Wednesday, July 22, 2009
'Difficult trading' blow for Fiat
Italian carmaker Fiat has said "an extremely difficult trading environment " contributed to a 179m euros ($254m; £155m) second-quarter loss.
The Turin-based firm said the loss was mainly due to a steep decline in sales from the same period last year.
But the firm, which has a 20% stake in US carmaker Chrysler, said the rest of the year should show an improvement.
Fiat sells cars under the Fiat, Lancia and the Alfa Romeo brands, and trucks, farm and construction equipment
'Depressed demand'
"Major strategic developments during the quarter include finalisation of the alliance with Chrysler and the signing of a framework agreement to form a 50/50 joint venture with GAC in China," it said.
Europe's sixth-largest car maker by sales also confirmed its targets for a 2009 trading profit over 1bn euros and end of year net debt below 5 billion.
It warned that the "the truck market and the construction equipment business will continue to suffer depressed demand", only seeing signs of recovery in the fourth quarter.
In June Fiat and Chrysler completed the strategic alliance to put Chrysler's good assets into a new firm controlled by Fiat chief executive Sergio Marchionne.
Fiat did not pay any money for its 20% of the new firm but is contributing technology to make smaller Chryslers.
DATED: 22.07.09
FEED: AW
