[Allpar News System]

Chrysler/Fiat CEO Sergio Marchionne yesterday warned that first-quarter earnings would be down due to the ongoing troubles in Europe and a significant production loss while Jeep transitions to new models. According to a Bloomberg News report, Marchionne, who was speaking at SGS SA's annual meeting, said, “This won’t be a great quarter, but the important thing is that we’re confirming our 2013 targets.” Marchionne, who is chairman of the board of SGS, added, “there’s no certainty when Europe’s sales crisis will end.” Marchionne had previously noted that February was probably the last of 35 consecutive months of year-over-year sales improvements. At the same time as he issued the warning, Marchionne reaffirmed the companies' full-year forecasts as he expects sales of new products will cover the lean first-quarter results.

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[Erik Latranyi]

Article from USA Today. Link below:

http://www.usatoday.com/story/money/cars/2013/03/19/chrysler-fiat-earnings-forecast-marchionne/2001433/

From the article:

Retooling Jeep for new models is playing havoc with the earnings of its Italian parent, Fiat.

First-quarter profits will fall, Bloomberg News reports. Yet Fiat is counting on Chrysler Group, which includes Jeep, in the U.S. to power earnings despite continued weakness in Europe, Fiat and Chrysler CEO Sergio Marchionne told reporters in Geneva today.


Now, let us discuss journalistic bias. We know that retooling the plants will mean a shortage of vehicles to sell, and, as Marchionne has discussed, will lead to lower profits.

But this is not what is playing havoc with Fiat's earnings. The European collapse is hurting Fiat far more than Chrysler's retooling.

But the anti-Chrysler press portrays the issue as Chrysler's fault.



But that is not as biased as this article from Yahoo:

Chrysler output boom irks workers as Fiat idles plants

From the article:

With auto sales in Europe stalled, Fiat is pushing Chrysler to boost production at key US plants over the opposition of blue-collar workers who don't like the new work schedules.

Original link here:

http://sg.news.yahoo.com/chrysler-output-boom-irks-workers-fiat-idles-plants-150505038.html

 

[Paul J. Reed]

If the GT was out, he would have had my money....