An announcement made last week, Fiat Chrysler is planning to enhance sale of two of its bestselling products, Ram and Jeep. A new assembly plant is opening in Detroit, being part of a $4.1 billion investment deal. The company is also focused on the commitment of lining up its electrical vehicles and will start the electrical wing by launching hybrid plugin’s in the 4 upcoming Jeep models. Sergio Marchionne (ex-CEO, Fiat Chrysler) was very uncertain for powertrain technology in batteries, that he advised the prospected customers for not buying the Fiat e, the initial electrical model. The reason behind this skeptical asking was that on each sale of Fiat e, the automobile company was losing $1000.
Analysts from the automotive industry are concluding that it would be hard for Fiat to earn revenues from its upcoming electric models. Fiat’s CEO Mike Manly announced last week that investments will motivate the car makers to reach fresh opportunities. This opportunity will include the launch of 4 new hybrid plugin, Jeep models and independence of making complete battery fed vehicles. The announcement was expected to include battery and electric specific things, as the growing completion and regulators raising the demand of energy specific vehicle is important to answer. The need for answering the demands became more critical in main markets like the USA, China, Europe, in June 2018.
Sam Abuelsamaid, Navigant analyst said that the recent announcements by Manly clear the picture of Fiat’s future plans very much. Fiat will work on all kind of segments including, fuel-based engines with conventional plug-ins and fully battery fed, and electric cars. Former Fiat CEO was focused on the Chinese market, however, Manly is more focused on USA market, the prime competitors of Fiat like Ford announced F-150’s electric version in January and similarly General Motors are planning to electrify its models like GMC Sierra and Chevrolet Silverado. The competition will be tougher between future electric cars, where Tesla’s revenues went low in the second half of 2018.Elon Musk (CEO, Tesla) warned that the first quarter of 2019 will be low. Manly said that people are not willing to pay premium costs and thus the company is expecting to get 60% of incremental electric technology cost back.