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

Audi’s intention to bring out the Renn Sport Racing version of the Q5 was made clear when it unveiled the Audi SQ5 at the 2017 Detroit Motor Show early this...
by - July 22, 2017
Kia’s Sorento midsize sports utility vehicle is reaching its mid-cycle for the 2018 model year. Thus, its fans, enthusiasts and satisfied customers are expecting the Sorento to receive an update...
by - July 22, 2017
The Lotus Evora Sport 410 astonished the world after arriving as the more powerful and lighter edition of the already impressive Evora 400. Now, Lotus Cars is throwing in another...
by - July 22, 2017
The Europe-bound WRC hatch developed by Toyota and Gazoo Racing team will be limited to just 400 examples as reported by AutoCar this week. Otherwise known as Gazoo Racing Masters...
by - July 21, 2017
Even cops get excited when they’re assigned to drive the best cars in the market. In Austria, police officers drive around in a Porsche 911 Carrera while in Milan, authorities...
by - July 21, 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