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FCA Spending 1.1 Billion On New Fiat's and Alfa . . . No New Chrysler Or Dodge Products


Fiat Chrysler Automobiles plans to invest almost 1 billion euros ($1.1 billion) to start production of the new Alfa Romeo Tonale compact crossover and a Panda hybrid minicar at its Pomigliano plant near Naples in Italy, unions said on Wednesday.

The investment is part of a FCA's plan announced last year to spend 5 billion euros in Italy up to 2021 to help the group launch its first electric and hybrid models and to fill capacity utilization at its Italian plants.

FCA will start building the new production line at the start of next year, metal mechanic unions FIM, UILM, FISMIC, UGLM and AQCF said in a statement after meeting FCA.

An FCA spokesman confirmed the unions' statement, adding the investment for the two models would be "closer to 1 billion than 500 million euros."

The spokesman said a premium compact utility vehicle would be produced at the Pomigliano plant, along with a hybrid Panda, but did not confirm it was the Alfa Romeo Tonale.


Production of the hybrid Panda is expected to start in the first half of next year, while Tonale output will begin in the first half of 2021.

Alfa revealed the Tonale concept in March. The production version will be positioned below the Stelvio.

FCA has already begun investing to prepare the Pomigliano factory for production. The plant already produces internal combustion Panda cars.

Earlier this year, FCA said it was investing 700 million euros to start building the production line for the new Fiat 500 electric in its historic Mirafiori plant in Turin, as the carmaker moved on from its failed $35 billion bid to merge with Renault. Production will start in the second quarter of 2020.

This all comes at a rather confounding time as Fiat pulls their 500 and 500e from the US market and Alfa Romeo is seeing a huge sales slumps over the previous year. Besides Jeep and Ram, all other FCA vehicles are seeing declines due to product starvation. Even more concerning is that FCA is investing in two products that will likely not sell as well. Most of FCA's profits come from the United States and they have been neglecting that market with their two storied brands; Chrysler and Dodge. Could these lead as a new basis for future Chrysler / Dodge products? FCA did not answer.

Article
 

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FCA is spending big Euros for a new generation of vehicles and production facility updates to produce them. Is this a news article or an editorial? Sentences such as, "This all comes at a rather confounding time as Fiat pulls their 500 and 500e from the US market and Alfa Romeo is seeing a huge sales slumps over the previous year...", blur the line between fact and opinion. Maybe the author is confounded, but someone with rational thinking shouldn't be. The Panda sells very well in the EMEA region. One of the reasons for lower Alfa sales is the wind down of the MiTo. "A premium compact utility vehicle" that FCA talks about is meant to replace the MiTo. European car companies that don't invest in low and zero emissions vehicles will cease to exist. That is the reality. That is why FCA is making the investments.

FCA is investing in Europe for European products. They sold some European assets to this, BTW. Yes some money might come from NA profits, but someone who works foe a major publication should know this. The author should keep his biases to itself.

I am sure the electrification technology of the new European products which FCA is investing in will cross the pond. It would be fruitless for Dodge and Chrysler to introduce new products unless there is leading edge drivetrains to back them up. Don't forget FCA has spent big money in North American production facilities as well. Who knows, now that the Fiat 500 and Dodge Journey are leaving Toluca there will be some production space for some Chrysler and Dodge products.
 

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You mean eTorque is not “leading edge” enough...?

I doubt that investment has produced the expected return, either.
 

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This all comes at a rather confounding time as Fiat pulls their 500 and 500e from the US market and Alfa Romeo is seeing a huge sales slumps over the previous year. Besides Jeep and Ram, all other FCA vehicles are seeing declines due to product starvation. Even more concerning is that FCA is investing in two products that will likely not sell as well. Most of FCA's profits come from the United States and they have been neglecting that market with their two storied brands; Chrysler and Dodge. Could these lead as a new basis for future Chrysler / Dodge products? FCA did not answer.

Article
Seems like Giulio Piovaccari, the author of this article, is a member of this forum.
So to him, it's a "rather confounding time" that they're investing in new product when all FCA vehicles besides Jeep and Ram are seeing huge declines due to product starvation. Uhm, what?...

And investing in two products that will not sell well? The Panda is only the leading car in the A-segment in Europe. And Alfa Romeo is seeing a sales slump because they stopped launching product (only 2 of the planned 8 models until 2020 were launched), investing in it and neglecting the demands of its main geographical market (no station-wagon for Europe??? Marchionne condemned the Giulia to be a niche product in Europe with this decision. A station wagon would've guaranteed AT LEAST double the Giulia the sales in Europe with minimal added investment and next to no cannibalization of the Stelvio sales).

Also, they have NOT been neglecting the US. If we compare exclusive product launches in the US and Europe, the most recent launches have overwhelmingly been in the US. Europe got the Tipo. The US got the Pacifica, Ram 1500, Wrangler and Gladiator.
The Levante, Giulia, Stelvio, 124 Spider and Compass were global launches.
Also if FCA is to survive they need to diversify and reduce their dependence on one geographic area. Look at the good results they got in LATAM when they actually invested in new product there. The same or better would happen in Europe if they do the same.

I want something of what this guy's been smoking.
 

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FCA is spending big Euros for a new generation of vehicles and production facility updates to produce them. Is this a news article or an editorial? Sentences such as, "This all comes at a rather confounding time as Fiat pulls their 500 and 500e from the US market and Alfa Romeo is seeing a huge sales slumps over the previous year...", blur the line between fact and opinion. Maybe the author is confounded, but someone with rational thinking shouldn't be. The Panda sells very well in the EMEA region. One of the reasons for lower Alfa sales is the wind down of the MiTo. "A premium compact utility vehicle" that FCA talks about is meant to replace the MiTo. European car companies that don't invest in low and zero emissions vehicles will cease to exist. That is the reality. That is why FCA is making the investments.

FCA is investing in Europe for European products. They sold some European assets to this, BTW. Yes some money might come from NA profits, but someone who works foe a major publication should know this. The author should keep his biases to itself.

I am sure the electrification technology of the new European products which FCA is investing in will cross the pond. It would be fruitless for Dodge and Chrysler to introduce new products unless there is leading edge drivetrains to back them up. Don't forget FCA has spent big money in North American production facilities as well. Who knows, now that the Fiat 500 and Dodge Journey are leaving Toluca there will be some production space for some Chrysler and Dodge products.
Tonale is not MiTo's replacement. It's not even replacement for Giulia. We are talking about product which will have very similar price to Giulia with similar engine and trim level.

Toluca? I can see a Low D segment 3 row SUV there. A Small Wide based vehicle.
 

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With new emission rules for 2020 and 2021 every manufacturer needs gibrid vehicles, otherwise it will pay high fines.

Average CO2 emissions will have to be 95 g/km on 95% of car sold in 2020 and 100% for 2021.
Just some example of CO2 emissions; Jeep Wrangler JL CO2 emission 209 g/km, Grand Cherokee Overland diesel 208 g/km, Jeep Grand Cherokee V8 Hemi SRT 338 g/km, Jeep Cherokee 2.2 diesel 161 g/km, ...

Maybe now someone will understand the reason of Panda mild hybrid, Renegade hybrid, Compass hybrid, ....

And as FCA Poimigliano plant investments, many of that investments are not product specific, for example they started in august to substitute some robots in painting shop with most modern and advanced ones that improves speed of painting and quality of painting.

p.s.:
- Fiat Panda sales increased this year.
- FCA sold Magneti Marelli to Calsonic Kansei (now Marelli) this year for about 5.8 Euro billion cash, of which about Euro 2 billion distributed to shareholders (dividend of Euro 1.30 per share) and about Euro 3.8 billion are in FCA bank accounts.
 

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This is it simply:
FCA can’t or won’t spend the money to keep lineups fresh in all their markets. European rules aren’t keeping other manufacturers from refreshing North American lineups.

As for the Pacifica, 1500, Wrangler, Gladiator examples. Yes, 4 new products for the 4 core North American brands over 4 years really keeps things fresh, don’t they?
 

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Keeps them fresher than the European side.
Yes, all regions have a lack of fresh product.

How much has Exor taken out of FCA since its creation?
 

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Through dividends? Nothing till this year.
Administrative fees are usually the way holding companies take money out.
 

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This is it simply:
FCA can’t or won’t spend the money to keep lineups fresh in all their markets. European rules aren’t keeping other manufacturers from refreshing North American lineups.

As for the Pacifica, 1500, Wrangler, Gladiator examples. Yes, 4 new products for the 4 core North American brands over 4 years really keeps things fresh, don’t they?
It seems FCA has more brands and more markets than it can handle competently.

Merger, anyone...? Or the opposite of a merger: divest, anyone?

Not that VWAG is in the position anymore, but the late Ferdinand Piech offered several times to take Alfa Romeo off Marchionne’s hands.
 

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You can watch FCA profits and sales spiral down into oblivion, from here on out, in NA, if no new products are coming. As for new vehicle introductions, FCA is the most boring manufacturer out there. It’s like nobody at FCA has a clue that’s making any decisions there. Even salespeople admit they don’t know what the heck is going on or where the company is going. One even told me that FCA’s pricing scheme on some of their (once) decent selling models have stifled their sales.
 

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FCA is spending big Euros for a new generation of vehicles and production facility updates to produce them. Is this a news article or an editorial? Sentences such as, "This all comes at a rather confounding time as Fiat pulls their 500 and 500e from the US market and Alfa Romeo is seeing a huge sales slumps over the previous year...", blur the line between fact and opinion. Maybe the author is confounded, but someone with rational thinking shouldn't be. The Panda sells very well in the EMEA region. One of the reasons for lower Alfa sales is the wind down of the MiTo. "A premium compact utility vehicle" that FCA talks about is meant to replace the MiTo. European car companies that don't invest in low and zero emissions vehicles will cease to exist. That is the reality. That is why FCA is making the investments.

FCA is investing in Europe for European products. They sold some European assets to this, BTW. Yes some money might come from NA profits, but someone who works foe a major publication should know this. The author should keep his biases to itself.

I am sure the electrification technology of the new European products which FCA is investing in will cross the pond. It would be fruitless for Dodge and Chrysler to introduce new products unless there is leading edge drivetrains to back them up. Don't forget FCA has spent big money in North American production facilities as well. Who knows, now that the Fiat 500 and Dodge Journey are leaving Toluca there will be some production space for some Chrysler and Dodge products.

The last paragraph of the article, the part with the opinion, shown on Allpar, does not currently appear in the original linked article, which is from Reuters, and a Google search shows it as only appearing on Allpar. The first words from the previous paragraph show up on five places on the internet in a Google search. (Neither search shows Automotive News though.)

The Reuters article, as seen in the other locations besides Allpar, ends with this paragraph instead:

"Hybrid versions of Jeep Compass and Renegade models and of Maserati's Levante utility vehicle are also expected to go on sale next year."
 

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Tonale is not MiTo's replacement. It's not even replacement for Giulia. We are talking about product which will have very similar price to Giulia with similar engine and trim level.

Toluca? I can see a Low D segment 3 row SUV there. A Small Wide based vehicle.
I find this hard to believe. The Stelvio is already similar in price to the Giulia with similar engines and trim levels. Why would the Tonale be prices directly on top of it?
 

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This is it simply:
FCA can’t or won’t spend the money to keep lineups fresh in all their markets. European rules aren’t keeping other manufacturers from refreshing North American lineups.

As for the Pacifica, 1500, Wrangler, Gladiator examples. Yes, 4 new products for the 4 core North American brands over 4 years really keeps things fresh, don’t they?
And that's why they keep looking for a partner.
 

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I find this hard to believe. The Stelvio is already similar in price to the Giulia with similar engines and trim levels. Why would the Tonale be prices directly on top of it?
Just for example. In Germany Stelvio starts at 41k EUR for 2.2 160 HP diesel. Giulia starts at 37k EUR with the same engine.

Now take a look at BMW.
BMW 318d with automatic which is a 2 liter 150 HP diesel starts from 40k EUR.
BMW doesn't offer this engine on X3. The earliest diesel is 20d with 190 HP which starts at 48k EUR.
BMW 320d automatic starts at 42600 EUR.
BMW X1 18d sDrive automatic starts at 37250 EUR. BMW X1 20d sDrive automatic starts at 40800 EUR.
 
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