Fiat CEO Sergio Marchionen said the automaker does not need to revise its 2013 targets, only to focus more on growth in Asia and the US amid European weak markets.
“I don’t think we’ll need to change our targets over all,” said Sergio Marchionne.”The geographical distribution could change, given the performance of Europe.”
As the European market is expected to remain weak in 2013 for the sixth consecutive year, Fiat has to focus more on the Asian, North American and Latin American markets. Last year sales in Italy dropped 19.8% and this year they are expected to fall more. Marchionne said that Fiat will announce its full-year 2013 targets on April 29th when it will report its first-quarter results.
In 2012 Chrysler reported earnings before interest and tax of 2.7 billion euro, which helped Fiat offset the loss of 738 million euro in Europe. Fiat expects profit to reach 8 billion-92 billion euro in 2013, more than half coming from North America, and sales of 4.3 million-4.5 million units. Credit Suisse analyst David Arnold believes that Fiat will have to cut its goals for this year mainly because a steeper than expected fall in Europe.
“Earnings forecasts at Fiat are going down and will continue to do so,” said David Arnold.