Fiat cuts sales, profit targets for 2013 and 2014 image

Fiat today announced it is slashing its sales, trading profit and volume targets for the next two years to include losses from its core European markets.

The Italian carmaker cut by around a third its 2014 target for trading profit to 4.7 – 5.2 billion euros down from the initial aim of 7.5 billion euros set in 2010. Fiat also reduced its volume targets, revising projections made in 2010, when European economies looked set to recover from the global financial crisis. Fiat now says it expects to sell 4.6 – 4.8 million vehicles in 2014, down from the 2010 forecast of 6 million.

Fiat also announced it cut its 2014 revenue target to 94 – 98 billion euros from a previous forecast of 104 billion. The automaker also expects higher debt this year, with the target set to 6.5 billion euros, a billion higher than originally planned. Add to that the fact that trading loss will reach 700 million euros in Europe this year and it’s no wonder Fiat does not believe it will break even in the region before 2015 – 2016.

“Events of the past 12 months have reinforced our negative view of the development of the European markets,” Fiat said in a statement.