Fiat Chrysler CEO Marchionne to Stick With Automaker Until 2018

May 07, 2014 11:31 AM EDT | Matt Mercuro


Fiat Chrysler CEO Sergio Marchionne said on May 6 that he would stay at the helm of the world's seventh-largest carmaker until at least 2018.

Marchionne said he wants to see the automaker through the execution of a new industrial plan, according to Reuters.

He had previously said that he would remain in charge of the company until at least 2017.

"I am going to stay on through the plan. I want to make sure the plan gets delivered," said Marchionne, adding that future leaders are being groomed. "It's not my first turnaround. It will be my last."

Marchionne and other company executives outlined a five-year plan to over 300 analysts, investors and journalists during a press conference.

"Sweeping changes" are expected for the Chrysler and Dodge brands, according to Marchionne.

They also outlined a $7 billion investment plan for Alfa Romeo, detailed growth plans for Maserati and Jeep, and said Ferrari might be worth as much as $15 billion soon,

Marchionne followed that statement with a vow to never sell Ferrari no matter how much its worth.

"We stand before you as a global automaker. Today is much more than a new chapter. We are beginning to write a completely new book," said CEO Marchionne, according to USA Today. "This is the first time that Fiat and Chrysler are presenting ourselves as a single global organization."

Marchionne previously outlined a five-year plan in 2009 after Fiat took over Chrysler Group. Though it didn't seem possible at the time, but his plan has mainly been accomplished as presented five years ago.

Most analysts who were skeptical back then aren't now with his new plan.

"The plans are challenging but doable," said Jeff Schuster, senior vice president of forecasting for LMC Automotive, according to USA Today. "My question is where do they get the money?"

The new plan shows that company expects Maserati's global sales to quadruple over the next five years, for Alfa Romeo sales to go from zero to 150,000 annually in the U.S. by 2018.

Sales in North America are expected to increase by 1 million to a total of 3.1 million by 2018 as well.

The company's North American factories, most of which can be found in the U.S., are expected to manufacture 2.59 million vehicles in 2018, which would be an increase from the 2.12 million they currently make.

The North American operation is expected to import 360,000 vehicles as well, up from 32,000 in 2013.

Service staffs are expected to increase roughly 25 percent in North American dealerships, according to Marchionne.

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