Fiat-Chrysler Sets Ambitious Growth Targets

Fiat Chrysler Automobiles NV believes that by 2018 it will be able to more than double unit sales to 7 million vehicles, increase revenue 52% to €132 billion and generate net annual income of about €5 billion.

The company predicts its profit margin will grow from 4.1% last year to 5.3% in 2016 and 7% in 2018. It forecasts earnings before interest and taxes of €8.7 billion-€9.8 billion four years from now compared with €3.5 billion in 2013.

CEO Sergio Marchionne describes the plan as "courageous." Some analysts call it unrealistically ambitious and say it has little chance of being fully realized by 2018.

In Europe, FCA aims 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 reach that goal, the company intends to add 34 new or updated models, increase its dealer network 15% and export 40% of its European output.

FCA targets a 27% increase in its European sales to 1.9 million vehicles in four years. During that time it hopes to quadruple sales of its Maserati luxury brand to 75,000 units. It also plans to invest €5 billion to add new Alfa Romeo models and multiply that brand's sales volume by a factor of five.

Fiat Chrysler expects its Jeep brand will account for almost half of FCA's increased global volume growth over the next four years. The goal is to push worldwide Jeep sales to 1.9 million units from 732,000 in 2013. The company also aims to more than double Chrysler brand vehicle sales to 800,000 over the same period.

FCA says more than half its revenue will come from North America by 2018. The company also hopes to increase its market share there to 15.8% in four years from 11.4% in 2013, in part by expanding annual sales in the region by 1 million units.

The company targets about 900,000 units of additional annual sales volume in Asia Pacific.