Marchionne announced he will revise the sales targets for Fiat and Chrysler tomorrow after the two automakers will report the third-quarter results.
Two and a half years ago, Marchionne was planning to sell 6 million vehicles annually by 2014, a target which analysts doubted will be made possible. Now Fiat’s and Chrysler’s CEO is expected to cut sales target by 15 billion euro ($19 billion).
“Marchionne was too optimistic in 2010. Fiat and Chrysler can’t grow by self-propulsion to the famous 6 million-car target,” said Giuseppe Berta, a professor at Bocconi University in Milan.
Fiat already said it expects losses of 700 million euro in Europe by the end of this year, as auto sales on the continent are heading towards the biggest drop in 20 years. In April Marchionne said he could stop losses in the region in the next two years, but it seems that the profit forecast for 2014, for Maserati, Fiat and Chrysler, would be cut to 89 billion euro from 104 million forecast in 2010.
Fiat’s auto sales are expected to fall by 27% or 1.6 million vehicles, and researcher IHS Automotive predicts sales will reach 4.4 million in 2014 for the group, an increase of 4.1% compared with this year.