Fiat drops sales forecast by 500,000 for 2012

Fiat's sales target for 2012 has been downgraded from 2.7 million global units (set in 2010) to 2.2 million, partly due to the sovereign debt crisis in Europe. Fiat-owned Chrysler is still chasing an unchanged target of 2.4 million units.
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Fiat-Chrysler CEO Sergio Marchionne has confirmed a combined target of 5.9 million sales for 2014. To reach this, the company will have to grow by 14 per cent in 2013 and 12 per cent in 2014. Richard Hilgert, automotive analyst at Morningstar US said in a recent Automotive News report,

"Despite the probable downturn in Western European 2012 new vehicle demand, especially Italy, I think the company is expecting to benefit from the market onslaught it plans to unleash over the next three years with 35 new or significantly redesigned models, the bulk of which should come in 2013."

Fiat said the target of 2.7 million sales for 2012 was based on higher volume projections for the Italian market and western Europe. Overall passenger vehicle sales in Europe are also predicted to drop between two and 6.5 per cent next year due to financial instability.

Sales in Fiat's most popular market, Italy, will drop to their lowest levels in 15 years, by over 10 per cent to 1.75 million units. It will also be well short of Fiat's original target of two million Italian sales for 2011.

Conversely, Australian year-to-date sales have increased from 1236 to 1394, from 2010 to 2011. The company's most popular model last month was the Abarth 500.