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AN: Does Marchionne grasp lessons of GM-PSA?

Discussion in 'Mopar News and Rumors' started by aldo90731, Mar 13, 2017.

  1. Erik Latranyi

    Erik Latranyi Well-Known Member Level III Supporter

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    Kris:

    Do you think Opel is also difficult to change due to its incest with the German government? I was told that Opel has structural issues that cannot be changed since they are protected by the German government. This was the leading reason GM "gave up" and decided to sell because they could not see a path forward that would transform Opel into a competitive entity.

    Have you heard the same?
     
  2. aldo90731

    aldo90731 Active Member Level III Supporter

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    FCA is a Greek Tragedy of missed past opportunities with a shrinking window of future opportunities.
     
    jimboy, duster92, JavelinAMX and 2 others like this.
  3. valiant67

    valiant67 Rich Corinthian Leather Level III Supporter

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    That really sums it up. Missed opportunities.
     
    JavelinAMX, MPE426HEMI and aldo90731 like this.
  4. GasAxe

    GasAxe Active Member

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    Sadly, that's what happens when you're fighting fires and not planting seeds, then finding out the seeds planted are carrots when you needed corn!
     
    valiant67 and JavelinAMX like this.
  5. KrisW

    KrisW Member

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    I don't follow them very closely, but I think about 20,000 of the 35,000 staff work outside of Germany. Opel's relationship with the German state governments is nowhere near as incestuous as VW's.

    The company is privately held, but GM is the only real shareholder these days. There was a package of "support measures" put in place around 2009 that probably came with enormous strings attached to them to keep production in Germany, but there really was nothing stopping Opel from doing what FCA has done, and build prestige, high-margin product in the expensive locations, and volume stuff where it's cheap. (Opel's manufacturing footprint is more diverse than FIAT's, with plants in Spain, UK and Poland).
     
    Prabhjot likes this.
  6. Nell_Z

    Nell_Z New Member

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    Maybe. Give me a fact or two to go on. Seems I'm the only one in this conversation playing by the rules.
     
  7. Alexbucks

    Alexbucks Member

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    "Missed opportunity " absolutely not.....more like spilled whining milk over the "Old Chrysler Corporation", '"Full-line Dodge".
    The Old Fiat is now three Companies with a combine market capitalization of over $40 billion: CNH Industrial, Ferrari, and FCA.

    That's a success, my friend.
     
    Prabhjot and 77 Monaco Brougham like this.
  8. Adventurer55

    Adventurer55 Member

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    I can share one thing that truly bothers me. No one is anymore dyed in the wool Mopar then me, but I'm even starting to have doubts about this company. Smoke and mirrors come to mind, especially with the quality issues.
     
  9. MPE426HEMI

    MPE426HEMI Active Member

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    It's absolutely rediculous! With FCA's rating, they're not even on board.
     
  10. valiant67

    valiant67 Rich Corinthian Leather Level III Supporter

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    FCA is repeating the same pattern Chrysler did for decades. Large, relatively inefficient vehicles (even if they are more efficient than the past). Success, or lack of, will be shown by what happens in the next economic crash or fuel price jump. For those only familiar with Chrysler as part of FCA, it would be wise to study Chrysler and the US auto market over the past 5 decades.
     
  11. aldo90731

    aldo90731 Active Member Level III Supporter

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    Yes. Which is why I've been saying axing Dart and 200 will be seen, in hindsight, as the biggest error FCA made in North America. Just like Chrysler got accused of many errors, in hindsight, once the last economic downturn hit.

    Trying to manage short-term profits is as foolish as trying to manage short-term gains in the stock market: eventually, you will be caught holding the wrong positions and you will lose your shirt.

    The job of a CEO is to ensure its company's long term viability, not to make bets on its future. And managing an ongoing concern is much like managing a long-term investment portfolio: risk diversification will get you through thick and thin. Even when that means holding a few positions with lower margins --and lower volatility.
     
    Last edited: Mar 15, 2017
  12. MPE426HEMI

    MPE426HEMI Active Member

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    Yes, to keep all bases covered. We don't want another "Caught with our pants down" scenario.
     
  13. Alexbucks

    Alexbucks Member

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    I suggest you both study not only that shift of the market is to Crossovers,SUV, Trucks but that all three (GM, Ford,FCA) are going through shifts in Capacity.

    GM has a Capacity gut of FWD,while FCA and Ford shrift Capacity to more profitable models while avoiding building New Plants that would could have created a gut of Capacity.

    It is better to convert Sterling Heights with new tooling than building a brand new RAM plant if the market shifts again ( besides Malibu has failed to make any real dent in the Midsize market).
     
    Citation84 likes this.
  14. Erik Latranyi

    Erik Latranyi Well-Known Member Level III Supporter

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    No the best strategy would have been to keep FLEX manufacturing and transform all plants into sedan/CUV assembly where they can vary production of both as demand changes.

    But, FCA had to go copy the inefficient VAG system that only works if your plants have multiple production lines inside them (for different vehicles) or enough volume worldwide to support separate plants building one vehicle each.

    FCA was chasing the volume when they threw FLEX out, but now changed to chasing margins and lower volume instead, which does not lend itself to the VAG system. FLEX was much better at delivering margins.

    Another lost opportunity
     
    freshforged, GasAxe, somber and 2 others like this.
  15. Dave Z

    Dave Z It's me, Dave Staff Member Supporter

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    ... and for that matter this whole thing would have been eased by renovating an existing plant with one line to keep the less profitable ones going - I would assume they can build the 200, Dart, and Journey together.