24 November 2009

A Closer Look at the FIAT-Chrysler 5-yr Plan

  • Sergio Marchionne wryly noted that many media outlets and analysts had predicted Fiat’s death just a few years ago... but they were very wrong, as FIAT closed 2008 with the highest profit in its history.
  • Chrysler is to break even operationally in 2010; net (including capital) in 2011; and to repay TARP by 2014.
  • Jeep Wrangler will continue, and get a diesel in the US and Europe.

  • Hemi and Cummins to continue, and in a surprise to all those that expected FIAT to only make econoboxes... a new 6.4L Hemi V-8 is likely coming with cca 450 hp.
  • Chrysler will handle large displacement and hybrid engines, as well as “all cars above C size,” for Fiat worldwide. That implies that Chrysler will engineer and build mid-sized (D) models for export to FIAT in Italy.
  • Regular and twin turbo Pentastar V-6 engines are in the plan.
  • Dual-clutch automatics to arrive, 4-speeds and (probably) Mercedes automatic to leave.
  • Journey, Caravan, Avenger all get new engines and interiors, exterior refreshing.
  • Repackaging around lifestyles
  • Quality improvements will continue and extend to dealer service.
  • It was stressed that neither FIAT nor Chrysler can survive with expertise and products only in half the segments... thus, this new partnership is essential for both companies.
The webcast of the presentation can be heard online -here-


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