Sergio Marchionne confirmed Fiat’s 2011 targets for now

Article by Christian Andrei, on August 26, 2011

Sergio Marchionne, the chief executive officer of Fiat, has confirmed the company’s 2011 targets "for now," hoping to dispel worries stemming from a slowing U.S. economy, a weak market in Europe and a drop in shares that has almost halved the company's market capitalization. Specifically, he mentioned that they will not be reviewing the targets for 2011 until the end of the third quarter.

He further stated that the underperformance of the stock had nothing to do with the costs of refinancing the company’s huge financial liabilities, which have increased along with the growing yields on Italian government bonds, and ruled out a capital increase.

He further mentioned that the U.S. market was doing well but that the outlook for Italian and European is bleak. In addition, the Fiat CEO pointed out that the company’s domestic market is now at its lowest since 1996.

The company has a 53.5 percent share of Chrysler, and has been one of top turnaround stories in Europe in the recent years. However, it has been under market scrutiny for its exposure to the U.S. economy after a sell-off of Italian assets that started last month. Shares of Fiat had the poorest performance in the blue chip FTSE MIB index this August, prior to bouncing back this week.

Like the rest of the major players in the auto industry, Fiat has been hit by concerns that a slowdown in the global economy will hurt its revenues. Due to the company’s increasing reliance on Chrysler, which it started merging in its results last June, Fiat is perceived to be especially susceptible to a slump in the United States.

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

Volkswagen Group’s dieselgate saga continues, but it appears the German company would be able to get out of trouble, but it would not be unscathed. This development comes as Volkswagen...
by - January 22, 2017
When a car has been in the market for nearly six years, it loses some of its luster and its customers tend to go for the all-new model with a...
by - January 22, 2017
Remember Zenos Cars, a British carmaker that specializes in designing and building lightweight and high-performance sports cars? If you are wondering how the company is faring with their E10 lightweight...
by - January 21, 2017
Mercedes-Benz has revealed that in 2017, its series 124 coupé will be celebrating its 30th anniversary. While this itself is a significant event, it will also mean that this model...
by - January 21, 2017
BMW’s 550i xDrive has long been considered as one of the most successful business sedans in the world. For the brand, this may not be enough as it has officially...
by - January 20, 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