Sergio Marchionne, Fiat and Chrysler CEO says that despite the unstable global economic state, the brands are still sticking with the goal of selling 6 million cars per year by 2014.
With Europe on a continual decline, Fiat’s greatly important Italian market is going to suffer, and sales forecasts are the lowest they have been since 1983, at 1.8 million for this year.
Marchionne remarks “People don’t even know how to buy groceries for the weekend right now, and we are worrying about 2014.”
Fiat and Chrysler are still attempting to be a singular global automaker, and feel that changes in the U.S. will keep sales going. “Anybody who runs a business knows, the only way to maintain a structure when you are under pressure is to reduce costs… I am talking about everyone in general. Tighten belts, remove all unnecessary expenditures and try to gear up these places toward growth,” says Marchionne.
Fiat is still working with Suzuki on engine production possibilities to tighten its belt, but there is no deal in place, yet.
He later noted, that with the Volkswagen Up being launched as a competitor, they had no choice but to go forward with the Panda city car, which is the brand’s best seller. The model starts production at the Pomigliano plant in November.
– By: Alexandra Koken
Source: Detroit News