Italian carmaker Fiat on Tuesday posted a smaller profit in the third quarter of the year, as a positive performance by its US subsidiary Chrysler was offset by increasing losses on the European side of its business.
Fiat said its net quarterly profit was 286 million euros (370
million dollars), down from 358 million euros in the second quarter
of 2012. Excluding Chrysler, losses increased from 246 million euros
to 281 million euros.
From January to September 2012, net profit was 1.023 billion
euros, down from 1.386 billion euros a year earlier. Excluding
Chrysler there was an 800 million euro loss, compared to a
1.2-billion-euro profit in the first nine months of 2011.
Fiat said its share of the European market had fallen to 5.9 per
cent in the third quarter. It was around 8 per cent in 2009. The
company said this was "almost entirely attributable" to the shrinking
size of the Italian market, where Fiat sells the most cars.
Demand for cars in Italy "fell 23 per cent, marking the worst
third quarter performance since 1976," Fiat noted.
However, sales grew in Latin America and Asia, as well as in North
America, which "more than offset declines" in Europe, the company
said.
Official figures showed that Fiat now derives less than 20 per
cent of its revenues from selling cars to Europe, the Middle East and
Africa. By contrast, the North American market contributes over 50
per cent.
A day earlier, Chrysler said its third quarter profits had risen
to 381 million dollars, up from 212 million dollars in the second
quarter of 2012. Worldwide sales grew 12 per cent to 556,000 units.
Fiat Chief Executive Officer Sergio Marchionne was expected to
meet later Tuesday with trade unions to illustrate plans to deal with
falling European sales and avoid closing one of the company's five
Italian plants.
Most European carmakers have been hard hit by the eurozone crisis,
which has reduced demand for cars. Last week Ford's European division
said it would close a factory in Belgium and two in Britain, while
France's PSA Peugeot-Citroen was granted aid by the government.
Fiat's range includes cars with the Alfa-Romeo, Lancia and Abarth
brands, as well as Ferrari and Maserati luxury supercars. Chrysler
also sells cars under the Jeep, Dodge and Ram brands.
