FCA Boss Admits A Maser Mistake

Tim Healey
by Tim Healey
fca boss admits a maser mistake

Earlier this year your humble scribe was in the Detroit suburbs to drive a whole bunch of Maserati and Alfa Romeo product at an event that was separate from and yet still part of Fiat Chrysler’s annual What’s New media-drive event.

That sounds contradictory, so let me explain. The two Italian luxury brands were showcased separately from the others, with a separate dinner and a separate drive. The drive took place not at Chrysler’s venerable proving grounds in Chelsea, but across the metro area in Pontiac, at a small private racetrack. The focus of that day was almost exclusively on Alfa and Maserati products.

It was clear that FCA was trying to bring the brands further into the corporate fold, while also associating them more closely with each other, since both are supposed to offer luxury and performance.

New FCA chief Mike Manley has now said that efforts to pair the two in the minds of consumers may have been a mistake.

“With hindsight, when we put Maserati and Alfa together, it did two things,” he said on a conference call, according to Automotive News. “Firstly, it reduced the focus on Maserati the brand. Secondly, Maserati was treated for a period of time almost as if it were a mass market brand, which it isn’t and shouldn’t be treated that way.”

Manley eventually appointed Harald Wester, who previously served as chief technology officer for FCA, back to the top chair at Maserati. Wester led the brand from 2008 to 2016.

Marketing is the least of Maserati’s troubles, though. The brand is down 16 percent in sales year over year through the first 10 months of 2018, with sluggish sales in China and tighter emissions regulations in Europe partly to blame. Earnings fell by 87 percent to 15 million euros in the third quarter.

Meanwhile, Wester hired executive Jean-Philippe Leloup away from Ferrari to run a new venture called Maserati Commercial.

A dearth of product adds to the woes. The Levante SUV exists in the only SUV class that isn’t seeing growth, and it’s two years older than its prime competitors. Promised Maseratis such as the Alfieri and a mid-size SUV have yet to materialize, and a promise to electrify the brand (literally, with the addition of battery-electric vehicles) has also yet to come to fruition.

The Levante, Ghibili, and Quattroporte are soldiering on, for now.

Manley did hint at some sort of action planned for the final quarter of this year, and he also said he believes the brand can make its 2022 target of 15 percent profit margin.

[Image: Maserati]

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  • Add Lightness Add Lightness on Nov 19, 2018

    After a day on the bike in tough weather, I get home and go for an errand in my Honda. I have heat, a seat, windows and a radio. I always think to myself 'This is an absolute luxurious experience' Just how much luxury do we need in life? BTW, luxury and performance are basically at opposite ends of the automotive spectrum and trying to have both in the same package is nothing but a big compromise.

  • Markogts Markogts on Nov 22, 2018

    These are the same bunch of clueless guys who sold a Chrysler 300M under a Lancia badge. Now, maybe in the US is not well known, anyway, Lancia has always been associated with FWD, so this was the second most stupid move in FCA history. Now Lancia is a dead brand, and no one of these top brass will be held accountable. If you wonder which is the most stupid move made in the history of FCA (well, FIAT) just google "Alfa Romeo 155". You shouldn't treat a car company as a kitchen appliance company: there are traditions and engineering choice history that go way deeper than the shape of a grille.

    • Inside Looking Out Inside Looking Out on Nov 25, 2018

      Lancia still exist as a "fashion micro car" whatever it implies and there are even Black Friday deals available. FIAT killed Lancia and in the process of killing Chrysler and Dodge too. Next will be probably Maserati. FCA is clueless.

  • MaintenanceCosts We hear endlessly from the usual suspects about the scenarios where EVs don't work as well as gas cars. We never hear the opposite side of the coin. From an EV owner (since 2019) who has a second EV reserved, here are a few points the "I road trip 1000 miles every day" crowd won't tell you about:[list][*]When you have a convenient charging situation, EV fueling is more convenient than a gas car. There is no stopping at gas stations and you start every day with a full tank.[/*][*]Where there are no-idling rules (school pickup/dropoff, lines for ferries or services, city loading, whatever else) you can keep warm or cool to your heart's content in your EV.[/*][*]In the cold, EVs will give you heat from the second you turn them on.[/*][*]EVs don't care one bit if you use them for tons of very short trips. Their mechanicals don't need to boil off condensation. (Just tonight, I used my EV to drive six blocks, because it was 31 degrees and raining, and walking would have been unpleasant.)[/*][*]EVs don't stink and don't make you breathe carcinogens on cold start.[/*][*]EV maintenance is much less frequent and much cheaper, eliminating almost all items having to do with engine, transmission, or brakes in a gas car. In most EVs the maintenance schedule consists of battery coolant changes and tire maintenance.[/*][*]You can accelerate fast in EVs without noisily attracting the attention of the cops and every passerby on the street.[/*][/list]
  • MaintenanceCosts Still can't get a RAV4 Prime for love or money. Availability of normal hybrid RAV4s and Highlanders is only slightly better. At least around here I think Toyota could sell twice the number of vehicles that they are actually bringing in at the moment.
  • Tree Trunk Been in the market for a new Highlander Hybrid, it is sold out with order time of 6 months plus. Probably would have bit the bullet if it was not for the dealers the refuse to take an order but instead want to sell from allotment whether it fits or not and at thousands over MRSP.
  • AKHusky The expense argument is nonsense. My mach e was $42k after tax credit. Basically the same as similarly equipped edge. And it completely ignores that the best selling vehicles are Rams, F150s, and Silverados, all more expensive that a bolt, MAch e or ID4. As an owner, I'd say they are still in second car territory for most places in the country.
  • Johnster I live in a red state and I see quite a few EVs being purchased by conservative, upper-class Republicans (many of them Trump-supporters). I suspect that it is a way for them to flaunt their wealth and that, over time, the preference for EVs will trickle down to less well-off Republicans.
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