Fiat and Chrysler combined sales in 2014 will total about 4.9 million cars, based on the average estimate of 10 analysts surveyed by Bloomberg.
That is 1.1 million less vehicles than CEO Sergio Marchionne’s estimate for the same year. None of the 10 analysts expects Fiat and Chrysler to attain the sales goal as the slowing European economy is affecting demand.
Sergio Marchionne plans to merge Fiat and Chrysler before the end of 2014 to attain the „critical mass” necessary to secure long-term viability. The CEO also forecasted combined annual revenue would reach €104 billion in 2014. However, the analysts say Marchionne will miss that goal too, by €16 billion and earnings will also fall short.
“Marchionne’s ambition for 2014 is unrealistic without an acquisition, which Fiat can’t afford as it completes the Chrysler deal,” Hans-Peter Wodniok, Fairesearch GmbH analyst, was quoted as saying by Bloomberg. Fiat wants to be one of the five or six global carmakers that Marchionne predicts will remain in coming years.
According to Giuseppe Berta, economic history professor at Milan’s Bocconi University, Fiat’s 6 million sales goal “seems more a slogan than a real target. The only chance to get there in 2014 is by combining Fiat and Chrysler with a player in Asia, a region where the group is extremely weak.”