Reuters: Mergers News: UPDATE 1-Fiat CEO sticks to 2012 targets despite turmoil

Reuters: Mergers News Reuters.com is your source for breaking news, business, financial and investing news, including personal finance and stocks. Reuters is the leading global provider of news, financial information and technology solutions to the world's media, financial institutions, businesses and individuals. // via fulltextrssfeed.com

UPDATE 1-Fiat CEO sticks to 2012 targets despite turmoil Jun 8th 2012, 16:52 Fri Jun 8, 2012 12:52pm EDT VENICE, June 8 (Reuters) - Italian carmaker Fiat's Chief Executive Sergio Marchionne stuck by the company's targets for 2012 on Friday, even though Europe faces a possible euro zone breakup that could cut car sales to less than 10 million vehicles from 13.1 million in 2011. "We still have to see the number of June car sales but right now I see no reason to widen our target range," Marchionne said on the sidelines of an event organised by the Council for the United States and Italy. Fiat, which controls U.S. automaker Chrysler, is forecasting net profit of 1.2 billion euros ($1.50 billion) to 1.5 billion euros for the full year, and a trading profit of between 3.8 billion euros and 4.5 billion euros. Marchionne confirmed those targets despite a stagnant Italian economy and an uncertain outlook in Europe. U.S. growth has bolstered Fiat's bottom line, offsetting weakness in Europe and in Italy. Marchionne, who is also head of the European car-makers association ACEA, said he was not forecasting a breakup of Europe's single currency, even though he said it was possible. "If the euro disintegrates, European car sales could fall to below 10 million" from the 13.1 million cars sold in 2011. Marchionne reiterated that Fiat plans to increase its stake in Chrysler by 3.3 percent from July 1, bringing it to 61.8 percent. Asked if Fiat had started talks to acquire the 42 percent stake in Chrysler it does not already own, he said: "We're not talking to anybody, but I plan to use the VEBA option." VEBA stands for Voluntary Employee Beneficiary Association, which converted its debt into equity when Chrysler went through bankruptcy in 2009. It is responsible for the health care bills of United States auto workers. He also confirmed the company's investment plan for Mirafiori, Fiat's flagship factory in Turin. Link this Share this Digg this Email Reprints

You are receiving this email because you subscribed to this feed at blogtrottr.com. If you no longer wish to receive these emails, you can unsubscribe from this feed, or manage all your subscriptions