Fiat Chrysler Finds New Boss for Alfa Romeo, Maserati
May 24 2016 - 8:30AM
Dow Jones News
MILAN—Fiat Chrysler Automobiles NV's Harald Wester had stepped
down as the head of Alfa Romeo and Maserati, the latest sign of how
the automotive group is struggling to fire up its two premium
brands.
Reid Bigland, the head of Fiat Chrysler's sales in the U.S. and
its Canadian operations, will take over as chief executive of Alfa
Romeo and Maserati whose recent performance has included delays in
product launches and disappointing financial results.
While Mr. Wester is still part of Fiat Chrysler's group
executive council and keeps his position as Fiat Chrysler's chief
technology officer, losing the more hands-on role of running two of
the group's brands likely marks the end of his ascendancy within
the group.
Fiat Chrysler didn't make either executive available for
comment.
Alfa Romeo has struggled in recent years and Fiat Chrysler's
much touted relaunch of the brand that kicked off a year ago has
stalled. The brand has failed to make significant inroads against
stiff German competition. In June 2015, Fiat Chrysler presented the
Giulia sedan, the first product to come from what was supposed to
be a 5-billion-euro, five-year plan presented a year earlier.
Fiat Chrysler has since dialed back investments originally
intended for Alfa Romeo so they could be directed to expanding
other brands in the group's portfolio. Alfa Romeo has pulled back
from ambitious 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 has also 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 hit 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.
Mr. Bigland has overseen more than six years of Fiat Chrysler
sales growth in the U.S. In Canada, he helped the company become
the top seller in 2015, the first time it has managed to edge out
Ford Motor Co. and General Motors Co.
"It is time now for our efforts to be directed toward the global
commercial expansion of these two brands [Alfa Romeo and Maserati],
and I can think of no one better than Reid to fulfill that
mission," Mr. Marchionne said in a statement
While the promotion puts Mr. Bigland more in the spotlight, he
is taking over two brands that, while important for Fiat Chrysler's
reputation, remain marginal when the company is concentrating its
efforts on expanding the more mass-market Jeep and Ram brands. Mr.
Marchionne recently said he expects the shift in consumer tastes in
the U.S. toward sport-utility vehicles and trucks to be
permanent.
To save money it can invest elsewhere, Fiat Chrysler, the only
indebted global car maker, plans to outsource the production of its
Dodge Dart and Chrysler 200. Inventory of the two sedans has been
accumulating in recent months and in April the company began
offering deep discounts and favorable financing to move the cars
off dealer lots. Sales of both models have plunged in recent
months.
Write to Eric Sylvers at eric.sylvers@wsj.com
(END) Dow Jones Newswires
May 24, 2016 08:15 ET (12:15 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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