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D

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Discussion Starter · #1 ·


Now I know we still haven't seen deliveries begin of 2015/2016 Rebel 1500's but thats not going to stop me from wondering about the future of the Rebel.

FCA is in a cash bind right now, they're pushing back new models and updates in an effort to save on CapEx. Their focus right now is on gaming the highest possible margins from the largest pool of vehicles in their fleet.

The RAM 1500 is FCA's largest volume seller and one of their highest margin makers. Tacking on the Rebel trim only increases those margins.

Now lets consider another high margin maker for FCA, the Hellcat engine. Dodge dealers selling Hellcat equipped cars are making profit of roughly $5,430 for every car sold. Based on the Hellcats $60K+ MSRP, dealers are making 9% margin on each car. Industry average for new car sales is 1%.

Now Hellcat engines are supply constrained currently but I can't help but feel the 2016 Rebel is a test vehicle for the potential of a raptor esque fighter. Perhaps not with all the suspension farkles as the Ford, but certainly with the looks and powerplant to match...

Just a thought, how about you?
 
seeareeff

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#2 ·
That's a possibility. But not with the hellcat. They still haven't released the updated (presumably with direct injection and other goodies) pentastar and Hemi. My guess what be they would release the new Hemi with the new Laramie limited. Since I would guess that truck has even higher margins. Another reason the new Laramie is months behind the rebel.
 
M

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#5 ·
Generally, FCA has some of the worst margins in the entire industry though. If this is true:
Their focus right now is on gaming the highest possible margins from the largest pool of vehicles in their fleet.
Click to expand...
They are doing a terrible job at it.

Check out this quote from Detroit Free Press for context:

In 2014, the operating profit for Chrysler, which is now a subsidiary of FCA, earned an operating margin of 4.2% while Ford's profit margin in North America is about 12% and GM's profit margin in 8%.
Click to expand...
 
K

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#6 ·
The conference goes down at 11:00AM, here's some info on it for anyone interested:

Update: Ram is set to kick off the live stream at 11:00 a.m. ET, so grab some popcorn and find out what this new product will be!

When Fiat Chrysler executives were spilling the beans last May about the big-picture-plans concerning nearly every single product under the corporate umbrella, Ram Trucks CEO Reid Bigland got his turn to divulge future product plans for Ram. Well, it seems we’re only a week away from that first debut.

Ram Trucks released an invitation to a livestream event scheduled for Thursday, June 26th at 11 a.m. EDT. The invitation simply says it’s a “new product announcement.” What exactly Ram is announcing, we can’t be completely sure. However, we have a pretty strong suspicion.

Within last month’s Fiat Chrysler five-year plan layout, Ram was listed as giving a mid-cycle refresh to the Ram 1500 for the 2015 model year. Though we haven’t seen any camouflaged 1500s roaming the streets, we’re sure this will be topic on the 26th.

Like always, the heavy-duty lineup gets its refresh the following year — and Fiat Chrysler’s plan follows that pattern. The Ram 1500’s refresh for 2015 will serve to keep the truck selling big numbers until its next scheduled generation change in 2017. Then the HD cycle starts over again with new 2500 and 3500 trucks rolling out in 2018.

As always, stay tuned to TopSpeed for the update next week as Ram pulls the covers off its latest truck.
Click to expand...
Live: Ram Will Launch New Model On June 26th | car News @ Top Speed
 
D

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Discussion Starter · #8 ·
Maverick said:
Generally, FCA has some of the worst margins in the entire industry though. If this is true:

They are doing a terrible job at it.

Check out this quote from Detroit Free Press for context:
Click to expand...
No FIAT has the worst margins. FCA has Jeep and RAM which have some of the fattest margins in the game. Problem is FIATs dismal ways equalise any gains made by Jeep and RAM.

What you posted doesn't mean that FIAT isn't margin hunting. Like I said, watch their product development, theres a reason they're focusing on special editions and other profit gamers currently.
 
M

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#11 ·
Delta said:
No FIAT has the worst margins. FCA has Jeep and RAM which have some of the fattest margins in the game. Problem is FIATs dismal ways equalise any gains made by Jeep and RAM.

What you posted doesn't mean that FIAT isn't margin hunting. Like I said, watch their product development, theres a reason they're focusing on special editions and other profit gamers currently.
Click to expand...
They certainly aren't doing well as a whole. FIAT is weighing down FCA so much.
 
S

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#17 ·
Maverick said:
They certainly aren't doing well as a whole. FIAT is weighing down FCA so much.
Click to expand...
TTAC has a good look at how Jeep is masking much of the rot at FCA right now... Jeep profits are being siphoned off to feed the other brands because they cant prop themselves up. Problem is that cash was earmarked for new Jeeps, not new FIATS... what happens when Jeep needs cash for CapEx?
 
4

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#19 ·
RAMageddon said:
FCA is going to love the overall sales of the Renegade, already its been getting a ton of volume and I haven't noticed it slow down.
Click to expand...

We would be selling a lot more renegades, but they are hard to get. No dealer has a big stock and customers are having a hard time getting the packages they want. All because it takes 4 months to get one after ordering since they are made in Italy.
 
R

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#20 ·
That's unfortunate for those that really wanted one, downside to success... not being able to keep up with the demand.

Seeing how loyal people can be with Jeep, it can mean they'll have sustained sales numbers over time till when ever hype starts dying down.
 
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