How I would fix FCA

As an Alfista, the recent news about my beloved brand’s sales performances struck me hard, prompting some reflections about how FCA’s European arm could be ‘fixed‘. 

Junked 1991 Alfa Romeo 164 – Picture by Murilee Martin (c. AutoWeek)

The genuinely awful sales numbers posted by Alfa Romeo lately have once again placed the European side of FCA, best known as the one that burns the revenue generated in North America by Jeeps and trucks, under the spotlight. FCA’s current management seem somewhat unwilling to manage the clay-footed automotive giant created a decade ago, thanks to Sergio Marchionne’s opportunism and dealmaking ability.

The focus now seems to be mostly about maintaining the status quo until the sale of the whole shebang: Needless to say, such a non-strategy can last only so long, and mainly hangs upon Jeep and RAM sales in the USA: turmoil there would send the whole construction crashing down in no time.

The heart of the matter lies with the fact that FCA doesn’t generate nearly enough cash to Continue reading “How I would fix FCA”

Geneva 2019 Reflections – Pio Would Have Loved This

For one DTW reporter, there was only one star of the 2019 Geneva International Motor Show. We take stock of Fiat’s Concept Centoventi.

Image: fiatpress.com

Still in mild shock at the most dramatic ECotY announcement in years, my Geneva companions and I took our customary evening promenade round the halls of Palexpo. The FCA stand promised little. We knew they had no new cars, but at least they turned up, unlike some, and Alfa and Fiat had heavily concealed concept cars to show the following morning.

Later in the evening we talked of what is to become of Fiat. Three of us, we have all had various Fiats in our lives and enjoyed the experience. Now the company seemed to be ever more marginalised in the increasingly Jeep-centric world of FCA in the Manley Era.

The FCA Press Conference was therefore a must-see. New introductions were thin on the ground. Alfa Romeo had the Tonale SUV concept, but no mention was made of the GTV. Jeep showed petrol-hybrid Renegades and Compasses, but they will not Continue reading “Geneva 2019 Reflections – Pio Would Have Loved This”

Betting The Empire

Can Fiat-Chrysler’s new CEO deal with FCA’s lopsided business or is it time to bring out the bonesaw?

FCA’s new CEO, Mike Manley. (c) Forbes

FCA’s late CEO, Sergio Marchionne was at various times hailed as something of a visionary, and without doubt, he achieved the seemingly impossible once he orchestrated Fiat Auto’s audacious takeover of the embattled Chrysler business in 2009. Nevertheless, an equally cogent argument could be posited that should Marchionne’s legacy simply be that of FCA’s continued existence, then it is built largely upon failure.

Why? Because despite his efforts, he was unable to Continue reading “Betting The Empire”

Fontana di Nettuno

Is FCA’s Poseidon Adventure approaching its climax?

Three Tridents. (c) Maserati.ae

Last week, we examined FCA’s stewardship of Maserati and concluded that under the leadership of former CEO, Sergio Marchionne, several significant mistakes were made. Now that the carmaker is being lead by a newly constituted management team, what fate lies in store for the Trident of Bologna?

As has been reported, Maserati has seen a torrid 2018, shedding volume, margins and becoming an increasingly onerous drain upon the FCA business. At the end of October, as part of their responsibility to Continue reading “Fontana di Nettuno”

Blunting the Trident

Earlier this week, we reported on Maserati’s current woes. Today, we continue our analysis and pose a few uncomfortable questions.

(c)  Maserati

In the aftermath of Sergio Marchionne’s untimely death earlier this year, many observers offered a range of views as to the former FCA Chief Executive’s legacy. As is customary in times of personal tragedy, criticisms were muted and delicacies were observed. In his stead has stepped new CEO, Mike Manley, tasked with steering the still-listing FCA vessel through another four-year plan unlikely to be worth the powerpoint programme upon which it was scribed – both then and given the subsequent turn of events, now.

Armed with a hefty fire extinguisher, a hastily re-scribbled plan (subject to further change, no doubt), and a reshuffled team, his task, even for the more successful of FCA’s brand portfolio looks onerous. But for the ill-performing upmarket end of the spectrum, and especially its embattled Maserati business, it’s impossible to Continue reading “Blunting the Trident”