnings call this week. The chief executive, due to retire early next year, revealed the launch of the next-generation 2019 Ram 1500 was not the smoothest process in the world, with the company taking on additional costs to get the pickup out the door.

Despite these troubles, the Ram 1500’s launch is nothing compared to the debut of the Maserati Levante SUV in 2017, which hit the market with a whimper. That launch straight up “sucked,” Marchionne said.

The content of the earnings call, reported by Motor Trend, is classic Marchionne, who channelled his inner Roger Murtaugh when discussing the goings-on at the retooled Sterling Heights plant. The higher-capacity plant, repurposed for 2019 Ram production, required an extra $300 million to get the truck ready on time. Still, not every configuration was available come the on-sale date.

Marchionne said the plant is “running at 60 percent of cycle today which is not where we need to be. We allowed enough time in 2017 to get that installation up, but it’s proven to be challenging.”

Anyone entertaining ideas of Marchionne showing up with a sleeping bag to oversee operations on the plant floor had best think again. “I’m too old for that crap,” he said, referring to Tesla CEO Elon Musk’s practice of camping out in times of production crisis.

While FCA works to get the Sterling Heights plant up to speed, the Warren plant continues to churn out the previous-gen model, and will so for at least the next year. Tooling and development costs have long since been paid off, making the old-style 1500 a comforting profit generator. It also satisfies buyers looking for a lower-cost full-sizer.

As for the Levante, a vehicle not exactly at the forefront of any car enthusiasts’ mind, Marchionne likes itm, but detests the manner in which it entered the market. FCA dropped the ball on that one, he admits.

“Very poor execution,” he said. “I think we sucked at the launch of the Levante.”

Since its debut, Tim Kuniskis took over as head of Maserati and Alfa Romeo, leaving a formerly overburdened Reid Bigland to focus on North American sales. FCA’s head honcho feels it’s a good fit. As former head of the Dodge brand, Kuniskis oversaw the buildup to the launch of the Challenger SRT Demon, and Marchionne thinks much of that same enthusiasm can be mustered for the 590 horsepower Levante Trofeo unveiled at this year’s New York auto show. That variant goes on sale this fall.

After first appearing on U.S. sales charts in August of 2016, the Levante’s monthly volume quickly flatlined. Its best sales month in the United States was December 2016.

[Image: Fiat Chrysler Automobiles]

Steph Willems
Steph Willems

More by Steph Willems

Comments
Join the conversation
3 of 29 comments
  • El scotto El scotto on Apr 29, 2018

    Chrysler used to be known for its engineering prowess. Then there was the "merger" with Daimler. Then Cerebus' less than benign ownership. Then Chrysler was given to FIAT. Ole Sergio backs up a dumptruck to the money machine that is Jeep, perpetual Bronze Winner RAM, and large V-8 RWD sedans that continue to sell. No real updates needed on any of Chrysler's products; just more dumptruck loads of cash to corporate. Enough cash to make Jeep/RAM/Dodge/Chrysler look good to a Chinese company.

    • Highdesertcat Highdesertcat on Apr 29, 2018

      With Sergio retiring early next year, no one really knows what is in store for Fiatsler. They've got some hits on their hands, like the JGC and RAM, sell every one of the specialty supercars/supertrucks they make, but the future still looks cloudy, with a chance of meatballs. Now, selling to a Chinese or India company always remains a viable option because that's where the money is. America can always import them, like we do with JLR, Volvo and Buick. Wish the same would happen for GM, sell to a Chinese or India company that is. Ford is the ONLY American car maker left and they need to sell what buyers want.

  • Dantes_inferno Dantes_inferno on Apr 30, 2018

    >Marchionne: 2019 Ram Production Is a Headache, Levante Launch ‘Sucked’ FCA's motto: Dodge testing - RAM it into production.

  • Lou_BC Question of the day: Anyone actually care to own an old TVR?
  • Bd2 First, this was totally predictable. 2nd, Genesis already does have hybrids in the form of a 48V mild hybrid, but more performance oriented (supercharged and turbocharged), so not really helping with regard to fuel consumption. 3rd, Hyundai's hybrid systems don't really help as there currently isn't one that would be suitable power-wise and the upcoming 2.5T hybrid system would have to be heavily reworked to accommodate a RWD/longitudinal layout. 4th, it seems that Genesis is opting to go the EREV route with the GV70 the first get the new powertrain.
  • Bd2 Jaguar's problem was chasing the Germans into the mid size and then entry-level/compact segments for volume, and cheapening their interiors while at it.
  • 3-On-The-Tree Aja8888 I expected that issue with my F150 starting at 52,000mi. luckily I had an extended warranty and it saved me almost $8,000. No more Fords for me, only Toyota.
  • Lou_BC I saw a news article on this got a different read on it. Ford wants to increase production of HD trucks AND develop hybrid and EV variants of the SuperDuty. They aren't scaling back EV production. Just building more HD's and EV variants of HD's .
Next