Analysts expect Fiat-Chrysler to miss 6-million sales target for 2014
By Jonathan, 04 Jan, 2012. 0 Comments
2012 Fiat 500C (Cabrio)
CEO Sergio Marchionne's plan of boosting the vehicle sales of Fiat S.p.A. and Chrysler Group to 6 million, which is deemed necessary to guarantee survival, may take longer than anticipated. According to the average estimate of 10 analysts that Bloomberg News surveyed, vehicle sales will total around 4.9 million units in 2014. This number is about 1 million less than the target of Marchionne for the year. The executives anticipate a sluggish economy in Europe to slow demand.
The CEO intends to combine Fiat with Chrysler in 2014 in order to obtain what he says is the "critical mass" necessary to secure long-term viability, with an estimate for 104 billion euros in $136 billion in yearly revenue then. The analysts predict that he will miss his goal by nearly 16 billion euros. Earnings are also expected to fall short, too.
Hans-Peter Wodniok at Fairesearch GmbH in Kronberg, Germany, said that Marchionne's 2014 plan is "unrealistic" without an acquisition, which Fiat cannot afford while it completes the Chrysler deal. According to a presentation on December 9, Fiat is seeking to be one of the five or six worldwide vehicle manufacturers that Marchionne expects will remain in coming years. Fiat owns 53.5 percent of Chrysler.
Fiat and Chrysler, when combined, ranked as the seventh biggest car manufacturer in the world in 2010, which was the last year that annual figures are available with 3.6 million sales, outperforming PSA/Peugeot-Citroen SA, SAIC Motor Corp. of China and Honda Motor Co. according to Bloomberg data.
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