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:

Pin It

Comments

Recommended

Reddit user Jdubbswrx spotted a rather deceptive move coming from the German automotive manufacturer Audi. He posted an image of the supposed exhaust of the new 2018 Audi SQ5 sporting...
by - March 29, 2017
McLaren car owners will be thanking the automotive company as it has decided to roll out new goodies for the 540C, 570S and 570GT sports car line-up. From this series...
by - March 29, 2017
On July 11, Audi is set to reveal its flagship luxury sedan, the all new A8. And at this moment, none of us are sure how this model will look....
by - March 29, 2017
The recent Porsche 911 is definitely considered one of the most elite sports car to grace the roads worldwide. The task of producing its successor is challenging enough for the...
by - March 29, 2017
British startup Zenos, which entered bankruptcy administration earlier this year is now back in business. The Norfolk-based sports car manufacturer was bought by a consortium of investors headed by AC...
by - March 29, 2017
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