FCA to keep Chrysler alive through 2022, but no new models?

Sergio Marchionne

Sergio Marchionne

The daylong presentation focused on plans for the brands that drive revenues: Jeep SUVs, Ram trucks and premium brands Maserati and Alfa Romeo.

Back in 2011, when Fiat launched the electric Fiat 500 in the United States to keep regulators happy, Sergio Marchionne expressed a desire that no one buys a 500e because, even with a £30k price tag, the electric Fiat 500 would cost Fiat £10k every time one was sold.

In the past, FCA management has said that automakers lose money producing electric vehicles, which are also expensive for consumers. And Jeep and Maserati executives said a shift to electrification may not be too damaging to margins because of the strength of their brands. The automaker will invest $13.6 billion in electric auto development between now and 2022, Marchionne said, while at the same time phasing out completely its diesel engine offerings.

In addition to the premium priced Maserati and Alfa Romeo EVs and PHEVs, Jeep plans a plethora of electrified vehicles by culmination of the plan in calendar year 2022, and they're all created to make a profit.

U.S. job growth accelerates, unemployment rate drops to 3.8%
High school graduate unemployment hit a 17-year low of 3.9 percent, and black unemployment hit a new record low of 5.9 percent. Analysts had predicted a more modest 188,000 jobs and an unemployment rate of 3.9 percent, according to Thomson Reuters.

"All bets are off if we move to a "white box" where there is no relationship between the brand and the consumer", he said.

Kuniskis described the next 8C as having a carbon-fiber monocoque chassis, twin-turbo mid-engine V-6, electrified front axle with all-wheel-drive, more than 700 horsepower (combined) and sub 3.0-second 0-62 miles per hour acceleration. By comparison, Tesla's Model S P100D in its fastest "Ludicrous" mode manages that sprint in just over 2 seconds. "By the time we finish this architecture, you will not recognize it in terms of its origins", Marchionne said. Sales rose 25 percent to 25% to $649.7 million. Alfa will be eliminating the subcompact MiTo, reintroducing the 8C, bringing back the GTV sports vehicle, refreshing the Stelvio and Giulia, and adding another crossover slotted above the Stelvio all in the next five years.

For Jeep, electrification options will be available across each nameplate by 2021, said Mike Manley, head of the brand. By 2022, Jeep should also have ten plug-in hybrid EVs (PHEVs) and four battery EVs (BEVs) on sale. In addition to an electric drivetrain, the new 500 will be available with a mild-hybrid setup, and gain a Giardiniera wagon variant.

Atria Investments LLC cut its position in Fiat Chrysler Automobiles NV (NYSE:FCAU) by 4.1% during the first quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The Detroit-based company said in an emailed statement that it's created a strong business as an independent competitor and will continue to support Fiat Chrysler dealers.

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