|
||||||||
  |
||||||||
|
||||||||
|
||||||||
|
||||||||
|
||||||||
|
|
|||||||||||||||||||||||||||||||||||||||||||||
Fiat market crumbles to low
MILAN, Italy -- Loss-making carmaker Fiat saw its sales in Italy slump for the ninth straight month to record lows in September while car sales for all manufacturers rose. Sales of its Alfa Romeo, Fiat and Lanica models fell 7.5 percent in September to 47,460 vehicles. Fiat's market share slipped to 28.73 percent, down from 32.12 percent a year earlier, data released by Italy's Transport Ministry on Thursday showed. But overall, car sales registered their first gain this year, rising 3.2 percent. Fiat's sales declined even though Prime Minister Silvio Berlusconi's government introduced tax breaks for less-polluting cars in June to help the industry. Fiat has already cut 3,000 job and signalled deeper cost reductions to deal with difficult market conditions. "It is a signal that Fiat is still having difficulties and that the incentives appear to be favouring other brands,'' Pietro Gasparri, auto analyst at Banca Akros in Milan, told Reuters. Fiat Auto, the industrial group's car arm, has said it will focus on higher value sales and avoid offering discounts. "It's disappointing that Fiat couldn't post, let's say, stable sales. Part of the reason is that the company isn't aggressively selling to the rental fleets,'' Nicholas Potter, analyst at Theodoor Gilissen Securities, told Reuters. Fiat Auto Chief Executive Giancarlo Boschetti has said the company would spend 2.4 billion euros to 2.5 billion euros annually to develop new cars. The company had hoped the new Stilo would boost sales but it has failed to galvanise European consumers. Fiat Auto, which posted an operating loss of 823 million euros in the first half, plans to return to profit in 2004. Boschetti said earlier this month the company was struggling because it was producing 20 to 30 percent more cars than was needed. The company's main union said last month that Fiat could cut up to 6,000 more jobs in Italy as it battles slow sales and high debts. Fiat sold a stake in its Ferrari sport car business and is selling other assets. Fiat's stock, which has fallen about 45 percent this year, slid 1 percent to 9.85 euros in mid-morning Milan trading on Thursday.
|
|
|||||||||||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||||
