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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3 of 19 comments
  • 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.

  • Redapple2 Barra at evil GM is not worth 20 mill/ yr but dozens (hundreds) of sports players are. Got it. OK.
  • Dusterdude @SCE to AUX , agree CEO pay would equate to a nominal amount if split amongst all UAW members . My point was optics are bad , both total compensation and % increases . IE for example if Mary Barra was paid $10 million including merit bonuses , is that really underpaid ?
  • ToolGuy "At risk of oversimplification, a heat pump takes ambient air, compresses it, and then uses the condenser’s heat to warm up the air it just grabbed from outside."• This description seems fairly dramatically wrong to me.
  • SCE to AUX The UAW may win the battle, but it will lose the war.The mfrs will never agree to job protections, and production outsourcing will match any pay increases won by the union.With most US market cars not produced by Detroit, how many people really care about this strike?
  • El scotto My iPhone gets too hot while using the wireless charging in my BMW. One more line on why someone is a dumbazz list?