Fiat expects to book a net profit of more than €700 million ($US853 million) in 2006 and €1.6 billion to 2.0 billion in 2007, leaving behind its worst ever crisis, chief executive Sergio Marchionne reportedly said on Thursday.
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Reuters noted that, last year, Fiat made a net loss of €1.55, clambering back from a record loss of 3.95 billion in 2002.
In a speech to shareholders, Marchionne reportedly confirmed Fiat’s 2005 targets.
Reuters said the tractor-to-publishing group aims to book a net profit this year – but only thanks to a €1.55 billion split-up settlement from former partner General Motors.
Its core car arm, Fiat Auto, is due to post a trading loss of €320 million before pulling back into the black next year, with an operating profit worth 2 to 4% of sales foreseen in 2007, the report added.
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By GlobalDataReuters said Fiat is hoping that hefty cost cuts and the launch of new models will help pull it back into profit – much of the recovery will depend on how consumers receive the new Punto, Fiat’s best-selling model, which is due out in September.
