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Posts Tagged ‘Sergio Marchionne’

Alfa Romeo Brings New Giulia Quadrifoglio to LA

Italian maker approaches a critical launch.

by on Nov.18, 2015

Alfa Romeo will launch the Giulia in the U.S. with the high-performance Quadrifoglio model.

All but forgotten Alfa Romeo might easily have become just another one of the automotive brands tossed on the industry’s rubbish heap. Instead, Fiat Chrysler Automobiles CEO Sergio Marchionne has approved a 5 billion Euro investment plan aimed at turning out eight new products in a bid to transform it into a viable player in the global luxury market.

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We got a taste of Alfa’s new direction with the launch of the little 4C coupe, but the Giulia is the real lynchpin in the brand’s revival, and after giving a hint of what’s coming at a splashy event in Milan earlier this year, we’re getting a much closer look at the Alfa Giulia at the L.A. Auto Show this week.

Make that the 2017 Alfa Romeo Giulia Quadrifoglio, the 505-horsepower BMW M challenger that recently turned a record-setting lap of 7:39 on the Nurburgring, the fastest ever for a four-door production sedan.


Ambitious Alfa Romeo Plans Scaled Back

“The expectations are not achievable,” concedes Marchionne.

by on Nov.02, 2015

A shot of the Alfa Giulia reveals the 4-leaf clover, meaning its the 510-hp Quadrifoglio version.

Mere months after unveiling the first of a wave of new products meant to transform Italy’s Alfa Romeo into a major global brand, parent Fiat Chrysler Automobile’s CEO Sergio Marchionne concedes the ambitious plan is “not achievable,” at least as planned.

The target was to boost sales to 400,000 by 2018, a nearly six-fold increase from the 70,000 Alfa products sold last year. To get there, FCA was planned to invest about $6 billion to roll out eight new models, including the Giulia sedan it unveiled over the summer. But the maker is now re-thinking that strategy, in large part due to the slowdown in car sales in China, which was expected to become a major market for Alfa Romeo.

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“The expectations of volumes (for China) out of the total pool of 400,000 cars are, I think, given current market conditions, not achievable,” Marchionne told Wall Street analysts.


Ferrari Stock Surges on First Day

But can it maintain that momentum?

by on Oct.22, 2015

FCA and Ferrari CEO Sergio Marchionne (front right in sweater) launches trading in RACE stock.

With the New York Stock Exchange symbol RACE, one might expect a new stock to take off like, well, a Ferrari Formula One race car – and that’s precisely what happened as the Italian automaker launched its long-awaited IPO.

Ferrari’s first-day surge was all the more impressive considering its stock initially was priced at $52, at the upper end of the anticipated offering. While RACE shares didn’t quite have the explosive power of a Google IPO, they still managed to end Wednesday trading at $55. And that gives the exclusive sports car company a market value of $10.4 billion.

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The strong reception was especially welcome on Wall Street at a time when several other closely-watched IPOs, including Digicel Group Ltd., were either canceled or postponed or delivered weaker-than-expected results.


Ferrari Set to Launch IPO

“Potentially risky,” but investors could reward a strong upside potential.

by on Oct.20, 2015

Ferrari unveiled the new 488 Spider at the Frankfurt Motor Show last month.

The new Ferrari 488 Spider will launch you from 0 to 60 in barely three seconds. Now, parent Fiat Chrysler is hoping Ferrari itself will burn rubber when it launches trading on the New York Stock Exchange Wednesday.

The trans-Atlantic automaker recently announced plans to sell off a 10% stake in Ferrari at somewhere between $48 and $52 a share, the actually price set to be announced today. That’s a fair bit higher than many analysts had expected when plans for an IPO were first announced last year – and that reflects FCA’s optimism that the Ferrari brand will become one of the rare gotta-have automotive stocks.

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There are plenty of reasons to be optimistic. As many Wall Street traders might tell you, there’s a long waiting line for Ferrari sports cars, something the Italian maker hopes to tap with a modest rise in production. And it is betting it can tap into booming global demand for luxury goods through new licensing agreements that could land the brand’s prancing pony logo on a variety of upscale products.


Ferrari IPO Process Begins

Exotic maker said to be valued around $9.8 billion.

by on Oct.12, 2015

Ferrari's "prancing pony."

Fiat Chrysler Automobiles has launched the long-awaited Initial Public Offering of its Ferrari brand.

As part of what it says will be a “series of transactions to separate Ferrari from FCA,” the maker said Monday it expects to price the exotic sports carmaker’s shares at between $48 and $52 apiece. That would value the entire company at about $9.8 billion – slightly less than the $12 billion some industry analysts had been expecting.

By the Numbers!

FCA CEO Sergio Marchionne had long resisted a spin-off of the Ferrari brand, but apparently relented as it became apparent the trans-Atlantic automaker needed cash to fund future product development programs for its other U.S. and European brands.


Last-Minute Deal Averts Strike at Fiat Chrysler

Two sides hope workers will give nod to second contract proposal.

by on Oct.08, 2015

FCA CEO Marchionne and UAW Pres. Williams were all smiles as they began contract talks.

With workers ready to take to the street, Fiat Chrysler managed to hammer out a second tentative contract settlement with the United Auto Workers Union just minutes before the midnight deadline on Wednesday.

Negotiators from both sides faced pressure to come up with a better deal than the one originally delivered last month but then rejected by a nearly two-to-one margin in a vote by FCA’s 40,000 U.S. hourly workers. Neither side was willing to discuss details of the new agreement ahead of a Friday morning meeting of UAW leaders.

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“FCA US confirms that it has reached a new tentative agreement with the UAW,” read a statement issued by the automaker minutes after the 11:59 pm deadline. “Because the agreement is subject to UAW member ratification, the Company cannot discuss the specifics of the agreement pending a vote by UAW members.”


Key Reasons Why UAW Workers May Walk the Picket Line

And why Fiat Chrysler may be willing to take a strike.

by on Oct.07, 2015

Workers at FCA's Toledo, Ohio, plant could be the first to walk out if a deal doesn't come soon.

The clock is rapidly ticking away towards an 11:59 PM deadline that could see Fiat Chrysler face its first strike in years. The United Autoworkers Union set the walkout threat after its members voted down their original contract offer and talks aimed at sweetening the deal appeared to stall.

The vote was an embarrassment for UAW leaders, especially new President Dennis Williams, who is leading contract talks with Detroit’s Big Three for the first time. He had originally set a cooperative tone, insisting a strike would be a “failure,” but he also stressed that he would not shy away from a confrontation, if that’s what it would take.

In the Know!

Here are some of the key reasons why the UAW may be ready to strike – and why FCA might be willing to risk a confrontation that industry analysts warn could cost it as much as $1 billion a week in lost revenue. (more…)

UAW Reloading for New Talks with Fiat Chrysler

Union leaders assure rank-and-file message received with no vote.

by on Oct.06, 2015

UAW President Dennis Williams told FCA workers that he's gotten the message as the union prepares for a new round of talks with Fiat Chrysler.

The United Auto Workers is inching back towards a new round of negotiations with Fiat Chrysler, following the rejection of a tentative agreement reached last month that included pay increases, but failed to meet the expectations of union members.

The scope of the rejection came into focus this week when the union disclosed that more than 80% of FCA’s 40,000 unionized employees voted during the ratification election and 65% voted no, meaning that more than the contract lost by more than 10,000 votes.

Beyond the Headlines!

Shifting the 10,000 votes over to the “yes” column represent a tall order for union leadership. Both UAW President Dennis Williams and UAW vice president Norwood Jewel, who led the efforts with FCA, used social media channels to assure union members that they had gotten the message and were willing to address concerns raised during the ratification campaign. (more…)

UAW Workers Reject Fiat Chrysler Contract

Strike could be looming for both FCA and for Ford.

by on Oct.01, 2015

FCA CEO Marchionne and UAW Pres. Williams were all smiles as they began contract talks.

A strike could be looming in the near future for Fiat Chrysler Automobiles, now that 40,000 workers represented by the United Auto Workers Union have rejected the carmaker’s tentative contract.

The UAW announced the results after the last major FCA assembly plant, in Sterling Heights, Michigan, turned thumbs down on the controversial agreement, which had generated widespread criticism by union activists. Almost 70% of the workers in Sterling Heights rejected the four-year proposal, according to a website run by the union local.

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The announcement comes as a major setback for UAW leaders, especially new President Dennis Williams who was overseeing his first round of national contract talks. The question now is whether the UAW can go back and renegotiate improvements to the agreement without a confrontation. Going into this year’s auto talks, Williams had said he would be willing to strike, if necessary, but said he would consider that possibility a “failure.”


Ferrari Ready to Launch IPO

Going public could force big changes on low-volume brand.

by on Sep.30, 2015

FCA CEO Sergio Marchionne and former Ferrari CEO Luca di Montezemolo both celebrated the launch of the $1 million Ferrari Enzo ultra-car.

Fiat Chrysler Automobiles could launch the eagerly awaited initial public offering of its Ferrari brand as early as Friday, according to various industry reports.

The move could generate as much as $1 billion in much-needed revenue for FCA, but it also raises some serious questions about the future of the ultra-exclusive Ferrari. A debate over how much to grow the brand last year resulted in the ouster of long-time CEO Luca di Montezemolo, who favored a go-slow approach.

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FCA CEO Sergio Marchionne has wanted to take more advantage of Ferrari’s image in the global luxury market, however, and is expected not only to push for faster growth of the brand’s luxury cars, but also to license its prancing pony logo for a broader range of upscale goods.