Fiat Chrysler Invests Billions to Manufacture more Electric Cars

Sergio Marchionne, CEO of Fiat Chrysler Automobiles (FCA), in his last big presentation before passing on the torch in early 2019, announcedhis five-year plan for the Italian-American auto company to turn its focus towards making more electrified cars as the company finally clears its debt. Marchionne said the carmaker will invest $9 billion euros by 2022 in hybrid and electric cars, prioritizing mainly Jeep SUVs, Ram trucks, as well as its more premium brands, Maserati and Alfa Romeo.

“These brands comprise the most significant portion of our revenues and our earnings,” Marchionne said.

The company said it plans to achieve adjusted earnings before interest and tax of between 13-16 billion euros in 2022. FCA expects sales to increase by an estimated 7 percent each year and targets a dividend ratio of roughly 20 percent, to pay an estimated total of 6 billion euros over the next five years.

Mike Manley, brand chief of Jeep, said currently, one in every seventeen utility vehicles sold in the world is a Jeep and expects one in every twelve utility vehicle sold by 2022 to be a Jeep, but did not provide a target for sales goals.

Jeep plans to launch nine new products, enter three new segments including small city-car size SUVs, larger SUVs with three rows of seats, and extra large SUVs and offer four battery electric versions by 2022. Sales of diesel Jeep vehicles will also come to a complete halt in Europe.

RAM hopes that a new performance pickup and midsize pickup truck addition will increase its global sales to 1 million units by 2022. RAM plans to release its performance pickup truck, the TRX, in 2022 to compete with Ford’s Raptor.

Maserati has begun its plan to electrify cars in a plan called Maserati Blue, which will bring electric options for the Quattroporte and Levante, as well as an all electric supercar named “Alfieri” which will accelerate from 0-100 kilometers an hour in roughly two seconds.

Timothy Kunsiskis, head of Maserati and Alfa Romeo, said the brand aims to take on both Tesla and Porsche, while Alfa Romeo will include hybrid and electric components by 2022. Maserati is making an exclusive deal with Ferrari for all future powertrains in its efforts to eliminate diesel engines.

FCA plans to continue producing Alfas, Jeeps, and Maseratis in its Italian plants while mass market models will be limited to certain markets, discontinued, or moved to another location.

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