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    1. · The Poster Formerly Known As "Bethlumboy"
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      Below are Mr. Marchionne's exact words, taken from the transcript of the conference call. Please note that he does not blame the vehicles or platform themselves for their lack of profitability, and he does not suggest that FCA will no longer invest in development of C- and D-segment sedans. All he says is that FCA US production capacity will no longer be dedicated to these segments because FCA US lacks the production capacity to meet the demand for SUVs, CUVs, and pickups.


      There has been, in our view, a permanent shift towards UVs and pick up trucks and we have seen, certainly in terms of our ability to meet market demand some severe restriction in terms of the dexterity of our manufacturing system to accomplish that end.

      And so, one of the things that we have decided to do is to effectively defocus from a manufacturing standpoint in the US to defocus the passenger car market. There are two cars in particular the Dodge Dart and the Chrysler 200 which will run their course. But without creating additional capacity in the United States, we need to re-utilize those plant infrastructure to try and deal with the development of both Jeep and the Ram brands.

      So there will be a number of things that will be put in place in the next 18 months, things that have been agreed and detailed effectively. We draw the current Chrysler 200 and Dodge Dart from the marketplace over for a long period of time during which we will becontinuing discussions with potential partners that will be able to allow us to access that architecture an[d] effectively provide us the product from their facilities that will allow us to continue to cover the market.

      The important thing is that as we transition to these new vehicles, the new Wrangler that’s coming out of Toledo in 2017, the continuation of the Cherokee, which as you well know is essential to the development of the brand especially in NAFTA.


      These things happen with us – without us losing any volume in the Jeep or the Ram brands. These are things which are fundamental and I think that they have obviously had some cost in terms of the achievement of the objective, but it is a cost that is managed and certainly justified in terms of the margin generation associated with the shift.

      So we continue to work with our partners, hopefully in the relatively short period of time, we will be able to detail the cooperation plan going forward. I think the important thing for us to reinforce is the fact that the Wrangler in its new home in Toledo will have additional production capacity available to try and meet demand on a global scale.

      And I think it’s important for us to have found the home for the Grand Wagoneer family both the GrandWagoneer and the Wagoneer in whatever shape they come and then we find that space without creating additional production capacity. I think we’ve been able to accomplish that as a result of the realignment decision that we’ve made. I think we have taken a one-off charge in 2015 to account for some of the costs associated with that realignment we think that the cost that will justify the view of the significant expansion of margins that we will be able to obtain from the US.
       
    2. · Registered
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      928 Posts
      Below are Mr. Marchionne's exact words, taken from the transcript of the conference call. Please note that he does not blame the vehicles or platform themselves for their lack of profitability, and he does not suggest that FCA will no longer invest in development of C- and D-segment sedans. All he says is that FCA US production capacity will no longer be dedicated to these segments because FCA US lacks the production capacity to meet the demand for SUVs, CUVs, and pickups.


      There has been, in our view, a permanent shift towards UVs and pick up trucks and we have seen, certainly in terms of our ability to meet market demand some severe restriction in terms of the dexterity of our manufacturing system to accomplish that end.

      And so, one of the things that we have decided to do is to effectively defocus from a manufacturing standpoint in the US to defocus the passenger car market. There are two cars in particular the Dodge Dart and the Chrysler 200 which will run their course. But without creating additional capacity in the United States, we need to re-utilize those plant infrastructure to try and deal with the development of both Jeep and the Ram brands.

      So there will be a number of things that will be put in place in the next 18 months, things that have been agreed and detailed effectively. We draw the current Chrysler 200 and Dodge Dart from the marketplace over for a long period of time during which we will becontinuing discussions with potential partners that will be able to allow us to access that architecture an[d] effectively provide us the product from their facilities that will allow us to continue to cover the market.

      The important thing is that as we transition to these new vehicles, the new Wrangler that’s coming out of Toledo in 2017, the continuation of the Cherokee, which as you well know is essential to the development of the brand especially in NAFTA.


      These things happen with us – without us losing any volume in the Jeep or the Ram brands. These are things which are fundamental and I think that they have obviously had some cost in terms of the achievement of the objective, but it is a cost that is managed and certainly justified in terms of the margin generation associated with the shift.

      So we continue to work with our partners, hopefully in the relatively short period of time, we will be able to detail the cooperation plan going forward. I think the important thing for us to reinforce is the fact that the Wrangler in its new home in Toledo will have additional production capacity available to try and meet demand on a global scale.

      And I think it’s important for us to have found the home for the Grand Wagoneer family both the GrandWagoneer and the Wagoneer in whatever shape they come and then we find that space without creating additional production capacity. I think we’ve been able to accomplish that as a result of the realignment decision that we’ve made. I think we have taken a one-off charge in 2015 to account for some of the costs associated with that realignment we think that the cost that will justify the view of the significant expansion of margins that we will be able to obtain from the US.
      Amazing what context does. Lots of inaccurate statements based on comments taken out of context floating around here and everywhere.
       
    3. · The Poster Formerly Known As "Bethlumboy"
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      1,779 Posts
      They way it was said, it seems that the fate of the Dart & 200 are intertwined.
      I agree that it does seem that way. However, Mr. Marchionne does say partners, suggesting that they could come from different manufacturers.

      We draw the current Chrysler 200 and Dodge Dart from the marketplace over for a long period of time during which we will becontinuing discussions with potential partners that will be able to allow us to access that architecture an[d] effectively provide us the product from their facilities that will allow us to continue to cover the market.
      ...
      So we continue to work with our partners, hopefully in the relatively short period of time, we will be able to detail the cooperation plan going forward.
       
    4. · Registered
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      199 Posts
      Below are Mr. Marchionne's exact words, taken from the transcript of the conference call. Please note that he does not blame the vehicles or platform themselves for their lack of profitability, and he does not suggest that FCA will no longer invest in development of C- and D-segment sedans. All he says is that FCA US production capacity will no longer be dedicated to these segments because FCA US lacks the production capacity to meet the demand for SUVs, CUVs, and pickups.


      There has been, in our view, a permanent shift towards UVs and pick up trucks and we have seen, certainly in terms of our ability to meet market demand some severe restriction in terms of the dexterity of our manufacturing system to accomplish that end.

      And so, one of the things that we have decided to do is to effectively defocus from a manufacturing standpoint in the US to defocus the passenger car market. There are two cars in particular the Dodge Dart and the Chrysler 200 which will run their course. But without creating additional capacity in the United States, we need to re-utilize those plant infrastructure to try and deal with the development of both Jeep and the Ram brands.

      So there will be a number of things that will be put in place in the next 18 months, things that have been agreed and detailed effectively. We draw the current Chrysler 200 and Dodge Dart from the marketplace over for a long period of time during which we will becontinuing discussions with potential partners that will be able to allow us to access that architecture an[d] effectively provide us the product from their facilities that will allow us to continue to cover the market.

      The important thing is that as we transition to these new vehicles, the new Wrangler that’s coming out of Toledo in 2017, the continuation of the Cherokee, which as you well know is essential to the development of the brand especially in NAFTA.


      These things happen with us – without us losing any volume in the Jeep or the Ram brands. These are things which are fundamental and I think that they have obviously had some cost in terms of the achievement of the objective, but it is a cost that is managed and certainly justified in terms of the margin generation associated with the shift.

      So we continue to work with our partners, hopefully in the relatively short period of time, we will be able to detail the cooperation plan going forward. I think the important thing for us to reinforce is the fact that the Wrangler in its new home in Toledo will have additional production capacity available to try and meet demand on a global scale.

      And I think it’s important for us to have found the home for the Grand Wagoneer family both the GrandWagoneer and the Wagoneer in whatever shape they come and then we find that space without creating additional production capacity. I think we’ve been able to accomplish that as a result of the realignment decision that we’ve made. I think we have taken a one-off charge in 2015 to account for some of the costs associated with that realignment we think that the cost that will justify the view of the significant expansion of margins that we will be able to obtain from the US.
      Reading an actual transcript of what was said, by Sergio and the breast beating posted here are not congruent.

      In fact they have nothing to do with each other. They take an observation that the US manufacturing capacity is limited, BY SUCCESS, at the top of a normal business cycle. Rather than build more capacity, that may go unused in the next cyclical turndown, Sergio is looking to redeploy the existing capacity to higher margin products; while ALSO contracting with another maker to build FCA's lesser margined vehicles.

      That is a straightforward outsourcing issue, nothing more.

      A lesser manager would have authorized spending on capacity expansion in the USA, which will go unused in the next industry turndown. Meanwhile capacity expansions are being made in the greenfield Brazilian Pernambuco plant; and with partners in in China and India. What's not to like from a business perspective?

      It does NOT indicate and abandonment of any markets; It does not mean the "End of Dart and 200" , or FCA participation and design of C segment or D segment sedans. The only assumption is that CUVs and SUVs are a permanent market just like "station wagons" or "big coupes" like the Olds Cutlass, once were. Even there the currently fashionable "tall sedans" may not not continue to dominate the market, and FCA can return to building whatever, or the next market fad.

      Where in God's name do you people engender such baloney? The company has almost doubled its market share in NAFTA since 2009; and the debt is about half what it was; and the interest rates are not 20% as they government granted them; but almost half the carrying charges.
       
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