Newly established Fiat Chrysler Automobiles is now ready for some serious business, with its CEO – Sergio Marchionne, unveiling a five-year global expansion plan.
The automaker, currently the world’s seventh largest is betting on its best known brands to undergo a never before seen market expansion, aiming to become a global powerhouse with the help of the Alfa Romeo, Maserati and Jeep upscale brands.
Yesterday the newly created group, which should have its headquarters in the Netherlands, pay taxes in London and be listed on the New York and Milan stock exchanges, unveiled a long promised business plan.
The final goal is to revive the historic brands it possesses, convince investors it can rise from the debt burden, fight uncertain market swings in various regions and finally become potent enough to challenge the top guns in the industry – Toyota, GM or VW AG.
“It’s definitely a tall order, but I don’t think we ever expected anything less from Marchionne in terms of the ambition,” said Exane-BNP Paribas analyst Stuart Pearson. “Even getting half or two-thirds of the way to those business plan targets would be a positive achievement industrially – it’s then a question of what investors are expecting and what’s already priced into the shares.”
The automaker aims to aggressively expand in Asia, where it lags far behind its competitors and expand the North American sales by adding more models to the Chrysler and Dodge brands.
FCA’s sales target for 2018 is now set at around 7 million units per year, with the company investing billions of dollars to release new models and increase global production output.