Sergio Marchionne, Fiat’s CEO, will give details about his plans to manufacture Jeep and Fiat SUV at its plant in Melfi, Italy.
The possible instability in Italy will not stop Sergio Marchionne from going ahead with his projects. Last week, Italy’s Prime Minister Mario Monti announced his intention to resign, an unexpected change for the country.
Marchionne is expected to give details regarding his plan at the beginning of next week, possibly some information about the initial spending at the Melfi plant. The CEO wants to manufacture the 500X, which is a replacement for the current Fiat Sedici small crossover, and also a Jeep Wrangler for the European and US markets.
Sergio Marchionne plans to increase sales of the automaker’s more expensive models to be able to turn around Fiat’s operations in the European market, where the company expects to reach loses of 700 million euro ($913 million) by the end of this year. Fiat also reduced its 2014 profit target by 31% to 5.2 billion euro. Marchionne plans to introduce 19 Italy-produced models, among which six Maseratis and nine Alfa Romeo models.
“Marchionne is doing well in taking this opportunity, and his focus on the high-end market segment goes in the right direction,” said Carlo Scarpa, professor of industrial economy at the University of Brescia. “A new government wouldn’t make a big difference and, in the medium term, the economic trend should be positive.”