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Sergio confirms media went out of context with VW,defends killing Dart,200

Discussion in 'Mopar News and Rumors' started by Alexbucks, Mar 16, 2017.

  1. Erik Latranyi

    Erik Latranyi Well-Known Member Level III Supporter

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    They might stay in with Ferrari and Maserati only. Marchionne once hinted that they would prefer to play only in the high-margin, luxury markets.

    They could easily let Alfa, Fiat, Chrysler, Dodge, Jeep and Ram go to someone else. They also have CNH Industrial.
     
    Deckard_Cain and aldo90731 like this.
  2. aldo90731

    aldo90731 Active Member Level III Supporter

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    But that'd be the job for a henchman, not a CEO with responsibility over thousands of employees.
     
  3. Erik Latranyi

    Erik Latranyi Well-Known Member Level III Supporter

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    Or a CEO on his way out the door............
     
    aldo90731 likes this.
  4. Prabhjot

    Prabhjot Member

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    Some of us don't recognise the motivations of old and successful through thick and thin business families, like the agnelli-s. Nothing whatsoever in all of their history suggests that they're mere buy, add-'value' only to flip.

    The same is true of the german auto-owning families and the Japanese ones, also Tata.

    Let us not project our cynicisms onto them. @Erik Latranyi These guys are anything but wolves-of-Wall Street, ponzi schemers, hedge fund plutocrats etc. whatever their other considerable faults, over time.

    They'll do what they say they'll do: do large deals of whatever geometries that enable the longterm financial and industrial plus brand health/identity of fca, of Cnh. Because no firm other than the only truly 'Aristocratic' one of Ferrari can afford to merely work-hard-and-yes-we-can and other such silly and entirely otherworldly new-age self-improvement mantras.

    I agree that there's no chance of a large tech company being interested in investing in fca or any other firm directly. Why would they? After all the auto industry is a graveyard for returns of and on capital/investment (so says Saint Marchionne with nobody disagreeing!;-))

    I.e., it'll either be old business auto industry families combining in some forms or it'll be a hostile-or-not move on gm which is the only non family controlled or owned firm around other than Renault-Nissan and arguably PSA which is more state and Chinese 'owned'!
     
  5. GasAxe

    GasAxe Active Member

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    This is how I see Tech and Auto coming together. Tech is finding out that those grease monkeys who build cars have a heck of a lot more knowledge and expertise than given credit for. Auto is seeing the rapid pace of technology being updated and can figure out that the internal cost to develop and update systems is getting too high to be done in-house. Initially, I think tech systems will be exclusively licensed but will still need some sort of compatability, so an iphone can still connect with an android system. I would bet that in the not so distant future, many vehicle entertainment systems will come from the factory "blank" and that you will subscribe to an infotainment system, kinda like buying a TV then getting cable TV or a satellite dish.
     
  6. Erik Latranyi

    Erik Latranyi Well-Known Member Level III Supporter

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    You fail to see the vast majority of investment groups that take a longer-term approach building the business, but will absolutely sell so they can have their next playtoy to work with. The Agnelli Family is not just into autos. A consolidated position, like what they have in CNH, allows them to go into their next venture. Perhaps they wish to be the next Elon Musk or Mark Zuckerberg. At this level, the ego is massive and the desire for the next big thing is always in the subconscious.
     
  7. rapidtrans

    rapidtrans Member

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    Could be.
    Sergio hasn't looked very well lately. One wonders if he's physically fit to run FCA.
     
  8. Erik Latranyi

    Erik Latranyi Well-Known Member Level III Supporter

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    I have not noticed, but a diet of heavy travel, cigarettes and strong coffee does tend to kill a lot of people earlier than those who do not indulge in such things.
     
    aldo90731 and marlon_jbt like this.
  9. Deckard_Cain

    Deckard_Cain Member

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    They way they organized Alfa together with Maserati I could see them keeping those three brands and getting rid of everything else.
    And to be honest, that would probably be for the best.
     
  10. Mopartial

    Mopartial Fits and Finishes Level III Supporter

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    Bingo
     
    Citation84 and Ian like this.
  11. Erik Latranyi

    Erik Latranyi Well-Known Member Level III Supporter

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    There was talk from someone, like Marchionne maybe (I do not remember) of splitting the company along the lines of exclusive and non-exclusive. This was back when the counter-argument was that Alfa needs Dodge's volume to justify the investment.........an argument nobody seems to think is necessary today.

    From a business point of view, getting Dodge and Jeep to quickly start sharing with Alfa would do more for margins and profit than anything I see them doing instead.
     
    eastcoaster likes this.
  12. 77 Monaco Brougham

    77 Monaco Brougham Member

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    Just curious....

    Just how well do the Angelli and Peugeot families know each other, anyway?
     
  13. DAGAR

    DAGAR Member

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    Aldo, you may have access to a lot of data, but you don't know that Sergio would be blasting any other automaker/exec for deciding to leave a market segment that was delivering low, if any, return. If Fiat was in the way of the shuffle, I'd say it's a really good bet that would be gone too, but it's not. Comparing Fiat to Dart and 200 is a red herring...
     
    Alexbucks, Prabhjot and ScramFan like this.
  14. Erik Latranyi

    Erik Latranyi Well-Known Member Level III Supporter

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    Dart and 200 were not in the way of the shuffle. That is the red herring here.

    They could have build up a small inventory (like what they have) still do the plant shuffle and then continue with a refreshed Dart/200 in Belvidere alongside the Cherokee. Volumes for Dart/200 would be low enough to not inhibit Cherokee sales and would assure FCA of a presence in the 2 largest sedan segments in the US.

    If you want to use the term "threw the baby out with the bath water" it applies to cancelling the 200/Dart!
     
  15. DAGAR

    DAGAR Member

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    It doesn't save a darn thing until they are actually working on the next generation that ISN'T using Giorgio. Do you KNOW that to be the case? If not, then you can be disappointed in the delay (me too), but more money and margin is likely being made in the short terms by increasing the total volume built on already paid for engineering and tooling. The case of more margin sooner would only hold if the new product including allocated costs could command increased margin and/or sell at a higher rate. Neither of which is likely. The trick FCA is trying to pull off is to maximize lifetime revenue on their already made investments while getting new product to the public before the old is too old and sales fall off a cliff. They leverage incentives and fleet to manage this predicting when the margin on old will fall below the margin on new as the driver to schedule replacement. As sales have help up better than they likely predicted for certain older product, they have pushed out dates. This only helps them meet FY18 financial goals more quickly.
     
    Prabhjot likes this.