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Posts Tagged ‘Sergio Marchionne’

Fiat Chrysler Latest to Beat Expectations With Q2 Earnings

Net income up despite hefty consent agreement charge.

by on Jul.30, 2015

FCA is in "execution mode," says Marchionne.

Fiat Chrysler Automobiles may have begun the third quarter on a sour note, slammed with a record fine for safety lapses, but it ended the second-quarter in fine tune, handily exceeding Wall Street earnings forecasts.

The company, officially registered in the Netherlands, earned a profit of 333 million Euros, or $364 million, even after a chargeback of $88.5 million as a result of the consent order formally announced last weekend. A year ago, FCA earned 197 million Euros, or $215 million, for the period. On a per-share basis, the maker reported earnings of $0.21 between April-June 2015, analysts surveyed by MarketWatch predicting the figure would come in around 19 cents.

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As has been the case for several years, the recovering Chrysler side of the business helped prop up the balance sheet, primarily due to strong demand – and rising prices – in North America. But FCA also saw improvements in a European market just rebounding after a long and deep recession.

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FCA Sets Ferrari IPO into Motion

Iconic brand intends to retain “exclusivity,” but changes are likely.

by on Jul.23, 2015

Ferrari's 458 Speciale A during its debut at the Paris Motor Show last autumn.

The spin-off for Fiat Chrysler’s Ferrari brand officially got underway this morning as Fiat Chrysler Automobiles filed the regulatory papers necessary to launch the long-awaited IPO of the iconic sports car maker.

Hoping to raise some desperately needed cash for FCA’s five-year expansion plan, CEO Sergio Marchionne expects to sell off 10% of Ferrari’s shares in the initial public offering. Another 80% will be distributed to existing Fiat Chrysler shareholders. The remaining 10% is currently held by founder Enzo Ferrari’s son, Piero Lardi.

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“It won’t be a difficult (sell),” Marchionne said earlier this year, reflecting the general expectation that investors will snap up the shares of Ferrari if priced properly. The CEO has said he expects the brand will be valued at around $11 billion.

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Ferrari IPO “Days Away”

Offering could be valued at $11 billion.

by on Jul.13, 2015

Sergio Marchionne said the Ferrari IPO prospectus will be ready within a few days, beginning the process of the long-awaited spinoff.

After an unexpected delay, Fiat Chrysler is expected to begin the process of spinning off Ferrari this week. CEO Sergio Marchionne said a prospectus for an initial public offering of 10% of the sports car brand’s shares will be filed within “days.”

The long-awaited move was pushed back due to legal restrictions set in motion by last year’s merger of Italy’s Fiat and the American Chrysler. But Marchionne ultimately expects to see the IPO back a market valuation of $11 billion or more for Ferrari, an automotive icon that has long had to turn away potential customers due to self-imposed production limits.

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“We are days away from filing the prospectus,” Marchionne told reporters after a panel discussion at the Toronto Global Forum last Friday. (more…)

With New Plant in India, Jeep Set to Build SUVs on Four Continents

All-new model planned for $280 million plant in Ranjangaon.

by on Jul.02, 2015

The new Renegade marked a turning point for Jeep which is producing it in Italy, rather than the US.

Little more than a domestic American brand just a few years ago, Jeep is going global, expanding both its distribution network to markets as far flung as Berlin, Beijing and Mumbai. It will soon have production facilities, meanwhile, on four continents.

The subsidiary of Fiat Chrysler Automobiles confirmed this week that it will invest $280 million as part of a joint manufacturing venture with India’s Tata Motors. The factory will produce several vehicles, including both the Jeep Grand Cherokee and an all-new model, company officials indicated.

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That project is an “important step as we continue to expand the availability of Jeep products around the world,” FCA CEO Sergio Marchionne said.

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Viva Italia: First Look at the New Alfa Romeo Giulia

Alfa aims to hit a high note with new performance sedan.

by on Jun.24, 2015

The new Alfa Romeo Giulia makes its debut in Milan. Another seven new models are set to follow.

With acclaimed opera singer Andrea Bocelli sharing the stage, Alfa Romeo rolled out its new Giulia sedan during a packed news conference in Milan, Italy on Wednesday.

Alfa can only hope it has hit a high note with the launch of the new performance model once it rolls into showrooms early next year. The Alfa Romeo Giulia sedan will be going up against a crowded field of luxury competitors, including the likes of the vaunted BMW 3-Series and the Mercedes-Benz C-Class.

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The challenge will be especially tough in the U.S. which is expected to be the single market for the new Alfa Giulia – and for Alfa Romeo on the whole. The brand has largely been absent for more than two decades, something company officials suggested can be both a plus and a minus for the ambitious Italian brand.

“There’s nothing about the brand that needed to change. We needed to change ourselves,” suggested Harald Wester, the head of Alfa Romeo, as he opened up the news conference.

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New Giulia Sedan Could Be Make-it-or-Break-It Car for Alfa

Project key to broader success of Fiat Chrysler Automobiles.

by on Jun.24, 2015

Alfa Romeo plans to introduce a new sedan in the U.S. as part of its plans to sell more than 100,000 vehicles here.

Italy’s Alfa Romeo will pull the wraps off its all-new Giulia sedan later today during a splashy event in Milan, the birthplace of the long-struggling brand.

The hoopla should be no surprise considering the critical role it will play in the promised revival of the Alfa brand, and in the broader success – or failure – of the strategy laid out for parent Fiat Chrysler Automobiles by CEO Sergio Marchionne.

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Largely limited to the European market today, Marchionne wants to more than quadruple Alfa’s sales by 2018, with North America targeted to become one of the brand’s largest market After a long absence, however, Alfa is virtually unknown in the U.S. and Canada today, selling only a few 100 of its pint-sized 4C sports cars since making its return last year.

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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.”

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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…)

Is Fiat Chrysler Looking for a Merger Partner?

Deal may occur before CEO Marchionne’s ’19 retirement.

by on Apr.14, 2015

FCA CEO Marchionne appears interested in pulling off another major deal before his 2019 retirement.

Senior officials at Fiat Chrysler Automobiles are sending out signals that they’d like to find another partner, barely a year after the trans-Atlantic alliance was officially completed. Such a deal could be come together – if a willing partner can be found – before CEO Sergio Marchionne’s planned retirement in 2019, according to various sources.

Marchionne has made a number of comments in recent months underscoring his desire to address fundamental problems that could limit FCA’s ability to compete in an increasingly competitive global auto industry.

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Now, FCA Chairman John Elkann has weighed in. While he didn’t specifically say his company was on the prowl, Elkann wrote shareholders at Exor, which owns 29.2% of FCA, “I’m convinced that the industry needs and will see more consolidation in the future.”

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Fiat Chrysler Could Seek New Alliances, Hints CEO Marchionne. Could Mazda, Apple be in the Plans?

Exec reveals new Mazda-made roadster will be named Fiat 124 Spider.

by on Mar.03, 2015

Would Fiat Chrysler consider opportunities to work with Apple or Google? "Obviously," said Marchionne.

Fiat Chrysler could seek to expand its list of outside alliances, CEO Sergio Marchionne said during a roundtable discussion at the Geneva Motor Show on Tuesday.

The maker is clearly pleased with the way things have gone in a partnership with Mazda. FCA worked with the Japanese maker on the upcoming Miata roadster replacement. And a second version will be sold through the Fiat brand as the reborn 124 Spider, Marchionne revealed.

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“In the case of Mazda, they had something we didn’t have and we continue to look at opportunities like that going forward,” said the chief executive, adding that FCA is discussing other possible projects with Mazda while also looking for other potential partners.

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Chrysler Acquisition Hammers FCA Earnings

But U.S. operations also drove revenue growth.

by on Jan.28, 2015

FCA Chief Executive Sergio Marchionne's acquisition of Chrysler carried a high cost last year.

When it comes to the American half of its newly merged company, investors will have to decide whether the glass is half empty for Fiat Chrysler Automobiles.

That’s because the cost of completing the acquisition of suburban Detroit-based Chrysler bludgeoned the trans-Atlantic maker’s earnings. But the Chrysler side also delivered a healthy 11% increase in FCA’s overall revenues.

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Legally headquartered in the Netherlands, Fiat Chrysler is reporting that its 2014 net profit fell by two-thirds, to 632 million Euros, or $718 million. For 2013, the maker had a restated net of 1.9 billion Euros. For the final quarter of 2014, the maker earned 420 million Euros, down from 1.2 billion during the same period in 2013.

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