FCA Says Maserati Will Remain Unprofitable Until Post-2020 Product Offensive
Maserati posted an ugly financial report for the second quarter of 2019. Revenue was down 40 percent, resulting in a loss of $132 million before interest and taxes. The good news, according to Fiat Chrysler Automobiles, is that the brand will become profitable once new product hits the ground.
The bad news? None of those vehicles are scheduled to arrive until after 2020, meaning Maserati probably won’t see any improvements until sometime afterward. FCA CEO Mike Manley has already said the rest of 2019 will be ugly for the brand, though he remains hopeful that the 10 new or refreshed vehicles the premium nameplate had in the works would help it turn a corner.
In the meantime, Maserati wants to continue taking steps to reduce bloated dealer inventories. In 2018, the marque had a five-month supply of autos. The goal is to tamp that down by half by the end of this year. The company has already cut production and reduced deliveries by 46 percent in the second quarter. Sales declined by 17 percent, to 7,200 vehicles, over the same period.
While plenty of Maserati’s new product remains a mystery, we do know it plans to add a new sports car to the mix next year and update its mainstay models. There’s also a crossover, slotted below the Levante, and a successor to the Granturismo coming in 2021. The Quattroporte is scheduled to get its replacement in 2022, with the next-generation Levante arriving the following year.
We couldn’t say if this will work, however. Maserati is performing well below FCA’s original expectations. Former FCA CEO Sergio Marchionne envisioned the brand yielding 75,000 deliveries annually, but Maserati had trouble even meeting its revised target of 50,000 units in 2018, moving just 36,500 cars. A large part of its problem was an inability to launch new product — something at the core of its turnaround strategy. Manley has previously said that lumping the brand in with Alfa Romeo was also a big mistake, promising that this won’t be an issue in the future, now that the brand has its own leadership.
[Image: Giovanni Love/Shutterstock]
Join the conversation
Latest Car ReviewsRead more
Latest Product ReviewsRead more
- Ravenuer The Long Island Expressway.
- Kwik_Shift A nice stretch of fairly remote road that would be great for test driving a car's potential, rally style, is Flinton Road off of Highway 41 in Ontario. Twists/turns/dips/rises. Just hope a deer doesn't jump out at you. Also Highway 60 through Algonquin Provincial Park in Ontario. Great scenery with lots of hills.
- Saeed Hello, I need a series of other accessories from Lincoln. Do you have front window, front and rear lights, etc. from the 1972 and 1976 models
- Probert Wow - so many digital renders - Ford, Stellantis. - whose next!!! They're really bringing it on....
- Zerocred So many great drives:Dalton Hwy from Fairbanks to the Arctic Circle.Alaska Marine Highway from Bellingham WA to Skagway AK. it was a multi-day ferry ride so I didn’t actually drive it, but I did take my truck.Icefields Parkway from Jasper AB to Lake Louise AB, CA.I-70 and Hwy 50 from Denver to Sacramento.Hwy 395 on the east side of the Sierras.
This is what happens when you make it so difficult to apply car wax around your company's logo without getting it stuck in all those little nooks and crannies (first picture). Karma is a real thing.
Absolutely disgusting that money is poured into this pet project of the Europeans while they siphon all the profits generated by the North American MaMopar operations, leaving Ma to starve and wither. Just like $@#&+/- Daimler did.