FCA to globalize Jeep and Alfa Romeo brands
Building more SUVs and pickups in NAFTA; joining BMW/Intel/Mobileye autonomous driving partnership
2017/12/14
- Summary
- Development of FCA’s Business Plan for 2014-2018
- January-September 2017 net revenues up by 1% to EUR 82.1 billion; adjusted EBIT up by 15% to EUR 5.2 billion
- New Ram 1500 pickup truck and Dodge Journey midsize SUV to be launched in 2018
- NAFTA capacity realignment plan: Additional capacity for high demand SUVs and pickups
- Global unit sales for January-September 2017 decreased by 2% to 3.27 million units
- Joining the BMW, Intel and Mobileye alliance and partnering with Google’s Waymo to develop autonomous driving technology
- Production Forecast by LMC Automotive: FCA Group's production to grow to 5.33 million units in 2020
Summary
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| Jeep Compass The Jeep Compass is assembled in Brazil, China, Mexico and India and sold in more than 100 countries |
Five-year business plan
FCA Group has been implementing its "Business Plan for 2014-2018". The group achieved an improvement in its capital structure by the spin-off of the Ferrari brand in 2016. Its business performance improved further in 2017 with the globalization of the Jeep and Alfa Romeo brands as well as economic recovery in the South American market. FCA forecasts that its net revenues for 2017 are expected to grow by 3.6-8.1% year-over-year (y/y) to EUR 115-120 billion and adjusted earnings before interest and taxes (EBIT) are projected to rise by 15.6% y/y to EUR 7 billion or more.
New Ram 1500 and Dodge Journey to be launched in 2018
FCA launched Alfa Romeo's first SUV, the Stelvio, and the new Jeep Wrangler compact SUV in 2017. In the South American market, the Fiat Argo compact hatchback was also released. In 2018, the new Ram 1500 pickup truck and the new Dodge Journey midsize SUV are expected to be launched. The automaker plans to release Jeep's new flagship models, the Wagoneer and Grand Wagoneer full-size SUVs, as well as the Jeep Wrangler-based pickup truck in 2019.
Increasing production of SUVs and pickups in North America
FCA is retooling its plants in the U.S. to meet rising demand for SUVs and pickups. While production of the Dodge Dart and Chrysler 200 passenger cars were discontinued in 2016, more profitable Jeep SUVs and Ram pickup trucks will be assembled at their U.S. plants.
Expansion of partnerships for the development of autonomous vehicles
FCA believes that it is vital to form partnerships among automakers, technology providers and suppliers to advance their autonomous driving technology. In August 2017, FCA announced that it would join BMW, Intel and Mobileye in the development of autonomous driving platforms. The automaker also formed a partnership with Waymo, Google’s self-driving technology subsidiary, in May 2016. FCA is delivering Chrysler Pacifica plug-in hybrid minivans to Waymo for its self-driving test fleet.
Related reports
North American International Auto Show 2017: U.S. OEMs (January 2017)
FCA to achieve significant increase in profits for 2016 with high margin SUVs (December 2016)
U.S. OEMs expanding use of front pedestrian braking on new models (September 2016)
Fiat Chrysler's new five-year plan: Sales target of 7 million units by 2018 (June 2014)
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