Fiat could spin off its Auto unit if its targets for 2007 are achieved, but does not intend to do so, chief executive Sergio Marchionne has said.
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“If we achieve the margin targets that we set for ourselves, it is technically possible to look at deconsolidation of Auto,” he told Reuters following the announcement of the company’s second quarter results. “Having said this, there is neither a commitment nor a confirmation on the part of Fiat management to do so.”
Marchionne also said Fiat would be able to dampen the negative impact of rising raw materials costs this year.
“We expect the total raw material price increases for the year to average about EUR280m”, mostly from non-steel commodities like copper, aluminium and other metals, he told the news agency.
“All of these raw material price increases are being contained either as a result of technical savings or a result of supplier negotiations.”
Marchionne expected to announce more alliances with other companies and said he is working out the details.
Reuters noted that Fiat said on Monday it had widened alliances with partners in China and Russia to make trucks and engines in two of the fastest growing markets and also plans to form a joint venture in consumer financing with Credit Agricole.
“There will be other announcements,” Marchionne told the news agency. “The final details are being concluded.”
