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Posts Tagged ‘Sergio Marchionne’

Fiat Chrysler Earnings Slide 40%

Major product realignment set to take place.

by on Jan.27, 2016

Jeep was one of the few real bright spots for Fiat Chrysler last year, especially in the US.

Fiat Chrysler Automobiles fourth quarter earnings tumbled by 40%, to $2.2 billion, during the fourth quarter, and for the full-year – a decline would have been even more severe without the contribution of exotic sports carmaker Ferrari, which FCA recently spun off.

The automaker’s results were hammered by slowing global sales, especially in both Latin America, though it did finally get its Jeep brand back into contention with the opening of a new assembly plant in China. And Jeep again scored well in the U.S. where plunging oil prices have spurred a surge in demand for utility vehicles.

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The earnings report was released just hours before FCA CEO Sergio Marchionne was set to reveal a product shake-up designed to adjust to changing global market conditions, including the slowdown in the long-booming Chinese market. Among other things, that is likely to mean a slower ramp-up for the long-struggling Alfa Romeo brand, with more emphasis on Jeep and other truck and utility vehicle lines.

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Ford Expects Record Profits; GM Sees Own Earnings Growth

Makers increase returns to shareholders; GM boosts stock buyback program.

by on Jan.13, 2016

Ford CEO Mark Fields showing off a new piece of technology at CES last week.

Investors take notice: while the stock market hasn’t been kind to the auto industry in recent weeks – or just about anyone else, for that matter – Detroit’s two largest carmakers are making some upbeat projections for 2016 that could make nervous shareholders happy.

Ford Motor Co. now expects to close the books on 2015 with a record pre-tax profit, with 2016 numbers to be “equal to or higher.” And GM is boosting its own earnings outlook for 2016. Both companies now plan to up their cash payouts to shareholders, while GM is expanding its ongoing stock buyback program.

Insight!

“This pattern of strong returns gives us a great platform to build on as we enter the year with a focus on strengthening our core business and engaging aggressively in emerging opportunities through Ford Smart Mobility,” said Ford CEO Mark Fields, in a statement detailing Ford’s forecast.

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Marchionne Provides Map for FCA’s Debt-Free Future

Plans for automaker's production re-alignment coming soon.

by on Jan.12, 2016

FCA Chief Sergio Marchionne discusses the automaker's future during the 2016 Detroit Auto Show.

Fiat Chrysler Automobiles N.V. plans to re-tool its production base in the U.S.

The broad outline of re-alignment of the production capacity had been included in the company’s new labor pact with the United Auto Workers, which included plans for re-locating  production of the ever-popular Jeep Wrangler to a larger plant in Toledo, Ohio.

The Journal of Record!

Sergio Marchionne, Fiat CEO, said he was preparing to reveal the new production plan by the end of January when the automaker released its final financial report for 2017. “There won’t be any plant closings,” said Marchionne, who also insisted that FCA is on track to meet its objective of becoming debt free before the end of 2018 without any kind of merger with another automaker. (more…)

Ferrari Stock Trading in Italy Set to Begin on Jan. 4

FCA may take Alfa Romeo back into Formula One.

by on Dec.15, 2015

FCA CEO Sergio Marchionne and former Ferrari CEO Luca di Montezemolo at the debut of the LaFerrari.

Not enough pennies in the piggybank to spring for the new Ferrari F12tdf? Not to worry, you can still own a Ferrari – or at least a piece of the Italian automaker.

Fiat Chrysler Automobiles says it expects to wrap-up the spin-off of its high-profile subsidiary sometime between December 31 and January 3rd, a process that began with the recent IPO of Ferrari shares on the New York Stock Exchange in October.

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To complete the process, Ferrari shares are expected to go on sale on Milan’s Borsa Italiana on January 4th. How Italian investors react remains to be seen, but after a high-flying start on the NYSE, shares of the supercar company have dipped by around 10%.

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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.

Auto Show News

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.

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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.

Review You Can Trust!

“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.

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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.

Breaking News!

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.

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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.

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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.

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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.

Breaking News!

“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.”

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