The three clouds on the future of the Fca Cassino Plant – AlessioPorcu.it

The three elements to consider to understand the future of the Fca Cassino Plant with the Psa-Peugeot merger. They are not favorable. Despite this, nobody is active to ask for guarantees

There are three elements to consider. And nobody is in favor of Cassino Plant. The hypertechnological establishment from which the cars are born Alfa Romeo of the segment premium is a spearhead of the group Fca Fiat Chrysler Automobiles. But it means little or nothing. The merger with the group Psa Peugeot does not provide certainty to anyone. In Cassino less still.

Fine for Giulia and Stelvio?

The two models produced today at Cassino Plant they are destined to go out of production. Not now. This can be deduced from the statements made by the managing director Mike Manley on the occasion of conference call for the presentation of quarterly data. Announced the end of George, the platform on which they are born Giulia is Stelvio: at the end of the cycle it will be replaced by trying “the best alternative among those already available". Via Giorgio, means models that come from her.

Not immediately: but the way is traced. (Read here the previews: Fca greets Giorgio, the 'base' on which Giulia and Stelvio are born).

Good but not very productive

The other element to consider is the Cassino Plant. Very modernized: Sergio Marchionne wanted a radical transformation. To the point that except for the enclosure walls and the office building everything else has been thrown down and rebuilt. Modern, functional, suitable for producing high-level vehicles capable of guaranteeing high profitability.

The problem lies precisely in this last term. Cassino Plant it is not a profitable plant, as well as most of the Fca Group's Italian plants. And also the European ones. The area of ​​Europe – Turkey – North Africa is the ballast of FCA: the accounts stand only thanks to Jeep and Ram, US productions.

It is the Cassino productions that have reserved the greatest bitterness in the last quarterly report. Mike Manley he said it clearly: to the point that the plans for Alfa Romeo have been resized. (You can also find this here: Fca greets Giorgio, the 'base' on which Giulia and Stelvio are born). It is not a problem of product quality: it is a market problem.

The consequence is the redundancy fund. Having a jewel of technology that does not produce profits but only costs is useless in a group logic.

It is Peugeot to have bought

Beyond appearances, Peugeot has bought Fca. (read here The big changes on the horizon with the Fca – Psa Peugeot merger). Financial analysts immediately said: «it is Paris that buys Fca». The reaction of the exchanges is indicative. At the announcement of the merger, the FCA stock rose 8.2%, while the PSA shares fell by 12.8%.

In France they speak directly of "purchase". Highlight that Psa Peugeot pays 6.7 billion to Fca: in this way it has control of the board. Six out of eleven members of the new BoD will be Peugeot, plus the CEO Carlos Tavares.

Exor, the safe of Agnelli family, will have 14.2% of the new company. 5.9% will go to each of the three Psa shareholders (Peugeot, French state, the Chinese financial company Dongfeng). Together they have more than Exor. However, the balance between the members could change.

Going to intervene on the rationalization of costs, Tavarez will not be able to avoid taking into account the situation of Italian factories: they are not at full production, they are not making. In other words, they are a cost. On which to intervene.

The silence of politics

The numbers are known from the first moment. But none of the local politics intervened. Not one of the seven parliamentarians elected in the province that has the establishment inside Fca Cassino Plant. Silence from the four regional councilors of the territory.

At other times, with other politicians, the request would have started clerical just heard of the merger. Instead nothing. No one asks for guarantees. Also because he knows he can't expect them. Because it does not have the necessary weight.

But at least to show voters to be attentive to what happens in the college, to have a vision that is a little longer than the next four years, the period in which everything will develop between Fca and Psa.

Instead nothing. One more element for Tavarez. One less for Cassino Plant.