What do you think of FCA’s five-year plan? [w/ poll]

Some two weeks ago Sergio Marchionne, one of the industry’s most polarizing figures, presented to investors the five-year plan for the Fiat Chrysler Automobiles (FCA) group. A lot of ink has already been spilled analyzing the announcements, as well as models and whole brands missing from the presentation, so we won’t aim to add to that at this time. Instead, we figured we’d as you what you thought of the five-year plan. 

Highlights of the five-year plan

  • Alfa Romeo kills off the MiTo and 4C, but replaces the Giulietta, adds compact and large crossovers, as well as two sports cars: a Giulia-based GTV and an NSX-chasing mid-engined 8C
  • Chrysler and Dodge were barely mentioned, though there were suggestions that the former will focus on people-moving (killing off the 300?)
  • Fiat will focus exclusively on the 500 and Panda models, with increasing drive for electrification, dropping the Punto and Tipo models (the latter unconfirmed)
  • Jeep will introduce a new small SUV below the Renegade, possibly based on a new Fiat Panda 4×4, Wrangler pick-up, and a slew of three-row models, including the Grand Commander, a 3-row Grand Cherokee, and (finally) the Grand Wagoneer
  • Maserati will go Tesla-chasing with an all-electric Alfieri coupe and cabrio (which will replace the GranTurisimo), as well as electric versions of the Quattroporte and Levante, plus will introduce a mid-sized crossover below the Levante
  • RAM will introduce a new small pickup to rival the Chevy Colorado and Ford Ranger

Let us know what you thought by answering the poll below, and leaving comments. Looking forward to hearing what you all thought!

What do you think of FCA's five-year plan?

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  1. It was a close call between “mixed bag” and “Who cares? FCA rarely follows up” I think Marchionne’s comments fall into one of two categories: the real deal about upcoming plans, and disinformation that keeps the media nattering.

    For example, he denied that the Dodge and Chrysler nameplates would be dropped, but the “low D segment 3 row Jeep” and the “E segment 3 row Jeep” will not leave any room for the Journey and Durango. That leaves Dodge with just the Charger/Challenger platform. He dangled the possibility of a Pacifica based SUV for Chrysler, but the new model matrix in the financial department slides did not show any new model for the Chrysler brand. For that matter, the new model matrix did not show anything new for Dodge either.

    Marchionne deflected questions about the lack of reports for Dodge or Chrysler by saying the presentation only covered the “global” brands. Another piece of disinformation exposed by the financial slides. The new product matrix did show 3 new Fiat branded SUVs, for the Latin American market only, so if there was anything in the works for Dodge or Chrysler it would have shown up.

    Additionally, the financial slides showed the projected shift in revenue between the divisions. Alfa, Maserati, Jeep and Fiat Commercial all had their own slices in the pie charts, but Dodge, Chrysler and Fiat were all lumped together in one slice. They are projecting the share of revenue from Alfa, Maserati, Jeep and Fiat Commercial to grow from 65% of revenue today to 80% of revenue in 5 years, with the Dodge/Chrysler/Fiat slice taking the loss from 35% of revenue to 20% of revenue. By grouping Dodge, Chrysler and Fiat together in that one slice, it is impossible to tell if that drop in revenue is being shared by all three nameplates, or if the drop is due to one or more nameplates are being eliminated entirely.

    1. For now Jeep Low D 3 row is confirmed only for India and Brasil. It’s not certain for Europe.
      Also a Fiat branded twin is confirmed for Brasil.

      For revenue. Drop in revenues is not projected. Just Alfa and Maserati revenues will be much bigger compared to today. Thus FCD will dip from 35% to 20% but even their revenues could rise.

      1. For now Jeep Low D 3 row is confirmed only for India and Brasil. It’s not certain for Europe.

        My expectation for the “low D 3 row” is a variant on the Chinese market Grand Commander, which shares it’s platform with the Cherokee.

        Marchionne made some very aggressive projections for increase in unit volume and market share for Jeep. Easiest way to to start closing the gap is to eliminate the internal competition from Dodge. The Caravan is a dead man walking, but still is the best selling model Dodge has. Replace the Caravan with a low trim cut rate Pacifica and replace the Journey and Durango with Jeeps, and two thirds of the Dodge division sales disappear.

        A shuffle at the Chrysler brand to make it the “people mover” brand Marchionne proclaimed would be the aforementioned low trim Pacifica to pick up former Caravan buyers, and dropping the 300, which Marchionne has disparaged, sending former 300 buyers to the Charger, would simplify manufacturing and cut costs.

  2. Sorry to make another post, but the Tipo being dropped has already been confirmed. They said that updating the engines up to the new emission regulations would be too expensive, so it will no longer be available in Europe, only in emerging markets ( or markets with lower restrictions ).

    1. No, It wasn’t. Some journalists came to their own conclusion. The same which predicted end od Fiat, Dodge and Chrysler brands the day before presentations.

  3. Will there be a new small Jeep-model, that won’t be available in the States? On the one hand it’s logical because it will be too small for Americans, but how is it possible to sell a Jeep-model outside of the US? I’m not capable to follow Marchionne’s mystical plans and actions, but I think I’m not the only one 😀

    And there’s one thing nobody’s talking about: what about Iveco? And we still don’t know if there will be a Ferrari SUV in the near future or not…

  4. No real new models in years. A few european factories churning out the same year after year 500, 500x, 500l panda. If they add a blue line on the bumber they call it a “new model” etc.

    FCA is pretty pathetic. Electric and all is just another way to add invisible stuff to a car and call it a new model. Electric motors are 100 years old, nothing new there. Self driving is a computer software program, nothing new there.

    A load of “new models” on 10 year old designs just by adding mild hybrid, hybrid, electric etc.

    I think they just want to produce a few models that sell for 50,000 dollars or more and make a big profit by selling way fewer car models but at a higher price.

    No B segment anymore for europe ?

    Anyways they may intrduce a few cheap fiat models like 500 4 door B segment in a very fast 9 months devolpment period betwen design and production like they did with the bravo in 2007…

    1. 500, 500 Giardiniera and Panda will be new models. That’s actually confirmed.

      AFAIK 500 Giardiniera will be a B segment car. Not a cheap one as Punto was but still it would be a B segment car.

      Jeep Renegade just received a facelift with an all nee engine line-up. 500X will follow up next month.
      Also there is a new generation Jeep Renegade in the new 5 year plan. That leads to conclusion that if that’s true we will see a new generation of Fiat 500X.

  5. I love what FCA is doing with Alfa Romeo,but the 4C must be continued,as most people won’t be able to afford the Giulia GTV or the 8C. Jeep is on the right track,and Maserati also,but they should not drop the Gran Touristmo,at least not to total electrification.Ram is also on the right track,but FCA must remember it’s roots,which are Fiat,Chrysler and Dodge,simply because with out those vehicles,there won’t be and Fiat Chrysler Automobiles. I wish them good,and will continue to support them,but only if they don’t merge with VW,GM,Any Chinese Company,or Toyota. I have no problem with Mazda or Subaru.I already have a Fiat 500 Abarth,and a Maserati Gran Turismo,and plan on buying a few Alfas and Maseratis.I also wish Alfa and Ferrari all the best in Formula1.

  6. For me FCA is dead for a long time. Lancia is dead, Chrysler is dead, Dodge without RAM doesn’t have the capacity to be sustainable brand and for now it sells cheap 10 years old vans and CUVs/SUVs, but this will end soon, Fiat has one main model – the 500, they just put another letter behind it 500L, X, A, B, C, D… and claim it is a new model, but it isn’t, it’s just the same piece of ****, Panda, Punto and Tippo has no future, actually Tippo, which is produced and sold as Egea in Turkey is successful there, but that’s it. Alfa Romeo and Maserati are too small and too expensive to create the volume of cars FCA needs to survive and at the end Jeep. I really don’t understand people, who are buying Jeeps. Jeep is the same quality as other FCA products – low, very low quality. Yesterday there were some safety tests in USA carried out on several mid-sized SUVs and guess what – Jeep had the worst score of all.
    When in September the new global financial crisis hits, the first company, which will go bankrupt will be FCA, because they will not have anything to offert o their potential buyers.
    Many people could say – What about Ford and their strategy SUVs only. Ford are smart, because Fiesta and Focus are brand new, just like they were during past global financial crisis in 2008 and when it happens and customers switch from SUVs back to cars, Ford will just bring back Fiesta and Focus, just because they already have them in their portfolio across the pond!
    Sorry to say it, but as I said back in 2009 when the worst European carmaker buys the worst American carmaker nothing good can happen!

    1. 500 and 500X are even not on the same platform.

      In your own words. Every Audi is a piece of shit. They just have an ‘A’ model.

      1950

      1. No matter if you like it or not Fiat’s products are ones of the less reliable models on the planet, they used yo be and they are now too. The problem is not the nomenclature, this was just an example, the problems are lack of money, lack of inovations, lack of development, lack of everything. Fiat exists only because Italians are patriots and buy local production.
        BTW the same is situation with SEAT, which sells 1/2 of what for example Skoda sells for the same period of time. VW had to drop off SEAT years ago, just like GM did with Opel. There are many brands, which exist against any locig, just because patriots buy local production, but soon or later this will end, because patriotism or not, it’s always about money, and when you spend 20 000 euro for a car and in 3 years its depreciation is 50% or more, next time you will buy with your mind, not with your heart!

    2. Just as they have “spun-off” Ferrari (with a proportion of Ferrari company shares traded in New York, and Europe), that same degree of corporate, financial, independence and protection, needs to be extended to the (to be) remaining companies that will be – still – be producing cars in Italy, Alfa-Romeo, Maserati, and . . . . JEEP !!

      A token – maybe only 10% – mutual exchange of shares between each/all these four “specialist” producers, would confirm and consolidate their continued co-operation, and commercial independence from predators!

      The obvious abbreviation for JUST the four Italian companies, could be “FA-RM” . . .

      . . . Ferrari, Alfa-Romeo, Maserati.

      By removing the “FA-RM” vehicles to an “at-arms-length” financial, commercial, managerial, position, would enable the “parent” FCA to then apply ALL its – MUCH NEEDED – expertise, attention and concentration onto the remaining FIAT and Chrysler-Dodge.

  7. Finally FCA follows the right path of profitability. Renault-Nissan are on this track for years now, PSA-Opel joined recently, but VW Group still focuses on volume.
    .
    Love the idea of a new 500 Giardiniera. I don’t believe Fiat will just drop the Punto without offering the current customers something else in such an important segment. There are rumors its successor will get a 500 badge (i.e. 500 Plus). Can’t wait for the Alfa GTV (hopefully not as ugly as the old ones), new 8C and Maserati Alfieri!

  8. Jeep has great value and potential and will be the most important brand of FCA in the future by far, Alfa needs a wagon like a CLA or the new 508SW to sell more in Europe!

  9. I love Fiat, I love the original Fiat Group, grew up with Delta, Uno, Tipo, 75, 164 etc & to see the shambles that FCA has turned the Italian motor industry into is shocking. Fiat & Lancia are a mess – starved of new products, Alfa has been left so long without new products that even their new models aren’t selling in the numbers they should be.

    I hate to say it but I take the current plan with a pinch of salt, its probably not worth the paper is printed on.

  10. I believe that, to judge the action of the FCA management, one should have available the information they have available plus the target they are after.
    As far as I can see
    1
    The world first market will soon be China, with North America as no.2 Europe to follow as third and South America then.
    2
    FCA has determined that the low price markets are not going to be profitable, therefore they must be left over.
    Punto discarded, the B segment shall be represented by the new 500 long 5 door … on a different price-class level.
    3
    This year most investment has gone to safeguard the S. American market, with excellent results.
    4
    Alfa Romeo product range will be extended until the brand is back to the top level together the german makers, this process will be quite long since it takes not only to rebuild the company image but also to build up a network of qualified dealers
    5
    I addition the new fashion of Electric/hybrid cars requires modification of some plan …
    6
    Finally I see FCA, if avoiding big mistakes, as one of the most promising actors on the market based on the fact they have available a fantastic group of famous brands like Jeep, Ferrari, Maserati, Alfa Romeo.

    Time will say … in the meantime marchionne has made a fantastic job.

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