Market Mad House

In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. Friedrich Nietzsche

Fiat Chrysler Automobiles (NYSE: FCAU)


Will Fiat-Chrysler Make Money?

That is a necessary move because Fiat-Chrysler’s sales were flat in Europe in May, The Market Realist noted. The company’s sales only grew by 0.2% between May 2017 and May 2018. By contrast FCAU’s sales grew by 11% in the United States in the same period.
That proves Marchionne’s strategy of concentrating on SUV, van, and truck sales in North America is paying off. Fiat-Chrysler’s next big challenge will be to develop a similar successful strategy for Europe and China.

The financial numbers show that Marchionne’s plans work. His gradual and realistic approach to the auto business is paying off.

Critically, Marchionne is paying off Fiat-Chrysler’s huge debts. The company’s industrial debt load fell by 45% to $1.6 billion (€1.31 billion) during 1st Quarter 2018, The Detroit News reported.

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Good Stocks

Is Fiat-Chrysler Making Money?

Jeep is planning to bring out a plug-in hybrid version of its iconic Wrangler in 2020, The Free Press reported. The Wrangler is the basic four-wheel-drive Jeep modeled on the iconic off-road vehicle that served America’s military in three wars.

The Alphabet (NASDAQ: GOOG) alliance is vital to Chrysler’s future, because it provides access to autonomous vehicle technology, data, and expertise, without a lot of risks. Another alliance that Fiat Chrysler should seriously consider is one with Tesla Motors (NASDAQ: TSLA) which has vast amounts of expertise in electric and autonomous vehicle technology.

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Alphabet, Avis & Chrysler Team Up to Offer Ride-Hailing with Self-Driving Vans

The deal is potentially a big one because Waymo plans to deploy up to 600 self-driving Pacificas in Phoenix. A big winner here is Fiat Chrysler Automobiles (NYSE: FCAU) which will supply the vans and undoubtedly get a boost for its stock.

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Long Ideas

Is Fiat Chrysler an Automotive Value?

The most popular Jeep model in Europe was the Renegade subcompact sport utility vehicle (SUV); the sales of the Renegade in Europe increased by 20,000 in 2016. Another 11,000 Renegades were sold in the United Kingdom as well. Jeep is bringing out a new Jeep model in Europe the Compass to cash in on its best sales ever in Europe.

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Market Wisdom

Did Uber Hurt Rental Car Companies in 2016?

Or the car-rental companies might find themselves facing a greater nightmare. If Uber were to collapse, a major automaker might buy it and Hertz and Avis would find themselves competing directly with Ford (NYSE: F), Toyota (NYSE: TM) or even Volkswagen.

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Long Ideas

Will Minivans Save Fiat-Chrysler?

Minivans are more of a contrarian investment than you might think because they are the perfect vehicle for use in the ride-sharing business. A Chrysler Pacifica or Dodge City Master Pro; particularly one equipped with a diesel, electric or hybrid engine, would be the perfect Uber car. It can seat several passengers, it is stylish and there is plenty of room for luggage for the airport run.

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Crazy StocksStocks

Fiat Chrysler fights to Survive

Despite this I would say that Fiat Chrysler is not a value investment because it looks like a weak company sustained by some very strong brands. Dodge and Jeep in particular have great reputations in the US.

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