Jeep, Ram Could Be Spun Off Into Separate Companies
Fiat Chrysler CEO Sergio Marchionne isn’t ruling out the idea of making Jeep and Ram separate, independent companies.
If there’s one saying that describes Marchionne’s personality, it’s “never say never.” And when asked whether FCA’s Jeep and Ram brands could be spun off into separate, standalone companies either together or separately, he said “Yes.” Marchionne has a history of mergers, acquisitions and spin-offs and is the CEO behind Fiat’s acquisition of a controlling stake in Chrysler in 2009, before spending five years integrating both automakers into a single, global company.
Six years ago, Marchionne split Fiat and Fiat Industrial, a former agricultural manufacturing division of Fiat, into two separate companies. Now, CNH Industrial has annual sales of over $25 billion and is traded on the New York Stock Exchange.
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Most recently, the biggest move Marchionne made was spinning Ferrari off into an independent company. The Italian exotic automaker is now traded on the New York Stock Exchange at more than $75 per share, and generates over $3.4 billion in annual revenue and close to $435 million in net income, according to Detroit Free Press.
Marchionne didn’t go into any further details about the possibilities of Ram and Jeep becoming independent companies, but don’t be surprised if it eventually happens, given the success of the two brands.
[Source: Detroit Free Press]
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Jason Siu began his career in automotive journalism in 2003 with Modified Magazine, a property previously held by VerticalScope. As the West Coast Editor, he played a pivotal role while also extending his expertise to Modified Luxury & Exotics and Modified Mustangs. Beyond his editorial work, Jason authored two notable Cartech books. His tenure at AutoGuide.com saw him immersed in the daily news cycle, yet his passion for hands-on evaluation led him to focus on testing and product reviews, offering well-rounded recommendations to AutoGuide readers. Currently, as the Content Director for VerticalScope, Jason spearheads the content strategy for an array of online publications, a role that has him at the helm of ensuring quality and consistency across the board.
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Jeep stock gonna look good if they spin off because they have a cult like following .......
If that happens, I'm sure that will be the end of Chrysler, and maybe Dodge with it.