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FiatFiatItaly, 1899 > present is cutting its European investment for 2012 by about €500 million and continues to increase its stake in ChryslerChryslerUnited States of America, 1925 > present with the intention of eventually owning the entire company.
Fiat CEO Sergio Marchionne says that it has decided to cut the investment due to the market downturn in Europe. Part of the change is the decision not to introduce more Chrysler products into Europe. It is also reconsidering introducing the Fiat Grande PuntoFiat Grande Punto - Punto Evo Gen.3Italy, 2012 > present in early 2013 and looking for partners to work with in the future and to license platforms to.
Marchionne does not believe the EU governments will help automakers in dealing with overcapacity. Instead, each European automaker will have to take it upon itself to reduce capacity.
"We're definitely going to be at these lower sales levels for some time to come in Europe," said Marchione.
Instead of investing in Europe, Fiat plans to increase its investment in the US and in Chrysler. It currently owns 58.5% of Chrysler and has submitted a letter to purchase 61.8% of the company. Fiat's goal is to eventually own the entire company and merge it with Fiat by 2014. It wants to diversify and not rely so much on Europe for profits.
Source: Automotive News