Despite a significant turnaround at Chrysler, analysts expect the Fiat-Chrysler group to fall short of its 6 million sale target for 2014. Fiat and Chrysler CEO Sergio Marchionne has previously stated that the company needs to achieve at least 6 million global sales to ensure long-term viability.
According to an average of 10 analysts, Fiat- Chrysler’s sales will total just 4.9 million units by 2014 – falling more than a 1 million units short of Marchionne’s goal. Analysts say that slower-than-expected-growth can be attributed to weaker demand in Europe.
“Marchionne’s ambition for 2014 is unrealistic without an acquisition, which Fiat can’t afford as it completes the Chrysler deal,” said Hans-Peter Wodniok at analyst Fairesearch GmbH in Kronberg, Germany.
Although another merge is unlikely, it remains possible Fiat-Chrysler could acquire a new partner in the Asian region. Both Fiat and Chrysler are behind the trend in China and won’t produce their first vehicle locally until the second half of 2012.
Further expansion in China could be necessary as Europe continues to drag down Fiat’s profits. Through the first 11 months of 2011 Fiat’s European sales were down 12 percent to 886,178 units.
References
1.’Experts: Marchionne will…’ view
