Previous speculations suggested FCA planning to sell off one of its luxury car brand in order to streamline business
FCA doesn’t have any plan to break up the company as the speculations suggested previously. FCA chief executive Sergio Marchionne has confirmed that the auto giant has no plans to sell off any of its subsidiary brands. As we reported earlier, there was speculation that the company might sells off car brand Maserati or Alfa Romeo. But the latest confirmation from Marchionne puts an end to the rumour.
Interestingly, Jaguar Land Rover showed interest in buying Maserati or Alfa Romeo when the speculation came up. Not only that, Chinese companies showed interest in buying Jeep. However, FCA believes that Jeep SUVs will help the group to double its net profit and that too is based on fact.
In India FCA was struggling to grab a satisfactory sales result for quite some time, but the scenario changed with arrival of the Jeep Compass here. The most affordable Jeep SUV in India along turned the table for the brand and fetched impressive sales result in last couple of months. As it appears, FCA is eyeing to replicate such success in the global market and for that the brand is betting big on Jeep vehicles.
Thanks to the high demand for Jeep vehicles, FCA has seen its share price increased by more than 30%. The iconic American SUV manufacturer is now targeting to sell 2 million vehicles this year. While speaking about future plan, Sergio Marchionne has also said that the automobile group aims to erase all its debt and generate revenue of up to $6.14 billion by the end of this year.
In recent past, there was also speculation of a possible merger attempt from FCA with Chinese company Great Wall Motor. South Koran auto major Hyundai too showed interest in partnership with FCA. But, FCA boss clearly says that his company doesn’t need a partner and it will continue on its own.
Meanwhile, inspired by the success of Jeep Compass in India, the group is now planning to launch more affordable Jeep renegade here. Upon arrival, this will be the cheapest Jeep available in the country and it will certainly enhance sales and market stake for the brand.