Fiat will break even in Europe by 2014, says Sergio Marchionne

Article by Christian A., on September 22, 2011

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.

If you liked the article, share on:

Comments

Recommended

The new 2018 Ford Mustang GT, when equipped with its optional Performance package, will be able to produce 460 horsepower. It also comes fitted with Michelin Pilot Sport 4S tires...
by - October 19, 2017
It’s not as if the Porsche 718 Boxster and Cayman are not already impressive cars. The automaker has just given us more reasons to love the twins. The 2018 model...
by - October 19, 2017
After months of dropping online teasers, Polestar finally reveals its very first production car virtually. The Polestar 1 is a two-door coupe that gets its design inspiration from the 2013...
by - October 19, 2017
While the official premiere of 2018 Jeep Wrangler (JL/JLU) is already set this December, fans everywhere rejoiced at having had something like this appear on the web. Yes, everything we...
by - October 19, 2017
South Korean carmaker Kia will try to follow up the success of its Sportage compact sports utility vehicle by introducing a smaller SUV (subcompact) in the United Kingdom in the...
by - October 18, 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