Fiat Chrysler Delays Launch of Alfa Romeo, Maserati models due to Chinese economic slowdown

Fiat Chrysler Automobiles is delaying the launch of its Maserati Alfieri sports car and Giulia-based Alfa Romeo SUV due to the slow economic growth of China.

The new Maserati and Alfa Romeo models were supposed to roll out on 2016. However, according to an article from Road and Track, due to the slower-than-expected growth of Fiat Chrysler in China, the company is delaying the launch. Besides the slowdown in China's economy, Fiat Chrysler is also facing challenges such as an $11 billion debt and loss of income due to Ferrari's spin off from FCA.

FCA also announced in June that it was delaying the launch of Ram 1500 pickup and the Jeep Wrangler sport utility vehicles, according to a report by CNET. There are reports saying that FCA should shift its spending on cars that matter. Now, the car maker is reportedly shifting its investments on the Alfa Romero Guilietta and MiTo, which are popular in countries outside of the US.

Bloomberg reported that there are discussions being done on investments through 2018, but final decisions aren't done set yet. Chief Executive Officer Sergio Marchionne has to let go of his ambition to invest 48 billion euros ($51 billion) in a five year span.

"After selling off the family's silver, Fiat is still loaded with debt as Alfa Romeo is far away from generating cash," said London HIS analyst Ian Fletcher. "While it's a rational decision to step back from some projects and concentrate resources on the most important ones, the carmaker isn't getting nearer to its 2018 sales target."

FCA will focus on its SUV line up to take advantage of the strong U.S. demand. Meanwhile, Maserati will introduce the Levante at the Geneva motor show on March. FCA's first SUV will be out on the market next year. Jeep will also introduce a new mid-size SUV in 2016.

Marchionne hinted that Jeep may increase its 2018 target of 1.9 million as the demand for Renegade is growing.