Sergio Marchionne, the CEO of both Fiat and Chrysler, said that their combined car sales will increase to a total of 4.2 million units this year and will climb to almost 6 million by 2014. Marchionne said that these targets will stay the same even if the car sales in Europe have been weak. He explained that its poor sales were offset by Chrysler's strong performance in the U.S. and growth in Brazil.
Chrysler, the third largest U.S. auto firm, has been managed by Fiat since 2009 when it was bailed out by the U.S. government. Chrysler has contributed two-thirds of the combined group's trading profit in the third quarter.
Marchionne said that he was “cautious” about its outlook for profit margins. He said that he anticipates a “great year” for the U.S. auto industry but that he is still reviewing the 2012 targets for Europe. He revealed that for 2012, there is no plan to merge with Chrysler. At the Confederation of British Industry's annual conference in London last Monday, Marchionne said that he believes that there will be further consolidation in the industry.
He said that in the future, marginal players will be eliminated and that there would only be 5 or 6 players that will be successful “based on sharing architecture, at a global level." Marchionne hopes to make Fiat a global player through a revamped Chrysler. The group has set a target of 100 billion euros ($144.2 billion) in combined revenues by 2014. This is nearly double the expected 2011 revenues of about 58 billion euros the group has aimed for this year. [source: Reuters]