Sergio Marchionne, Fiat and Chrysler’s CEO, announced he will revise and adapt the two-year growth plans for the two automakers, to adapt to the European crisis.
In August auto sales in Europe fell for the 11th straight month, making auto executives believe that it will take at least two years until they could see Europe rebound. This also made Marchionne reconsider the 5-year growth plan made in 2009 and adapt it to the current situation. He will present a new plan October 30th and also the 2013-2014 forecast.
In 2009 Chrysler avoided bankruptcy with the government’s help, under the management control of Italian automaker Fiat. Since then Chrysler has become the Italian automaker’s main source of strength, accounting for two-thirds of its profit. Fiat currently owns 58.5% of Chrysler, and Marchionne said he hopes so solve quickly the dispute with the healthcare trust, Chrysler’s other shareholder.
Fiat tries to increase its stake in the US automaker by buying the shares owned by VEBA, the healthcare trust. Marchionne said that he hopes by the end of this year to get the 3.3% in Chrysler and that the automaker will try to buy another small stake from VEBA in January.