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FCA spends $1.5 billion to retool plant for Ram production

Fiat Chrysler Automobiles (FCA) is planning to invest $1.48 billion to retool its Sterling Heights Assembly plant in metro Detroit to build the next generation of the Ram 1500. The investment will allow the assembly plant to go from unibody to body-on-frame construction. FCA also confirmed that production of the Chrysler 200 will end in December in order for the plant to be altered. As previously reported, FCA is looking to move production of the 1500 from its current assembly plant in Warren to the Sterling Heights Assembly plant (both are in Michigan). While FCA has not released any official plans for the Warren Truck Assembly Plant, Automotive News reports that the plant will be retooled to manufacture the Jeep Wagoneer and Grand Wagoneer SUVs. Earlier this month, FCA announced plans to invest $1.05 billion to retool the Jeep Wrangler factory. FCA's current investment plans are part of the automaker's push to put competitive products on the road. Related Video: News Source: FCA, Automotive NewsImage Credit: FCA Plants/Manufacturing Chrysler Jeep RAM SUV Sedan

Fiat Chrysler CEO Marchionne's health crisis forced succession scramble

Former Fiat Chrysler Chief Executive Sergio Marchionne for more than a year assured investors that he and the automaker's board were working on an orderly succession plan ahead of his expected departure in 2019. But a health crisis that left 66-year-old Marchionne incapacitated in a Swiss hospital set off a transition last week that was sudden and rushed, banking and industry sources said. The company announced on Wednesday that Marchionne had died, succumbing to complications from surgery. It emerged that Marchionne's successor was far from settled. Indeed before last week's crisis, many company executives remained in the dark, four banking sources who spoke to Fiat Chrysler executives told Reuters. The scramble to replace Marchionne led to the resignation of a senior executive who was passed over for the top job, the sources said, and exposed fissures between the Italian and North American sides of the world's seventh-largest automaker. Fiat Chrysler Chairman John Elkann named Michael Manley, head of the company's Jeep and Ram truck divisions, to replace Marchionne at an emergency meeting in Turin, Italy on Saturday. In doing so, Elkann followed Marchionne's wishes to appoint Manley his successor, two sources said. The company has portrayed Manley's appointment as the product of lengthy deliberation. "Sergio and John have always been totally aligned on the choice of Mike Manley," Fiat Chrysler's main spokesman Mike Keegan said on Tuesday, when asked whether there were differences over the succession. Elkann's office declined to comment. Manley could not immediately be reached for comment. This description diverges from what Marchionne himself told investors on June 1 during a day-long strategy presentation in Balocco, Italy. Marchionne said that he and Elkann "from time to time have these chats" about succession, but the issue would not be decided until next year. "It's a 2019 issue," Marchionne said. "So it's not going to happen until we close '18. It just won't happen." He went on to say that the company's board would not engage in a "rubber stamp process." Some analysts have also expressed skepticism that a final decision had been made. "My view is Marchionne and Elkann were still arguing about succession and had different views on the right candidate," Sanford Bernstein analyst Max Warburton said in a note on Monday, referring to the June 1 presentation.

Fiat to list on New York Stock Exchange?

Citing the ever-nebulous "two sources close to Fiat," Reuters is reporting that the Italian automaker and owner of the Chrysler brand is likely to list itself on the New York Stock Exchange. The move could reportedly happen as soon as 2015, marking the end, at least in the minds of investors, of Fiat's 115-year base in Turin, Italy.
The Italian government is not likely to react favorably to Fiat's potential move from Italy to the United States, despite initially positive reactions to Fiat's landmark final purchase of Chrysler, the third-largest automaker in the US. Fiat spent $3.65 billion to buy out the 41.46-percent stake in Chrysler that had been owned by the United Auto Workers' VEBA trust fund.
With little sign of a swift European recovery, Fiat has little choice but to focus on markets outside its traditional home, and a listing in New York could potentially be a boon for investors. According to International Strategy and Investment analyst George Galliers, speaking to Reuters, "People [would be] more likely to think of the entity in the same context as they do Ford and GM" if it were listed on the NYSE.