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37 AutoData | July 2018 T he mismatched blue tie in the che- ckered shirt of a not so comforta- ble Sergio Marchionne regarding his suit during the opening speech of an event named FCA Capital Markets in June, in Italy, says a lot about what is about to come in the next five years in the company’s horizon. The tie, itself, represents first all the accomplishedmission of putting the com- pany on its feet from 2009when Fiat deci- ded to keep 35% of Chrysler shares. After almost a decade of distrust over the results of adjustments in the structure of compa- nies and brand’s finances, in addition to a long modernizing process of the factories and formalizing FCA as a group in 2014, it is time to figure out the performance. And look forward. Knowing and openly averse to formal clothing, and especially the tie, Marchion- ne, FCA’s CEO and main articulator of this transformation, used the accessory as an icon to tell theworld’s financial agents, ga- thered in a large area of Balocco’s proving ground, inVercelli, near Milan, that the plan designed in the past is the endorsement of what is about to come. “Oscar Wilde once said that a nice tie knot is the first serious step in life. Applying this spirited old maxim to FCA, I would say that we definitely conquered the right to be taken seriously.” It was the CFO Richard Palmer, one of the most speculated executives to suc- ceed Marchionne in 2019, to translate in numbers the reason why FCA should be taken seriously in the global automotive game: he presented plans and projections for the next five years with positive cash flow and detailed the adjust in the pro- fit expectation before the taxes this year, reduced from € 8.7 billion to € 8.2 billion due to the exclusion of Magneti Marelli - the last piece in the consolidation of the group - from the financial balance. “This result reflects progress related to the € 6.6 billion of 2017 and a solid FCA position. Magneti Marelli is ready for a spin-off.” The solid financial position, according to Palmer, allows the execution of big in- vestments focused on vehicles of themore profitable brands. Jeep, Alfa Romeo, Ma- serati and Ram are in the center of FCA’s global strategy and will have the biggest share of the € 45 billion in investments for the five years. The idea is to occupy newsegments for the company and renew the main vehicles adding value with new technologies such as electric motors, hybrid plug-in, total connectivity and level 2 and 3 autonomous systems. According to the company’s cal- culations, 78% of revenues will come from the newvehicles – considering all brands, therewill be nineteen brand-newvehicles. Until 2022, confirming FCA’s great expectations for the success of its plan, earnings are expected to rise from the current 6.8% of net revenue to a range that goes from 9% to 11%, which would mean, in values, from € 13 billion to € 16 billion in a revenue of € 145 billion. According to Palmer “all regions will GROUP REVENUES • GROUP REVENUES Top line growth from higher volumes and increased mix of Jeep, Alfa Romeo and Maserati products NET REVENUES 2022E 2017 All figures exclude Magneti Marelli business. WHITE-SPACE PRODUCTS AND BEVs Metric ton truck Wagoneer Low B-segment SUV Grand Wagoneer D-segment UV Alfieri Cabrio Alfieri C-segment UV E-segment UV Stelvio LWB GTV 8c Giulia LWB Low D-segment 3-row UV (LATAM) E-segment 3-row SUV Low D-segment 3-row SUV 500 Giardiniera BEV Alfieri Cabrio BEV Alfieri BEV Quattroporte BEV Levante BEV Truck A-segment UV( LATAM) 500 BEV B-segment UV( LATAM) 4 additional BEVs to be produced by China JV Net revenues to grow at �7% CAGR from 2018 to 2022 • Product line expansion with 19 white-space products and 10 battery electric vehicles (BEV) introduced • Jeep, Alfa Romeo, Maserati, Ram and Fiat Professional increase from �65% of total Net revenues in 2017 to �80% in 2022 Many car covers to remove in the next 5 years