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Fiat Chrysler Expected To Revamp Alfa Romeo, Upgrade Production Plants, Introduce Models In $12.5B Initiative:
Fiat Chrysler, the world's seventh-largest carmaker, will invest billions to develop its Jeep and struggling premium sports car brand Alfa Romeo to compete more effectively against the world's biggest carmakers in a $12.5 billion initiative that CEO Sergio Marchionne will describe Tuesday.
The company, which is announcing a five-year plan, may introduce as many as six models in 2015-16 to compete with global brands as Audi (FRA:NSU), BMW (FRA:BMW), Cadillac and Lexus. According to the new plan, minivans will be sold only by the Michigan-based Chrysler while the company's Maserati brand is expected to announce plans for more high-end luxury models.
“Key points of the investor day will be the strategy for Alfa Romeo and whether it can be funded with existing resources,†Philippe Houchois, a London-based analyst at UBS AG, wrote in a report, according to Bloomberg.
Fiat Chrysler plans to split Alfa Romeo into a separate company by investing nearly 5 billion euros ($6.94 billion) and plans to even upgrade the production plants, news reports said. For the Italian automaker Fiat, which acquired full control over Chrysler in January, this would be the third such plan in eight years and follows similar plans in 2006 and 2010, which had ambitious revenue forecasts and margins. Both those plans missed their targets.
Fiat Chrysler, the world's seventh-largest carmaker, will invest billions to develop its Jeep and struggling premium sports car brand Alfa Romeo to compete more effectively against the world's biggest carmakers in a $12.5 billion initiative that CEO Sergio Marchionne will describe Tuesday.
The company, which is announcing a five-year plan, may introduce as many as six models in 2015-16 to compete with global brands as Audi (FRA:NSU), BMW (FRA:BMW), Cadillac and Lexus. According to the new plan, minivans will be sold only by the Michigan-based Chrysler while the company's Maserati brand is expected to announce plans for more high-end luxury models.
“Key points of the investor day will be the strategy for Alfa Romeo and whether it can be funded with existing resources,†Philippe Houchois, a London-based analyst at UBS AG, wrote in a report, according to Bloomberg.
Fiat Chrysler plans to split Alfa Romeo into a separate company by investing nearly 5 billion euros ($6.94 billion) and plans to even upgrade the production plants, news reports said. For the Italian automaker Fiat, which acquired full control over Chrysler in January, this would be the third such plan in eight years and follows similar plans in 2006 and 2010, which had ambitious revenue forecasts and margins. Both those plans missed their targets.