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Fiat Chrysler (FCA)

Fiat Chrysler (FCA) is an Italian/America OEM that sells cars and commercial vehicles under the following brands: Fiat, Alfa Romeo, Lancia, Maserati, Jeep, Chrysler, Dodge, and Ram. It is the former parent of Ferrari (spun out in 2016).

FCA Group also owns other companies such as Comau (manufacturing automation) and Magneti Marelli (electronics).

This page contains research on FCA's activities and strategy.

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Financial Information and Company Presentations

FCA Group Investor Relations

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FIAT CHRYSLER (FCA) IN THE NEWS

This information can also be found on the weekly news review.

2018

June

  • Held a capital markets day where the company outlined a series of strategic actions to 2022.
    • Jeep hope to increase global share from just under 6% to over 8% by 2022 through a rollout of connected vehicles, incremental products (including an A/B sized Jeep) and a suite of new services under the banner of Jeep Wave. (FCA)
    • Ram see themselves as having outstanding customer loyalty but low transaction fees, despite good cab mix. The brand hopes new trucks will boost transaction prices to the level of the Ford F-150 and Ford Heavy Duty trucks. FCA also forecast a continued increase in US industry volumes. (FCA)
    • Maserati showed a modular spaceframe capable of accommodating PHEV and BEV and promised Tesla-shattering acceleration times. By 2022, BEV versions of all vehicles except a forthcoming D-sized SUV will be available. (FCA)
    • Alfa Romeo will launch two new SUVs, above and below Stelvio, and a series of new sports cars that appear derived from the PHEV version of the new Maserati Alfieri. The bran hopes to reach its original 400,000 unit per annum target (set in 2014) in 2022. (FCA)
    • FCA sees 2022 sales mix of 40% 48V and 20% PHEV / BEVs in EMEA, with only slightly lower figures for NAFTA and APAC regions.
  • Agreed a deal with Waymo that will see it provide “up to” 62,000 Pacifica minivans. The two companies will also discuss an arrangement for FCA to sell Waymo-supplied autonomous features in retail vehicles. (FCA)
  • CEO Marchionne said “all bets are off” if the demand becomes “white box” autonomous ride hailing vehicles rather than retail customers. He said he struggles to see which US competitor brands (read: non-premium) can survive a permanent switch to commoditised designs. (FCA)
  • Admitted FCA got two things wrong with the Alfa Romeo revamp as planned in 2014: they underestimated the “industrial complexity” of launching a large product portfolio and underestimated the response and execution of German premium brands, in summary, CEO Marchionne said the firm’s expectations in 2014 were “totally misjudged” and that in the new plan, even by the mid-2020s Alfa’s margins would be lower than Jeep’s. (FCA)
  • A question on a point in time for cost parity between ICE and BEVs left FCA executives stumped and reaching for their “crystal ball”, they finally settled on not before 2025, “best case”. (FCA)
  • Said the retail market for autonomy will not progress beyond L3 systems for a long time and that L4/L5 systems will cost $10,000 and, if on sale before 2023, would not be automotive grade. (FCA)
  • Seeking to create a captive finance company in the US, either from the ground-up or via acquisition. (FCA)

May

  • Recalling over 5 million vehicles, 4.8 million of which are in the USA, to correct a fault that can lead to the driver being unable to cancel cruise control. (FCA)
  • Rumoured details of FCA’s new strategy, set for a 1st June reveal, emerged. The company apparently plans to move small and mid-sized car production out of Italy, in part replaced by larger Jeep and Maserati products. The Fiat brand may shrink to only 500 and Panda derivatives (and presumably van-derived models). (Bloomberg)
  • Internal emails turned over as evidence for diesel cheating court cases against FCA revealed supplier staff questioning FCA’s compliance approach and the CEO’s disapproval of a US spokesman’s comments in 2015, just after the VW diesel went public, saying that FCA was squeaky clean. (Reuters)
  • Announced a recall of almost 49,000 SUVs to correct fuel supply problems. (FCA)
  • The theft of eight new Ram pick-up trucks from an FCA compound set Detroit tongues wagging as clues pointed to an inside job. (Detroit Free Press)
  • Announced a recall of almost 240,000 SUVs to replace lower control arms. (FCA)
  • CEO Marchionne met President Trump asking for an outcome that will “preserve a national program that drives continuous improvement” (i.e. stop California and others creating their own rules) that also “allows us to build vehicles customers want, at prices they can afford” (i.e. regulations that aren’t tough so we don’t have to pass on costs to consumers -- or more likely -- absorb them ourselves). (FCA)
  • CEO Marchionne said proposed revisions to NAFTA local content rules would require the company to redirect some of the supply from its Mexican plants, but production would still go ahead. (Economic Times of India)
  • Suffered production stoppages at the Brampton, Ontario plant because of supplier strikes. (Auto Evolution)

April

  • CEO Marchionne said that fines and penalties that would result from missing 2020+ EU CO2 targets “need to be avoided like the black plague”. (Seeking Alpha)
  • CEO Marchionne said the cost of making diesels reach new standards is “going to become prohibitive” and repeated that FCA’s strategy was to end production of diesel cars after 2022. (Autocar)
  • CEO Marchionne said the company will have the highest North American profits “by far” but “when it happens… I can’t tell you.”. (Bloomberg)
  • Released their 2017 sustainability report. (FCA)
  • Announced the separation of electronics subsidiary Magneti Marelli from the rest of the group, as expected. Following Ferrari’s example, FCA will issue shares in the separate firm to existing FCA stockholders rather than have a separate flotation. Magneti Marelli will also take responsibility for some of the group’s debt. (FCA)

Q1 2018 Financial Results

  • Reported financial results for Q1 2018. Revenue of €27.0 billion was down (2)% on a year-over-year basis, despite shipments increasing 7%. FCA blamed exchange rates. Adjusted EBIT of €1.6 billion was 5% better than prior year and the company’s net debt of €1.3 billion looks set to be eradicated by year end. (FCA)

March

  • Extended its revolving credit facility to 2023. (FCA)
  • Looking to separate Magneti Marelli via a listing that will give all shares to existing FCA stock holders, rather than raising money. (Reuters)
  • According to further rumours surrounding Geely / FCA talks in summer 2017, FCA (via its largest shareholder) was open to splitting Alfa Romeo and Maserati away from the rest of the group. (Jalopnik)
  • CEO Marchionne said that the company was open to offers but was waiting until the market “recognizes the value of what has been accomplished” in the expectation that the company’s value will rise. (Detroit News)
  • Rating agency Moody’s raised FCA’s rating from Ba3 to Ba2 with a stable outlook. (FCA)
  • A supplier strike caused production stoppages at the Windsor assembly plant. (Detroit Free Press)
  • Announced it will review a separation of the Magneti Marelli electronics business in Q2 2018. (FCA)

February

  • FCA has reportedly decided to stop production of diesel vehicles from 2022 onwards. The move is set to be announced at the capital markets day in June. (Les Echos)
  • Recalling around 230,00 trucks in North America (180,000 in the US) due to problems with the parking brake. (FCA)
  • Reportedly updated the uConnect system with a version containing a bug that causes the system to reset every minute or so -- infotainment, heating and camera functions are affected. (Autonomes Fahren)
  • Unions said that the company plans to cut production at the Mirafiori plant, where the Maserait Levante is produced, by an equivalent of 60% in the first six months. There were also several down days at the end of last year. (Reuters)
  • Standard & Poors upgrades its rating for FCA to BB+ and maintained a positive outlook. (FCA)
  • FCA and Waymo agreed a deal for “thousands” of Chrysler Pacifica minvans for delivery from late 2018 onwards. The number of vehicles wasn’t specified but note that thus far Waymo has purchased 700 vehicles, supporting several test fleets and a single town of service provision. (FCA).
  • The US department of justice has told FCA that it wants the company to pay “very substantial” fines to settle charges over diesel emissions cheating. (Reuters)

January

  • During the FY 2017 earnings conference call, CEO Marchionne declined to give an announcement date for his successor but said that it would be someone from within the company and they would be “in the room” during the 1st June presentation of the company’s future strategy. (Seeking Alpha)
  • CEO Marchionne reiterated previous arguments against breaking up the company (saying that the rump brands would likely not survive if Jeep / Ram were spun off). He also said it makes more sense to buy back shares than pay dividends. (Reuters)
  • CEO Marchionne forecast that by 2025, less than 50% of new cars will have ICE-only powertrains. (Bloomberg)
  • Talking with Chinese manufacturer GAC about how FCA could help with a US expansion. (New York Times)
  • Announced a $1 billion investment to relocate Ram pick-up truck production from Mexico to its Warren, Michigan plant by 2020, creating 2,500 new jobs. (FCA)
  • Will make a bonus payment of $2,000 to US employees , partly funded by the recent US tax reforms. (FCA)
  • CEO Marchionne said the company can double profits by 2022, with Jeep being a major contributor -- with potential market share of 20%. (Bloomberg)
  • Partnering with fuel company Eni and the Italian government to improve alternative fuel technologies, including biofuels. (FCA)
  • Is recalling about 154,000 Pacifica minivans to correct problems with the engine management software. (FCA)
  • Increased stock trading volumes led to suggestions that a possible buyer was acquiring shares. (Detroit Free Press)

2017

Full Year 2017 Earnings

  • Reported financial results for fourth quarter and full year 2017. Although revenue and deliveries fell slightly (to €110 billion and 4.42 million respectively), adjusted EBIT of €7.1 billion was up 16% on 2016 full year. (FCA)

December

  • An executive said that the next all-new Alfa Romeo product, an SUV, will be a “little bit bigger” (by around 200 kg) than the recently launched Stelvio. They also implied that the likely powertrain is a 48V 2.0 litre gasoline engine, citing some DNA problems with a plug-in hybrid. (Detroit Bureau)
  • Recalling 1.8 million trucks worldwide to correct problems with the parking brake (transmission interlock). (FCA)
  • Maserati has implemented an extended Christmas shutdown that will affect all models. (Auto Evolution)
  • Opened a new distribution centre in Detroit, USA, adding 100 jobs. (Detroit News)

November

  • In talks with Hyundai on component sharing with transmissions and fuel cells as areas of particular focus. (Economic Times of India)
  • CEO Marchionne said that the company “hadn’t made up [its] mind” on a spin-off of Magneti Marelli and Comau, but that should such an event take place, the two companies would be listed separately. (Economic Times of India)
  • Alfa Romeo will become the title sponsor of the Sauber F1 team, using Ferrari hardware, in an attempt to increase the brand’s image. (Economic Times of India)
  • Maserati has appointed Accenture Interactive as their marketing agency. Accenture have promised to dramatically improve the data and digital management capabilities of the sales and marketing arm, in addition to the more traditional work of content production and advertising placement. (Europa Press)
  • Signed an MoU with fuel company Eni for further collaboration on fuel research. (Journal Auto)

Q3 Earnings

  • Reported Q3 financial results. Revenue of €26.414 billion was down (2)% on a year-over-year basis. Adjusted EBIT of €1.758 billion was up 17%. The company’s net debt position deteriorated slightly, from €(4.2) billion to €(4.4) billion -- FCA expects to be below €2.5 billion net debt at year-end. (FCA)

October

  • Added a further round of down days at the plant producing Maserati Levante. (Reuters)
  • CEO Marchionne said that Maserati would probably release a second SUV in 2020. (Detroit Free Press)
  • FCA’s South African and Australian sales teams have been contradicting each other over whether the company was stopping Chrysler and Dodge production for RHD markets. It seems the answer is: withdrawal of the brands from South Africa and probably no new models in Australia. (Cars Guide)
  • Will close a logistics operation in Toledo, Ohio. The company hopes to avoid any redundancies. (Detroit Free Press)
  • Has reportedly been threatened by French authorities with censure for uncooperative behaviour during investigations into whether FCA vehicles have non-compliant emissions. (Le Monde)
  • Said that it expects the new Wrangler to sell “well over 300,000” units annually and that it couldn’t commit to Alfa Romeo breakeven as early as Q4 2017. (FCA -- webcast)
  • Introducing production stoppages on slow selling Alfa Romeo and Maserati vehicles. Levante SUV production will stop for two weeks in October and November. Alfa Romeo Guilia and Stelvio line rate in Cassino has slowed from 300 vehicles per shift to 265. (AutoEvolution)
  • Fiat 500X and Jeep Renegade production has been reduced with sources saying that a number of downdays were introduced in Q3. (AutoEvolution)
  • Announced a recall of 414,134 vehicles to correct problems which could inhibit deployment of active head restraints in a crash. (FCA)
  • CEO Marchionne said that FCA won’t sell Jeep as a standalone brand to a 3rd party and incorrect to assume that the company’s future “hinges on doing a deal”. (Detroit News)
  • Said that it would recall 646,394 SUVs in the US for possible corrosion in the brake system. (FCA)

September

  • Subsidiary Magneti Marelli is building a plant in Tangier, Morocco that will start production in 2019 and employ 500 workers by 2025. (Magneti Marelli)
  • Said that it would recall almost 444,000 pick-up trucks for water pump faults. (FCA). The company will also recall almost 48,000 minivans with seat belt issues. (FCA)
  • Has reportedly changed plans for the next generation Challenger and Charger models. Instead of being built on the platform from the Alfa Romeo Guilia, the vehicles will now be on the same platform as the Maserati Ghibli. This move will delay the introduction of the all-new models to 2021 and facelifts will not be added to the cycle plan for 2019. (Autofactil)
  • Executives refused to be drawn on whether FCA is planning a plant in Morocco, saying only that the country was the most interesting place in the region. The company sees electric cars as unlikely to be profitable in the next ten years. (Les Echos)
  • Saw rumours in the South Korean press that it was a takeover target for Hyundai. (Detroit Bureau)

August

  • Reinforcing off-the-record comments from FCA executives in the prior week, CEO Marchionne said that the company was working on its business plan rather than a big deal to sell the group. He forecast that by the time of his intended departure (April 2019), the company would “ideally” have spun off its components division (including Magneti Marelli) but that Alfa-Romeo and Maserati would likely be “too immature” to be a standalone company. (Bloomberg)
  • Saw S&P raise the outlook on its long term debt to positive from stable. The current rating is BB. (FCA)
  • Suffered production stoppages on the Pacifica and Grand Caravan assembly lines due to flooding. (Auto Guide)
  • Great Wall confirmed their interest in FCA’s Jeep brand but remained tight-lipped on takeover of the entire company. (Detroit News)
  • Is reportedly looking at a possible spin off of Maserati and Alfa Romeo, in addition to selling the Magneti Marelli components arm. Memo: CEO Marchionne said that he was nervous about the rump assets if the business sold of its best performing subsidiaries during Q2 2017 conference call and FCA was reportedly in talks to sell Magneti Marelli to Samsung before the Korean company bought Harmann. (Bloomberg)
  • Signed an MoU with the intention of joining the BMW-led consortium developing an autonomous driving platform. As part of the agreement, it is envisaged that FCA will contribute engineering resource, to be located alongside the other partners in Germany. (BMW)
  • Automotive News broke a story that FCA had been the target of a bid from a “well-known Chinese automaker” (reportedly rejected as too low). As media jumped on the story, denials emerged from Dongfeng, Guangzhou, Geely, leaving Great Wall as the remaining name on everyone’s lips. (Reuters)

July

  • Received approval for the sale of 2017MY Ram and Jeep Grand Cherokees powered by diesels in US. FCA has revised software calibrations as part of the approval process. (FCA)
  • Said that half the model range would be electrified by 2022, with Maserati offering all-electric versions of its vehicles. (Automotive News)
  • Said that it will unveil a strategy for the period 2018 - 2022 at an investor day next year. Although not clear on any specifics, CEO Marchionne said more asset sales were a possibility. (Reuters)
  • Reached an agreement with unions at its JV plant in Serbia (where 500L) is made to end industrial action in return for a 9.5% pay increase. (Automotive News)
  • Saw US media focus on the quality of its leasing program amid allegations of a subprime lending boom. (More…)
  • Resumed the production of diesel-engined Ram pick-up trucks even though the EPA has not given approval to their sale, indicating that FCA are confident that the matter will soon be resolved. (More…)
  • Saw Serbia’s prime minister attempt to intervene to end a strike at Fiat’s factory in the country. The government owns a 33% share in the facility which makes 500L vehicles. (More…)
  • Announced June European sales of 106,700 vehicles, an increase of 7.9% on a year-over-year basis. (More…)
  • Announced a recall of 1.3 million vehicles due to two separate problems, one with the wiring harness and one for problems with the alternator. (More…)

Q2 Earnings

  • Reported 2nd quarter financial results. Adjusted EBIT of €1,867 was 15% up on a year-over-year basis. Revenue was about flat, despite reduced vehicle sales. FCA attributed most of the profit improvement to Maserati. (FCA)

June

  • Media reports suggested that the company may be suspending deliveries of the Chrysler Pacifica Hybrid minivan (the same car used by Waymo) until the next model year arrives, due to problems with the electric system. (..)
  • Denied media reports that it was looking to pull the Chrysler brand out of Japan. At present, only one vehicle line (300) is sold in the country and this is through Jeep franchises, rather than an independent network. (..)
  • Has re-branded its rental and lease operations in France as Leasys rather than FCA Fleet Services. (More…)
  • Creating a new dealer efficiency initiative -- “FCE Retail Excellence” -- in Germany. This will offer tailored support to each dealer based on in-depth analysis, with a focus on customer satisfaction and dealer profitability. (More…)
  • CEO Sergio Marchionne has confirmed that that he will be stepping down in early 2019, the search is now on for his replacement with a list of internal candidates being mentioned. (..)
  • Launched a recall of 209,135 vehicles to correct wiring problems that could lead to deployment of the airbags. (More…)
  • Reported May European sales. 109,800 vehicles were sold, an increase of 11.9% year-over-year. (More…)
  • Reported May US sales. Overall sales of 193,040 units were down 1% year-over-year. The main cause of decline was a reduction in sales to fleets. (..)
  • Said that it will add 1,500 jobs at its Ranjangaon, India, plant by the end of the year (current employment 1,700) due to anticipated sales of the locally made Jeep. In time, FCA will increase vehicle local content to 73% (65% today). (..)

May

  • Saw the US Department of Justice file a suit against it detailing various aspects of emissions control technologies that the EPA says that FCA failed to declare during certification for models dating back to 2014. The issues raised by the EPA are around the use of Exhaust Gas Recirculation (EGR) - a technology to help engines burn fuel more effectively and reach optimal operating conditions more quickly and Selective Catalytic Reduction (SCR) - a technology that uses a chemical (DEF / Urea / Ammonia) to treat NOx in exhaust emissions. The specific complaint is that the way in which FCA has configured the software to run over the conditions experienced in the test cycle is not representative of wider operating conditions and that FCA did not properly declare this during the certification process. (..)
  • Saw reports that the US Justice Department will file a suit covering 104,000 vehicles with excess emissions from their diesel engines. The Justice Department if following up an accusation made in January by the EPA. (..). FCA believes that it has a fix available and is seeking regulatory approval to apply it. (More...)
  • Reported official April sales figures for Europe. Group sales of 89,300 vehicles were 0.5% lower year-over-year, which FCA attributed to fewer selling says. FCA said that share had risen 50 points to 7.3% (7.2% on YTD basis). The growth was primarily from the Fiat band. (..)
  • The European Commission announced that it would begin infringement proceedings against Italy for not properly following EU rules for vehicle type approval. The move is related to approval of FCA vehicles. (..)
  • Issued a press release touting the use of Samsung supplied technology to improve productivity at its Alfa Romeo plant in Cassino, Italy. (..)
  • Announced a recall of around 1.25 million trucks in the USA. The recall is to fix software that may cause safety equipment to fail to deploy in the event of an accident. (..)
  • Will recall around 1,800 Jeep vehicles in Russia. This is a different recall to the one announced at the end of March. (..)
  • Said that sales fell year-over-year in the USA in April. (..)

April

  • Alphabet’s (Google) Waymo announced that its driverless car program had begun operating with (chosen) members of the public in Phoenix, Arizona (USA). The scheme uses 500 of the Chrysler Pacifica minivans Waymo has recently taken delivery of from FCA. (..)
  • CEO Sergio Marchionne said that car industry consolidation is still important because of how expensive new investments are. He said that there were no ongoing discussions with VW. (..)
  • Chairman John Elkann said that the priority is reaching business plan goals. He said that “Opel agreed to [a merger] because they were in trouble”. (..)
  • Announced that Maserati will move its US headquarters to Auburn Hills, Michigan from New Jersey. (..)

Q1 Earnings

  • Reported Q1 2017 results; revenue was €27.7 billion, up 4% year-over-year. Adjusted net profit was €671 million, up 27%. (..)
  • Reported that its sales in Europe were up 18.2% in Q1 2017 on a year over year basis. Market share was 50 basis points higher. (..)

March

  • Increased its revolving credit line to €6.25bn (was €5 bn previously) and extended it to March 2022
  • Recalled 1,159 Jeep vehicles in Russia
  • Germany’s transport minister says that a new “defeat device” has been found in emissions tests. The ministry declined to give details but said it would be sending the results to the European commission. Media speculation was that the 500X is the affected vehicle.