When Fiat took control of Chrysler in 2009, Fiat-Chrysler CEO Sergio Marchionne drew an ambitious five-year turnaround plan for the bankrupt American automaker, promising better product, improved quality, higher sales and profitability and independence of government ownership by 2014. On May 6th, a new five-year plan will be announced, which means it is time to look back at the previous plan and see how the company has fared in the past half decade.
Marchionne promised to more than double Chrysler Group sales from 1,3 million units in 2009 to 2,8 million sales in 2014. These numbers may be a bit misleading, as 2009 was a disastrous year for Chrysler, and a two month production shut down during its Chapter 11 bankruptcy procedure didn’t help either. But still, when comparing the 2014 goal with the 2008 score of 2 million sales, it would still mean a 40% increase in 6 years.
In 2013, Chrysler Group worldwide sales increased 9% to 2,4 million. In order for the 2014 target to be met, sales would have to grow another 16,7% this year. This target was reiterated in the 2013 financial report, so Chrysler itself is still confident the goal will be reached. In the first quarter of 2014, Chrysler Group US sales, which represent three quarters of the company’s worldwide sales, where up 11,1% on 2013, so the company probably needs to increase its momentum in order to reach the 2,8 million sales. [Read more…]