Fiat SpA unveils its first strategic plan this week since teaming up with U.S. carmaker Chrysler and CEO Sergio Marchionne could outline a timeframe two years ahead for selling stakes in a combined company.
Marchionne, something of a guru for the flailing car industry after predicting over a year ago there would be drastic consolidation, needs to lay out plans for new products to show he can achieve synergies and cost cuts with Chrysler.
Unveiling the plan — which will include presentations from all of the company’s business units — will take over six hours and involve battalions of journalists and analysts descending on the 1920s Lingotto plant which is now Fiat’s Turin headquarters.
In an abbreviated version of an exhaustive, day-long Chrysler presentation in November 2009, each unit will present product plans and business targets and a focus on strategy to win market share, as rivals bulk up and demand splutters.
“Marchionne’s got to say something — either we keep the autos or we do something. We can’t just go on like this, from an investor standpoint but also from the standpoint of the employees,” said analyst Philippe Houchois at UBS.
Marchionne has told everyone who’s asked about a possible separation of the autos business to wait for the strategic plan.