Crisis crisis that Fiat Chrysler faces despite its financial stability

Fiat Chrysler has suffered a decline in sales over the past 12 months, as well as no new models, but more serious difficulties will be expected in the coming years.

"The group has moved to Chrysler, but it still ranks second among automakers," said Stefan Reindel, director of the automotive research institute in Germany.

He identified the main weaknesses of Chrysler, saying that it had "limited sales volumes," "no globalization strategy" and was lagging behind in new technologies.

The attempt to merge the Italian-American car with the French Renault has failed and Fiat Chrysler does not offer any hybrid or hybrid model in its usual collections.

The company is trying to catch up, as it has recently started supplying equipment for electric cars to its historic Turin plant, Mirafiore.

Fiat Chrysler sells less than 5 million cars a year and makes more than 90% of its profits in North America, thanks to strong demand for its Jeeps, designed for roads and rough roads, as well as for semi-trailers . Father).

The company is almost absent from China, the largest car market in the world, loses its vigor in Europe and seems not to have managed to revive its brand Alfa Romeo.

Alpha sales in Europe fell by more than 40% in the first half of 2019, and the Fiat brand, which relies heavily on the famous Model 500, lost 10% of its sales.

"Sergio Marchionne has saved both the bankruptcy of Fiat and Chrysler," said Gian Luca Pellegrini, editor in chief of Quartorot, an Italian magazine specializing in the automobile.

Marchionne – manager Fiat in 2004 and Chrysler in 2009 – has revived two companies in decline, creating Fiat Chrysler, a global company, but still facing risks.

Deceased in July 2018, Marchionne has two main objectives: to invest primarily in the creation of new models: to get rid of the debt of Fiat Chrysler and find a fusion partner, he has already managed to reach the first objective, Second

According to Bertha, former director of the Fiat archives, the merger or alliance with another manufacturer is the only way for Fiat Chrysler to find the resources needed to develop new technologies and new products.

Otherwise, shareholders will have to finance the investments themselves, but they have been reluctant to do so, he adds.

Many badysts believe that the possibility of a partnership with a Chinese competitor will allow the company to break into the Chinese market.

"The next five to ten years will be the most difficult years since the car was invented," says Ferdinand Dodenhofer of the Car Research Center of the University of Duisburg Essen. "Either you merge, or you cooperate, otherwise you will leave the auto market."