Marchionne says that he’s not planning an IPO for Chrysler or ferrari

Article by Christian Andrei, on September 16, 2011

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.

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

Nearly all details have been set with regards to the upcoming market introduction of the new Jaguar I-Pace. Its production version was recently previewed at the 2016 Los Angeles Auto...
by - December 8, 2016
WM Motor, a new China-based automaker, recently revealed its forthcoming lineup consisting of affordable electric vehicles. While there is a company is the U.S. that has the same name, they...
by - December 8, 2016
Even when Aston Martin has been mum about the upcoming AM-RB 001 hypercar, Marek Reichman at least has something new to say. In a recent interview with Australia’s Motoring, the...
by - December 8, 2016
The people at Mercedes-Benz are rejoicing. This is simply because for the first time since 1979, Mercedes-Benz has assembled 20,000 – and still counting – examples of the Mercedes-Benz G-Class....
by - December 8, 2016
When Donkervoort Automobielen BV unveiled its Donkervoort D8 GTO-RS limited edition in May 2016, customer interest has been so overwhelming that the Lelystad, Netherlands-based carmaker sold out this one-of-a-kind vehicle...
by - December 8, 2016
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