Fiat Chrysler delays many future vehicle programs

Posted on 6/3/2015 10:26:53 AM

Fiat Chrysler in the past year has been postponed in North America redesign or at least a dozen existing or new vehicle releases, suppliers are familiar with the company's plans told Reuters reporters.

Unusual digital delay could allow car manufacturers to defer billions of dollars of investment, while looking for a partner.

FCA CEO Sergio Marchionne is shuffling, and even sought for the company, the world's seventh largest car manufacturer partner products planned for him. Marchionne said that the consolidation in the automotive industry is inevitable, because automakers are burning capital investment in the overlap of engines and vehicles.

In the North American automotive FCA delayed update is highly profitable models including the 1500 Ram pickup and Jeep Wrangler sport utility vehicle, according to five people familiar with the plans of the company. Pickups and SUV sales accounted for more than half of the FCA's pre-tax profits, according to industry analysts.

Alpha acceleration

At the same time, FCA is accelerating the development of certain vehicles. Alfa Romeo brand can get more models faster than originally planned in progress, suppliers told Reuters reporters.

FCA made the next five-year model plan of $ 50 billion plan, Marchionne outlined the investors in May 2014, including 4.75 million last year to enhance the core global sales 7000000-2018 years.

Since Marchionne launched his plan, at least 12 future car projects have been delayed Jeep, Ram, Dodge, Chrysler and Maserati, and in some cases more than one year, the supplier said.

Vendor lists several possible causes delays, including last-minute design and engineering changes, including some that could reduce the FCA's overall investment.

FCA's cash and marketable securities fell 1.1 one billion December 31, 2014 and March 31 euro (120 billion), while net debt rose to one billion euros 7.7 8.6 one billion euros.

FCA refused to comment on the specific delay. An overview of the investors 2014 product plan is "a snapshot of our five-year plan," the company said in a statement, Reuters.

"These plans need to be flexible and fluid, with the potential to increase the number of vehicles to pull some forward and extend the human life cycle," the company said. "We look at a vehicle by vehicle basis on these programs."

The car manufacturers seem to focus its resources update their most profitable vehicles, including Ram, Jeep Wrangler and Grand Cherokee, while slow-selling push back plans to re-design, low-margin models for the Dodge Dart.

However, some of the company's most popular model redesign is slowing, providers say.

The redesigned 1500 Ram pickup, and now has been moved from 2017 to 2017 11 moon from the middle, they said.

The redesigned Wrangler

The redesigned Jeep Wrangler, and now scheduled for July 2017, the supplier told Reuters reporters. FCA said that a year ago, it plans to begin production of the redesigned Wrangler in early 2017, Marchionne said, two weeks ago, he has not decided where the new Wrangler will be built. Vehicle assembly currently in Toledo, Ohio.

Marchionne also said that the Grand Cherokee, the company's most profitable models, one of the redesign, has been delayed for an unspecified period of time allowing engineers to take "a complete re-look" at fundamental pillar of the vehicle. This architecture will have a larger price higher, and the intention Wagoneer called Yansheng Sheng large and luxury SUVs, such as the Land Rover Range Rover competition share, he said.

In 2014 the investment briefing, FCA said that the redesigned 2017 Grand Cherokee will be in the fall, the new Grand Wagoneer in 2018 autumn supplier told Reuters reporters this week the introduction of the Grand Cherokee can now be up to one year delayed the launch, and launch large Wagoneer may even fall further.

FCA also delayed the new compact Jeep will replace the Patriot and Compass plans to release, the supplier told Reuters reporters. In AS- yet unnamed small jeep had already put into operation in the spring of 2016, but has been pushed back at least six months, the supplier said.

The company has delayed the Dodge Dart and cross-border tours, both of which were designated as mid-2016 through a comprehensive redesign. On the contrary, these two models will get a modest reform, but not completely overhauled in 2019 - 2020, suppliers said.

Plans to offer under the Chrysler brand new large and medium-sized crossover vehicle in 2017 and 2018, respectively, appear to be delayed or shelved, suppliers said.

Large Chrysler a major redesign FCA 300, Dodge Charger and Dodge Challenger, originally scheduled for mid to late 2018, may now fall to 2019 or later, the supplier said.

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