|
Fiat CEO Sergio
Marchionne has suggest that Fiat Auto could beat its stated
targets this year with operating profits and market share
projections likely to be revised upwards during the second
half of the year. His comments came during an awards
ceremony, hosted by Italian motor trade publication
InterAutoNews, held last week.
Earlier this year Marchionne first hinted that the group's
targets could well be beaten soon, and that a longer-term
0.5-1.0 pct operating margin on cars could well be improved
on. This year the new Fiat Grande Punto model range has
comfortably exceeded initial expectations and is - after
almost four months of the year - Europe's best selling car
of 2006. It's success with the consumers, coupled to several
planned new models soon to arrive on the market, including
the new Stilo and 500, could see Fiat Auto revising upwards
its market share targets for 2007 which currently stands at
8.8 pct. Fiat has already revised a 7.2 pct share of the
European market target for 2006, up to 8.0 pct.
"2006 is shaping up as a rather good year for the automotive
market and for us," Forbes quoted an upbeat Marchionne
as saying during the InterAutoNews awards presentation. "We have announced a 100
million euro (operating profit for 2006). But it's clear
that if we continue at this pace there could be the
possibility of it being exceeded."
|
 |
|
This year the new Fiat Grande Punto model range has
comfortably exceeded initial expectations and is -
after almost four months of the year - Europe's best
selling car of 2006. It's success with the
consumers, coupled to several planned new models
soon to arrive on the market, including the new
Stilo and 500, could see Fiat Auto revising upwards
its market share targets for 2007. |
|
|
 |
|
Fiat CEO Sergio Marchionne has suggest that Fiat
Auto could beat its stated targets this year with
operating profits and market share projections
likely to be revised upwards during the second half
of the year. |
|
|
Marchionne added that the 'true' battle in the Europe
marketplace will take place next year when the 'compact'
Grande Punto and the Croma station wagon (both launched in
2005) are complimented by the arrival of the new C-segment
Stilo replacement and the 'sub' B-segment 500 model,
providing Fiat finally with a full and harmonious model
line-up. The advance in Fiat Auto's fortunes this year was
underlined by the CEO's comments that they would be seeking
new dealerships to compliment the existing retail network,
taking advantage of those dealer who are presently aligned
to manufacturers in a weaker position than Fiat is now.
The markets responded favourably to Marchionne's comments,
Fiat Group shares reaching a high of 11.09 euros after the
talk, with several Italian brokers slapping a 13 euro target
on the stock. Other factors weighing into the buoyant share
price is an expectation that a conclusion to the sale of the
Fidis finance division is close at hand, and that Tata Group
Chairman Ratan Tata's elevation to the Fiat board is also a
very positive step.
|
|
|
|
