Even as talk about a proposed Renault and Fiat Chrysler Automobiles (FCA) merger – which fell through the first time around – continues, FCA says that while it is happy to talk about potential alliances with other carmakers, it is capable of going it alone
According to FCA CEO Mike Manley, the automaker has a solid future and clear plans that are being invested in and are underway. “That isn’t to say if there is a better future through an alliance or partnership or merger, we wouldn’t be open and interested to it,” he said, but added that Renault is not the only potential partner for the company, Reuters reports. “To say are they the only opportunity, the answer to that question would be a definitive ‘No,’” Manley stated.
He said that automakers are not the only potential partners. “There are cooperations that can help in specific technologies. There are cooperations as we think about the consumer-car interface. You could see collaborations that never would be there in the past,” he explained.
In June, FCA withdrew its merger proposal with Renault after French government officials intervened in the talks and sought to delay a decision on the deal. Last week, the Wall Street Journal reported that Nissan and Renault are trying to reach a deal to reshape the alliance in hopes of reviving Renault’s merger talks with FCA. The Yokohama-based carmaker wants Renault to reduce its big stake, according to emails seen by WSJ and people briefed on the talks.
The automaker’s North American business remains in good health thanks to the strong performance of the Ram and Jeep brands, but it faces continued challenges in other markets. While its Europe, Middle East and Africa operations were marginally profitable in the second quarter last year, it still needs to gain scale and plug gaps in its model line-up, especially in Europe.
In the Fiat brand, Manley said the company has “the oldest fleet in Europe.” The company is looking to improve profitability on the Continent by expanding its Jeep sport utility vehicle lineup, launching a redesigned Fiat 500 line – including electric and hybrid models – and adding larger vehicles to the Fiat range, he said.
Another challenge comes in the form of Maserati, which lost money through the first half of 2019, in part because of writedowns related to underperforming leases. The company has said it plans to sell down inventories of Maseratis during the remainder of this year. The company is set to overhaul its product line-up starting with a new model in Geneva next year.
As for China, the automaker’s restructuring of its alliance with JV partner GAC Group is set to reduce costs, and there are plans to add more Jeep models beyond the three vehicles it has localised for that market, Manley said.
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