Fiat faces constant losses in the European market
|   Friday, November 09, 2012
Fiat is constantly facing high losses in the European market while its cousin franchise, Chrysler is seeming considerable growth in the same segment. These results have been found by the financial reports released by the companies and so far in the current financial year, Fiat has made a profit of 1.7 Billion Pounds in America while losing 462 Million in the European market.

According to a basic estimate, Fiat claims that the company is losing 12 Million Pounds daily due to the cash strapped European market.
Fiat is currently working on new models in the 500 city car lineup and this is expected to boost sales if possible. Fiat hopes that the new launches will be able to stabilize the condition in the volatile European market and the final output remains to be seen.

Fiat lost close to 172 Million Pounds in Europe in the last segment of the previous financial year and this was compensated by the profit made in the Middle Eastern Countries. Russia is the only stable market at the moment and if things continue to proceed in this pace or the 500 models fail, Fiat will be in real deep water.

The Italian market has fallen by 20 percent and this is the lowest recorded since 1976. Fiat generated close to 159,000 vehicles and 44,000 light automobiles to the European market in the last recorded year and this resulted in huge losses for the company. For the first quarter of 2012, sales were down by 16 percent and this year does not hold any promise whatsoever.

The news from the Fiat Subsidiaries in the American countries was heartening though and the company has recorded better sales in that part of the world. The sale of Chrysler however went down by 21 percent and Dodge suffered 12 percent losses. Latin America is another potential market for Fiat and the company is being performing well in that part of the world.

The sales of Maserati and Ferrari have however increased and hence both the companies share a 5.4 percent profit individually. Ferrari has managed to increase sales by 16 percent while Maserati has seen a 14 percent increase in sales. However, these belong to the premium segment and as a result profit cannot be calculated through these sales alone if a company has to survive.

The SEMA show was also opened to select buyers and car lovers in Las Vegas this week and thousands of international and national buyers were in line to get the custom car of their choice. The show retained its title of being the world's largest custom car show in the world. The main idea behind the show is to educate buyers about aftermarket parts and make the parts accessible to the buyers.

Most manufacturers usually support the show and hence professional tuners work together with the engineers to design vehicles that are high on power and which have the ability to pump up adrenaline at every instance. The event is however not open to the public.
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