Fiat and Chrysler CEO Sergio Marchionne today said that he expects the two companies will record combined sales of 4.2 million this year, with 6 million units expected for 2014 when the merger is scheduled to take place.
Marchionne kept these targets despite weak car sales in Europe, as Chrysler’s strong performance in the United States and growth in the Brazilian market have offset losses in Europe. Fiat-controlled Chrysler contributed two-thirds of the combined group’s third-quarter trading profit.
Speaking at the Confederation of British Industry’s annual conference in London, Marchionne said the group targets around €100 billion in combined revenues by 2014, when the CEO plans to merge the two carmakers in order to reduce costs. If everything goes as planned, revenues in 2014 will be almost double than the 2011 revenues, targeted at €58 billion. Fiat is losing an estimated €800 million a year in Europe. Fiat, which owns 53.5 percent of Chrysler, expects to get to a 58.5 percent stake by the end of the year after meeting performance targets.
The executive also said he expected further consolidation in the car industry. “We’re bound to see the elimination of marginal players going forward, I believe we’ll end up with just five to six players whose success will be based on sharing architecture, at a global level,” he was quoted as saying by Reuters.