By on August 6, 2019

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]

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21 Comments on “FCA Says Maserati Will Remain Unprofitable Until Post-2020 Product Offensive...”


  • avatar
    Lockstops

    $132 Mil loss is a lot less than I expected. That’s a positive in my book. Maserati, even with their few ageing products with no hope to be profitable is losing a fraction of what Tesla is losing for example. And Tesla’s got massive subsidies, massive investment injected in, new production facilities, new everything in their factories catering exactly to their current products, a massive hype cult, and cooked books.

    No way they could be bringing in profits with what they’ve got on offer right now, they’re still suffering from serious underinvestment. They’ve also had a series of strategies reneged (looking to China as a growth market, looking to close in on Alfa, looking to go to the US…), which has had a massive impact on the whole company’s performance. I can’t wait for the future model lineup! The Quattroporte, Alfa Giulia, Jeeps, new Dodges have all showed that they have what it takes (the tools, spirit and knowledge) to make winners if they just get their overall strategy right and get the investment in to get it done.

  • avatar
    APaGttH

    My Maserati goes 185
    I blew the motor
    Now I don’t drive

    ;-)

  • avatar
    sportyaccordy

    I am amazed that Maserati has endured for so long. I can’t think of a time in the last 40 years where they had a solid lineup and a healthy business.

    The plan going forward is strange as well. A crossover below the Levante? Isn’t that what the Stelvio, which is tanking in sales, is supposed to be? 2 new coupes in a time where they are dying? A new Quattroporte in another dying segment (huge old man sedans)?

    Are they at least going to consolidate all these vehicles onto the Giorgio platform? Right now FCA has 12 RWD cars/crossovers spread across 5 platforms. They could cut that down to 4 by moving Maserati over. 3 if they finally update the LX cars. Either way, a total mess as is.

    • 0 avatar
      Acd

      Maserati was profitable at least between 2013 and 2015 showing an operating profit of 171, 275 and 105 million Euros according to the FCA 2015 annual report.

  • avatar
    JoeBrick

    “Maserati is adding a sports car to the mix”. What are they making NOW, econobox commuter-cars ? HEY! MASERATI, you’re doing it wrong !

  • avatar
    ajla

    We all know this ends with Doug DeMuro being named Maserati CEO.

    • 0 avatar
      FreedMike

      LOL…I can see the product intro at the car show now…

      “THIIIIS is the 2020 Maserati Quattraporte. Today I’m going to show you all its’ features and quirks…”

  • avatar
    theflyersfan

    “FCA Says Maserati Will Remain Unprofitable Until Post-2020 Product Offensive”

    …and in other news, the sun rose in the east this morning.

  • avatar
    thejohnnycanuck

    Dear Mike Manley,

    There simply isn’t room for two unreliable Italian luxury marques under the same roof. Please pick one, either Alfa Romeo or Maserati, and then bury the loser in the grave next to Fiat’s.

    Your friend,
    Johnny

    • 0 avatar
      Lockstops

      VW has much more than two unreliable AND CRAP marques under the same roof, and they keep adding more.

      Having Alfa and Maserati has not hurt them one bit so far, they are some of the most valuable brands and don’t really compete but instead are a great pair for platform- or parts-sharing while maintaining different positions.

    • 0 avatar
      JoeBrick

      Correct me if I am wrong, but the name “Mike Manley”, although punching all the right buttons for MASCULINITY, fails to push ANY buttons for sounding Italian(o). Mama Mia !

  • avatar
    Oberkanone

    How bout spending some product development funds on Dodge and Chrysler? Billions of dollars from North American operations directed to Alfa and Maserati with little to show for it.

    • 0 avatar
      MyerShift

      Definitely! They have nothing without MaMopar, and instead of fixing the problem, they’re making it worse. We need new Dodges and Chryslers.
      The RAMis a Dodge.
      DODGE is the MAINSTREAM brand with sporty offerings of models available.
      CHRYSLER is a premium but not pretentious type brand that I believe should be a la Buick or even Lincoln now.
      I’ve never understood why the Europeans are so absolutely terrified of a high quality American branded car at any level unless they know their own goods are truly crap..
      Do they really believe ANYONE is cross-shopping a Chrysler with an Alfa Romeo or Maserati? Please!

  • avatar
    Hummer

    10 vehicles with expected annual sales of only 75,000? That sounds like a horrible use of money. We need a Ram and Jeep full-size BOF SUV now.

  • avatar
    Acd

    Profit is over-rated, just ask Tesla.

  • avatar
    deanst

    Their profit number is an “adjusted” EBIT. (Earnings before interest and taxes). They have a further loss of over $100 million which FCA hides as a non-recurring charge attributable to Maserati and North American operations.

  • avatar
    JoeBrick

    “FCA Says Maserati Will Remain Unpopular Until Post-2020 Product Offensive”-
    fixed that for ya.

  • avatar
    FThorn

    I think the most dour opportunity (former employer disallowed employees from using the work PROBLEM…) must be the Ferrari financial earnings call where they (surprisingly to FCA???) announced they would no longer seek to supply engines to FCA.

    FCA’s biggest challenge I think is to appropriately proportion vehicles between/among Fiat/Alfa/Maserati. And, frankly, I feel the Alfa/Maserati are the hardest lines to define/discern.

    The Stelvio is nice to drive, but not well appointed. The Levante is very capable, and nicely appointed, but the exterior styling is the issue.

    I would not want to be the person responsible for FCA product planning.

  • avatar
    ToolGuy

    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.

  • avatar
    MyerShift

    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 [email protected]#&+/- Daimler did.

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