Fiat stops investments because of crisis in Europe

Fiat stops investments because of crisis in Europe
# 04 August 2012 09:09 (UTC +04:00)
Baku. Nijat Mustafayev – APA. Fiat SpA (F) Chief Executive Officer Sergio Marchionne temporarily stopped new investments in Italy as Europe’s debt crisis causes sales in the region to plunge, APA reports quoting “Bloomberg”.

“For the time being, the economic crisis and current difficulties in the European auto market prevent the company from being able to give any indications concerning future investments,” the Italian carmaker said today in an e-mailed statement, adding that Fiat will give its new plan for Italian factories at the end of October, when it will releases third- quarter results.
Marchionne, who has been spearheading an industry-wide effort to cut excess assembly lines in Europe, has vowed to close a second Italian factory, after shuttering one last year, unless he finds a way to export cars to the U.S.
European auto sales are set to fall for a fifth straight year as high unemployment and the region’s sovereign debt crisis causes consumers to hold back from making big ticket purchases. Capital spending at Chrysler Group LLC, which Marchionne also runs, will rise to $4 billion this year from $3.1 billion in 2011, while Fiat is reducing European investment by 500 million euros in 2012.
“Difficult conditions persist in the European auto market, particularly in Italy where demand is approaching the lowest level since 1979,” Fiat said in the statement. “Certain peers who are still heavily exposed to the European market are experiencing significant losses and have even had to announce plant closures.”
1 2 3 4 5 İDMAN XƏBƏR
#
#

THE OPERATION IS BEING PERFORMED