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Maserati in trouble; sales falling

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According to a media report, earnings and sales of Fiat Chrysler Automobiles' (FCA) Maserati car brand have fallen sharply in Q3 of 2018. Its revenue fell by 87% to 15 million Euros and vehicle dispatches fell to 8,800 units - a drop of 19% compared to the same period in 2017.

According to the company's 2014-2018 plan, Maserati was expected to sell 75,000 units in 2018. This target was revised to 50,000 units on June 1, while the actual sales for the first 9 months of 2018 stand at 26,400 units. The company's profit margins also fell from 13.8% in Q3 of 2017 to 2.4% in Q3 of 2018. The actual margin target for 2018 was 14%. It hopes to achieve a profit margin of 15% by 2022.

FCA CEO Mike Manly revealed that running Maserati and Alfa Romeo with a single leader was a mistake. He also said that it reduced the focus on the premium brand and it was treated like a mass market entity.

Last month, Harald Wester - FCA's Chief Technology Officer was recently appointed to lead Maserati. He was also in charge of the brand from 2008-2016. Since Wester's move to Maserati, he has hired Jean-Philippe Leloup - a former Ferrari executive with experience in sales and marketing of luxury cars. Leloup will head a new entity named Maserati Commercial.

One of the problems faced by Maserati is the lack of new model launches. At present, Maserati sells the Levante SUV and the Ghibli and Quattroporte sedans. New models like the Alfieri coupe and convertible were planned, but have not yet been launched. Further, the Levante competes in the large premium SUV segment - the only SUV segment that is not showing growth.

Source: Automotive News

 
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