Fiat chief executive Sergio Marchionne on Thursday outlined ambitious four-year goals that, by the end of 2010, will see the launch of 23 new vehicles and a sales boost from 2m vehicles to 2.8m a year, for an 11% market share in Western Europe, up from the current 7.6%.
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According to the Associated Press (AP), Marchionne said he was inspired by Toyota.
“Toyota is a marvel. Every time I look at them, we’re impressed. We need to find a way to shorten the gap between us and them as quickly as possible,” Marchionne reportedly told analysts at the presentation of the 2007-2010 business plan, adding: “There is nothing in the system that I know of that would prevent a European from achieving the margins of a Japanese company if the business is run in the same manner.”
Marchionne also said he was stepping down as head of the auto division but later assured analysts he was staying on as head of the overall group, noting that his stock option package was partly tied to his remaining on board, AP said. His successor at the auto unit would be chosen from inside the company.
New models for launch in the period include the already announced Bravo sedan, due out in January, and the re-launch of the iconic Fiat 500 in September, but AP noted that the presentation also included models not previously announced, including a Fiat-brand crossover vehicle aimed at families from 2009.
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By GlobalDataMarchionne reportedly said Fiat could meet the new manufacturing targets with factories on line, but unions will have to agree to increase the weekly number of shifts. He told the Associated Press he discussed a plan to increase efficiency on the plant floor with union leaders on the sidelines of Thursday’s analyst conference and got a “sympathetic” response.
According to the report, Marchionne said the crisis period is over now that Fiat has recorded four straight quarters of earnings, beginning in the last quarter of 2005, ending a four-year string of losses.
He reportedly projected group revenues of EUR67bn ($US85.5bn) and a trading profit of EUR5bn ($6.4bn) – or five times the 2005 trading profit.
Marchionne said sales of Fiat-branded vehicles alone are expected to grow to 1.94m in 2010 from about 1.41m this year. That does not include Lancia or other brands produced by Fiat, AP noted.
Strong demand has prompted Marchionne to raise the earnings outlook for this year at the core auto unit, which generates 80% of Fiat’s bottom line, the report said.
Marchionne reportedly said Fiat now expects a trading profit of EUR275m ($351m) for 2006, up from the EUR250m it said it expected as recently as last month.
