Fiat-Chrysler Unveils “Courageous” Growth Plan

Fiat Chrysler Automobiles NV predicts that by 2018 its now-integrated operations will hike revenue 52% to €132 billion ($184 billion), more than double unit sales to 7 million vehicles and generate annual net income of about €5 billion ($7 billion).

The company expects 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, compared with €3.5 billion in 2013.

CEO Sergio Marchionne describes the plan to investors as "courageous." Some analysts consider the plan extremely ambitious and unlikely to be fully implemented by 2018.

Fiat Chrysler predicts its Jeep brand will account for almost half the company's increased global volume growth over the next four years. The goal is to push worldwide Jeep sales to 1.9 million 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 expects to increase its market share there to 15.8% in four years from 11.4% in 2013, in part by hiking annual sales in the region by 1 million units.

In Europe, the company expects sales of Fiat brand models to jump 27% to 1.9 million. It hopes to quadruple sales of its Maserati luxury brand to 75,000 units. FCA also intends to spend €5 billion to add new Alfa Romeo models and multiply that brand's sales volume by a factor of five in four years.

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