AP: Fiat and Chrysler to focus on US, Brazilian markets
The Associated Press is reporting that Fiat and Chrysler will focus their efforts on generating cash from operations in the U.S. and Brazilian markets to get through the current upheaval in Europe.
Sergio Marchionne, CEO of both Chrysler and Fiat, made the remarks while in Turin for the presentations of the Lancia Voyager and Thema, based on the Chrysler Town & Country and Chrysler 300, respectively.
Marchionne has become increasingly frustrated with Italian labor unions, especially the FIOM metalowrkers’ union, and the Italian government, which seems unable to come to grips with the current financial crisis. Marchionne and Fiat chairman John Elkann pulled the company, which is Italy’s largest, out of Confindustria, the Italian industry trade group, citing counterproductive labor agreements.
While confirming targets for next year, Marchionne said, “There is no doubt that a lot of elements are coming to play here, one of which may be an Italian factor. … I don’t know any more,” Marchionne said. “The stock market is up 4, 5 percent one day, then down 3. It is totally moving on rumors. There is no factual basis. I haven’t moved a forecast. I have moved nothing.”
“It is embedding a perception of risk which is totally outside of my control for me to try to cover it, Marchionne added. “We are almost helpless on this. There is nothing I can tell you, or tell the market, that will make this go away.”
The Associated Press report said the continuing economic uncertainty is hurting auto sales, particularly in Fiat’s main Italian market. Fiat registered a 7.8 percent drop in sales last month compared with a year earlier while its European market share shrank to 6.5 percent in September from 7.2 percent a year earlier. On the other hand, Fiat which released its September sales figures yesterday, noted growth in the important German market, a 132-percent jump in Jeep sales and the fact that its Panda and 500 remain among the best-selling vehicles in the European market.
