Fiat to cut investments in Europe by 500 million euros

Article by Anita Panait, on June 15, 2012

Italian carmaker Fiat is slashing its investments in Europe by around EUR500 million as it expects that the continent’s auto market would not be able to recover in the second half of 2012, according to Fiat chief executive Sergio Marchionne. Fiat’s CEO, during an interview at an annual meeting of the European auto association ACEA, said that the recovery of the European auto market depends on several factors like the current debt crisis in Greece, the direction of the euro, and Europe’s plans to sustain growth.

Fiat has stopped making new investments and launching new models in the continent.  Marchionne has plans to eventually merge Fiat and Chrysler Group LLC, in which the Italian carmaker owns a 58.5 percent stake, in order to increase sales to over EUR100 billion by 2014 and cut its reliance on Europe.

According to Marchionne, the new Grande Punto model, originally set for production in 2013, is one of the company projects that the carmaker is reconsidering “in line with the changes" to the market in Europe.

The Fiat chief executive revealed that the company is currently holding partnership talks with other parties, with topics including its architecture for the Punto. Marchionne remarked that Fiat will definitely be at lower sales levels for some time in Europe. According to Richard Hilgert, an analyst at Morningstar Equity Research, since Europe will have a long, slow recovery, Marchionne is focusing more on growth outside the continent.

Meanwhile, Marchionne revealed that Fiat has already sent a letter to exercise its option to acquire additional stakes in Chrysler. Fiat has to spend less than EUR200 million to increase its stake by 3.3 percent to 61.8 percent.

Topics: fiat, europe

If you liked the article, share on:

Comments

Recommended

An RHD (right hand drive) BMW M4 DTM Champion Edition has been listed to be for sale by Romans International, UK’s leading supercar dealership. The first owner of this rare...
by - May 24, 2017
Audi will be offering something exciting for its United Kingdom market. The company announced that it will be adding new features as standard to the A4 range. It also confirmed...
by - May 24, 2017
You guys are probably aware of the collaboration between Mercedes-Benz and Renault-Nissan. Knowing this, you would expect that both companies will come up with something impressive. Sources say that the...
by - May 24, 2017
Amongst all sports cars on the planet, which one is the world’s best-selling model? Would you have guessed that it is the Ford Mustang? According to IHS Markit’s global automotive...
by - May 24, 2017
It’s not a bird. It’s not a plane. It’s Kris Singh’s blue carbon flying machine! Time stood still for a few minutes after the extremely rare Pagani Huayra BC Macchina...
by - May 24, 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