Fiat-Chrysler Maps Global Growth in Capacity

Fiat Chrysler Automobiles NV aims to trim its platforms from 18 currently to 15 by 2018, with nine architectures accounting for 95% of total sales volume by then.

The company also will reduce its shared "part families" to 550 in four years from 1,200 today. FCA says the plan will enable 72% of the variable cost of its new models to be leveraged across other models and vehicle architectures.

FCA revealed its plan on Tuesday in a lengthy presentation to investors at Chrysler headquarters in Auburn Hills, Mich.

The standardization program will reduce product investment by 20%-70%, depending upon available capacity, according to the company. FCA expects the scheme to save €1.5 billion ($2.1 billion) over the next four years.

The company aims to expand production in North America 22% to nearly 2.6 million vehicles over the next four years. It also plans to hike imports to the region more than tenfold to 360,000 units and increase exports 50% to 380,000 units.

In Europe, FCA hopes to boost capacity utilization of its nine assembly plants and six powertrain factories from 66% last year (53% in Italy) to more than 100% by 2018. To help reach its goal, the company will add 34 new or updated models, expand its dealer network 15% and export 40% of its European output.

In China, FCA expects sales to climb to 850,000 units by 2018 from an estimated 235,000 vehicles this year. The effort will be aided by a third assembly plant, second vehicle platform, four new engines and a third transmission.

FCA aims to carry out a similarly ambitious expansion in India, where it expects to increase annual sales from 25,000 units to 130,000 by 2018. Over that period it will introduce at least three new models, expand to three global small platforms, debut the Jeep brand in 2015 and more than double its dealer network to 220 outlets.