CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
☰
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
✖

Fiat reveals Jeep sales plan

Article By: ,  Financial Analyst
May 7, 2014 1:15 PM

The share price of Fiat is down this morning (May 7th) after the company announced it is planning to massively increase production of its popular Jeep range of vehicles.

By expanding sales outside of the US and launching a series of new models within the range, Fiat is now planning to double the number of Jeeps it sells in the next four years.

Fiat, which took full control of Chrysler at the start of the year, stated that it is now aiming to sell 1.9 million Jeeps in four years time, which would be significantly up from 732,000 last year.

But investors appeared to be unconvinced by the car manufacturer's plans for the future, as shares in the company slipped back in early trading in Milan this morning.

The firm also revealed that it is planning a major refresh of its Alfa Romeo brand, with eight new models proposed to be produced by the company in the coming months and years.

"We plan to sell 400,000 cars by 2018, more than fivefold what we sell today," it said.

Global sales

Jeep brand boss Mike Manley explained that global sales are likely to be driven higher as a result of the plans revealed by Fiat. He said: "China and Brazil are forecast to represent 32 per cent of the global [sport utility vehicle] market, and today we're a niche player because we are an import-only brand."

China and Brazil are two of the fastest growing economies in the world, with one of the major impacts of this being that the countries have rapidly expanding middle classes. These people have an increasingly strong level of demand for products such as cars, with companies such as Fiat hoping to take advantage of this new market by ramping up its exports.

Fiat added in a statement that it is also expecting to return the Chrysler brand to "the volumes and share it has achieved in the past" in the near future.

Despite the company's positivity, shares in the firm were eight per cent down at 09:25 BST and continued falling through the morning. 

Find up to date information on the FTSE 100 and spread betting strategies at City Index

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.

© City Index 2024