Marchionne Still Pessimistic About Europe Car Sales
Fiat and Chrysler Group CEO Sergio Marchionne has done well in turning Chrysler around, but he’s been very pessimistic about the European market, blaming a lack of radical action for the crisis.
Last week, Fiat launched the 500L five-door version of the 500, and on the sidelines of the event told reporters he does not expect sales in Europe to recover in the next 24 to 36 months.
He said that he’s delaying the launch of a new Punto, as this would be a “failure”. Given the current prices in the subcompact segment, Fiat could not recover the money invested in developing and putting the new Punto into production. "You should be extremely cautious about investing when you cannot recover your investment," he said, according to Autonews Europe.
At the same time, Fiat could be closing its second plant in Italy due to low volumes.