FRANKFURT—Fiat and Chrysler CEO
Sergio Marchionne on Tuesday said the combined companies still aim to
produce 6 million cars a year by 2014 despite the increased uncertainty
in global financial markets.
"People
don't even know how to buy groceries for the weekend right now, and we
are worrying about 2014," Marchionne said with some irony.
"In
the absence of a cataclysmic event the answer is yes, that is what we
are trying too build," he said, referring to the companies' production
goals.
Fiat SpA has a
53.5-percent majority stake in U.S. automaker Chrysler Group LLC and is
looking to combine the companies to create a global automaker.
Marchionne said Chrysler is in a better position because U.S.
policymakers have done more to stimulate the economy.
The
Italian-Canadian CEO said there need to be serious discussions in
Europe about promoting growth, and that governments across the continent
need to reduce their costs to confront the crisis credibly.
"Anybody
who runs a business knows, the only way to maintain a structure when
you are under pressure is to reduce costs. ... I am talking about
everyone in general. Tighten belts, remove all unnecessary expenditures
and try to gear up these places toward growth," Marchionne told the
Associated Press.
Despite
the weakening market, Fiat is premiering the third generation of the
Panda city car, the best-selling car in the segment in Europe, at the
Frankfurt Auto Show. The car is slightly longer, but retains much of the
look of the original, which has sold more than 6 million units since
its launch in 1980.
It is being challenged by Volkswagen, which is launching the Up, the latest entry in the market for tiny, fuel-efficient city cars.
Marchionne said there was no choice but to go ahead with the launch.
"It
is never the right moment when the market is weak," he said. But if the
company had to follow volatile markets "then we close up shop and go
home."
Production of the
Panda will begin in November at the Pomigliano plant near Naples. But
Marchionne has put other investments on hold -- including plans to build
Alfa Romeo and Jeep SUVs at a plant in Turin -- while the crisis sorts
itself out.
"Everything is on the table now because this uncertainty makes everyone concerned about what the future looks like," he said.
Marchionne has pledged to invest euro20 billion ($27 billion) in Italy to double production by 2014.
The Fiat CEO also confirmed talks with Suzuki on supplying engines, but indicated the deal was not yet finalized.
"I
think there is a potential deal with Suzuki on engine supply. We are
going to continue working with the company. ... anything that works for
them and for us, we will do," Marchionne said.
Suzuki
Motor Corp. on Monday said it will end its alliance with Volkswagen AG
following a nearly two-year marriage, after Volkswagen accused Suzuki of
violating the terms of its partnership by deciding to buy diesel
engines from rival Fiat SpA.
Tags:
Italian-Canadian CEO, chrysler group LLC, suvs, suzuki, volkswagen, flat, flat ceo

Tags:
Italian-Canadian CEO, chrysler group LLC, suvs, suzuki, volkswagen, flat, flat ceo
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