Fiat and Chrysler boss Sergio Marchionne has targeted 2013 as the year Alfa Romeo will return to the United States alongside a host of new Chrysler products.
He told Reuters Insider television: “The big year for us, for a variety of reasons, is 2013,” adding that Chrysler will have an initial public stock offering in the same year as shareholder, the United Auto Workers union, seeks to cash out or reduce its holdings.
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Marchionne said he is “guardedly optimistic” that European leaders will make enough progress on the euro to bolster confidence in the currency’s future.
“In the next 30 to 60 days, we should see the euro reacquiring credibility, (and) support in the international financial markets to move forward.”
He admitted to the TV channel that Fiat’s home market Italy is in “the eye of the storm” but added that austerity measures introduced by new prime minister Mario Monti are positive steps.
Fiat is also waiting for more clarity on Europe’s currency crisis before pursuing further vehicle investment plans in the eurozone.
Marchionne said: “These uncertainties have slowed down some of the processes that Fiat normally would have executed much faster for investments and for expansion activities in the euro zone.”
Chrysler has become Fiat’s chief source of strength this year, comprising two-thirds of Fiat’s third-quarter profit after rebounding into the black after declaring bankruptcy two years ago.
Fiat, however, has been hampered by both the euro crisis and by rigid Italian labour laws that impede the sort of restructuring that has spurred Chrysler’s revival.
Marchionne said Chrysler’s performance should “exceed” Fiat’s this year, helped by strong US vehicle sales, which last month hit their best level in more than two years.
Chrysler’s US sales have jumped 25% this year, more than double the overall market’s 10.4% increase. Next year it plans to launch the compact Dodge Dart off a Fiat platform in North America.
But Marchionne said the most substantial portion of the product portfolio renewal will happen in 2013 with revamped Jeep models and the relaunch of the Alfa Romeo brand in the US to build on the re-entry of the Fiat brand this year with the 500 which has not so far sold as well as hoped.
Chrysler has sold less than 18,000 500s this year, short of the 50,000 sales target.
Marchionne told Reuters: “To be perfectly blunt, the launch was poorly executed because we launched too early. It would have been a better launch in January 2012 than in January 2011.”
