Fiat Being Saved by Chrysler Success

Sergio Marchionne gave his major speed on the state of FiatFiatItaly, 1899 > present159 models
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today, and as suspected, things are not doing well for the company. Operating profits were down 61% to €219 million compared to last year, and the company predicts continued declines through 2014. As of the third quarter, the company's debt increased by €1.26 billion to €6.69 billion. 

But without its partial ownership of ChryslerChryslerUnited States of America, 1925 > present70 models
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the company would be doing even worse. Fiat's before tax income was actually up 12% to €951 million and total revenue was up 16% to €20.4 billion. These gains are mostly because Chrysler is doing so well in the US. 

Chrysler's income is up 80% to $381 million for the third quarter, and it forecasts total 2012 income of $1.5 billion. Its worldwide production for the quarter was up 19% to 559,000. Chrysler is in $693 million of debt as of September 30, which is a significant decrease from $2.2 billion at the same point of last year. 

Fiat does not believe that it will break even until 2015 or 2016. However, the company believes that demand in North America, South America and Asia will also increase through 2016. 

Fiat also detailed its product plans for the next four years. It has two plans. First, it will remain focused on mass produced cars and close at least one factory. Second, it will bring more products to its heritage brands - Alfa RomeoAlfa RomeoItaly, 1910 > present108 models
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and MaseratiMaseratiItaly, 1914 > present62 models
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. 

For Fiat, the 500Fiat 500 (modern)Italy, 2007 > present240 versions
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and PandaFiat Panda Gen.3Italy, 2011 > present24 versions
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will be he pillar vehicles. LanciaLanciaItaly, 1906 > present60 models
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will continue become a European arm for Chrysler. It plans to create JeepJeepUnited States of America, 1941 > present33 models
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vehicles for more international markets. 

Europe will be getting cleaner versions of the Twinair engine, a new generation of transmissions including dual-clutch transmissions for North America, South America and Asia. It is also planning an electric Fiat 500, natural gas engines and flex fuel engines.

For 2013, Fiat, Alfa Romeo and Maserati will all get new products for export. An Alfa Romeo vehicle will be refreshed, and another Alfa Romeo will be refreshed and exported.

For 2014, Fiat, Alfa Romeo, Jeep and Maserati will all get new export vehicles, and they will all be built in Italy. Alfa Romeo will actually get two export vehicles.

In 2015, there will be a big product push. Fiat will have four new vehicles and only one will stay in Europe. One more Fiat will be refreshed. Alfa Romeo will have four new cars, all for export. Maserati will get two new cars. Jeep will have two new vehicles that will not be built in Italy, and Lancia will have one new car, not built in Italy. 

Finally in 2016, Fiat will have two new cars and one refresh. Alfa Romeo will have two new cars. Jeep will have two new cars, and Maserati will have one new car. 

Source: Automotive News Europe