Could FCA float Jeep?
Iveco and Jeep on the sales block, according to Italian websiteItalian unions are growing increasingly concerned that Fiat Chrysler Automobiles (FCA) could be gearing up to sell two of its crown jewels.
Rumours in Turin are that cash-strapped FCA is gearing up to float up to 10 per cent of its Iveco truck division, just like it did with Ferrari and CNH Industrial, and then Jeep would be up on the block after that.
The ClubAlfa.it website insists the two brands are in line to be spun off, though cited no specific sources to confirm it. Calls to FCA yesterday were not returned.
The entire idea of floating the two brands would be to increase the value of Exor (the Agnelli family holding company) shares in FCA and secure their future in the wake of the failed €35 billion merger with Renault.
While Iveco posted an EBITDA profit of $US299 million (up 53 per cent) in 2018, that’s small cookies compared to a potential combination of Jeep and RAM.
FCA earned a $US1.52 billion net profit in the first quarter of 2019, mostly on the back of Jeep and RAM truck sales. RAM grabbed 28 per cent of the profitable US large pick-up segment, while the new Jeep Gladiator ute helped drive its profit margin in the US up to almost nine per cent.
In North America alone, FCA sold almost 300,000 RAMs in the first half of 2019 and about 240,000 Jeep Cherokees last year.
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