Fiat Chrysler is doing something remarkable - and taking a lead in the auto industry
That's right: a car company will no longer build any actual cars in the United States. After decades of manufacturing cars and trucks, FCA is going all in on trucks and SUVs.
Marchionne has been leading FCA in this direction for a while, but it was still remarkable to finally hear the words. Earlier this year, he opined that a permanent structural shift is underway in the US, and that SUVs are in the process of displacing cars as Americans' vehicles of choice.
It does look as if the market is trending decisively in that direction.
But neither Ford nor General Motors is ready to take the same plunge as FCA.
Here's an exchange between Morgan Stanley auto analyst Adam Jonas and Ford CEO Mark Fields from last week's earnings conference call (Ford missed on profit expectations, by the the way, although the automaker had a profitable quarter overall):
So an interesting divide is emerging in the industry, between FCA bailing out on car production in the US and its Detroit brethren, who are showing no sign of following FCA's lead.