Fiat Chrysler’s future in focus as CEO presents strategy
Fiat Chrysler Automobiles CEO Sergio Marchionne will present the company’s five-year plan Friday at a time when the industry is shifting attention to SUVs and cutting back on small cars.
Marchionne, who plans to retire next year, has spearheaded Fiat Chrysler’s strategy in recent years to expand Jeep sales globally and invest in Italian luxury brands Alfa Romeo and Maserati. The automaker also cut the slow-selling Dodge Dart and Chrysler 200 sedans from its lineup, banking on booming sales of SUVs and pickup trucks. With help from Jeep and Ram, Fiat Chrysler generates three-fourths of its profits in North America.
Investors have cheered Fiat Chrysler’s improved financial results, with shares more than doubling over the past 12 months. The stock climbed 4.6% a day before the presentation on news that Fiat Chrysler will expand its partnership with Waymo, Google’s self-driving car division.
On Friday, Fiat Chrysler is expected to reveal long-term financial targets and its plans for new products through 2022. Bloomberg reported that Fiat Chrysler will continue to invest in Jeep and luxury cars, while its namesake brands will factor less into future sales. The company is considering ending sales of Fiat cars in North America and China and mostly confining Chrysler to the U.S., according to the report Opens a New Window. .