Fiat farther and farther from Italy: low cost cars produced abroad

Italy's attention will remain the luxury brands, Alfa Romeo and Maserati, with Jeep that could increase its weight, while the Fiat brand productions, so the Panda
from Pomigliano, he could certainly migrate to Poland and be replaced by a mini SUV of Alfa Romeo brand.
It should be mentioned that the 500 will become a brand intended to represent the frontier of electric mobility for Fiat Chrysler,
that on the electrification of the engines wants to bet 9 billion, that is at least the figure shown in the business plan
presented to Balocco.

Italy runs to grab the 500 power line, which could be destined for Mirafiori. The Melfi factory, where the 500 X and Jeep Renegade are produced, is the only
increase volumes in the first nine months of the year, + 13.1% compared to 2017: we are talking here about doubling the Jeep range and
Compbad is also in production.

The aim is therefore to strengthen Italy's industrial vocation in the sector of premium productions of
FCA, which will however carry out a new evaluation of the necessary volumes: the "Polo del lusso"
Turin, with Mirafiori and Grugliasco for the three Maserati lines – Levante, Quattroporte and Ghibli – has its own
production, more than 30% lower than that of 2017, its Achilles heel.

In short, at least in terms of production, the design that emerges little by little seems to be that of a group, Fca, pointing to a clear separation from the premium world of the old Fiat, a sort of industrial spin-off from the historic Italian brand, which has become the new FCA car park, the only "low"
cost ". A choice that seems to marry with the many financial scenarios that circulated in recent months on the future
of the Italian American house.

The latest proposal, arrived at the board of directors, is that of the fund ADW Capital Management, minority shareholder since 2014.
of FCA: suggests to Manley to act on the geography of the car manufacturer, to sell European companies and to
on the development of the American market, real engine of the group. The other missives are not aware of it. But there are those on the market
imagine even more revolutionary rearrangements in which FCA would act less on the geographical selection of markets, but rather
on the choice and the homogeneity of the marks. In recent months, it seems like it's back in the financial circles
and in the exercises of badysts and bankers, the old project of split of the brand Fiat, with the ambition to make the
Italo-Americans are a high-end group in all its forms.

On the strategic character of the Fiat brand for the Fca group, the only statement in the acts is that which was issued by Marchionne first
of his disappearance. At the beginning of the current year, he clearly and unequivocally pointed out that "FCA will never sell
the Fiat brand. After the departure of the Italian-Canadian manager and in the era of Mike Manley and John Elkann, this principle
can it in principle be questioned? And to what extent? Suggestions maybe. The fact is that in most industrialized countries
The recent central position of Italy has been considerably reduced. And this in terms of brand weight
both as a reference market.

In terms of brandsbecause the figures of the industrial plan speak of the "weight" effective of the Italian mark: the 16 billion profits of exploitation
Fiat Chrysler Automobiles will produce the Fiat brand in 2022, its contribution will be marginal. The pivot around which it will turn
The FCA of the future will be Jeep, destined to play a growing role, reaching nearly 50% of turnover in five years.

In terms of the marketbecause Italy contributes, according to badysts' estimates, only 5% of the adjusted EBIT of the entire group. the
the figures available in the financial statements are limited to volumes and sales, but give an indication in this regard. in
The 2017 volumes relating to Italy amounted to 558,000 units. A value that compares to 1.115 million of the total
Emea and with a total of 4.7 million. In practice, if Italy remains the main market in Europe, even with volumes
at around 50%, at the group level, it represents 11.8% in terms of units sold. An even thinner percentage
more if you look at the turnover figure. Country-linked revenues amounted to $ 8.7 billion, but these data are considered
turnover related to other subsidiaries of the group such as Magneti Marelli. If you compare the turnover of Italy to 110.9
billion in the group in 2017, the weight is reduced to 7.8%.

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