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Posts Tagged ‘FCA’s Sergio Marchionne’

Marchionne Predicts SEC Will Clear FCA of Wrongdoing

CEO declined to comment on progress of Magneti Marelli sale.

by on Aug.26, 2016

FCA CEO Sergio Marchionne predicted today that the SEC's investigation into FCA will find no wrongdoing.

The Securities and Exchange Commission investigation of Fiat Chrysler Automobiles N.V. will ultimately show that FCA has done nothing wrong, FCA chief executive officer Sergio Marchionne said today.

The SEC is investigating whether FCA deliberately misstated its sales results during the past five years. Dealers have sued FCA over the sales reporting practices, including a Chicago area dealer claiming it amounted to fraud.

The Last Word!

FCA restated its sales totals for the five years and conceded its long string of monthly sales increases actually ended in 2013. (more…)

FCA Open to More Autonomous Partners; Marchionne Talks Product Location

FCA CEO says 200 will live on despite poor sales.

by on May.06, 2016

FCA chief Sergio Marchionne said that he would not limit the company's autonomous vehicle partners to just Google at this point.

Fiat Chrysler Automobiles could use the re-tooled assembly plant in Windsor, Ontario, to build another vehicle now under development, FCA chief executive Sergio Marchionne told reporters after the official launch of the company’s latest version of the minivan, the 2017 Pacifica.

Marchionne said the new vehicle would require additional investment in Windsor, but said the platform underneath the new Pacifica was versatile enough to support other vehicles.

News Now!

“It was designed that way,” said Marchionne, who declined to add further details, but noted. “Just to clarify, this plant and this architecture is capable of making the successor front wheel drive – all-wheel drive replacement for the Chrysler 300.” (more…)

FCA Likely Not Done Pursuing Mergers

Elkann believes consolidation is inevitable.

by on Apr.15, 2016

Sergio Marchionne, Fiat Chrysler chairman, and Exor Chairman John Elkan agree that mergers in the auto industry are inevitable.

This story has been updated to include comments from Ford Motor Co.

Fiat Chrysler Automobiles’ dream of initiating a sweeping merger with one of its global rivals isn’t dead.

John Elkann, chairman of Exor, the Agnelli-family investment company that controls FCA, laid out the reasons why mergers were the key to future of the auto industry.

Merger News!

Sergio Marchionne, FCA’s chief executive officer, actually proposed a merger with General Motors last year and laid out the case for consolidation in a presentation dubbed “Confession of Capital Junkie.” GM and its CEO Mary Barra rejected Marchionne’s overture for a friendly merger. (more…)

Fiat Chrysler Using Jeep to Blaze New Trail to Profitability

Plans call for expansion of Jeep, Ram brands.

by on Jan.27, 2016

FCA chief Sergio Marchionne laid out the maker's plans for the next several years for analysts.

With low oil prices and the slowdown of the Chinese economy, Fiat Chrysler Automobiles plans to put greater emphasis on Jeep, stretch out its ambitious plans for Alfa Romeo and build more trucks from its existing plants without disrupting production of its best-selling models.

Sergio Marchionne, FCA’s chief executive officer, acknowledging that the North American markets is critical to the company, said the company will continue move away from building passenger cars, such as the Dodge Dart and Chrysler 200, as it finds a way to build a new generation of sport-utility vehicles and pickup trucks with new powertrains demanded by regulators around the world.

Global News!

“We have decided, from the manufacturing standpoint, to de-focus on passenger car market,” he said during a conference call with Wall Street analysts on Wednesday. “There are two cars in particular, the Dodge Dart and Chrysler 200, which will run their course.” (more…)

Marchionne Promises More Money in Employee Letter

FCA Chief lays out plans for reorg of plants.

by on Sep.18, 2015

FCA Chief Sergio Marchionne sent a letter to the company's UAW employees telling them the new deal puts more money in their pockets.

In a letter to the employees of FCA U.S. Chief Executive Sergio Marchionne said the new tentative labor agreement with the United Auto Workers puts the company on a more cooperative and ultimately competitive footing.

“I believe this agreement, which still requires UAW member ratification, is a transformational deal because it guarantees that our workers will share equitably in the success we are able to generate working together while ensuring that our company will be able to remain competitive,” Marchionne said in his letter.

Union News!

“This new contract represents a major step forward in enabling greater and more direct involvement of our workers in the achievement of the strategic objectives of FCA and recognizes the central role that you all play in building our common future. Without you and your commitment, our plan is simply unachievable,” he added. (more…)

Friendly FCA-UAW Handshake Masks Tough Task Ahead

Marchionne, Williams stake out negotiating positions.

by on Jul.14, 2015

FCA Chief Executive Sergio Marchionne and UAW President Dennis Williams share an impromptu hug to kick off contract talks between the two parties.

A potentially contentious round of contract negotiations between the FCA U.S. and the United Auto Workers opened with a friendly ceremonial handshake and a hug between FCA Chief Executive Sergio Marchionne and UAW President Dennis Williams. The pair then launched into a rundown of the key issues facing bargainers.

Williams said that the UAW would not back away from its goal of closing the gap between first- and second-tier workers of which Chrysler has more than any other automaker. “Base wages have stagnated,” Williams said, adding new employees hired in at entry rate feel like second-class citizens. Profit sharing has helped, he said.

Union News!

UAW Vice President Norwood Jewell said while the stakes are high with this round of talks, FCA U.S. has come a long way since the recession. (more…)

GM Hires Bankers to Fortify “No Merger” Message

Marchionne keeps pressure on by stoking stockholders.

by on Jun.19, 2015

GM CEO Mary Barra has repeatedly said a merger with FCA doesn't make sense; however, GM's hired bankers to help reinforce the point.

Facing continuing pressure from Fiat Chrysler Automobiles Chief Executive Sergio Marchionne, General Motors hired investment bankers to help build its case that a merger of the two carmakers could not work.

GM is being advised by Goldman Sachs, while FCA is working with UBS on the matter, according to Reuters.

The Last Word!

Mary Barra, GM’s CEO, bluntly told reporters and shareholders at the GM annual meeting earlier this month that the automaker’s board rebuffed a merger after a careful review of the proposal. (more…)

Marchionne Reportedly Delaying At Least a Dozen New Fiat Chrysler Models

CEO appears to be looking for partner before moving ahead on some next-gen products.

by on Jun.03, 2015

Fiat Chrysler CEO Sergio Marchionne is reportedly delaying some products as he searches for a merger partner.

Fiat Chrysler CEO Sergio Marchionne reportedly is putting a dozen or more North American vehicle programs on hold as he sets out to find the partner he believes is critical for the long-term survival of his trans-Atlantic automaker.

The move appears to be the biggest change yet to the far-reaching product strategy that Marchionne and his team at FCA announced a little more than a year ago, and reverses earlier comments by the executive that the program was “on track.”

Stay Informed!

According to a report by the wire service Reuters citing inside Fiat Chrysler sources, Marchionne is “shuffling product plans even as he seeks a partner.” (more…)

FCA’s Marchionne Screams for Industry Consolidation

CEO says industry wastes half of capital spent.

by on Apr.29, 2015

FCA Chief Executive Sergio Marchionne reiterated his belief in the need for mergers and consolidation in the auto industry today.

The auto industry globally is failing to earn its cost of capital and needs a major reorganization that would allow major companies, such as Fiat Chrysler Automobiles NV, execute a sweeping consolidation of platforms, technology, and research and development, FCA Chief Executive Officer Sergio Marchionne insisted during a conference call with reporters and analysts.

Marchionne said his talk about the need for consolidation is quite serious and not flip.

Your Reliable Source!

“We need to be brutally honest,” he said, while presenting a series of charts, showing the auto industry isn’t covering the cost of the capital it consumes in enormous quantity. (more…)

Fiat Expects to Finish Ferrari Spinoff Next Summer

IPO part of a plan to grow FCA globally.

by on Nov.14, 2014

Sergio Marchionne told reporters in Italy that the Ferrari IPO will now happen in the second or third quarter of 2015.

The Ferrari initial public offering is now expected to be complete between the second and the third quarter of 2015, Fiat Chrysler Automobiles Chief Executive Sergio Marchionne told reporters in Italy.

FCA announced last month it planned to spinoff Ferrari from the group, selling a 10% stake via a public offering and distributing the rest of FCA’s stake in Ferrari to its shareholders. The Ferrari IPO is expected to raise $5 billion to reduce FCA’s debt and bolster the company’s balance sheet.

Power!

The spinoff is part of a bigger capital-raising plan that also includes a $2.5 billion convertible bond issue to help cut debt and fund an ambitious business plan aimed at turning FCA into a global carmaker. (more…)