Fiat’s 2012 sales forecast revised downward by 500,000 units image

Fiat will not meet its sales forecast of 2.7 million sales in 2012, with the automaker revising its target downward by 500,000 units.

Fiat’s U.S. subsidiary Chrysler will however meet its goal of selling 2.4 million vehicles next year, the Italian automaker announced. Fiat-Chrysler’s combined global sales for next year are therefore forecast at 4.6 million units, from 4.2 million units in 2011. Despite Fiat’s revised sales target for 2012, CEO Sergio Marchionne said the goal of selling 5.9 million units in 2014 remains intact.

In order to reach Marchionne’s ambitious target, Fiat-Chrysler must increase their combined sales by 650,000 units in 2013 and 2014, equivalent to a rise of roughly 14 and 12 percent in both carmakers respectively. “Marchionne’s 2014 volume target looks truly challenging, unless Fiat’s core markets can show a substantial rebound in the coming years, which looks unlikely now,” Mediobanca’s financial analyst Massimo Vecchio was quoted as saying by Automotive News Europe.

When Fiat’s CEO presented the company’s 5-year plan in April 2010, he forecast sales of 2.3 million units in 2011 and 2.7 million in 2012, but the revision now sees flat sales of around 2.2 million for both 2011 and 2012. Fiat’s 2010 plan was based on higher volume forecasts for Italy and western Europe.