FCA US LLC (formerly Chrysler Group) hopes its crisis remains in its rearview mirror. After engineering an automotive resurrection by choosing a back-to-basics alliance with Fiat, the carmaker continues to manufacture its Chrysler brands, including Dodge, Fiat, Jeep Grand Cherokee, Jeep Wrangler, Town & Country, and Ram vehicles at some 38 plants. It ships some 2.8 million vehicles every year. FCA's trademarked MOPAR (MOtor PARts) automobile parts and service division carries more than 300,000 parts, options, and accessories for vehicle customization. Chrysler changed its name to FCA (Fiat Chrysler Automobiles) US LLC in December 2014.
FCA owns or leases 23 manufacturing plants in the US (mostly in Michigan, Indiana, Ohio, and Illinois). Eight more are located in Mexico, six are in Canada, and one is in South America. Altogether, its cars are available in more than 150 countries.
Sales and Marketing
FCA sells its products to dealers and distributors for sale to retail customers and fleet customers. The majority of its operations, independent dealers, and sales reside in North America, primarily in the US. Approximately 10% of its vehicle sales in 2014 were outside North America, principally in Asia Pacific, South America, and Europe. FCA is also the distributor for Alfa Romeo brand vehicles in North America and for Fiat brand vehicles in select markets outside of Europe.
The company spent 60% of its selling, administrative, and other expenses towards advertising in 2014.
With its bankruptcy years behind it, FCA has achieved impressive growth, with revenues peaking at $83.1 billion in 2014, its highest total in recent history. Profits, however, fell 56% to $1.21 billion in 2014 mainly due to an increase in losses from debt payments coupled with additional expenses paid to the United Auto Workers labor union.
The growth for 2014 was the result of an increase in the demand for its new cars and the overall strengthening of the US automotive market. Revenue from the US spiked by 16% and accounted for nearly 70% of its total revenue for 2014. An increase in its net worldwide factory shipments was also driven primarily by higher demand for its all-new 2014 Jeep.
In mid-2014 FCA announced its 5-year business plan. Much of its global growth will be focused around its Jeep vehicles, due to its high visibility globally as well as the growing SUV market in developing markets. Its Chrysler brand is also re-positioning as the company's mainstream North American brand to compete with the likes of Ford, Chevrolet, Toyota, and Volkswagen, while Dodge will focus on performance-based vehicles.
It plans for the Alfa Romeo vehicle to become its premium brand to compete with Mercedes-Benz, BMW, and Audi, while Maserati will be the company's ultra-luxury brand to compete with Bentley and Rolls-Royce. Fiat (solidified as the company's mainstream brand outside North America) and Ram Trucks will remain largely unchanged.