Italian analysts agree with Marchionne’s model strategy
Italian analysts say that Fiat’s choice to put a halt to introducing new models because of the current economic situation is a wise one. Lots of people don’t agree with the decision from Turin to pause the development of strategically important models, such as the successors of the Punto and Bravo. Also the new MiTo seems to be postponed, meaning that the successor of the current model is moved to a distant future. According to the analysts a wise decision, certainly now that brands which have continued at the same pace as before the crisis, seem to lose just as much market share within the EU. Two obvious examples are PSA and Ford.
This statement isn’t completely objective, though. The analysts saying this are from the Milanese Mediobanca. Fiat and Mediobanca are two important partners on the financial market.
I like the strategy. Fiat has saved cash but lost market share. Whereas others except VW of course has no cash. Fiat can use the cash to up the higher profit Chrysler. It’s a high risk strategy but logical imo. Hopefully once they conclude the deal, the EU mkt will start recovering and Fiat can invest in many new models.
It’s certainly ‘risky business’. Hard to say who has made the right decisions. Though we also tend to believe (more and more) that Marchionne will eventually turn out to have chosen the right direction. It’s a matter of patience… Let’s hope it will be rewarded. :-)
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