Fiat-Chrysler CEO to unveil revised 2-year growth plans on October 30

Article by Anita Panait, on October 10, 2012

Sergio Marchionne, the chief executive of Italian carmaker Fiat and its US subsidiary Chrysler Group, is set to outline revised two-year growth plans for both companies on October 30, 2012, to account for the decline in vehicle sales in Europe. Marchionne said it would be “nonsense” to assume that Fiat will confirm its outlook for Europe since the “market won't be there."

Fiat’s CEO said they will be updating their forecasts for 2013 and 2014. Marchionne is under pressure from Italian politicians like Prime Minister Mario Monti after Fiat dropped its Fabbrica Italia initiative.

Under the initiative, Fiat was to spend EUR20 billion ($26 billion) to increase production in Italy in exchange for labor concessions. Car sales in Europe dropped 8.5% in August 2012 (its 11th straight monthly decline), prompting several auto executives to remark in September that it is unlikely for the European market to recover within two years.

This remark raised concerns about Fiat’s ability to meet the targets that were set in its five-year growth plan disclosed in 2010. Marchionne outlined a distinct five-year plan for Chrysler in late 2009.  Marchionne said that new Fiat-Chrysler revised plans will be unveiled at the end of October. They will also reveal an update of what they think will happen in 2013 and 2014.

Fiat is currently relying on the strong sales posted by its majority-owned Chrysler unit in order to cope with slumping demand for vehicles in Europe. The combined Fiat-Chrysler group now accounts for over two-thirds of the Italian carmaker’s profits in the U.S. Fiat now holds a 58.5-percent stake in Chrysler, after initially controlling 20% in 2009.

Topics: fiat, chrysler, ceo

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

In the minivan segment, the 2017 Chrysler Pacifica is already impressive in terms of fuel economy figures – as rated by the United States Environmental Protection Agency. In fact, the...
by - December 2, 2016
Having a blacked-out Bentley Mulsanne Speed is already menacing by itself but by naming it as the Bamford X, it became all the more imposing. This model was made by...
by - December 2, 2016
We have good news for those who are waiting for the latest version of the Mazda CX-5 compact crossover. It was just unveiled in November at the 2016 Los Angeles...
by - December 2, 2016
Those familiar with racing know that Marco Wittmann’s win during the 2016 Deutsche Tourenwagen Masters held last May was noteworthy as it was his second title in four seasons. In...
by - December 2, 2016
Volvo has revealed that while its products are used by a number of police organizations around the world, it will be the Swedish police that will get the first chance...
by - December 2, 2016
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries