FCA could sell the Alfa Romeo and Maserati brands, and maybe even Magneti Marnelli as well. Rumors are spilling in after reports of mounting debt was announced, dragging down the group’s financial performance.
FCA closed the third quarter of 2016, the last financial quarter reported with nearly USD7 billion in debt. The company’s performance has not been helped by a large number and scope of recalls, some of which have incurred large fines from government regulators in addition to their inherent costs.
In order to improve its bottom line, FCA under the leadership of Sergio Marchionne has shifted its focus recently. The company is prioritizing more profitable SUVs and trucks made and sold by the Jeep and Ram brands, while discontinuing production of less worthwhile small and mid-size sedans like the Dodge Dart and Chrysler 200. That may not prove enough to get FCA out of the hole, however, which is why industry analysts predict that additional spin-offs could be in store.
