Sergio Marchionne, Fiat’s chief executive, announced the company will hold off on investments as Europe’s crisis will affect the entire year.
At the end of June Marchionne reported the company had cash and marketable securities of 10.2 billion euro ($12.56 billion) and Chrysler had 9.6 billion euro. Moreover the two companies together have committed credit lines of 3 billion euro. The chief executive said that he decided to keep coffers full for the ‘foreseeable future’ and due to ‘uneven availability of capital markets’ caused by the European debt crisis.
“I don’t expect that to change within 2012,” he said.
Marchionne also said that the company doesn’t have plans for future partnerships and that he is satisfied with the Fiat-Chrysler-Mazda alliance. Fiat and Mazda plan to manufacture a new Mazda sports car and Alfa Romeo for the US market. Fiat still sticks to its plan to invest 7.5 billion euro by the end of 2012 and to open a new plant in Brazil in 2014.
Regarding the situation in Europe Marchionne said “We reserve the right to deal with these issues, including the issue of closing plants, after the third quarter, when we will have a better reading of the European market.”