MILAN, July 3 (Reuters) – Fiat-Chrysler Chief
Executive Sergio Marchionne reiterated on Tuesday that
Chrysler’s operating profit in 2012 could exceed its $3 billion
target, commenting on June numbers released earlier in the day.
“Chrysler sold 1.23 million cars in the first half, which is
over half of our target,” Marchionne said at a press conference.
“The objective of $3 billion is close at hand. We could
overshoot it.”
Chrysler said earlier on Tuesday its June sales rose 20
percent year on year.
If Chrysler decides it wants to make more than 2.8 million
cars in the United States, it will need to seek more production
capacity, he said, without specifying where. Fiat’s plan is to
use the excess capacity in its five Italian plants to build cars
to export to the U.S. market.
If Fiat is unable to guarantee the necessary labour
flexibility in its Italian plants to satisfy export demand, it
will consider closing an Italian plant, he said.
Fiat moved to increase its hold on Chrysler earlier on
Tuesday, announcing it exercised an option to buy around 3.3
percent more of U.S. peer Chrysler from the VEBA trust fund,
boosting its stake to 61.8 percent.
Fiat holds options to purchase up to 40 percent of the
portion of Chrysler owned by union healthcare trust VEBA, or the
Voluntary Employees Beneficiary Association. Fiat can purchase
up to 3.32 percent at a time in any six-month period until June
30, 2016.
Asked about the timing of buying up the rest of Chrysler to
gain total ownership, Marchionne said he “sees no reason” not to
continue gradually buying up the stake up to 2016, as stipulated
with VEBA.
He also added, however, that waiting until 2016 may be “a
bit too long,” and that the acquisition of the remaining stake
could be purchased with cash.
