Fiat and Chrysler Will Break Even in Europe by 2014 image

Sergio Marchionne declared on Wednesday, April 4th, that Fiat’s alliance with U.S. carmaker Chrysler should allow its European business to reach break even by 2014.

The two companies, which begun a partnership in 2009, expects to sell this year between 4.1 million and 4.4 million vehicles, up from just over 4 million in 2011. In March Chrysler’s sales were up 34%, making it the best month in four years, but Fiat’s domestic sales were down to the lowest level in 32 years, due to the fact that Italy faces recession, higher taxes and rising gas prices.

Sergio Marchionne plans to build cars in Italy and export them to North America, were factories run at near full capacity.

“This process will allow us to cleanup definitively the inefficiencies in out industrial network and return to break even with the European car business by 2014,” Marchionne said.

In 2011 Fiat and Chrysler managed to reach sales so high as to make it the seventh-largest car company in the world. Marchionne aims at going further building 6 million cars a year by 2014, the figure necessary to be competitive in the global market.

“We have become one of the strongest and most competitive car producers, with a level of technology among the most innovative and advanced in the world,” he said.