Fiat Chrysler Automobiles
Fiat Chrysler Automobiles N.V., often abbreviated as FCA, is an Italian-American multinational corporation and is the world's eighth largest auto maker. The group was established in October 2014 by merging Fiat and Chrysler into a new holding company. Fiat Chrysler Automobiles' main headquarters are located in the Netherlands, and the financial headquarters are in London for tax purposes. The holding company is listed on the New York Stock Exchange and Borsa Italiana in Milan. Exor N.V., an Italian investment group controlled by the Agnelli family, owns 29.19% of FCA and controls 44.31% through a loyalty voting mechanism.
(public limited company)
|Traded as||BIT: FCA|
FTSE MIB Component
|Predecessors||Fiat S.p.A. and Chrysler Group|
|Founded||12 October 2014|
|Headquarters||Amsterdam, Netherlands (Head office) |
London, United Kingdom (Financial office)
|John Elkann (Chairman)|
Mike Manley (CEO)
|Revenue||€110.41 billion (2018)|
|€4.10 billion (2018)|
|€3.63 billion (2018)|
|Total assets||€96.87 billion (2018)|
|Total equity||€24.90 billion (2018)|
|Owner||Exor N.V. (29.4%)|
Number of employees
FCA's mass-market brands operate through two main subsidiaries: FCA Italy (previously Fiat Group Automobiles SpA) headquartered in Turin; and FCA US (previously Chrysler Group LLC) headquartered in Detroit. The company's portfolio includes automotive brands Abarth, Alfa Romeo, Chrysler, Dodge, Fiat, Fiat Professional, Jeep, Lancia, Maserati, and Ram Trucks. Ferrari was spun off from the group in 2016. Today FCA operates in four global markets (NAFTA, LATAM, APAC, EMEA).
The CEO and executive management including twenty-two employees work between Auburn Hills, Michigan and Turin, Italy. The other operating activities of the new group remained unchanged, with manufacturing, design and engineering facilities remaining in Turin, Italy, Auburn Hills, Michigan, United States and other locations worldwide, including Canada, India, Mexico, Brazil, Argentina, Poland, and China.
Executive members of the FCA Board of Directors as of October 2018 are John Elkann (Chairman) and Mike Manley (Chief Executive Officer), with non-executive directors Ronald L. Thompson, Andrea Agnelli, Tiberto Brandolini d'Adda, Glenn Earle, Valerie A. Mars, Ruth J. Simmons, Patience Wheatcroft, Stephen Wolf and Ermenegildo Zegna, CEO of Ermenegildo Zegna.
FCA carries out its mass-market automotive operations through two main subsidiaries: FCA Italy (previously Fiat Group Automobiles) and FCA US (previously Chrysler Group). Both name changes were announced in December 2014.
Other companies include luxury car (Maserati) as well as firms working on production automation (Comau) and metal foundry (Teksid, 84.8% share). Other joint ventures and subsidiaries are undertaken via the FCA Italy and FCA US companies.
The integration between Fiat and Chrysler dates back to 2009 after Chrysler filed for Chapter 11 bankruptcy reorganization on 30 April 2009. On 10 June 2009, Chrysler emerged from the bankruptcy proceedings with the United Auto Workers pension fund, Fiat, and the U.S. and Canadian governments as principal owners. Fiat's initial purchase was a 20% stake in the company. By January 2012, Fiat's equity stake in Chrysler grew to 58.5%. On 21 January 2014 Fiat completed the acquisition of the remaining 41.5% from the United Auto Workers, making Chrysler Group a wholly owned subsidiary. On February 2, 2014, Fiat Chrysler began trading on the NYSE under the ticker symbol "FCAU". Overall, to acquire Chrysler cost Fiat US$4.9 billion, with an additional US$5.5 billion pension liability.
On 29 January 2014 Fiat announced a reorganization and intended merger into a new holding company.
Fiat S.p.A. and Chrysler Group LLC merged into FCA on 12 October 2014 following approval of the board on 15 June 2014 and shareholders on 1 August 2014.
On July 14, 2015, Fiat Chrysler Automobiles NV chief executive Sergio Marchionne and Dennis Williams, President of the United Auto Workers (UAW) entered into negotiations on July 14, 2015. As negotiations between the UAW and "Detroit Three automakers" began, "Marchionne leaned in to embrace Williams in a hug seen "round the world," shocking some union members. When Marchionne made the announcement on January 8, 2017 that Chrysler planned to add 2,000 jobs and invest $1 billion to manufacture the Jeep Wagoneer and Grand Wagoneer at the Warren Truck Assembly and to make a new Jeep Wrangler pickup at its Toledo Assembly South plant in Toledo, Ohio by 2020, Marchionne credited the decision to the negotiations with Williams that began in 2015.
On January 13, 2017, the company came under investigation by the U.S. Justice Department due to allegedly failing to disclose software that violated emissions standards and allowed vehicles to exceed pollution limits. On May 23, 2017, the Justice Department filed a civil lawsuit alleging that FCA "used a 'defeat device' to circumvent emission controls" in more than 100,000 vehicles between 2014 and 2016.
In January 2016, Ferrari became a separate investment of Exor, siding with FCA and CNH, after FCA listed 10% of the company on the NYSE in October 2015, and then distributed their remaining 80% stake in Ferrari to FCA shareholders. Ferrari now trades on the NYSE under the ticker symbol "RACE".
FCA also operated in the print media and advertising fields through its Italiana Editrice subsidiary (publisher of the Italian La Stampa and Il Secolo XIX newspapers) and an interest in RCS Media Group. In March 2017, FCA was a stakeholder in the creation of Italy's largest media group GEDI Gruppo Editoriale, created by the merger of Gruppo Editoriale L'Espresso publishing L'espresso and La Repubblica with Italiana Editrice (ITEDI), of which FCA held 77% of the shares and which publishes the Torino daily La Stampa and Il Secolo XIX. Subsequently, FCA divested from publishing by distributing their shares to its own shareholders, again mainly Exor, so to concentrate on automobile business. Exor sold their shares in GEDI right after getting them.
On July 21, 2018, FCA's chief executive Marchionne was suddenly replaced in all of his positions at FCA, Ferrari, SGS and CNH following emergency meetings of each respective company's board of directors the day before. Marchionne last appeared in public on June 26 in Italy, where he appeared to be quite lethargic and fatigued. FCA stated on July 5 that he had taken medical leave to undergo surgery to his right shoulder and on the day of his replacement stated that he would not be able to return to work due to post-surgical complications. It was later reported that his health had deteriorated "suddenly and sharply" and that Marchionne had lapsed into a coma. Sergio Marchionne died on July 25, 2018, aged 66. In July 2018, Fiat Chrysler Automobiles NV's European chief Alfredo Altavilla resigned after being passed over to replace Marchionne.
In January 2019, Fiat Chrysler agreed to pay $800 million to settle lawsuits related to diesel emissions.
In February 2019, Fiat Chrysler announced to invest $4.5 Billion in Manufacturing in Michigan. The plant is estimated to create nearly 6,500 jobs. Plans include $1.6 billion to build a Jeep factory in Detroit.
Five-year plan (2014–2018)Edit
On May 6, 2014, Fiat Chrysler Automobiles announced its 5-year business plan. The company expects that sales will increase to 7 million units, revenues to €132 billion, net income to €5 billion and industrial debt will peak at €11 billion in 2015, and then reduce to €0.5-1 billion by end of 2018. The Group updated its business plan targets in January 2016 at the time FY 2015 were announced.
Much of the global growth will be focused around Jeep, due to its high visibility globally as well as the growing SUV market in developing markets. Chrysler will be re-positioned as the company's mainstream North American brand to compete with Ford, Chevrolet, Toyota, and Volkswagen, while Dodge will focus on performance-based vehicles. Alfa Romeo will become the company's premium marque to compete with Mercedes-Benz, BMW, and Audi, while Maserati will be the company's ultra-luxury brand to compete with Bentley and Rolls-Royce. Fiat (which will remain the company's mainstream brand outside North America) and Ram Trucks will remain largely unchanged, while SRT was merged back into Dodge. Conspicuously absent in the announcement was Lancia, which was later confirmed to be withdrawing from all markets outside Italy .
In 2014, Alfa Romeo launched the 4C and 4C Spider in North America. In 2015, the new Giulia was announced. Additional vehicles such as an SUV named Stelvio were launched in 2016 and more are planned for the subsequent years.
In 2014, Chrysler released a refreshed 300/300C, set by FCA to debut at the Los Angeles Auto Show. A new Chrysler Pacifica In 2017, the Chrysler 200 will be discontinued. In 2018, an all-new 300/300C will launch, along with an all-new mid-size crossover.
The first announcement was that the SRT brand was to be put back into Dodge. In 2015, the refreshed Charger launched along with the refreshed Challenger (and equivalent SRT version). The Dodge Charger SRT Hellcat and Challenger SRT Hellcat were also launched. 2014 was also the last model year for the Dodge Avenger. In 2016, the new Dodge Dart (and Dodge Dart SRT) was to be launched, along with a new Dodge Journey. The two models have since been either slated for discontinuation (Dodge Dart, 2016), or the date for the redesigned version was pushed back (Dodge Journey, 2018). In speculation, in 2017, a new Dodge Journey SRT will arrive, along with a refreshed Dodge Durango. In 2018, a new sedan and hatchback will launch, a new Challenger (and SRT version) will be unveiled, along with a new Charger (and SRT version). In April 2017, Dodge announced the release of the brand-new 2018 Dodge Demon. The Demon comes equipped with a 6.2L V8 HEMI mated to a 2.7L supercharger, which allows the Demon to produce 840 horsepower and 770 lb-ft of torque at the crank, which makes the Dodge Demon the world's quickest production vehicle. The Demon's excessive torque causes the front axle to lift off of the ground during launch. The Demon is also equipped with many other industry-first features, including a Transbrake, launch control systems, 5 point harness occupant restraints, and an HVAC system that actually produces additional horsepower by further cooling intake air.
Update: New Charger,Challenger, and 300 replacements will begin in production in late 2020, as 2021 models. They will remain RWD or AWD, with 6 and 8 cylinder engines. The Charger Pursuit will continue on as America's only Pursuit-rated sedan. The 300 replacement is rumored to be not a CUV or an SUV, but a new wagon.
In 2015, Fiat launched the new Fiat 500X (produced in Melfi, Italy) and the Fiat Aegea (produced in Turkey by JV partner Tofas and sold in Europe under the Fiat Tipo nameplate and Mexico as the Dodge Neon).
Lancia is an historic brand of Italian luxury cars.
In 2014, the Maserati GranTurismo and GranCabrio will see the end of the nameplate (until 2018). In 2016, the new Maserati Levante SUV was launched. In 2018, a new GranTurismo will be launched with a 560-horsepower V8 and rear wheel drive. Between 2014-2018, the top of the line Maserati Quattroporte GTS will be receiving a 560-horsepower V8 with all-wheel drive to replace the current 523 horsepower V8 with rear wheel drive in the GTS model. The top of the line Ghiblis and Levantes will be receiving the same setup as the Quattroporte. In 2020, the Maserati Alfieri will be launched. The car was originally going to be released in 2016, but was postponed to allow the Levante to be launched for 2016. The year after in 2021, a convertible variant of the Alfieri will be launched. The top of the line Alfieri will be receiving a 520-horsepower V6 with all-wheel drive.
In 2014, the Jeep Renegade was launched. After a long absence, Jeep returned to Malaysia, where DRB-Hicom distributes the brand's vehicles. In 2015, the Jeep Grand Cherokee was refreshed, with celebrities Fan Bingbing, Tina Fey, Sandra Bullock, Julia Roberts and Cate Blanchett promoted as brand ambassadors. 2016 marked the 75th anniversary of Jeep, and the Jeep Compass and Jeep Patriot had their last model year while a refreshed Jeep Cherokee was introduced. In 2017, the Jeep Renegade was refreshed. In 2018, a new Jeep Wrangler is being launched, as well as a new Grand Cherokee. Later, a luxury Grand Wagoneer SUV model will be launched to compete with the likes of Mercedes-Benz G-Class and Range Rover.
Fiat Chrysler plans to add more factory capacity over the next few years to support building two new Jeep models, including a return of the Jeep Grand Wagoneer. Though it is not sure as to how many jobs Fiat Chrysler might add or how much time it may take for the new assembly lines to be up and running.
In 2014, a ProMaster van was launched, along with the smaller ProMaster City, derived from Fiat Ducato and Fiat Doblò respectively. In 2017, a new Ram 1500 was launched, and a commercial light-duty truck was refreshed. In 2018, a new Ram HD was launched, along with a commercial heavy-duty truck, and Ram chassis cab received a major update.
In 2015 worldwide shipments were 4.6 million units, revenues totaled €113.2 billion, up 18% (+6% at constant exchange rates, or CER), adjusted EBIT was €5.3 billion, up 40% and Adjusted net profit was €2.0 billion, up 91%.
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