Industry and Firm Analysis
Bennett, J. (2016). Fiat Chrysler to Build Parts Distribution Center in Virginia. Wall Street Journal. Retrieved 25 May 2016 from: http://www.wsj.com/articles/fiat-chrysler-to-build-parts-distribution-center-in-virginia-1463662804
Fiat Chrysler Automobiles NV is investing $12.2 million to build a new distribution center in Virginia amid growing demand for parts used by its dealerships to both repair and customize its vehicles.
The 400,000-square-foot Mopar distribution center, located in Winchester, will employ about 70 people and ship more than 9.2 million parts and other items annually. This will be the 22nd center Fiat Chrysler has in operation in North America. It will primarily supply more than 200 dealers in the mid-Atlantic region after it opens sometime in the fourth quarter.
Mopar is the hidden gem of the Fiat Chrysler operation. Currently, the unit distributes more than 500,000 different parts and accessories to more than 150 markets around the world. That number is only expected to continue to grow since the automaker typically introduces dozens of customization parts with every new vehicle it launches.
Those parts range from a $350 Jeep-branded full vehicle cover and a $225 front grille for the Dodge Charger to a $155 bicycle carrier for the Pacifica minivan and a $347 bed liner for the Ram pickup truck. The unit also supplies wallets, golf shirts and key cases. Fiat Chrysler executives have said that almost every Jeep and pickup truck it sells in the U.S. is customized in some way by customers.
Customization has grown across the industry as low leasing rates have given customers the ability to not only purchase bigger cars but also buy a few extras they may have skipped in the past.
Automakers and retailers have also become more savvy by offering higher quality parts and graphics packages to entice shoppers.
A Fiat Chrysler spokesman declined to provide financial details since the auto maker does not report the unit's revenues separately.
Justification: This particular article is relevant as it talks about an investment strategy by Fiat Chrysler to invest a new center of distribution in Virginia. This proclamation is expected to have a positive impact on the shares of the company as is perceived, the shares of the company rose from 6.82 to 7.04.
Article 2: Sylvers, E. (2016). Fiat Chrysler Finds New Boss for Alfa Romeo, Maserati. The Wall Street Journal. Retrieved 26 May 2016: http://www.wsj.com/articles/fiat-chrysler-finds-new-boss-for-alfa-romeo-maserati-1464088964
MILAN -- Fiat Chrysler Automobiles NV replaced Harald Wester as head of struggling Alfa Romeo and Maserati, the latest sign of the Italian-U.S. automaker's efforts to shake up operations at its two premium car brands.
Reid Bigland, head of Fiat Chrysler's sales in the U.S. and the chief of its Canadian operation, was named chief executive of Alfa Romeo and Maserati. Both businesses have suffered recent performance setbacks, including delays in product launches and disappointing financial results.
Mr. Wester, 58 years old, will remain a member of Fiat Chrysler's executive council and keeps his position as Fiat Chrysler's chief technology officer. But losing authority over two of the group's brands likely marks the end of his ascendancy, say analysts.
Fiat Chrysler declined to make either executive available to comment.
Alfa Romeo has struggled in recent years and Fiat Chrysler's much touted relaunch of the brand a year ago has stalled. The brand has failed to make significant inroads against stiff competition from BMW AG, Audi AG and others. In June 2015, Fiat Chrysler presented the Giulia sedan, the first product to come from what was supposed to be a €5 billion ($6.8 billion), five-year plan presented a year earlier.
Fiat Chrysler has since rolled back investment originally intended for Alfa Romeo so it could be directed to expanding other brands in the group's portfolio. The company has pulled back from ambitious Alfa Romeo sales targets in China and a much-touted return to the U.S. market, originally intended for 2012 after a 20-year absence, has failed to take shape.
Maserati also has been unable to meet the ambitious forecasts set by Fiat Chrysler CEO, Sergio Marchionne. The brand's expansion is pinned to the release of the Levante crossover, the luxury brand's first dip into the rapidly expanding segment. Maserati sales declined 13% last year, as operating profit collapsed by almost two-thirds.
The Levante hits European showrooms this month and will be available in the rest of the world by year-end. The launch is a year behind schedule and comes a decade after the presentation of the crossover as a concept car.
Justification: In particular, this article is very pertinent as it indicates company news by Fiat, which is one of the companies in consideration. The news announcement of the company finding a new boss for the two brands is a positive...
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