Sergio Marchionne doesn’t plan on letting Chrysler Group go through an initial public offering. It also isn’t thinking of listing Ferrari S.p.A. considering that the economy is worsening. He has also revealed that there is no "urgency" to combine Fiat S.p.A. and Chrysler -- the two companies where Marchionne serves as CEO.
Currently, Fiat has 53.5 percent share of Chrysler. Moreover, Marchionne disclosed that there are no discussions regarding the purchase of the remaining Chrysler stake.
He added that he is now foreseeing the car sales in 2011 to be worse than what has been previously forecasted and that 2012 will also be difficult, according to Autonews. In addition, he mentioned that the performance of Fiat this year is "in line" with targets, which already factored in a degree of "uncertainty."
Speaking to reporters at the Frankfurt car show, Marchionne disclosed that some decisions have been suspended. Furthermore, Marchionne is under pressure to turn around operations in Europe after posting losses in the biggest market of Fiat and losing position to competitors.
During the first half, Fiat's market share in Europe shrank to 7.2 percent from the 8.1 percent a year earlier as deliveries declined 13 percent. In July, Marchionne appointed purchasing boss Gianni Coda to run Chrysler and Fiat in the region.
Fiat revised its whole-year earnings targets in July, estimating earnings before interest, tax and one-time items, which it calls trading profit, for 2011 to be around 2.1 billion euros or $3 billion.
The company also estimated 2011 revenue of at least 58 billion euros. Excluding Chrysler, which is incorporated in the figures, Fiat foresees a trading profit of around 1.2 billion euros on 37 billion euros in sales.