Fiat opens up Euro markets for Chrysler
Chrysler brands enter UK, Spain, Switzerland and Poland, while Italian saviour ponders a larger slice of Pentastar pieFiat is making money hand over fist. The automotive giant last week reported a two million euro increase in profit, year on year, for Fiat Group Automobiles and two supercar makers -- Ferrari and Maserati.
It seems that Fiat, under the leadership of CEO Sergio Marchionne, can do no wrong currently. In addition to posting an improved profit -- at a time when some companies are struggling to post a profit at all -- the company's American property, Chrysler Group LLC is also looking forward to better prospects. As of this (third) quarter, Chrysler has launched or relaunched in four significant European markets: UK, Spain, Switzerland and Poland.
In a report published by American website Auto Remarketing Today, Marchionne is also considering taking a larger share in Chrysler -- up to 35 per cent of the value of the company. That is something that was always on the cards from the time the US government and former Chrysler management commenced negotiations with Fiat to acquire a share in the company after the American government had bailed Chrysler out of debt. Chrysler's finances are gaining ground and Marchionne has now confirmed Fiat will increase its share in Chrysler, with the transaction to be finalised by the end of next year.
Its involvement with Chrysler has laid the groundwork for Fiat to launch its tiny 500 in the US from January of next year. Irrespective of how the American consumers will greet the 500, Fiat anticipates strong global earnings for the full year, 2010. The company's forecast predicts revenue of €55 billion, €2 billion in trading profits and almost €400 million in net profit.
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