Fiat Chrysler Automobiles’ CEO, Sergio Marchionne, said that he did not find any reasons at the moment to review the automaker’s 2014 financial guidance, despite strenuous European and Latin American markets.
Analysts were expecting a cut in full-year guidance due to poor second-quarter results for Fiat. However, the auto group expects this year to raise operating profit by as much as 14%, excluding one-off items.
Marchionne told reporters at an event in Balocco, Italy that “I have no (basis for) … suggesting I won’t (meet guidance). Europe is what it is, Latin America is having a rough patch. We are holding our own in Latin America. We do have a structural advantage on our competitors in Brazil because of our cost structure.”
The Fiat CEO added that the automaker is waiting for sales results for September, which is an important month for the brand. He reiterated that the auto group had enough resources to finance its 5-year business plan and that any decisions regarding future capital raising will be taken at the end of October by the new board of the recently merged Fiat Chrysler Automobiles N.V.
Ratings agency Fitch changed its outlook on the carmaker’s situation from negative to stable and confirmed Fiat’s ratings on Thursday, agreeing that the group’s profile had become stronger due to the increased integration of Chrysler into Fiat.
By Gabriela Florea