Analysis: Why Fiat Chrysler is focusing on its premium brands

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A range of electric Maseratis, an Alfa Romeo supercar to crown an expanded range, massive expansion for Jeep and an £8 billon push towards electrification and autonomy are the major global ambitions for Fiat Chrysler Automobiles (FCA) for the next five years. For the Fiat, Chrysler and Dodge brands, however, the ambitions are smaller and based on reduced line-ups sold in limited markets; in the case of Fiat in Europe, this involves premium electric city cars. To understand why FCA will mainly concentrate on the Jeep, Alfa Romeo, Maserati and Ram truck brands, you need to follow the money, the markets and the barrage of regulations heading the way of the motor industry. Alfa Romeo brings back 8C and GTV, and adds two more SUVs Jeep, Alfa Romeo, Maserati and Ram generate 65% of FCA’s revenue and are expected to account for 80% of it by 2022. Of the four brands, three have a global presence and focus on the premium market, with their potential margins fat enough to cover the cost of meeting future regulations.