Fiat Chrysler will meet with investors Wednesday as it releases its 2015 fourth quarter earnings. The meeting comes as market analysts have called into question FCA CEO Sergio Marchionne’s five-year plan for the automaker, leaving the company to convince backers it can meet its goals of reducing debt and boosting profits.
According to Automotive News, analysts are skeptical that Marchionne will be able to rid FCA of its $8.5 billion in debt and grow its net profit from $2.8 billion in 2013 to over $5 billion by 2018. A large part of that plan involved expanding its brands in Latin America and Asia, regions that have since experienced financial turmoil.
FCA is expected refocus its efforts away from Asian and Latin and America, instead looking to North America and Europe to help it achieve its goals. This will include a significant investment in the fast-growing Jeep brand and to investors’ displeasure, product delays at Alfa Romeo and Maserati.
Marchionne is now left trying to strengthen FCA’s product portfolio and put company to a stronger financial position, but he’s running out of time. The Italian-Canadian executive believes meeting his 2018 goals will better set the company up for a merger with a larger automaker, but just how he’s going to get there is so far unclear.