Goldman Sachs initiated coverage on automaker Fiat Chrysler on Tuesday, with a sell rating on the company’s stock.
Goldman analyst George Galliers indicated that the investment firm does not expect any substantial growth in Fiat’s North America earnings through its ﬁve-year (2018-22) plan. Galliers noted that North America can be attributed to the company’s earnings improvement over its last ﬁve-year business plan.
As for the auto manufacturer’s European market, Galliers is concerned about the age of the vehicles. The Dodge Challenger, for example, hasn’t been fully redesigned since 2008, and the Chrysler 300 has not been updated since 2011. Fiat Chrysler plans to redesign both in 2021.
Nevertheless, Galliers indicated that Fiat Chrysler's brand appeal and significant heritage along with strong European sales could help offset some of its challenges.