Fiat Chrysler Automobiles

Fiat Chrysler Automobiles N.V.
Naamloze vennootschap
(public limitedsubsiduary company)
Traded as
Industry
Predecessors Fiat S.p.A.
Founded 12 October 2014
Headquarters London, United Kingdom
Area served
 Worldwide
Key people
 John Elkann (Chairman)
Sergio Marchionne (CEO)
Revenue Increase€111.018 billion (2016)[1]
Increase€6.056 billion (2016)[1]
Profit Increase€1.814 billion (2016)[1]
Total assets Decrease€104.34 billion (2016)[2]
Total equity Increase€19.35 billion (2016)[2]
Owner
Number of employees
 225,587 (2015)
Subsidiaries
Website fcagroup.com

Fiat Chrysler Automobiles NV, also known as FCA, is an Italian-controlled multinational corporation incorporated in the Netherlands,[5][6] and currently the world’s seventh-largest auto maker.[7] The group was established in late 2014 by merging Fiat S.p.A. into a new holding company, Fiat Chrysler Automobiles N.V., which is incorporated in the Netherlands (with headquarters in London) for tax purposes. The holding company is listed on the New York Stock Exchange and Borsa Italiana in Milan.[8] Exor S.p.A, an Italian investment group controlled by the Agnelli family, owns 29.19% of FCA and controls 44.31% through a loyalty voting mechanism.[9]

FCA’s mass-market brands operate through two main subsidiaries: FCA Italy (previously Fiat Group Automobiles) and FCA US (previously Chrysler LLC). The company’s portfolio includes automotive brands Abarth, Alfa Romeo, Chrysler, Dodge, Fiat, Fiat Professional, Jeep, Lancia, Maserati, Ram Trucks and SRT. Ferrari was spun off from the group in 2016.[10] FCA also owns industrial subsidiaries Comau, Magneti Marelli, Mopar and Teksid.[11] Today FCA operates in four regions (NAFTA, LATAM, APAC, EMEA).[12]

Corporate governance

The CEO and executive management including twenty-two employees work between Auburn Hills, Michigan and Turin, Italy.[13] 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.

Board of Directors

Executive members of the FCA Board of Directors as of October 2014 are John Elkann (Chairman) and Sergio Marchionne (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.[14]

Subsidiaries

FCA carries out its mass-market automotive operations through two main subsidiaries: FCA Italy (previously Fiat Group Automobiles)[15] and FCA US (previously Chrysler Group).[16] Both name changes were announced in December 2014.

FCA Italy includes the Italian-based brands that include Abarth, Alfa Romeo, Fiat, Fiat Professional, Lancia and the engine manufacturing subsidiary VM Motori.[17]

FCA US includes the American-based brands that include Chrysler, Dodge, Jeep, and Ram, plus the Mopar service and parts organization.

Other companies include luxury car (Maserati) and components (Magneti Marelli, Automotive Lighting) manufacturers 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.

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.[10]

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.

History

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. Over the next few years, Fiat gradually acquired the other parties' shares to take majority ownership of the company, and 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.[18] Overall, to acquire Chrysler cost Fiat US$4.9 billion, with an additional US$5.5 billion pension liability.[19]

On 29 January 2014 Fiat announced a reorganization and intended merger into a new holding company.

Fiat S.p.A. merged into FCA on 12 October 2014 following approval of the board on 15 June 2014 and shareholders on 1 August 2014.[20]

On 29 October 2014 the group announced the intention to separate Ferrari S.p.A. from FCA. The transaction was completed on 3 January 2016.[21]

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.[22] 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.[22] 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.[23][24]

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.[25]

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. [26]

Five-year plan (2014–2018)

On May 6, 2014, Fiat Chrysler Automobiles announced its 5-year business plan.[27] 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.[28] 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.[29] Conspicuously absent in the announcement was Lancia, which was later confirmed to be withdrawing from all markets outside Italy, and possibly reborn 3 new models based on Fiat Tipo underpinnings altogether in 2018, and 1 new small car built in the same assembly line with Ford.[30]

Alfa Romeo

In 2014, Alfa Romeo launched the 4C and 4C Spider in the United States. In 2015, the new Giulia was announced. Additional vehicle launches were launched in 2016 and more are planned for the subsequent years.

Chrysler

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.[27]

Dodge

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.[31][32] 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).[27]

Fiat

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).[27]

Maserati

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.[27]

Jeep

In 2014, the new Jeep Renegade launches. After a long absence in the Malaysian market, Jeep has once again landed in Malaysia. DRB-Hicom is exclusively appointed by Fiat Chrysler to distribute the brand’s cars in Malaysia.[33] In 2015, the Jeep Grand Cherokee will be refreshed, and Fan Bingbing, Tina Fey, Sandra Bullock, Julia Roberts and Cate Blanchett will promote as the brand ambassadors. 2016 marks the 75th anniversary of Jeep, and the Jeep Compass and Jeep Patriot will see their last model year, and a new SUV will be launched, along with a refreshed Jeep Cherokee. In 2017, the Jeep Renegade will be refreshed, a new Jeep Wrangler will be launched, and the new Grand Cherokee will be launched. In 2018, a Jeep Grand Wagoneer will be launched to compete with luxury SUVs, such as the Mercedes-Benz G-Class and Range Rover luxury SUVs.[27]

Ram

In 2014, a ProMaster van was launched, along with the smaller ProMaster City, derived from Fiat Ducato and Fiat Doblò respectively.[27] In 2017, a new Ram 1500 will be launched, and a commercial light-duty truck will be refreshed. In 2018, a new Ram HD will be launched, along with a commercial heavy-duty truck, and Ram chassis cab will receive a major update.[27]

Financial results

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%.[34]

The new FCA logo was created by the Italian branding company Robilant Associati,[35][36] ending the use of the Fiat S.p.A. logo and Chrysler Pentastar logo for group branding.[37]

References

  1. 1 2 3 "Fiat Chrysler 2016 Results" (PDF). Retrieved April 7, 2017.
  2. 1 2 "FCAU assets 2016". Retrieved April 7, 2017.
  3. ↑ "Shareholder Overview for FCAU Fiat Chrysler Automobiles NV including Fund Owner Activity, Style, Equity & Debt Ownership, and Enterprise Value". Retrieved 28 August 2015.
  4. ↑ "Group Brands". fiatspa.com. Retrieved 25 May 2013.
  5. ↑ "Fiat Chrysler Gives Upbeat Outlook, Turns Profit in Europe". Wall Street Journal.
  6. ↑ "Fiat Chrysler’s Sergio Marchionne Won’t Testify at NHTSA Hearing". Wall Street Journal.
  7. ↑ "Fiat Chrysler to spin off Ferrari, issue $2.5 billion convertible bond". Retrieved 29 October 2014.
  8. ↑ "Fiat says merger into Dutch-registered FCA effective October 12". London, U.K. Reuters. 7 October 2014.
  9. ↑ FCA_2014_Annual_Report.pdf: FCA_2014_Annual_Report.pdf, accessdate: 4. March 2016
  10. 1 2 Joseph, Noah. "Ferrari and FCA are officially separated". Autoblog. Retrieved 2016-01-24.
  11. ↑ "Group brands".
  12. ↑ "Group profile".
  13. ↑ "MLive". 8/1/14. 8 January 2014. Retrieved August 1, 2014.
  14. ↑ "Board of Directors". FCAGroup. Retrieved 2015-08-11.
  15. ↑ "Chrysler Group officially becomes FCA US". Detroit Free Press. 16 December 2014. Retrieved 2 January 2015.
  16. ↑ "Chrysler name fades in FCA era". Detroit News. 16 December 2014. Retrieved 2 January 2015.
  17. ↑ "Fiat buys remainder of diesel maker VM Motori from GM". Autonews. 28 October 2013. Retrieved 26 February 2014.
  18. ↑ "Fiat shares surge after deal to buy remaining Chrysler stake". BBC. 2 January 2014. Retrieved 30 January 2014.
  19. ↑ "The new Fiat Chrysler faces a rougher road than many think". Washington Post. 7 February 2014. Retrieved 7 February 2014.
  20. ↑ "Fiat S.p.A." (PDF). 8 January 2014. Retrieved August 1, 2014.
  21. ↑ "FCA Announces Board Intention to Spin Off Ferrari S.p.A." (PDF). FCAgroup.com. October 29, 2014. Retrieved October 29, 2014.
  22. 1 2 Kristine Owram (August 12, 2016), Canadian auto union says it’s learned its lesson about 'the hug' from last summer, The Financial Post, retrieved January 14, 2017
  23. ↑ Brent Snavely (January 9, 2017), Trump lauds Fiat Chrysler but CEO seeks policy 'clarity', Detroit: Detroit Free Press, retrieved January 14, 2017
  24. ↑ Robert Reich (January 13, 2017), "Robert Reich: the Lies Trump Tells to Tyrannize", Newsweek, retrieved January 14, 2017
  25. ↑ "Fiat Chrysler Faces U.S. Criminal Emissions Investigation". Bloomberg.com. 2017-01-13. Retrieved 2017-01-13.
  26. ↑ "DOJ Sues FCA As Automaker Asks to Fix Alleged Defeat Device on 2014–16 Diesels". caranddriver.com. 2017-05-23. Retrieved 2017-05-24.
  27. 1 2 3 4 5 6 7 8 "Fiat Chrysler Automobiles: The next five years - Autoblog". Autoblog. May 6, 2014. Retrieved October 11, 2014.
  28. ↑ "Five-Year_Financial_Targets" (PDF) (Press release). Retrieved 2015-12-05.
  29. ↑ "Fiat Chrysler unveils aggressive five-year plan - Los Angeles Times". Latimes.com. 2014-05-06. Retrieved 2014-06-22.
  30. ↑ "Fiat chiefs confirm Lancia to only sell cars in Italy 2016 model year". Autocar. Retrieved 2014-06-22.
  31. ↑ "2015 Dodge Challenger SRT Hellcat Official Photos and Info - News - Car and Driver". July 2014.
  32. ↑ "2015 Dodge Charger SRT Hellcat Official Photos and Info – News – Car and Driver". August 2014.
  33. ↑ Sze, Gregory (2014-11-28). "Jeep Malaysia returns after decade-long hiatus – four new models launched, additional dealerships touted". Paultan.org. Retrieved 2015-08-11.
  34. ↑ "FCA Board of Directors' Meeting: 2015 Full Year and Fourth Quarter Results" (PDF). Retrieved 27 January 2016.
  35. ↑ "Fiat-Chrysler Merger Spawns New Logo". New York Times. 3 February 2014. Retrieved 6 February 2014.
  36. ↑ "FCA logo". Robilant Associati. Retrieved 7 February 2014.
  37. ↑ "Fiat and Chrysler adopt a new logo" (PDF). FCA. 29 January 2014. Retrieved 29 January 2014.
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