Marchionne: New Plan Needed for Chrysler and Fiat Amid European Woes
Sergio Marchionne, the CEO of Fiat-Chrysler, has said a new business plan is needed as the European automotive recovery is still a couple of years off. The Fiat and Chrysler boss had originally laid out five-year plans—for Chrysler in 2009 and Fiat in 2010. In an Automotive News report, Marchionne said both automakers will need to update sales forecasts to reflect the reality on the continent. Ahead of a speech at Ohio State University, Marchionne said the "market won't be there," referring to the original European forecasts, and added "you will see an update of what we think will happen in 2013 and 2014." Chrysler had originally exited bankruptcy protection in 2009 under the control of Fiat, and since that time has become an anchor for Fiat as the European market contracts. European sales fell 8.5 percent in August, making it 11 straight months in decline. Fiat has steadily been increasing its share in Chrysler from 20 percent in 2009 to 58.5 percent currently, and that number is expected to continue growing. The United Auto Workers' retiree health-care fund, also known as VEBA (voluntary employees beneficiary association) owns the remaining 41.5 percent of the company. Source: Automotive News (subscription required), Chrysler
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