Fiat Chrysler CEO Sergio Marchionne presented his newly formed business strategy to investors today, laying out a plan to invest heavily in the growing Jeep and Ram brands and to shift resources away from Alfa Romeo, Automotive News reports.
The automaker sees low fuel and oil prices as “permanent,” and is adjusting its North American production operations to reflect this. More SUVs from Jeep and more trucks from Ram are on the horizon, with Jeep being described by FCA CFO Richard Palmer as the “bedrock,” of the new business plan.
Marchionne’s plans for Alfa Romeo, meanwhile, will be largely scaled back. The Italian-Canadian CEO hoped to introduce a full-line of Alfa-branded luxury vehicles over the next two years, however it will have only added the rumored crossover by the end of 2017. A plan to introduce two more SUVs or crossovers, a full-size sedan and a new hatchback has been delayed until the 2017-2020 timeframe.
In order to accommodate for more Jeep and Ram vehicles, FCA will shift its production capacities through existing infrastructure. This means low volume products like the Dodge Dart and Chrysler 200 may be shuffled around to make way for new trucks or SUVs instead of building new plants to accommodate them.
FCA also addressed its problem of meeting 2025 emissions standards. More hybrid vehicles are on the horizon for the brand, with a number of 48-volt hybrids set to join its portfolio by 2018. The Jeep Wrangler and Ram 1500 are also expected to receive hybrid variants sometime in the near future.