FCA Might Spin Off Jeep And Ram Into Their Own Company
Fiat Chrysler CEO Sergio Marchionne was asked on Wednesday if Jeep and Ram could be turned into separate standalone companies and to everyone’s surprise, Marchionne replied with a simple “Yes”, Jalopnik reported. Marchionne has turned other Fiat-Chrysler brands into standalone companies in the past.
Last year, Ferrari was made into a separate company, which has proved to be very financially successful for FCA. Morgan Stanley’s Adam Jonas, who was the analyst who asked Marchionne the question, valued Jeep on a standalone basis at $22 billion back in January. He also has valued Ram at $11.2 billion. Marchionne said it’s too early to make a decision on standalone companies for both Jeep and Ram but said between now and the end of 2018, he will be able to make a final call.