Blackseal 1st Gear April 16, 2010 Share April 16, 2010 When General Motors and Chrysler entered bankruptcy proceedings in 2009, it was very clear that one company had a future product portfolio and one didn't. So while The General received the lion's share of government funding, Chrysler was basically given to Fiat with the hope that Team Pentastar could benefit from platform and product sharing. The early results of the Chrysler/Fiat team have been somewhat encouraging. Fiat-Chrysler CEO Sergio Marchionne and his team have made significant progress cutting costs, and the management team created a five-year plan for Chrysler that includes new, Fiat-derived platforms and re-badged Lancias and Alfa Romeos. Will these steps be enough for Chrysler to remain the full-line manufacturer it is today? A report in Automotive News shows that Bernstein Research analyst Max Warburton doesn't seem to think so. Warburton reportedly wrote in an assessment for Fiat investors that "we remain unconvinced Chrysler will survive in its current form despite Marchionne's blood, sweat and tears." Warburton cites four unnamed senior executives from Detroit. The analyst's feelings come despite the fact that he feels Chrysler will come close to breaking even in the first quarter even with relatively poor sales. Warburton actually anticipates that Marchionne will announce Chrysler made a small profit in the month of March. So why the doom and gloom? Warburton cites Chrysler's still limited product development, light product portfolio and limited synergies between the two companies. The analyst also points to Marchionne's target for Chrysler to hit a 14 percent market share by 2014 as a reason for alarm. Chrysler hasn't been at 14 percent market share since 2000, and the Pentastar is currently just under 10 percent share. ↡ Advertisement Link to post Share on other sites More sharing options...
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In NowRelated Discussions
Related Discussions
Territorial claims in South China Sea
Territorial claims in South China Sea
Survey: Which is the best (claims) Motor Insurance company
Survey: Which is the best (claims) Motor Insurance company
6 men, allegedly insurance claims specialists, appear out of nowhere along PIE after accident
6 men, allegedly insurance claims specialists, appear out of nowhere along PIE after accident
Current Audi A6 good? Any oil consumption or major issues?
Current Audi A6 good? Any oil consumption or major issues?
Car battery draw current when engine is off
Car battery draw current when engine is off
[Automotive News] Stellantis - FCA PSA Merger
[Automotive News] Stellantis - FCA PSA Merger
CTL Claims
CTL Claims
Introducing the Chana Benni "2 parts Chrysler, 1 part Honda..."
Introducing the Chana Benni "2 parts Chrysler, 1 part Honda..."