Fiat Chrysler CEO: Deliveries Will More Than Double Thanks to Merger
Investors are buzzing after Fiat Chrysler (FIATY.PK) CEO Sergio Marchionne said that the Italian-based automaker will have the potential to increase annual deliveries as much as 55 percent, to 7 million vehicles, after its merger with Chrysler Group. Industry observers are awaiting his reveal of the new strategic plan for the combined automaker in May.
“We have the capability to reach that level of production,” Bloomberg quoted the CEO as saying on Monday at the automaker’s annual meeting in Turin. “We are equipped to go on the attack against the giants in our industry.”
Marchionne added that companies need to move about 7 million vehicles per year in the future to remain competitive; Fiat and Chrysler deliveries this year are expected to fall at just 4.5 million to 4.6 million vehicles. However, the company has a few aces up its sleeve that it’s pinning future growth prospects on, like the new Chrysler 200 sedan.
The CEO hopes that the combined company — which will be primarily listed in New York and registered in the Netherlands — will one day be able to compete on a scale more aligned with Volkswagen AG (VLKAY.PK) and General Motors (NYSE:GM), both of which sold more than 9 million units last year.