Essay: The Basics Behind FCA (Fiat Chrysler) analysis (draft)

The Founders are Agnelli Family who is one of the original founders. “An Italian investment group controlled by the Agnelli family, owns 29.19% of FCA and controls 44.31% through a loyalty voting mechanism”. John Elkann became a member of Fiat Chrysler Agnelli family, right after the death of Sergio Marchionne. A new CEO is placed for the well being of the company Sergio Marchionne the man who turned around Fiat Chrysler dies at age of 66 so now another man must take the throne of CEO to take the company to a good path. John Elkann has had a close relationship with Sergio so he has a similar mindset to have the company go in a good path.
Two locations are used to manage the company. “The first location is in London, United Kingdom this is the financial headquarters used for the legal purposes for a better way to interpret issues for the company and customers.” “The second location Fiat Chrysler has is the main headquarters which the company uses to actually manage the company and where the labor and supplies are used to manufacture the cars ordered.” “These two locations combined together bring a unique collaboration, which not a lot of other companies don’t do to manage their companies which is one of the ways that makes the company unique.”
Fiat Chrysler first had to have them get merged themselves to get Powerful Previously the whole company was not even Fiat Chrysler, it was Fiat Chrysler Italy which had their own subsidiary’s, and then Fiat Chrysler US which also had their own subsidiary’s.“So The two companies knew they needed to collaborate because business wasn’t great for both companies, so the American and Italian Investor and company owners had a meeting to merge the companies together.” Fiat and Chrysler combine to one With the combination now the company is in a totally different ball park now they have the budget, and already the money from their previous car sales to now start progressing and to do new innovations.
FCA Italy car brands has a lot of cars is Fiat the most popular one out of all the other brands and could be bought by any average person with a budget. “Fiat Automobiles is the largest automobile manufacturer in Italy founded by Giovanni Agnelli. During its more than century-long history, it remained the largest automobile manufacturer in Europe and the third in the world after General Motors and Ford for over twenty years” “In 2013, Fiat S.p.A. was the second largest European automaker by volumes produced and the seventh in the world, while currently FCA is the world’s eighth largest automaker, Fiat has a 1,550,000 production output.”
Abarth auto brand which was owned by Fiat, Abarth is an Italian racing car and road car maker founded by Italo-Austrian Carlo Abarth in 1949.[3] Its logo is a shield with a stylized scorpion on a yellow and red background. Carlo Abarth was a sport racing team director in Italy who founded the car similar in shape to Fiat but more of a sport design called Abarth. Then there is Alfa Romeo the luxury and sport combination, “Alfa Romeo is an Italian luxury car manufacturer, founded by Frenchman Alexandre Darracq as A.L.F.A. Societa Anonima Lombarda Fabbrica Automobili, Lombard Automobile Factory limited liability Company on 24 June 1910, in Milan. The brand is known for sporty vehicles and has been involved in car racing since 1911.” The company that became Alfa Romeo was founded as Societa Anonima Italiana Darracq (SAID) in 1906 by the French automobile firm of Alexandre Darracq, with Italian investors. In late 1909, the Italian Darracq cars were selling slowly and the Italian partners of the company hired Giuseppe Merosito design new cars. On 24 June 1910, a new company was founded named A.L.F.A.
Second to last automobile the Lancia, “Lancia & C. Fabbrica Automobili was founded on 29 November 1906 in Turin by Fiat racing drivers, Vincenzo Lancia 1881-1937 and his friend, Claudio Fogolin 1872-1945. The first car manufactured by Lancia was the “Tipo 51” or “12 HP””. Gianni Lancia, a graduate engineer, was president of Lancia from 1947 to 1955. In 1956 the Pesenti family took over control of Lancia with Carlo Pesenti (1907–1984) in charge of the company. Another subsidiary VM Motori a Italian Diesel Engine car company. “VM Motori is an Italian diesel engine manufacturing company which is wholly owned by Fiat Chrysler. Automobiles through its subsidiary Fiat Group Automobiles. VM headquarters and main production facilities are located in Cento, in Emilia-Romagna, Italy.” “They are the only main manufactures for Italian Diesel engines which Fiat Chrysler sometimes uses on their cars for example the 2011 Jeep Wranglers are being powered by a VM Motor V8 diesel engine.”
FCA US car brands, first there is the most popular Chrysler is one of the “Big Three” automobile manufacturers in the United States, headquartered in Auburn Hills, Michigan. The original Chrysler Corporation was founded by Walter Chrysler from the remains of the Maxwell Motor Company in 1925.” In January 1924, Walter Chrysler launched the well-received Chrysler automobile. The 6-cylinder Chrysler was designed to provide customers with an advanced, well-engineered car, was an automobile at an affordable price. Secondly Dodge, “It was founded as the Dodge Brothers Company machine shop by brothers Horace Elgin Dodge and John Francis Dodge in the early 1900s,] Dodge was originally a supplier of parts and assemblies for Detroit-based automakers and began building complete automobiles under the “Dodge Brothers” brand in 1914, predating the founding of Chrysler Corporation.”Dodge is an American brand of automobile manufactured by Fiat Chrysler based in Auburn Hills, Michigan. Dodge vehicles currently include performance cars, though for much of its existence Dodge was Chrysler’s mid-priced brand above Plymouth. “The Dodge company has been one of the toughest withstanding subsidiary’s in the company, it has gone through many ownerships, and Fiat Chrysler seems to take care of Dodge best. Being a Dodge car owner I myself know they are a sturdy and safe car to drive.”
Jeep Automobiles, Jeep is a brand of American automobiles that is a division of FCA US LLC (formerly Chrysler Group, LLC), a wholly owned subsidiary of the Italian-American corporation Fiat Chrysler Automobiles. Jeep has been a part of Chrysler since 1987, when Chrysler acquired the Jeep brand, along with remaining assets, from its previous owner: American Motors Corporation (AMC). Jeep’s current product range consists solely of sport utility vehicles and off-road vehicles, but has also included pickup trucks and roadsters in the past; Jeep will return to the pickup truck market in early 2019. “Jeep has always been known as a off roading vehicle mainly because the whole idea of the Jeep vehicle was for military transportation, in foreign countries to get around better. Then an idea came to the company to allow the American people to also use the Jeep in their everyday lives so they started producing it for citizens.” The next company Dodge Ram Heavy Duty Trucks, “Prior to the 1970s, Dodge had maintained a separate marque for trucks, Fargo Trucks, primarily for use outside the United States. After that point, all trucks made by Chrysler were distributed under the Dodge marque.”The Ram brand was created following Chrysler’s acquisition by Italian automaker Fiat, and the plans called for Dodge switching to an exclusively car-based lineup with all pickup and future heavy-duty trucks by Chrysler being sold under the Ram brand.I am pretty familiar with the Dodge Ram truck as well, because my dad used to have a Dodge Ram. And It wasn’t a bad truck, it had the combination of a muscle car and heavy duty truck feel to it being. Being combined with Dodge, hence called Dodge Ram the truck has a muscle feel to it also is quite loud when pressing the gas pedal.
The next important company Mopar also known as Motor Parts, “The term was first used by Chrysler in the 1920s and was introduced as a brand starting in 1937. The name Mopar was created by a committee to use on cans of “Chrysler Motor Parts” antifreeze.” Mopar parts are original equipment manufactured parts for FCA US LLC vehicles. The term “Mopar” has passed into broader usage among car enthusiasts as an unambiguous reference to vehicles produced by former parent company Chrysler Corporation/Chrysler Group LLC, now FCA US. “Before the founding of Mopar most of the subsidiary companies were making their own car parts, but with Mopar the idea came to have one company known as Mopar to supply all the necessary car parts for all Fiat Chrysler vehicles, which really helps reducing the cost for parts, since every car company in the Fiat Chrysler group doesn’t need to buy their own parts.”
Merging of Fiat and Chrysler
History
Beginnings of Fiat Chrysler
Founded in the year 1899, Fiat is an 117-year-old company that was founded by Giovanni Agnelli, in Turin. Over the years, the company has marked a dominating presence worldwide. This Italian company is now known as FCA or, Fiat Chrysler Automobiles – a multinational corporation that is among the top ten automakers in the world.
The Chrysler company was founded by Walter Chrysler on June 6, 1925, when the Maxwell Motor Company (est. 1904) was reorganized into the Chrysler Corporation.Chrysler had arrived at the ailing Maxwell-Chalmers company in the early 1920s, hired to overhaul the company’s troubled operations (after a similar rescue job at the Willys-Overland car company). In late 1923 production of the Chalmers automobile was ended.
(i) Fiat Chrysler Today
“FCA was established in late 2014 by merging Fiat S.P.A. into a new holding company called Fiat Chrysler Automobiles N.V., incorporated in the Netherlands and headquartered in London. FCA is the successor to Fiat S.P.A. FCA Italy and FCA US, the two main subsidiaries that help FCA carry out its mass-market automotive operations.”
2. Street Racing Technology (SRT)
The most known SRT models
(1) Street & Racing Technology (commonly called SRT) is a high-performance automobile group within Fiat Chrysler Automobiles. SRT began as “Team Viper” to develop the Dodge Viper. It later merged with “Team Prowler”, the developers of the Plymouth Prowler, to become Specialty Vehicle Engineering (SVE).
Leklyan 6
This was renamed Performance Vehicle Operations (PVO) in January 2002[1]. Since all PVO vehicles used the SRT name, the PVO development group was renamed SRT in 2004. SRT heavily tunes and produces vehicles for the Chrysler, Dodge, and Jeep brands.
(2) The naming convention used by SRT for its models are indicative of the vehicle’s engine type. The number that follows the “SRT” shows the number of engine cylinders the vehicle has. For example: the Chrysler 300C SRT8 has a 6.1 liter Hemi V-8; Therefore, the SRT version is known as the Chrysler 300C SRT-8.
(i) Chrysler SRT
The Chrysler 300 SRT is a rear-wheel-drive, front-engine V8, full-sized luxury[3][4] car manufactured and marketed by FCA US (and its predecessor companies) as a four-door sedan and station wagon in its first generation.
An SRT version was unveiled at the 2011 New York International Auto Show, powered by a 6.4-litre 392 HEMI V8 engine. The 6.4 392 Hemi engine is also used in other Chrysler Group SRT vehicles. With 470 hp (350 kW), the new 300 SRT can go from 0 to 60 mph in the low 4 second range.
(ii) Dodge Challenger SRT
Introduced in fall 1969 for the 1970 model year, the Challenger was one of two Chrysler E-body cars, the other being the slightly smaller Plymouth Barracuda. Positioned to compete against the Mercury Cougar and Pontiac Firebird in the upper end of the pony car market segment.
The Challenger was available as either a two-door hardtop coupe or a convertible, and in two models for its introductory model year.The base model was the “Challenger” with either an Inline-6 or V8 engine, as well as a “Challenger R/T” that included a 383 cu in (6.28 L) V8.
(iii) Dodge Charger SRT
The Dodge Charger is a model of automobile marketed by Dodge. The first Charger was a show car in 1964. There have been several different production Chargers, built on three different platforms and sizes.
The car is equipped with a 6.2 V8 engine and is a comfortable 4 door car, quite spacious in the inside. It has a lot of torque to it if the gas pedal is fully pressed and your looking at 0-60 around 4.4 seconds, personally one of my favorite models being a Dodge owner myself.
(IV) Grand Cherokee SRT
Engine choices include the all new 3.6 L Pentastar V6 and 5.7 L Hemi V8. The Hemi V8 retains the Multiple Displacement System (MDS) that shuts down four cylinders in low-power driving situations. And the V8 remains coupled with the multi-speed automatic transmission which includes Electronic Range Selection (ERS) to manually limit the high gear operating range.
The Jeep Grand Cherokee SRT isn’t made for a family car its a sedan turned into muscle car performance racing, but a very spacious car a lot of room in the vehicle, and the car contains a lot of torque at least 600 lbs, the driver feels the power.
(V) Dodge Challenger SRT (Hellcat)
This version of the Dodge Challenger is with a supercharged 6.7-liter HEMI engine is rated at 707 hp (527 kW) and 650 lb⋅ft (881 N⋅m) of torque.
This vehicle is for the person who wants to buy the car to have it be faster and more bold with sound, it is not the basic SRT package it has a more upgraded power train then the other SRTs.
(VI) Dodge Charger SRT (Hellcat)
This car is the four door sedan as the other Dodge charger but, the same story with this as the challenger the engine is more upgraded and powerful, and made for drivers who like to have a muscle car with power behind the wheel.
The power train is the same as the Challenger they both have the same engine type, 6.7 liter V8 707 hp, the only difference is the drivers preference if they would like a sedan or a coupe.
Personally when I am asked the question of which model i prefer either Charger or Challenger, I would say the Charger because it has more space and I like cars that have space inside it’s more comfortable.
(VII) Grand Cherokee SRT (TrackHawk)
This Jeep isn’t your everyday car this isn’t your everyday car the driver is looking at 0-60 in under 4 seconds, the fastest sedan on the market today. Fiat Chrysler was really trying to maximize performance with this car for buyers who like Jeeps and power.
It has the same engine features that the Dodge Challenger and Dodge Charger, which is the 6.2L Hellcat HEMI V8, 707 horsepower @ 6,000 RPM and 645 lb. feet of torque and 4,800 RPM. This Grand Cherokee is a no joke car you have a lot of power in your hands compared to the first SRT package Grand Cherokee now this is the highest package the driver can get for the Grand Cherokee car. I feel the SRT has really pushed the limits of power with this car.
(VIII) Dodge Durango SRT 392
The Dodge Durango is a mid-size sport utility vehicle (SUV) produced by Dodge. The first two generations were very similar in that both were based on the Dodge Dakota, both featured a body-on-frame construction and both were produced at the Newark Assembly Plant in Newark, Delaware.
(b) The Dodge Durango SRT features the base engine is a new 6.4 L V8 engine producing 475 hp (354 kW; 482 PS) and 260 lb⋅ft 470 of torque at 4,800 rpm peak torque is 6,400 rpm. This car is larger than the Grand Cherokee but it has less power and goes a little slower, because it is heavier and a pretty big car it’s almost the size of a suburban.
(IX) Dodge Challenger Demon SRT
This is the most powerful car Dodge has to offer to buyers, this is the fastest muscle car out there, the fastest out of all the SRTs.
The Demon uses an all-new 6.2-liter V8 engine equipped with a 2.7-liter supercharger, which puts out 808 hp (603 kW; 819 PS) with 91 octane gasoline and 840 hp (626 kW; 852 PS) with 100 octane fuel or higher (both outputs are with the red key).
3. Five Year Plan
Plan For Companies Well Being
On May 6, 2014, Fiat Chrysler Automobiles announced its 5-year business plan.The company expects that sales will increase to 7 million units, revenues to €132 billion, net income to €5 billion and industrial debt will peak at €11 billion in 2015, and then reduce to €0.5-1 billion by end of 2018.
This plan involved expanding what Fiat Chrysler can do with their wide varieties of car models they have.
b. Competition With Other Companies
Much of the global growth will be focused around Jeep, due to its high visibility globally as well as the growing SUV market in developing markets. Chrysler will be re-positioned as the company’s mainstream North American brand to compete with Ford, Chevrolet, Toyota, and Volkswagen.
Dodge will be focused on performance based vehicles since they have a pretty good muscle category for cars, this 5 year plan is what brought forward the SRT ideas and making cars with competitive engines.
Alfa Romeo will become the company’s premium marque to compete with Mercedes-Benz, BMW, and Audi. These are the areas where the companies really wanted to expand luxury and muscle cars.
C. Statistics and Ownership of Fiat Chrysler
Revenue of the Company
Fiat Chrysler in the top 25 of Wealthiest Companies
The Fiat Chrysler Corporation has 138.51 Billion Dollar revenue, this brings them in the top 10 for the richest car companies.
Companies revenue almost tripled since 2006, when it was 2006 the company had a 59 Billion dollar revenue in over the 10 years the companies revenue got doubled in a short period of time, the 5 year plan was a big factor to the changes.
b. Sergio Marchionne Contributes to Growth
Fiat Chrysler Automobiles NV CEO Sergio Marchionne took a victory lap as he kicked off his final full year at the helm with an announcement Thursday that the company’s net profit nearly doubled for 2017 and a prediction that it will top Ford Motor Co.’s earnings before he retires in April 2019.
The Italian-American automaker said Thursday that high-margin trucks and SUVs helped push its net profit up by 93 percent from the previous year to nearly $4.35 billion (3.5 billion euros), even as overall sales dropped 8 percent. It reported adjusted pre-tax earnings for last year of more than $8.7 billion (7 billion euros).
2. Net Income of Fiat Chrysler
Overall Income of Fiat Chrysler
Fiat Chrysler today isn’t in bad shape the company is bringing in 3.7 billion dollar net income, and in the beginning of 2006 around the time when Fiat and Chrysler just merged they had 1.2 billion net income, so the company has definitely grown over time.
During 2009-2013 then company has been having some ups and downs but they managed to pull through.
b. Doubting of CEO Sergio
Throughout the companies history a lot of Fiat Chrysler ownership and investors had doubted his Control and guidance of the company into the right path but Sergio blocked them all out and got the job done.
“But he did the exact opposite of what everyone thought he actually turned everything around for success, he made the collaborations of Fiat Chrysler work, also doubled the company’s net income with the Revenue. So he just left all the investors and owners in shock from the way he handled the company.”
3. Ownership of Fiat Chrysler
a. Whos Involved With FCA
Exor N.V. is an Italian leading holding company, incorporated in the Netherlands and controlled by the Italian Agnelli family. It has a capitalization of nearly $24 billion USD, with a history of investments running over a centurey.
Exor is owned by the Agenlli family they have been behind the starting of Fiat before the merging of Fiat and Chrysler, Exor only owns 29% of the company.
b. Agnellis Holdings
The Agnelli family has a very big role in the stock market today just because they not only have a lot of money involved in Fiat Chrysler but various other major corporations, the Agnellis are the Rockefellers of the car industry.
Agnelli has a 22% holding of the Ferrari, a 63% in Juventus F.C, Economist Group 43%, and CNH Industrial 26% holdings. So on his own Agnelli almost corners the automobile market, which makes him a important and quite powerful person in the car market.