Fiat Chrysler is focusing its efforts on Europe as CEO Sergio Marchionne looks to double profits by 2018, The Detroit News reports.
FCA put its aggressive European strategy into motion this week at the 2016 Geneva Motor Show with the launch of several new or updated models, including high volume products like the Fiat 500S and Fiat Tipo. Marchionne’s focus on Europe comes amid slow automotive sales in Latin America and China and a slight rebound in the market in Europe.
“Fiat is showing the results of its strategy aimed at selling higher-margin cars in the European market,” Ian Fletcher, an analyst with IHS Automotive in London told The Detroit News in an interview. “There is clearly a comeback in Europe as the region is surprising several automakers for still being a very valuable market.”
IHS is confident in FCA’s ability to capitalize on the stronger European economy. It predicts FCA Europe sales will jump 7.7 percent to 1.26 million cars in 2016, higher than the 1.8 percent industrywide prediction. In order to be successful, however, it will need strong sales results out of products like the Tipo and also the new Maserati Levante and Fiat 124 Spider.