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Magna in talks with FCA to build 200 / Dart


Anthony

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http://www.motortrend.com/news/magnas-expanded-car-making-does-not-include-apple-car/

 

Just a line item in a much larger article:

 

 

Magna is also talking to Fiat Chrysler Automobiles where CEO Sergio Marchionne wants someone to build compact and midsize cars in the future. He no longer wants to build the Dodge Dart and Chrysler 200 in his own plants, preferring to use FCA plants to make more profitable trucks, SUVs, and minivans. Magna has a long history of making Jeeps and even minivans for Chrysler in Austria.

 

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I wonder how profitable this would be really for Magna? Or better yet FCA. I don't get how you can actually expect to sell car that is barely competitive in its segments and make money on it without investing more money on that said product to make it competitive

 

Are they just going to dump it into rental fleets then?

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I wonder how profitable this would be really for Magna? Or better yet FCA. I don't get how you can actually expect to sell car that is barely competitive in its segments and make money on it without investing more money on that said product to make it competitive

 

I'm not optimistic that assembling Dodge Dart and Chrysler 200 will be particularly profitable for them. Magna currently builds Mercedes-Benz G-Wagen, Mini Countryman, and Mini Paceman at the plant in Graz, Austria. All are considered premium entries in their respective segments, with greater prospects for consistent profitability than the Chrysler sedans.

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I think Magna have a NA based plant in Canada. The FCA cars can be "assembled" there while Magna Europe can still do their current customer vehicles.

 

I can imagine FCA kicking in money for the Canadian Magna plant expansion to handle Dart/200.

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I think Magna have a NA based plant in Canada. The FCA cars can be "assembled" there while Magna Europe can still do their current customer vehicles.

 

I can imagine FCA kicking in money for the Canadian Magna plant expansion to handle Dart/200.

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Magna also has a shuttered plant in Syracuse NY. Old New Process Gear plant just off the thruway and rte 291.

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Magna wants to get into the US:

 

 

“North America is an opportunity, no question,” Brusius said. Site selection research began three or four months ago and all the necessary information should be in place by year end. He is hoping for a decision on a North American plant in mid-2017. At this point, production for Apple or Google is not part of the discussions.

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Are they just going to dump it into rental fleets then?

 

Probably not. The rental car industry in the U.S. is experiencing overcapacity and the major players (Hertz Global Holdings, Enterprise Holdings, and Avis Budget Group) are all cutting back on new vehicle acquisition.

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My guess is that Chrysler will probably sell the Brampton plant to Magna as there is question as to if they can keep it open. The 300/Charger/Challenger will go elsewhere. Then Magna can build the cars for Chrysler and other cars as well. Then Chrysler can use that money as well as Jeep's cash to fund more Alfa and Fiat models no one will buy.

 

I am surprised that after badmouthing the 200 and saying it is a mistake, Sergio is going to have someone else produce it.

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