Chrysler News: FCA Reports Earnings, Updates Five Year Plan

[William Maley]

Today was Fiat Chrysler Automobiles' earnings report day and the results for the past year was a bit mixed.

 

FCA reported a profit of 377 million euros (about $410 million) for 2015. This is a large decrease compared to the 632 million euros (about $689 million) profit for 2014. FCA attributes the decrease to investment costs and a large number of recalls on their vehicles.

 

For the year, FCA said reported adjusted earnings increased 39 percent to 5.3 billion euros (about $5.75 billion) thanks to a strong performance in North America and a European market that is recovering. Total global deliveries for 2015 were 4.6 million vehicles. This is in line with 2014, but falls slightly short of FCA's goal of delivering 4.8 million vehicles.

 

Along with the announcement of earnings, FCA has updated its five-year business plan. Here are the highlights:

• FCA will be shifting North American production capacity to produce more SUVs and trucks. The reasoning behind this comes down to the company believing low fuel prices will be “permanent” and expects the trend of consumers going toward utility vehicles and pickups to continue.
  • This move will affect the Chrysler 200 and Dodge Dart. FCA CEO Sergio Marchionne both “will run their course,” likely meaning we will not see a second-generation of either model.
    

  [*]Alfa Romeo's product plans has been realigned once again (insert shocked face here -WM)

  • Reason for this comes from "uncertainties" in China and giving the brand extra time to "guarantee proper global distribution network execution."
  • Manufacturing, product investment, and R&D investments slimmed down till 2018.
  • The planned product lineup (including a hatchback, full-size sedan, two utility vehicles, and two speciality vehicles) will now be completed by mid-2020
  • The Guila is still planned to go into production and launched this year.
  • A midsize utility vehicle will be launched late 2016/early 2017
    

  [*]The next-generation Jeep Wrangler will be coming out in 2017 with a variety of new powertrains and a pickup version. 2018 will see a mild-hybrid and diesel powertrain options being available. 2022 will see a full-hybrid Wrangler. This is part of a plan to meet new regulations. [*]Ram is also expected to get a mild hybrid system sometime in 2020 or so
  

Source: Automotive News (Subscription Required), 2, The Detroit News

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[hyperv6]

This is a short term plan at best and in the long run will leave them empty unless they can find a dance partner. 

The Germans tried to do it all on large cars and trucks and we know where that went. 

 

There are several reports out on financial sites on how Chrysler is headed for trouble if they want to relay on trucks and Jeeps for the future and how that they will run afoul of CAFE and Emissions rules of the future with no small cars in any volume. The story was writing before this announcement. 

 

FCA could build a competitive Dart and 200 if they wanted to and solve much of their volume problems and even base new CUV models on the same platform. They yet they will pass on this and it will come back to haunt them in the future. 

Chrysler started to fail when the Germans abandoned the Neon. If they had built on what was started there they could have really been in good shape in cars and CUV models today. Now we have some Italian nut ball trying to run the company that is way over his head. 

 

I was willing to give him credit for Jeep but now I think he just got lucky. 

His bashing of the designers of the 200 is a total fail. He is the one that should be held accountable. It is a lot more than just getting into the back seat that was the issue. 

 

Giving up on smaller cars will come back to bite them and by then Sergio will be long gone counting his money. 

 

And no Stew I do not hare Chrysler. If I did why would I be begging for new and better smaller cars to save them and base new CUV models on like GM and Ford and everyone else is doing. If Ford can make money on the Fusion then Chrysler can do it on a 200 if they do it right. Same for the Malibu. I think you will see a marked improvement in Malibu sales and profits with the new model. 

I think this move is an act of desperation as any healthy company would not abandon a volume segment like this. They would take the money and invest it into a new and better model and not run. 

 

CUV  models are the future but the sedan is far from dead with millions in sales every year. 

[oldshurst442]

Yet another 5 year update...

 

And the 200 and Dart are done with....but no plans to replace them, because obviously 30 dollars a barrel of oil is surely a permanent thing...with no plans of any EVs either, because the Chevy Volt and Bolt and Prius and all the other Electric Hybrids  are not what the future hold because that future is all about Trucks...SUVs too...

 

Good...

 

Now that Sergio has graced us with that info that Trucks are the future, with SUVs...I take it he is pushing for this its because its the money making machine that Chryco offers for his Italian brands...

 

He might as well just kill off Dodge, since RAM is its own brand, kill of Chrysler as Jeep could inherited the Pacifica and call it the day...no more 5 year update updates every 2-3 weeks...

[smk4565]

I think the Dodge or Chrysler brand should die, I am not sure what the point of Fiat is either.  If they insist on keeping Alfa Romeo around, then no reason to make them a BMW competitor, let Alfa take over for Fiat and sell $15-$30,000 cars.  Then Remember the Chrysler TC by Maserati?  an overpriced Lebaron.  Prepare for Pacifica by Maserati, I'd start selling Maseratis at $35k.  At least the Maserati brand name has some weight to it, if you slap it on an otherwise mediocre $35,000 car, maybe it will sell.

 

Really Jeep is the only valuable global brand they have, Ram works in the USA since we like pick up trucks, but the Promasters are the worst vans out there.

[William Maley]

Really Jeep is the only valuable global brand they have, Ram works in the USA since we like pick up trucks, but the Promasters are the worst vans out there.

 

I will argue with you on the Promasters being the worst vans out there. I think they are some of the best don't cost an arm and leg like the Sprinter.

[G. David Felt]

 

Really Jeep is the only valuable global brand they have, Ram works in the USA since we like pick up trucks, but the Promasters are the worst vans out there.

 

I will argue with you on the Promasters being the worst vans out there. I think they are some of the best don't cost an arm and leg like the Sprinter.

 

 

Agree with you, the Sprinters are the worst out there. My brother in-law who runs his own appliance repair business had both dodge labeled versions and then went to MB labeled versions and the amount of stuff that easily broke on them, high cost of maintenance and lack of dependability currently made him dump them and move onto Chevy badged City Express vans. He has reduced costs greatly since dumping the diesel fuel hog Sprinters. I explained to him and my sister how to better use a JIT delivery of parts to the business rather than keep a large inventory on the vans. This allowed them to go down to the smaller vans as service vehicles and they do much better on gas as well as dependability.

 

Sprinter = Failure, high cost, poor quality in my real world experience with them.

[smk4565]

 

Really Jeep is the only valuable global brand they have, Ram works in the USA since we like pick up trucks, but the Promasters are the worst vans out there.

 

I will argue with you on the Promasters being the worst vans out there. I think they are some of the best don't cost an arm and leg like the Sprinter.

 

Car and Driver did a comparison and the Promaster had some of the lowest scores they ever had.  The Transit and Sprinter were way ahead, and the ProMaster wasn't all that cheap, it was $37,590, while the Sprinter was $41,000.  The Promaster City is no Ford Transit Connect either.  

[Robert Hall]

Sergio seems to have no idea what is doing, making it up as he goes along...

[FordCosworth]

Really Jeep is the only valuable global brand they have, Ram works in the USA since we like pick up trucks, but the Promasters are the worst vans out there.

 

I will argue with you on the Promasters being the worst vans out there. I think they are some of the best don't cost an arm and leg like the Sprinter.

Car and Driver did a comparison and the Promaster had some of the lowest scores they ever had.  The Transit and Sprinter were way ahead, and the ProMaster wasn't all that cheap, it was $37,590, while the Sprinter was $41,000.  The Promaster City is no Ford Transit Connect either.

So true.

" The Ram ProMaster, a Fiat Ducato with ram-head logos, is a detestable, shovel-faced thing that appears to have been cobbled together from spare parts. Too harsh? No, not really. The ProMaster itself is an insult. It is the only vehicle in any comparison test in memory to receive zero points in a subjective category from one of our ­voters. "

http://m.caranddriver.com/comparisons/2014-ram-promaster-1500-ecodiesel-page-2

[FordCosworth]

FCA is struggling with the current CAFE standards, not sure how they expect manage the escalating targets in the coming years by focusing on outdated piggy trucks ( that will soldier on for years without significant revamps ) and SUV's - last time I was on the dealer's lot there were plenty of these vehicles to be seen. But we're told the focus is on these due too demand?

A 5yrs Plan that changes weekly.

Maybe We the People will "get" to bail Chrysler out (or buy it?) again.

[Stew]

FCA is struggling with the current CAFE standards, not sure how they expect manage the escalating targets in the coming years by focusing on outdated piggy trucks ( that will soldier on for years without significant revamps ) and SUV's - last time I was on the dealer's lot there were plenty of these vehicles to be seen. But we're told the focus is on these due too demand?

A 5yrs Plan that changes weekly.

Maybe We the People will "get" to bail Chrysler out (or buy it?) again.

I find it funny a Ford lover, who's primary products that carry the company are it's F-series and SUVs........   

 

There are bright spots:  New 4 cylinders THIS YEAR, new hybrid tech coming down.

 

I also read the death of the Dart and 200 as they were going to let a partner build the replacement or at least use another makers platform and production facilities for the next one.  This isn't a bad or unusa thing since many have done it, IE Ford using the original Mazda 6 platform to underpin the 06-12 Fusion and using a Volvo platform to underpin nearly everything else, including the current Explorer. 

 

The hybrid Wrangler intrigues me because off-road with instant torque when it is needed seems decent. 

 

Also, i don't think the emphasis on CUVs is a bad thing.  Think about it, the fastest growing segment is the CUV, particularly the smaller ones.  Look at how the Renegade, Trax, Encore, and Cherokee have taken of and how the Compass/Patriot still sell very well despite heir circa 07 tech.   Use the right tech and they can come close to, if not match, the compacts in FE.  You also get the room and utility of a midsize car, or bigger, with much smaller footprints, tighter turning, more cargo hauling ability and in every case an optional AWD option.  This is also why makers such as Cadillac are increasing their CUV production and why.  They are what people want.  At least GM and FCA realize this.  Ford's lack of a subcompact SUV at this point is a MAJOR oversight. 

 

Hybrids and electrics:  Guys, the onl successful full electrics are VERY expensive luxury cars.  The Volt, Bolt, and Prius are all........  Hybrids either conventional or plug-in.    The Pacifica out THIS YEAR is a plug-in.  The only mainstream Electric to really see even close to success is he leaf and even then it is basically stalled.  In the hear and now and for the foreseeable future, Hybridization just makes a LOT more sense than full electrification due to price and outside of certain areas there is simply no infrastructure for electrics yet and are probably a decade or more off. 

 

We know trucks are going to remain strong.  They are an American staple and even when gas was nearly 4 bucks a gallon the still remained top sellers for the big 3.  That isn't going to change.  Remember he best selling vehicle in America for 38 years is a truck, not a compact car.  The addition of a Jeep pickup is a guaranteed hit.  or that I thank GM for showing us here is still a market for a well-done compact/midsize truck. 

 

The Dodge and Chrysler question.  Regardless o the concentration on trucks they do still need a car business and ones that make CUV's without worrying about having an expensive trail-rated version.  I don't honestly see them axing Dodge or Chrysler in the foreseeable future.  They are putting into them and the new Pacific is certainly a big investment.  I think, and this is me guessing, the realignment will be what the target has been.  A number of mainstream CUV's coming to Chrysler and the performance cars such as he Challenger, Charger, upcoming Cuda and a probable new Viper will stay with Dodge.  Just a guess though and we will see. 

 

Yes i am still positive on this as i am that Cadillac will jump in overall sales in a few years to challenge the best of the lux makers.  Take it for what you will.

[Guest Wings4Life(BANNED)]

 

FCA is struggling with the current CAFE standards, not sure how they expect manage the escalating targets in the coming years by focusing on outdated piggy trucks ( that will soldier on for years without significant revamps ) and SUV's - last time I was on the dealer's lot there were plenty of these vehicles to be seen. But we're told the focus is on these due too demand?

A 5yrs Plan that changes weekly.

Maybe We the People will "get" to bail Chrysler out (or buy it?) again.

I find it funny a Ford lover, who's primary products that carry the company are it's F-series and SUVs........   

 

There are bright spots:  New 4 cylinders THIS YEAR, new hybrid tech coming down.

 

I also read the death of the Dart and 200 as they were going to let a partner build the replacement or at least use another makers platform and production facilities for the next one.  This isn't a bad or unusa thing since many have done it, IE Ford using the original Mazda 6 platform to underpin the 06-12 Fusion and using a Volvo platform to underpin nearly everything else, including the current Explorer. 

 

The hybrid Wrangler intrigues me because off-road with instant torque when it is needed seems decent. 

 

Also, i don't think the emphasis on CUVs is a bad thing.  Think about it, the fastest growing segment is the CUV, particularly the smaller ones.  Look at how the Renegade, Trax, Encore, and Cherokee have taken of and how the Compass/Patriot still sell very well despite heir circa 07 tech.   Use the right tech and they can come close to, if not match, the compacts in FE.  You also get the room and utility of a midsize car, or bigger, with much smaller footprints, tighter turning, more cargo hauling ability and in every case an optional AWD option.  This is also why makers such as Cadillac are increasing their CUV production and why.  They are what people want.  At least GM and FCA realize this.  Ford's lack of a subcompact SUV at this point is a MAJOR oversight. 

 

Hybrids and electrics:  Guys, the onl successful full electrics are VERY expensive luxury cars.  The Volt, Bolt, and Prius are all........  Hybrids either conventional or plug-in.    The Pacifica out THIS YEAR is a plug-in.  The only mainstream Electric to really see even close to success is he leaf and even then it is basically stalled.  In the hear and now and for the foreseeable future, Hybridization just makes a LOT more sense than full electrification due to price and outside of certain areas there is simply no infrastructure for electrics yet and are probably a decade or more off. 

 

We know trucks are going to remain strong.  They are an American staple and even when gas was nearly 4 bucks a gallon the still remained top sellers for the big 3.  That isn't going to change.  Remember he best selling vehicle in America for 38 years is a truck, not a compact car.  The addition of a Jeep pickup is a guaranteed hit.  or that I thank GM for showing us here is still a market for a well-done compact/midsize truck. 

 

The Dodge and Chrysler question.  Regardless o the concentration on trucks they do still need a car business and ones that make CUV's without worrying about having an expensive trail-rated version.  I don't honestly see them axing Dodge or Chrysler in the foreseeable future.  They are putting into them and the new Pacific is certainly a big investment.  I think, and this is me guessing, the realignment will be what the target has been.  A number of mainstream CUV's coming to Chrysler and the performance cars such as he Challenger, Charger, upcoming Cuda and a probable new Viper will stay with Dodge.  Just a guess though and we will see. 

 

Yes i am still positive on this as i am that Cadillac will jump in overall sales in a few years to challenge the best of the lux makers.  Take it for what you will.

 

 

 

Stew,

your entire post here reeks of a kid repeating...." I know you are, but what am I."

 

Seriously, picking on Ford's small car shortcomings in this thread about FCA's failures, is over the top desperate.

 

Here is a quote from another site by the user named SP1996, and I agree with it completely:

Makes perfect sense to me. Everybody knows FCA has been fishing for a partner with which they can merge, thus shedding the underperforming aspects of FCA and focusing on maximizing the most profitable aspects makes them a much more attractive partner. There has been no significant upgrades to anything with the Dodge badge, just facelifts and power upgrades and I suspect the same old tired Charger/Challenger/300 platform will continue on like that until Dodge joins Plymouth in the graveyard. 

A focused, improved, and expanded Ram and Jeep brands along with an eventual Alfa in the premium segment and more quirky Fiats down below makes for a more attractive partner. To continue to invest in low margin small cars when higher margin CUVs with a Jeep badge can serve the higher volume entry segment makes no sense to me. Long term if they don't manage to merge with another company they're likely going to go belly up anyways at which point the brands of value will get bought up.