Sergio Marchionne, the CEO of Fiat S.p.A., has confirmed financial targets for 2011, even as sales have been slowing down in the European region. Furthermore, he said that he is aiming for a breakeven result for the company in Europe by 2014. He added that they have dropped forecasts for 2011 vehicle sales in Italy, stating that the strict Italian government measures "will ultimately impact 2012 volumes."
On another note, he stated that its sales in central and northern Europe are "doing relatively well.''
The CEO is struggling to increase European sales as Fiat records losses in the region and continues to lose ground to its rivals. The market share of the company in Europe dropped to 5.8 percent in August from 6.8 percent last year as deliveries dropped 7.6 percent. On July, Marchionne promoted purchasing boss Gianni Coda to run the company's two operations in Europe.
Last week, he stated that he may delay the introduction of new vehicle models worldwide. He also said that he will not consider selling stocks in Ferrari as markets worsen.
A plan to purchase the remaining share in Chrysler is also on hold, as disclosed by Marchionne on September 13. The company currently holds a 53.5 percent share in Chrysler. In addition, the company expects to obtain another 5 percent of the share by the end of 2011 in exchange for developing a fuel-efficient vehicle model.
After consolidating Chrysler starting June 1 in its books, Fiat revised its full-year earnings targets in July. The company estimates its 2011 earnings before interest, taxes and one-time items, which it calls trading profit, to be around 2.1 billion euros or $2.87 billion, and its revenue to be more than 58 billion euros.