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Chrysler Group Names New Directors

Chrysler Group Names New Directors
June 13, 2014 , Auburn Hills, Mich. -

Chrysler Group LLC today announced several changes to its Board of Directors.

Hermann G. Waldemer has joined the Chrysler Group board. Most recently, he served as Chief Financial Officer of Philip Morris International. Waldemer replaces Douglas Steenland who leaves the Board at the expiration of his term. Steenland was appointed to the Board in July 2009.

In addition, the Chrysler Board has increased in size to 13 members and now includes the following executives:


Reid A. Bigland, Head of U.S. Sales, Chrysler Group LLC; Chairman, President and Chief Executive Officer, Chrysler Canada Inc.; President and Chief Executive Officer, Ram Truck Brand, Chrysler Group LLC, and member of Fiat S.p.A. Group Executive Council (GEC), the highest executive decision-making body within Fiat outside of its Board of Directors;

Giorgio Fossati, General Counsel, Fiat S.p.A.;

Michael J. Keegan, Senior Vice President – Human Resources and Corporate Sustainability Officer, Chrysler Group LLC and GEC member;

Michael Manley, President and Chief Executive Officer – Jeep Brand, Chrysler Group LLC; Chief Operating Officer for Asia Pacific (APAC) and Lead Executive for International Operations, Chrysler Group LLC and GEC member; and,

Richard K. Palmer, Chief Financial Officer, Chrysler Group LLC; Chief Financial Officer, Fiat S.p.A. and GEC member


“I welcome this group of strong leaders to the Board,” said Chrysler Group Chairman and Chief Executive Officer Sergio Marchionne. “Their collective experiences will help propel us forward as we begin to execute our five-year plan.

“I also want to thank Doug for his leadership while serving on the Chrysler Group board for the past five years. His contributions have helped shape the Company to where it is today and we wish him well.”

All appointments were effective June 10, 2014. All other directors continue in office.
 

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Discussion Starter #22
Fiat shareholders OK Chrysler merger

August 1, 2014

Fiat shareholders OK Chrysler merger


Fiat shareholders voted Friday overwhelmingly in favor of a merger with Chrysler that has been five years in the works and will shift 115-year-old Fiat’s center of gravity abroad.

The approval paves the way for the new company, to be called Fiat Chrysler Automobiles NV, to list its shares in the U.S., likely by mid-October. It will be legally based in the Netherlands and have its fiscal home in Britain.


Marchionne told the more than 1,200 shareholders present at what is likely to be the last general assembly in Turin, Fiat’s birthplace, that the alliance has already made Fiat Chrysler the seventh-largest automaker in the world, producing 4.4 million cars last year.

“We almost went bankrupt in 2004 as Fiat and Chrysler did go bankrupt in 2009,” Marchionne said. “Sinners have to bear the burden on proving themselves. We are willing to pay the price.”
By combining resources with the U.S. carmaker, the company can better compete with heavyweights like General Motors Co., Volkswagen AG and Toyota Motor Corp., the CEO says. A brush with bankruptcy a decade ago proved the Italian focus was unsustainable.

“Marchionne needs the lights of Wall Street,” where Fiat Chrysler plans to locate its primary listing by mid-October, said Vincenzo Longo, an investment strategist at IG Group in Milan. There’s more opportunity there than at a “peripheral place like what the Italian market has become.”
There’s little option for Fiat as a stand-alone company. North American operations, which were nonexistent before Fiat gained control of Chrysler about five years ago, accounted for 62 percent of group second-quarter operating profit. The manufacturer’s once-core European operations lost 6 million euros, as the saturated market gradually recovers from a two-decade low. Without its U.S. division, Fiat would have been unprofitable in 2012 and 2013.
From The Detroit News: Fiat shareholders OK Chrysler merger | The Detroit News
 

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Ferrari Chief Steps Down After Clash With Fiat CEO

Ferrari Chief Steps Down After Clash With Fiat CEO

09/10/2014


Ferrari Chairman Luca Cordero di Montezemolo resigned after 23 years at the helm of the super-car maker because of a clash over strategy with Sergio Marchionne, chief executive officer of parent Fiat SpA. (F)

Montezemolo, 67, will step down effective Oct. 13, Turin, Italy-based Fiat said today in a statement. Marchionne, who had publicly expressed disappointment with Ferrari’s Formula One performance, will take charge of the unit.


Discussions over Ferrari’s future and its racing potential “led to misunderstandings which became clearly visible over the last weekend,” Marchionne said in the statement. “I want to thank Luca for all he has done for Fiat, for Ferrari and for me personally.”

The Formula One spat masked deeper divides over the future of Ferrari’s role in the group. The Maranello-based company, which is 90 percent-owned by Fiat, is a key component of Marchionne’s plans to expand in luxury cars to better compete with Volkswagen AG, which owns Lamborghini among its stable of high-end nameplates.

Fiat shares rose as much as 3 percent to 7.93 euros and were up 2.2 percent at 9:44 a.m. in Milan trading. The stock has gained 33 percent this year, valuing the company at 9.87 billion euros ($12.8 billion).

Montezemolo, who took charge of Ferrari in 1991, wanted to maintain Ferrari’s autonomous status, including capping sales to about 7,000 cars a year to preserve the brand’s exclusive allure. That clashed with Marchionne’s goal of having Ferrari bolster a shift by the group into upscale cars as part of Fiat’s merger with U.S. unit Chrysler Group LLC.

Montezemolo, who also served as Fiat’s chairman from 2004 to 2010, teamed up with Marchionne after his appointment a decade ago to revive the carmaker from the brink of bankruptcy. The Ferrari chief wasn’t appointed to the new board of the merged entity, Fiat Chrysler Automobiles NV.

Tensions between Marchionne and Montezemolo were evident last weekend, when the Fiat CEO criticized the recent performance of Ferrari’s Formula One team as “unacceptable.” He also took issue with comments from Montezemolo offering to continue running the brand, adding that “nobody is indispensable.”

During Montezemolo’s tenure, the super-car brand boosted revenue 10-fold as sales more than tripled. Ferrari’s racing team won the Formula One championship in 2000 after a 21-year drought, and then took five consecutive titles under driver Michael Schumacher. The last winning season was in 2008, when it took the award for the top team. Still, Montezemolo bristled at having Ferrari integrated into Fiat Chrysler.

“Ferrari is now American,” which represents “the end of an era,” Montezemolo told close associates last weekend, Il Corriere della Sera reported Sept. 8. Italian newspapers including Il Messaggero reported in the last few weeks that he might be tapped to head Italian airline Alitalia.
SOURCE
 

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Discussion Starter #24
Fiat gives outgoing Ferrari chairman $35M severance package

Fiat gives outgoing Ferrari chairman $35M severance package


09/11/2014

Luca di Montezemolo may not have wanted to leave Ferrari this way, but don't feel too bad for the departing chairman, because he'll be hitting the ground with a golden parachute so big that he'll never have to work again.

According to the latest reports, Fiat will pay Montezemolo 26.95 million euros (nearly $35 million) in severance pay. A little more than half of that will be paid in a lump sum of 13.71 million euros ($17.7M, equivalent to five times his annual salary) on January 31, 2015, with the rest to be paid within the next 20 years.

The payment is contingent on Montezemolo not going to work for a competitor, so don't expect to see him replacing Stephan Winkelmann at Lamborghini or Wolfgang Dürheimer at Bugatti any time soon. At least not until March 2017. Of course with that much cash on hand, the 67-year-old marquis need never work again, but considering how busy he's used to keeping himself, we'd be surprised if he didn't pop up again somewhere.

Aside from his leadership of Ferrari, Montezemolo has also chaired the Fiat Group, the Formula One Teams Association, industry associations Confindustria and FIEG, a local university, a political think tank, an America's Cup sailboat racing team, the 1990 World Cup of soccer and a high-speed train network. Recent reports have linked him to ailing Italian airline Alitalia, whose leadership he could very well assume, while earlier reports suggested he could run for prime minister.
SOURCE
 

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Fiat S.p.A. named to Dow Jones Sustainability Index World

Fiat S.p.A. named to Dow Jones Sustainability Index World

September 12, 2014 , Auburn Hills, Mich. -

Fiat S.p.A. has once again been included in the prestigious Dow Jones Sustainability Index (DJSI) World. The company received a score of 87/100 compared with an overall average of 58/100 for companies in the Automobiles industry evaluated by RobecoSAM, the specialists in sustainability investment. This result places Fiat Group’s economic, environmental and social performance among the world’s leading companies.
 

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Fiat Chrysler Automobiles NV’s global headquarters

Fiat Chrysler Automobiles NV’s global headquarters will be located in London.

September 18, 2014

The automaker, created from the upcoming merger of Chrysler Group LLC and parent company Fiat SpA, has agreed to lease three floors of a building on the city’s West End business district, said Richard Gadeselli, Fiat vice president of international corporate communications.

Gadeselli, in an email, said the facility will be the corporate offices for both FCA and CNH Industrial NV, a commercial-vehicle producer spun off from Fiat in 2011. Employees are expected to move in to the building at the end of the year. The company would not release how many employees are expected to occupy the floors or any other details. Fiat has had corporate offices in the same London area for more than 40 years.

When the merger was announced in January, Fiat and Chrysler CEO Sergio Marchionne said the headquarters for the new company would be located in the United Kingdom, but did not provide a specific location.

The London headquarters was chosen for tax purposes and to avoid political controversy in the automakers’ current home countries. Chrysler — founded in the U.S. in 1925 — was part of the $85 billion automotive bailout using U.S. taxpayer money, and Fiat was founded in Italy in 1899.

Marchionne has continually downplayed the significance of a “headquarters,” saying many executives have worked between Auburn Hills and Italy for years.

The finalized headquarters comes less than a month before the merger is finalized. Shares will be listed on the New York Stock Exchange on Oct. 13.
SOURCE
 

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Discussion Starter #27
Fiat Chrysler to issue $2.5 billion mandatory convertible, shares

Fiat Chrysler to issue $2.5 billion mandatory convertible, shares

10/29/2014

MILAN (Reuters) - Fiat Chrysler Automobiles said on Wednesday it would issue a mandatory convertible bond for $2.5 billion (1.55 billion pounds) and place up to 100 million of its shares to shore up funding for its 48-billion euros (37.86 billion pounds) investment plan.

Investors participating in the mandatory convertible offering will be entitled to receive shares in luxury carmaker Ferrari as part of a spin-off plan announced earlier on Wednesday.

The market has long said FCA, with a net debt of 11.4 billion euros at the end of September, needed to raise capital to strengthen its balance sheet, especially as it is still battling with losses in Europe and a weakening outlook for Latin America.

The world's seventh-largest carmaker, which moved its primary listing to New York on Oct. 13, said the share issue would include treasury shares and stock that will be issued to offset a buyback of shares from exiting investors as part of the merger into Fiat Chrysler Automobiles.

The group added in a separate statement it would repay ahead of maturity Chrysler bonds due in 2019 and 2012.
SOURCE
 

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Discussion Starter #28
Fiat Chrysler shares jump 18% after news of Ferrari spinoff


Oct 29, 2014

LONDON (MarketWatch) -- Shares of Fiat Chrysler Automobiles NV FCA, +12.79% surged 18% in Milan on Wednesday after the company said it will spin off Ferrari SpA into a separate company and list a 10% stake on the market. FCA said it plans to float the car maker during 2015 and will seek a listing in the U.S. and possibly at a European exchange. The move is part of FCA's plan to raise money to finance the its 48 billion euro ($61 billion) five-year growth plan.

SOURCE
 

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Discussion Starter #29
FCA closed 2014 with strong performance

FCA closed 2014 with strong performance in line with full-year guidance.


01/28/2015

Revenues were up
11% to €96.1 billion with EBIT up to €3.7 billion a
djusted for unusual items. Net profit was €632
million. Net industrial debt at year-end was €7.7 b
illion, including €2.3 billion benefit from the
capital raising in Q4.

Worldwide shipments totaled 4.6 million units, an i
ncrease of 6% driven by growth in NAFTA, APAC and E
MEA. Jeep brand achieved record volumes with global sales of
over 1 million vehicles.

Net revenues were up 11% to €96.1 billion (+12% at
constant exchange rates - CER).

EBIT was €3,223 million, up 7% (+9% CER). EBIT adju
sted for unusual items totaled €3,651 million (+4%)
with strong improvements for APAC, Maserati and EMEA, which pos
ted a €28 million positive result in the fourth quarter.
NAFTA was substantially in line with the prior year
, while weak market conditions impacted performance
in LATAM.

Net profit was €632 million. Adjusted for unusual i
tems, the Group closed 2014 with a net profit of €9
55 million,representing a slight improvement over the prior year.

Net industrial debt was €7.7 billion at year end, a
fter issuance of USD 2.9 billion Mandatory Converti
ble Securities(MCS), placement of 100 million common shares and s
hare repurchases following completion of the merger
in Q4.

Available Liquidity, including €3.2 billion in undrawn committed credit lines, was €26.2 billion.


Continued
 

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Discussion Starter #30
Fiat Chrysler Gives Upbeat Outlook

Fiat Chrysler Gives Upbeat Outlook, Turns Profit in Europe -- 2nd Update

January 28, 2015

MILAN-- Fiat Chrysler Automobiles NV, the smallest of Detroit's Big Three, on Wednesday indicated it is ahead of its rivals in at least one area: returning to black ink in Europe.

Stronger sales of small trucks and vans and the Fiat 500 and Jeep pushed Fiat Chrysler to a small operating profit on the Continent in the last three months of 2014 after 30 quarters of losses. Fiat Chrysler Sergio Marchionne said he expects the company to post a full-year operating profit in Europe, the Middle East and Africa while General Motors Co. and Ford Motor Co. have said they would lose money again this year in the region.


Read more: Fiat Chrysler Gives Upbeat Outlook, Turns Profit in Europe -- 2nd Update - NASDAQ.com
 

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FCA US Names Gardner to Dealer Network Post

FCA US Names Gardner to Dealer Network Post


February 17, 2015 , Auburn Hills, Mich. -



FCA US today appointed Alistair “Al” Gardner as Vice President Dealer Network Development, in addition to his current role as President and CEO of the Chrysler Brand.

Gardner replaces Peter Grady, who previously announced his intent to retire, effective March 31, 2015. Gardner joined the Company in 1986 and has held various positions with increasing responsibility in the sales, service and business operations. He was named President and CEO of the Chrysler Brand in November 2013.
 

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CEO Marchionne earned $8M in 2014

Fiat Chrysler CEO Marchionne earned $8M in 2014

03/05/2015

Fiat Chrysler CEO Sergio Marchionne earned about $8 million in 2014, up $3 million from the previous year, according to the company’s annual filing with the U.S. Securities and Exchange Commission.

Marchionne’s 2014 earnings included an annual salary of more than 2.5 million euros ($3 million based on the Dec. 31 exchange rate); 4 million euros ($4.9 million) in annual incentives related to the company’s performance; and 111,410 euros ($135,251) in other compensation.

Marchionne was by far the highest paid executive or board member disclosed in the 20-F filing for the world’s seventh-largest automaker, which paid board directors for Fiat Chrysler and the former Fiat SpA a total of about 11.2 million euros ($13.6 million) in total compensation for 2014, including 6.8 million euros ($8.3 million) in salaries.

Following Marchionne were Fiat Chrysler Chairman John Elkann at 1.7 million euros ($2 million) and former Ferrari and Fiat SpA Chairman Luca Cordero di Montezemolo at 2.1 million euros ($2.5 million). Of those disclosed in the filing, Marchionne was the only executive who received an annual incentive.

Marchionne also led executives and board directors in Fiat Chrysler common shares owned. As of Thursday, he owned 14.4 million shares. Elkann owned the second-most at 133,000. All others disclosed in the filing owned fewer than 50,000 shares.

Last year was a busy one for Marchionne, with the creation of Fiat Chrysler following the merger of Fiat SpA and Chrysler Group into the new company; listing on the New York Stock Exchange in October; laying out an ambitious five-year business plan; and announcing the spin-off of Ferrari into its own company.

Fiat Chrysler earned 632 million euros in 2014, significantly down from 1.9 billion euros in 2013 — but in line with its full-year guidance. The decrease in profit was due to aggressive investments; 650 million euros in recall costs for North America; and a 495 million euro payment that was part of fully acquiring Chrysler Group, now FCA US LLC.

Marchionne, as in 2013, did not accept a salary for his duties as CEO and chairman of FCA US in 2014.

Marchionne is expected to have earned more than Ford Motor Co. CEO Mark Fields but less than General Motors Co. CEO Mary Barra. Neither Ford nor GM have disclosed their final 2014 executive compensation for their first-year CEOs. Fields, without stock options, was expected to make $5.25 million in salary and bonuses. Barra could have earned as much as $14.4 million, but is expected to have earned less due to the company’s recall crisis impacting incentives.

Also detailed in the filing were promising signs for the automaker as well as risks for the company.

Risks included recall costs; the cyclical nature of the auto industry that tends to reflect the overall performance of the economy; its credit rating, which is below investment-grade; and shortfalls in its pension plans.

As of Dec. 31, its defined benefit pension plans were underfunded by approximately 5.1 billion euros ($6.2 billion), including 4.8 billion euros ($5.8 billion) related to the former Chrysler Group operations.

Positives increases include 1.4 percent increase in employment to 228,690 people, including 77,817 for FCA US; 1.5 percent increase in research and development spending; and other positive financial-related performance metrics and investments.
SOURCE
 

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Fiat Chrysler CEO seeks mega deal

Mon Apr 13, 2015

DEALTALK-Fiat Chrysler CEO seeks mega deal before stepping down

* FCA wants alliance to jumpstart sector consolidation

* Needs merger to fix own operational weaknesses

* Carmaker focused on partner in U.S. market, sources say

* FCA keen on GM, but the U.S. firm not interested, sources say


Fiat Chrysler boss Sergio Marchionne is hoping for a big deal, possibly in the United States, to plug the carmaker's weaknesses and cement his legacy before stepping down in early 2019, sources familiar with the situation said.

However, the world's seventh-largest carmaker, which has one of the highest debt piles in the industry, barely breaks even in Europe and is expected to burn cash for years to revamp its neglected Alfa Romeo brand, may struggle to find a partner.


Marchionne and Fiat's founding Agnelli family are showing particular interest in General Motors, several sources say, as the U.S. market has been core to FCA for years, GM is strong in Asia where FCA is weak and the U.S. carmaker is keen to expand in Europe after its move to tie up with PSA failed.

But a GM spokesman said the company was focused on executing its own strategy while one person at a U.S. bank close to the matter said GM is "really not interested".

"Marchionne has clearly planted the 'for sale' banner," a banker close to PSA Peugeot Citroen and General Motors said. "He's been sending out feelers everywhere in an attempt to create optionalities, but so far no one is biting."

Marchionne, who has dropped increasingly blunt hints that he wants an alliance to jumpstart consolidation in the industry to share capital costs and fund development of cleaner cars and features such as self-driving, said last month a tie-up with GM and Ford would be "technically feasible".

The 62-year-old said nothing was on the table now, however.

An FCA spokesman declined to comment but a source outside the company who is familiar with its strategy said: "The U.S. is where FCA is focusing now. Marchionne is doing a lot of work on his last deal and something will happen before 2018."

FRAGILE FIRM

Some industry executives said Marchionne's recent comments may have been an attempt to create a bidding war by suggesting greater interest than exists.

"Sergio is a great poker player: all the noise he is making aims at hiding the fact that in reality FCA's golden years are nearing an end," another banker close to the industry said.

FCA's Milan-listed shares rose 120 percent in the last six months but underneath is a fragile firm. Investors were inspired by Fiat's buyout of Chrysler, the move of its primary listing to New York and FCA's decision to spin-off Ferrari and distribute the bulk of the luxury unit's shares to FCA investors.

But FCA has an operating margin - a measure of profitability - of only 3.4 percent, compared with 5.4 percent for its peer average, according to Thomson Reuters data, and high debt.

FCA needs an alliance to address challenges including a gap in Asia, an ambitious turnaround plan and an over-reliance on a North American market that is nearing its peak. Its portfolio is also weak on electrification and connectivity services.

It also plans to spend 48 billion euros ($52 billion) to build new Jeeps and Maseratis and revamp Alfa Romeo. Most industry analysts doubt that Marchionne will reach the steep 60 percent sales ramp-up to 7 million cars he envisions by 2018. FCA sold 4.6 million vehicles last year, up 6 percent on 2013.

Still, FCA has some attractive assets: its Jeep brand has global allure and the RAM brand offers a strong foothold in the U.S. pickup market. Alfa Romeo, once developed, could become a strong competitor to Volkswagen's Audi, although the German firm will not be keen on a full takeover, one of the people said.

TALKING TO MANY

Last year separate media reports, both denied, suggested FCA was talking to Volkswagen and PSA about a tie-up. PSA chief Carlos Tavares said last month it was too early to talk about a merger, wanting to focus on his own recovery first.

Marchionne said in March he could buy or sell, adding he was talking to many companies. While Volkswagen was not his preferred target, he said he could imagine collaborating with the German carmaker. Volkswagen declined to comment.

A tie-up with GM "makes a lot of sense in terms of geographical synergies and global market share," according to the person at a U.S. bank close to the matter. But several sources also said there were significant obstacles including cutting overlaps in western Europe and the United States that would likely fuel opposition from unions and politicians.

The two formed an alliance in 2000, cooperating on engines and components but relations soured as Fiat's losses mounted. In 2005, GM had to pay Fiat $2 billion not to exercise an option to sell its auto division to the U.S. carmaker and "there's been bad blood since", one person familiar with the matter said.

Fiat bid to buy GM's European unit Opel in 2009, but lost to a rival before GM abandoned the sale process altogether.

While it seems unlikely that GM would change its mind about an alliance with FCA, bankers are reviewing possible merger scenarios with Marchionne, one of few CEOs to have managed a successful auto industry tie-up in recent years.

"The question is whether this industry will deliver an opportunity for a deal like this," Marchionne said. "It is my hope that it happens before 2018 and that somebody starts this process because once it's started others will follow." ($1 = 0.9185 euros) (Additional reporting by Anjuli Davies in London, Arno Schuetze in Frankfurt, Ben Klaymann and Joe White in Detroit and Andreas Cremer in Berlin; Writing by Agnieszka Flak; editing by Anna Willard)
SOURCE
 

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Fiat Chrysler Sees Gains in Both North America, Europe

Fiat Chrysler Sees Gains in Both North America, Europe

Apr 29, 2015


Higher sales of the Jeep Renegade small SUV and Chrysler 200 midsize sedan in North America along with modest growth in Europe pushed Fiat Chrysler Automobiles NV back to profit in the first quarter, the newly formed carmaker said Wednesday.

The company posted first-quarter net profit of 92 million euros ($101 million), up from a net loss of 173 million euros in the same period of 2014 that was mainly due to one-off costs related to the completion of Fiat's acquisition of Chrysler.

The carmaker confirmed its 2015 targets, including net profit in the range of 1 billion euros to 1.2 billion euros on worldwide shipments of 4.8 million to 5 million units.


The targets don't take into account any potential impact from plans to spin-off Ferrari, Fiat Chrysler said.

North America revenues rose thanks to higher sales volumes and better pricing, while Europe posted positive results for the second straight quarter as the market continued a slow recovery, the carmaker said.

Chrysler reported higher volumes of the Jeep Renegade, Chrysler 200 and Ram 1500, pushing revenues up 38 percent to 16.2 billion euros. Profit margins on sales rose to 3.7 percent from 3.2 percent.

European sales rose 5 percent thanks to the new Fiat 500X and the Jeep Renegade, pushing revenues up 8 percent to 4.7 billion euros.

Latin America lost money, mostly due to the startup costs of the new Jeep facility at the Pernambuco plant in Brazil inaugurated Tuesday. Fiat Chrysler said without the startup costs, the region would have broken even despite lower volumes.

A total of 2.2 billion euros was invested for the facility, which has a production capacity of 250,000 vehicles a year. It is currently making Jeep Renegades for Latin America, but can make up to three models at the same time.

Debt grew to 8.6 billion euros from 7.7 billion euros at the end of last year, due to capital expenditures.
SOURCE
 

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Marchionne: Auto industry is not sustainable as it is

Marchionne: Auto industry is not sustainable as it is

April 29, 2015

Marchionne's thesis: The automotive industry spends more money on product development and creates less value for both customers and shareholders than most other industries.
Elkann-and-Marchionne-in-Italy



Fiat Chrysler CEO Sergio Marchionne issued his most urgent plea to date for the global automotive industry to seriously consider mergers, acquisitions or partnerships as the cost for doing business globally rises.

Over the past 10 years, Marchionne said, all automakers have invested heavily in restructuring how they develop and produce cars. And some companies -- including Chrysler and General Motors -- have had to borrow money from governments.

And after all of that, the industry's return on the money it has invested lags behind almost all other industries, Marchionne said.
"We have failed, I think, collectively as an industry to deliver value," Marchionne said during a conference call with Wall Street analysts.

For more than a half-hour, Marchionne took analysts through "Confessions of a capital junkie" -- a 25-page PowerPoint presentation available on the company's Web site -- that lays out the reasons why the maverick CEO believes today's automotive industry, as it is structured today, is unsustainable.

While Marchionne has made similar comments in the past, his decision to make a formal presentation to Wall Street analysts during an earnings call to outline the need for a wholesale restructuring of the automotive industry appears to be unprecedented at least in recent automotive history.

Marchionne said the automotive industry's failure to perform as well as other industries ranging from aerospace and defense to the retail industry is reflected in the stock prices of automotive manufacturers, which have historically lagged other industries.

"The overriding theme of this presentation and much of my life…is trying to effectively guide businesses away from mediocrity," Marchionne said. "This is an industry that has not fared well."

FCA earns $101.2M in 1st-quarter profit, up over 2014

In response, FCA's stock price fell 77 cents, or 4.7% per share, to $15.50 per share by Wednesday afternoon even though the automaker reported better than expected first-quarter profits for the first quarter.

The presentation also outlines the escalating costs all automakers face as they wrestle with stricter emissions regulations, escalating regulatory costs related to recalls and the need to keep pace with rapid technology developments in the area of infotainment and autonomous driving.

In recent months, Marchinne has spoken often about his view that the world's largest automakers face ever-increasing costs that will force automakers to consider partnerships.

Last month, Marchionne said a deal with Ford or General Motors would be would be "technically feasible."

John Elkann, chairman of Fiat Chrysler Automobiles, told shareholders earlier this month that said he is convinced that the automotive industry needs to go through additional consolidation because of the rising cost of developing new cars for global markets.


In the past, those comments typically sparked a raft of stories that lead to speculation that he and FCA Chairman Elkann are trying to sell FCA. Often, commentators have said Marchionne, who engineered Fiat's acquisition and merger with Chryseler, wants to cap off his career as a consummate dealmaker with one last, final, mega-merger.

"Most of that stuff is absolute hogwash," Marchionne said. "This is a (industry) problem that fundamentally cannot be ignored."

The "goal is to provide clarity on two issues that have been raised publicly by FCA," the company said in the presentation.

Marchionne also suggested that he is not, in fact attempting to put FCA up for sale. Nevertheless, he opened the door for unconventional partnerships or mergers across industries with companies such as Apple or Google.

Within the automotive industry, top executives at Ford, General Motors, Toyota, Renault-Nissan and Peugeot have all aggressively rejected in recent weeks any suggestion that they are interested in acquiring or being acquired by FCA.

"We're already in that top tier. We have a well-articulated plan and we are not going to entertain anything that would distract us from achieving that plan," GM CEO Mary Barra said last week in response to a question about her view on consolidation.

Analysts both applauded and challenged Marchoinne's call for industry consolidation.

"I think nobody will disagree with you on the big picture," said UBS analyst Philippe Houchois.

Said Morgan Stanley analsyt Adam Jonas: "You for saying perhaps what a lot of people have thinking...but does this roadmap have any airplay at all in the boardrooms?"

Max Warburton of Bernstein Research also questioned why Marchionne is airing his ideas publicly and also questioned why, if Marchionne believes there should be fewer automotive manufacturers in the world, that Fiat purchased Chrysler in 2009.

"There are probably five or 10 men who can make this (consolidation) happen, and you probably have them all on speed dial," Warburton said. "I come away from this call thinking what exactly was that about?"
SOURCE
 

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Discussion Starter #36
FCA's new COO Components

FCA Announces Executive Changes

Appoints Gorlier as Chief Operating Officer, Components



May 18, 2015 , London -

Fiat Chrysler Automobiles N.V. (NYSE: FCAU / MI: FCA) today announced that effective June 30, 2015, Pietro Gorlier is appointed Chief Operating Officer of Components. He retains his responsibilities as Head of Parts & Services (MOPAR) and a member of the Group Executive Council. Click here to view the release.
 

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Discussion Starter #37
Fiat Chrysler Automobiles announce senior management changes

Fiat Chrysler Automobiles announce senior management changes

05/06/2015



Fiat Chrysler Automobiles UK has announced a major restructuring of its senior management team. Newly-appointed Deputy Managing Director Karl Howkins will head up a simpler structure, with two Country Directors managing the FIAT/Abarth, and Jeep/Alfa Romeo marques.

They are joined by Heads of Fiat Professional, FCA Ireland, Fleet Remarketing and Network Development. The changes came into effect on June 1, 2015.


Elena Bernardelli will oversee retail sales and marketing for the FIAT and Abarth brands. Elena has previously worked for Fiat as marketing director.

Damien Dally will oversee retail sales and marketing for the Jeep and Alfa Romeo brands. He has previously headed up Alfa Romeo but has most recently been brand manager at Jeep.

For Network development, Andy Rowe has been appointed as director. He will be responsible for dealers across the UK and Ireland.

Fiat Professional will contine to be overseen by Sebastiano Fedrigo who has been working as Country Director, responsible for all the business activities of Fiat Chrysler Automobiles commercial vehicle division.

Gerry Clarke will also continue as Country Director for Fiat Chrysler Automobiles Ireland with Francis Bleasdale, director of fleet and remarketing retaining his role.

“I’m delighted that the new structure of the company is now aligned with the needs of both our customers and dealer partners,” said Howkins. “We now have the right people in place, with great teams in support, totally focused on the growth of FCA in the UK and Ireland.

“With an exciting and growing range of cars and vans, and with even more new models on their way, I am totally confident in achieving our goals.”

SOURCE
 

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Discussion Starter #38
Sale of Auto Parts Unit Magneti Marelli ?

Fiat Chrysler exploring $3.3 billion sale of auto parts unit Magneti Marelli

Jul 17, 2015


LONDON/MILAN (Reuters) - Fiat Chrysler (NYSE:FCAU) Automobiles (FCA) (MI:FCHA) is considering whether to sell its auto parts maker Magneti Marelli after receiving interest from potential buyers, according to sources familiar with the matter.

At least two U.S. private equity funds are looking to team up with industry players and submit joint bids for Magneti Marelli, which supplies all major carmakers in Europe, the Americas and Asia, three sources told Reuters.


A recent offer, by a consortium including a U.S. buyout fund, valuing the business at less than 2.5 billion euros was rebuffed in June as FCA would not agree to sell for less than 3 billion euros ($3.3 billion), one of the sources said.

FCA declined to comment, while a Magneti Marelli spokesman had no comment.

Debt-laden FCA could sell the wholly owned unit either in parts or in its entirety, the sources said, adding that no final decision on a disposal had been taken.

Magneti Marelli has often been touted as a takeover target. While FCA has always denied any interest in selling, the sources said the Italian-American carmaker had recently told interested parties it may reconsider its plans.

The world's seventh-largest carmaker currently has its hands full with a planned initial public offering of luxury sports car maker Ferrari, skedded for after mid-October, and any decision on Magneti Marelli would be taken after that, the sources said.

Yet U.S. buyout funds have been working on the dossier for months, the sources said.

"Letters are piling up on Fiat's table," one of the sources said, pointing to a handful of unsolicited approaches. "We expect Chief Executive (Sergio) Marchionne to react to these approaches sooner rather than later."

A sale of the unit, which employs more than 38,000 and is present in 19 countries, could help FCA pay off some debt and fund an ambitious 48 billion euro ($52 billion) investment plan.

The plan could gain traction as Marchionne's plea to merge with rival carmaker General Motors (N:GM) is so far falling on deaf ears.

Based on the outskirts of Milan, Magneti Marelli had revenues of 6.5 billion euros last year and an operating profit, including unusual items, of 204 million euros. It makes components for lighting, engines, electronics, suspension and exhausts, among others.

BREAK-UP OPTIONS

The bidders aim to gain full control of Magneti Marelli and later split it up based on their own expertise, the sources said.

"Everyone will take a fair share of it," one of the sources said.

A number of large buyout funds, mainly U.S. based, are particularly interested in Magneti Marelli's lighting unit, which could be carved out and turned into a standalone firm, the source said.

This unit is worth around 2 billion euros and could appeal to global players such as Valeo (PA:VLOF), Hella (DE:HLE), Koido and Stanley (T:6923), a sector banker said.

Asian players could also make a move for the company, another source said, pointing to China's Wanxiang Group (SZ:000559) as a possible bidder.

Auto parts makers have shown growing appetite for mergers and acquisitions (M&A) deals in a bid to boost their global presence.

Earlier this year Germany's ZF Friedrichshafen completed its $13.5 billion acquisition of U.S. rival TRW Automotive Holdings.

Italian tire maker Pirelli sold to ChemChina in March as part of a multi-layered 7.3 billion-euro ($8 billion) deal.

Marchionne is in no rush to sell Magneti Marelli and will be picky when choosing a buyer to ensure stable future supply of components to FCA plants, which churn out anything from tiny Fiat 500s, Jeep sport utility vehicles to luxury Maseratis.

Another source said that FCA may also review strategic options for two smaller auto components units, Comau and Teksid, with revenues of 1.55 billion euros and 639 million euros, respectively.

In 2012 Marchionne said Fiat could put Magneti Marelli on the block as an option to raise additional cash to lift its stake in Chrysler.

Fiat completed its buyout of the U.S. unit last year.

SOURCE
 

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Discussion Starter #39
Head of Vehicle Safety and Regulatory Compliance

FCA US Announces Head of Vehicle Safety and Regulatory Compliance

November 20, 2015 , Auburn Hills, Mich. -

FCA US LLC today appointed Michael Dahl Head of Vehicle Safety and Regulatory Compliance, effective December 1, 2015. Dahl replaces Scott Kunselman who previously announced his decision to retire.



Prior to his appointment, Dahl held the position of Director, Gasoline/Diesel Engine Programs and Global Powertrain Coordination where he oversaw the development and launch of six new engines, including the award-winning 3.0-liter EcoDiesel V-6. Previous to that, he was Director, Supplier Quality.

Dahl joined the Company in 1985 as part of the Chrysler Institute of Engineering (CIE) program. He has held a series of positions of increasing responsibility with an emphasis on powertrain engineering, controls, and electronics.

He holds a Bachelor of Science in Electrical Engineering from the University of Notre Dame. Dahl also earned a Master of Business Administration from the University of Michigan and a Master of Science in Electrical Engineering from Oakland University.
 

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