Marchionne’s Spagehtti Western Alfa Romeo Re-Launch
Industry News
After making assurances to Congress on the contrary, Fiat Chrysler will build Jeeps in China and Brazil and is expected to invest billions of euros to revamp the Alfa Romeo brand in a bid to convince investors it can turn the newly merged automaker into a thriving global business. CEO Sergio Marchionne five-year business plan will aim to show Fiat Chrysler can regain its prestige amongst the automotive super giants. This isn’t the first time Marchionne has announced a five year business plan for the Fiat empire, the group has repeatedly missed sales targets as it delayed investments and has seen its main European business lose share and plunge into losses during a six-year market slump. Restless investors want Marchionne to provide specifics on how and when he plans to compete with much larger rivals such as Toyota Motor Corp., General Motors Co. and Volkswagen Group. Fiat will cover the billions of euros in investments planned for new Alfa Romeos, Maserati’s and Jeeps out of existing funds, without selling or spinning sell of any other parts of the business. Around 9 billion euros ($12.5 billion) will be earmarked to end losses in Europe and begin expanding Alfa Romeo, Maserati and Jeep into global competitors. Alfa Romeo are said to be developing a new line of rear-wheel-drive sedans and SUVs for 2016, and high-end versions will be equipped with engines developed by Ferrari. Marchionne hopes the re launch will be boosted by selling cars through Jeep’s international dealer network. The revival of Alfa Romeo is key to Marchionne’s plans who CEO believes Alfa has the potential to help drive profit for the group, in the same way that Audi does at VW Group.
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