Detroit Bureau on Twitter

Posts Tagged ‘Sergio Marchionne’

Jeep Shows Off Four Beijing Concepts, Plans to Launch China Production

Fiat Chrysler aims to gain momentum in world’s largest car market.

by on Apr.20, 2014

The Jeep Cherokee Urbane, one of four concept vehicles the maker is showing in Beijing.

Beijing Auto Show-goers will get a look at four new Jeep concept vehicles this week, vehicles the maker said are “uniquely designed for China,” the world’s largest automotive market.

But perhaps more significant is the news that parent Fiat Chrysler Automobiles has finally locked down a long-sought joint venture that will allow it to begin producing Jeeps in China for the first time in nearly a decade. The SUV brand was the first foreign maker into China but lost that Beijing production base after the break-up of DaimlerChrysler AG.

Subscribe and Stay on Top!

The tie-up with China’s Guangzhou Automobile Group is a critical step for Jeep which has been pushing to expand its presence abroad in recent years. The maker sold 731,000 vehicles worldwide in 2013 and brand CEO Michael Manley recently announced a target of 1 million for 2014, well ahead of earlier plans.

(more…)

Alfa Quiet About Big News in the Big Apple

No news conference, but Italian maker marks its return to U.S. market.

by on Apr.17, 2014

An Ala Romeo 4C beckons NY Auto Show visitors.

Alfa Romeo is giving New York the silent treatment – which might seem odd considering it’s on display at this year’s New York Auto Show for the first time in years as it prepares its long-awaited return to the American market.

The maker had several products on display at NY’s Jacob Javits Convention Center but decided to forego staging a formal news conference, apparently due to the high cost of such an event, several sources told TheDetroitBureau.com. But they stressed that the Fiat Chrysler subsidiary is firmly on track for its planned mid-year resurrection – which comes more than two decades after it pulled out of the States.

Product News!

The Italian maker, long known for its sleek and sexy sports cars and other high-line models, will initially focus on the 4C in its bid for a U.S. rival. That’s a curvaceous little two-seater that will initially be offered at around $70,000, Alfa choosing to emphasize a heavily loaded version likely to appeal to “Alfisti” who have been clamoring for the brand’s return.

(more…)

Russian Auto Industry Could Be Hurt by Ukraine Crisis

Ford cuts jobs, production..

by on Apr.04, 2014

Workers on the line at the Ford plant in St. Petersburg, where 700 jobs are being cut.

The temperature might finally be warming up after the frigid Russian winter, but the country’s auto industry is suddenly feeling a big chill.

Russia has been the target of increasing sanctions in the wake of its disputed annexation of Ukraine’s Crimean Peninsula and the threat that Russian President Vladimir Putin might send troops into the neighboring country in an expanded land grab.  That has led to a flood of capital leaving the country and signs that the crisis could strike hard the Russian economy.

The crisis is causing “uncertainty in the marketplace,” warns consulting firm Accenture.

The Last Word!

Ford sent a chilling signal this week when it announced plans to trim 950 jobs at its two Russian plants, including 700 full-timers at its primary facility in St. Petersburg – almost one in five of its employees in the country. The maker is blaming an already weak economy, as well as the weak Russian ruble, but observers warn that this could be just the first sign of a serious setback for the country’s auto industry – especially if the Ukrainian crisis drags on, or rose, escalates.

(more…)

Fiat Chrysler Hopes to Boost Global Production by 25%

CEO Marchionne aiming for 6 mil target by 2018.

by on Apr.02, 2014

FCA CEO Sergio Marchionne has big plans in mind for the newly-merged company.

Automakers often talk about economies of scale – a moving target in an industry where industry giants like Toyota Motor Co., General Motors and Volkswagen AG are all shooting to reach 10 million annual sales during the next year or so.

By comparison, Fiat Chrysler Automobiles is little more than an also-ran, with a total worldwide sales volume of “just” 4.4 million vehicles last year, and a goal of 4.6 million in 2014. But with the company’s formal merger of its U.S. and Italian operations now complete, CEO Sergio Marchionne has some big aspirations.  He is targeting a nearly 25% increase in production over the next four years.

On Top of the News!

“By 2018, Fiat will be able to make more than 6 million cars,” Marchionne said after a shareholders’ meeting in Turin, where the Fiat side of the company is headquartered. “I don’t want to give any details of the plan, but we are going in that direction.”

(more…)

Alfa Romeo to Launch U.S. Return at NY Auto Show

New Alfa 4 C could soon be followed by other Italian models.

by on Mar.24, 2014

The Alfa Romeo 4C will blaze a return to the U.S. market for the Italian maker.

Picking up on that old punchline, it was beginning to look like Alfa Romeo was going to be the brand of the future – and always would be.  The Italian maker has been talking about a U.S. revival almost since it left the market two decades ago. But despite a few abortive attempts – and an original plan outlined shortly after parent Fiat and Chrysler partnered up in 2009, Alfa’s American comeback has been repeatedly delayed.

Until next month, anyway.  The sporty brand has confirmed it will officially mark its comeback at the upcoming New York Auto Show with the official unveiling of the U.S.-edition Alfa Romeo 4C.  That’s only part of the good news for long-suffering Alfisti.  Sergio Marchionne, the CEO of newly merged Fiat Chrysler Automobiles, recently suggested that the Alfa 4C won’t be alone for long, with other models under consideration for import.

Auto Show News!

“The recent announcement that Alfa Romeo is returning to the market and has chosen the New York Auto Show to mark the occasion is very special for us and will be well received by our visitors,” said NY Auto Show Chairman John LaSorsa.

Don’t expect a fast ramp-up for Alfa when the first of the 4C sports cars arrives in June.  The initial plan is to offer the exotic, mid-engined coupe, with its carbon-fiber body, in only a select handful of dealers handling another up-market FCA brand, Maserati.

(more…)

Fiat Chrysler Ready to List on New York Stock Exchange

Alfa readying 4C with second model to follow, says Marchionne.

by on Mar.17, 2014

FCA CEO Sergio Marchionne (r), with UAW Pres. Bob King at the Sterling Heights plant.

FCA is set to go NYSE — Fiat Chrysler Automobiles, the new company created by the merger of the Italian carmaker Fiat and Chrysler, the once bankrupt American carmaker, wants to list its shares on the New York Stock Exchange by October1, says Chief Executive Officer Sergio Marchionne.

The move would be the next, long-awaited step in completing the tie-up of the two makers who are officially incorporated in the Netherlands, though for now the new FCA continues to operate a dual headquarter strategy, with bases in suburban Detroit and Turin.

Automotive Insight!

“October 1. That is the target,” Marchionne said. “But it’s a target. It could slip thirty, sixty or ninety days,” he added, following a ceremony to market the renovation of the Sterling Heights Assembly Plant, a suburban Detroit factory that was originally supposed to close following the U.S. maker’s 2009 bankruptcy.  Instead, it has undergone a more than $800 million upgrade to handle production of the new Chrysler 200 sedan and other products to follow.

(more…)

Chrysler Next-Gen Minivan May Get Hybrid Option

Marchionne says Jeep Cherokee line might get third shift.

by on Mar.14, 2014

The Windsor, Ontario, plant that builds the Chrysler Town & Country and Dodge Caravan will also be home to then next-generation minivan coming in 2016.

When the next generation Chrysler minivan hits the road in 2016, buyers may be able to get it with a hybrid powertrain, Fiat Chrysler Automobiles CEO Sergio Marchionne told reporters after officially launching production of the 2015 Chrysler 200 at the FCA plant in Sterling Heights, Mich., outside Detroit.

“You have to look at a hybrid,” considering where the fuel-economy standards are headed, added Marchionne, who emphasized the next minivan will be built in Windsor, Ontario, across the river from Detroit.

The Last Word!

Marchionne also said Chrysler is reviewing the design of the next generation Jeep Wrangler to make it lighter to help meet fuel economy standards. “It has to look like a Wrangler but it has to be lighter and more efficient,” he said. (more…)

Marchionne Gets $30.5 Million in 2013 from Fiat

Total package puts him higher than Barra, but lower than Mulally.

by on Mar.11, 2014

FCA Chief Sergio Marchionne's reported compensation for 2013 from Fiat SpA was $30.5 million.

As it turns out, Sergio Marchionne does not need any salary from Chrysler to be among the highest paid automotive CEOs in metro Detroit.

Marchionne took home $5 million in 2013 as CEO of Fiat SpA, but it’s not the salary, it’s stock options that put him near the fore: 2.3 million in options worth about $25.5 million based on the Italian automaker’s current share price, according to a remuneration report released by Fiat yesterday. He hasn’t exercised any of the options.

Designed to Inform!

His income breaks down as $3.2 million of salary and $1.8 million in bonuses. That total was $1.3 million less than his earnings for 2012. His total compensation in 2012 was $18.9 million – or 14.5 million Euros. Since the two companies have finally completed their merger, the newly minted FCA will likely report a single figure for 2014. (more…)

Chrysler Small Car Sales Slide

Maker hopes to boost demand with special editions.

by on Mar.10, 2014

Fiat hopes the 1957 Edition will help boost demand for the little 500 model.

It’s been a cold, cruel winter for the auto industry, even makers like General Motors and Toyota struggling to maintain momentum in the marketplace.  Chrysler has been one of the few automakers to remain in the black so far – but while demand has been strong for models like the Ram 1500 pickup and Jeep Cherokee, sales have been sliding like a muscle car on ice when it comes to some of the Detroit firm’s smallest passenger cars.

Demand for the once-promising Dodge Dart, in particular, has been weak enough to force a temporary shutdown of Chrysler’s Illinois assembly plant.

Your Trusted Source!

The downturn is all the more striking when one considers that sales of utility vehicles and light-duty trucks have helped lift the Chrysler Group to year-over-year sales increases for 47 consecutive months — one of the longest streaks in the car business — even as rivals such as General Motors, Ford, Toyota, Honda and Hyundai lost ground.

(more…)

What’s a CEO Worth? Detroit Exec’s Pay Varies Wildly

Chrysler’s Marchionne at the bottom of the list – but Fiat earnings could help out.

by on Mar.07, 2014

Sergio Marchionne, FCA CEO, received a paltry salary from Chrysler last year compared with his CEO counterparts Alan Mulally and Mary Barra.

Despite managing a major turnaround of both Fiat and Chrysler – and the recent merger of the two companies, Sergio Marchionne took home a relatively modest $307,989 in compensation from the U.S. maker last year – barely 1% of what Alan Mulally, the CEO of rival Ford Motor Co., took home in stock alone.

In fact, Marchionne actually earned less than four other executives at Chrysler. And unless the newly merged Fiat Chrysler Automobiles, or FCA, ups the ante, Marchionne won’t do much better when compared to Mary Barra, General Motors’ new CEO, who is expected to earn $14.4 million for 2014.

The Last Word!

Barra’s proposed compensation package was revealed last month after GM scrambled to offset a backlash from earlier reports suggesting the company’s first female CEO would get less pay than the man she replaced. Meanwhile, Ford and Chrysler are just releasing their own top management pay numbers as part of their annual filings with the SEC. (more…)