Automobile industry has been on rise in last two decades or so, however Fiat somehow has been on gradual downfall in terms of losing its market shares since 1999, the reason are higher prices aand less customer satisfation which led to Fiat mergering with Chrysler in 2014 in hope of regaining its market back. Fiat global market share is depectied in graph below;
Competitors of Fiat
In terms of Market Capitalization FCA doesn’t really have a huge cap, but still in terms of revenue it outperforms many big automobile manufactures in 2016 and 2017. This is mainly because of the new merger with Chrysler and new strategy of targeting customers everywhere.
Future Goals of Fiat
Global sales of passenger cars are forecast to hit 78.6 million vehicles in 2017. Along with China, the United States is counted among the largest automobile markets worldwide, both in terms of production and sales. About 6.9 million passenger cars were sold to U.S. customers in 2016, and around four million.
Fiat Chrysler Automobiles announced its 5-year business plan, in which company expects that sales will increase to 7 million units, revenues to €132 billion, net income to €5 billion and industrial debt will peak at €11 billion in 2015, and then reduce to €0.5-1 billion by end of 2018. The Group updated its business plan targets in January 2016 at the time FY 2015 was announced. Much of the global growth will be focused around Jeep, due to its high visibility globally as well as the growing SUV market in developing markets. Chrysler will be re-positioned as the company’s mainstream North American brand to compete with Ford, Chevrolet, Toyota, and Volkswagen, while Dodge will focus on performance-based vehicles. Alfa Romeo will become the company’s premium marquee to compete with Mercedes-Benz, BMW, and Audi, while Maserati will be the company’s ultra-luxury brand to compete with Bentley and Rolls-Royce.
FCA serves all over the world however its dominant market exists in United States, which provides almost one third of company’s revenue. Fait has been in quest of entering new markets lately, some of which turns out to be disaster where as the other came out as gems.
By mass market approach FCA strives to touch each and every consumer of vehicles out in the market. This strategy helps FCA to earn incredibly high revenue in terms of its market cap is concerned. FCA may not be as big as Toyota however its appeal in all type of consumer base reflects the promising future lying ahead of it.