Home » Industry News » Marchionne Says FCA Brands Won't be Broken Up
Marchionne Says FCA Brands Won't be Broken Up

Marchionne Says FCA Brands Won't be Broken Up

Fiat Chrysler CEO Sergio Marchionne told reports Monday the company has no plans to break up its brands. The comment comes on the heals of speculation that Chinese automakers were interested in acquiring certain brands from FCA, namely the coveted Jeep brand.

“We’re not going to break up anything,” Marchionne told reporters at a scheduled press conference, reported by Reuters. “We have no intention of breaking it up and giving anything to the Chinese.”

Marchionne suggested the company is going to rely on its Jeep brand to potentially double its profits in the coming years. The company is projecting global volumes of two million Jeeps this year, a new record for the iconic brand. It is planning to erase all of its debt in the coming year and potentially spin off its parts supplier, Magneti Marelli, by the end of 2018.

The executive’s remarks halt speculation that China’s Great Wall was seeking to acquire the Jeep brand from FCA. Speculation has also swirled that South Korea’s Hyundai may also be interested in some form of partnership with FCA.

Marchionne acknowledges the Jeep and Ram brands could survive on their own, but he ponders what would happen to the rest of the FCA portfolio if the two profit centers were to be spun-off.

Although Marchionne remains in charge for now, he is slated to step down in 2019. A replacement for him is expected to come from within FCA, but the executive shuffle could certainly change the strategy over at FCA.

For now, it sounds like interested parties have to either buy all of FCA or none of it.

 





 

About Nick Saporito

AutoVerdict Senior Editor Nick Saporito began writing about cars at age 13. Nick ran a couple of automotive enthusiast sites for several years, before taking some time off to focus on his career and education. By day he's a marketing executive in the telecom world and by night he hangs out here at AV. You'll find him focusing on tech, design and the industry's future.
Thoughts?! We're all about community! Sound off in the comments, share your review or join the discussion in our forum.

Leave a Comment

 Latest Forum Messages
  1. Tone
    Andrew_L
    The only problem I see are brands like Alfa and Maserati overlapping with Genesis


    True. But, OTOH, if they managed their brand portfolio well, it would give them much needed volume for their premium-car platforms and technologies. Right now, it's tough to see how Alfa and Maserati can continue to develop competitive platforms and technologies at near-terms sales volumes. H/K is also making a big investment in platforms and technologies for Genesis -- having all three built on a shared set of architectures would spread the costs out.
    Andrew_L
    Tone
    As someone pointed out before, FCA has a nice overlap with Kia/Hyundai. It would give K/H a dedicated SUV brand (Jeep) and a dedicated truck brand (RAM). It gives them further inroads into Western Europe (Fiat) and provides another outlet for its smaller car/CUV platforms. It gives them a storied brand in the US (Dodge/Chrysler) with a ton of heritage that is in desperate need of appropriate platforms and engineering.

    Seems like a win-win. And, Chrysler has a legacy, having partnered with Hyundai and Mitsubishi on the Global Engine Alliance.


    The only problem I see are brands like Alfa and Maserati overlapping with Genesis
    Tone
    As someone pointed out before, FCA has a nice overlap with Kia/Hyundai. It would give K/H a dedicated SUV brand (Jeep) and a dedicated truck brand (RAM). It gives them further inroads into Western Europe (Fiat) and provides another outlet for its smaller car/CUV platforms. It gives them a storied brand in the US (Dodge/Chrysler) with a ton of heritage that is in desperate need of appropriate platforms and engineering.

    Seems like a win-win. And, Chrysler has a legacy, having partnered with Hyundai and Mitsubishi on the Global Engine Alliance.
    Andrew_L
    He is going to have a hard time selling the entire thing then. There's just too much overlap.
Welcome to AutoVerdict: News, Reviews, Community