![]() ![]() Observers said the Bravo's performance will be key in proving that the Grande Punto is not a one-off event but instead the beginning of a real recovery. Goldman Sachs analysts have said the car would be profitable if Fiat can sell 120,000 units in the first year. It's dubbed the Bravo and is expected early next year, most likely at the Geneva trade show. "This is crucial as, even with new products, Fiat will not be able to win market share without an enhanced network."įor Fiat's turnaround to be sustainable, however, the Stilo successor must also do well. "It creates renewed interest from professionals who want to become Fiat dealers," Exane BNP Paribas analysts told clients. It could also boost Fiat's distribution network. While the success of these new models is important in itself, it also has the knock-on effect of creating much stronger traffic in the group's showrooms, driving up sales of older models. Demand for the small Sedici SUV has been such that Fiat is negotiating for additional supply from its partner Suzuki to meet demand. Several other new cars have been strongly marketed. Fiat expects to sell 360,000 units this year.īut cautious not to repeat mistakes of the past, Fiat isn't relying on a single model to drive its turnaround. Launched in the fourth quarter of 2005, and revamped by renowned industrial designer Giorgetto Giugiaro, the model has been a spectacular success. With the Grande Punto, the third version of the economy-car line Fiat developed in 1994, the carmaker has hit top speed. In July the group sold more than 92,000 cars in Europe, a year-on-year increase of 7% and a jump in market share to 8% from 7.1%. It unveiled plans earlier this year to cut at least 20,000 jobs in Germany.įiat continues to defy that trend. Domestic rival Renault (013190) at the end of July reported a 36% drop in first-half profit and is in the midst of a serious cost-cutting effort under turnaround guru Carlos Ghosn.Įven Volkswagen (766400), Europe's largest carmaker, is grappling with slowing sales. operations continue to struggle.įrance's Peugeot (012150) is looking for a new pilot at a crucial time in its efforts to launch new models following Jean-Martin Folz's decision to step down in January. 15 slashed its earnings outlook for 2006 as its U.S. "When he arrived at Fiat, Marchionne found a disastrous situation, so his first industrial plan was very defensive," said Banca Akros' Gasparri.įiat's return to the black is all the more spectacular, coming as it has with car companies throughout Europe in the doldrums. As a result, Italians are slowly regaining confidence in a national icon. Standard & Poor's in August lifted its credit rating on the group by one notch. The share price has doubled in the past 12 months and outperformed the broader Italian market by 56% so far this year. Marchionne also gave new meaning to the Italian phrase "cleaning the piazza," or cleaning house, by laying off workers and managers and injecting new life into models that had grown dull. Further capital was added last year by the conversion into shares of 3 billion euros ($3.76 billion) lent by a consortium of Italian banks. To pay it $1.55 billion to exit contracts. His first major success was convincing General Motors ![]() ![]() Sergio Marchionne, known as an aggressive executive and turnaround expert, took drastic action to salvage the company, which was on the verge of bankruptcy. It was only with the appointment of a new chief executive in June 2004 that the fortunes of the Turin-based manufacturer began to turn. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |