Fiat Bets Maserati Can Replace Ferrari as Prestige Profit Driver - Bloomberg
Fiat is spinning off Ferrari later this year, losing its top luxury brand. Ferrari’s power, prestige and profits have helped bankroll the more pedestrian Dodges, Jeeps, Fiats and Chryslers that account for most of Fiat Chrysler Automobiles NV’s revenue. Betting that Maserati can play a similar role, Marchionne is adding an SUV and coupe to the model lineup and opening plush U. S. dealerships from Westport, Connecticut, to San Jose, California. “Maserati is very important,” Marchionne said in an interview. After the Ferrari spinoff , “Maserati becomes the most coveted, exclusive brand that we have. Maserati’s reputation for performance is well established, and luxury autos are selling briskly in the U. S. But that segment of the market is crowded and aggressively contested by Mercedes-Benz, BMW, Audi and Lexus. For Marchionne to succeed, wealthy Americans will have to see Maserati’s $69,800, entry-level Ghibli sedan as a viable alternative to the BMW 5 Series or Mercedes E-Class. Through April, vehicle sales fell 9 percent to 7,306. First-quarter profit sank 39 percent to $40 million, a decline Fiat attributed to a slowdown in China. ‘Bit Aggressive’ “Some of the dealers, with the help of Maserati, got a little bit aggressive on discounting that vehicle, so it kind of lost its Maserati coolness,” said Mark Akbar of AutoNation Inc. Source: www.bloomberg.com
