NEW YORK - When acquiring Chrysler, Fiat analysts assess the move will backfire. Because Chrysler has three times the owner change in a few short years!European crisis began to reap the victims in the automotive industry. One company that immediately feel the result is an Italian Fiat. Because of the crisis, Fiat defer launches investment and the latest models in the near future.
Chief Executive Officer of Fiat, Sergio Marchionne said the company had to wait until conditions get better. "The uncertainty of the future of European economic slow process that must be run Fiat, namely investment and expansion in Europe," Marchionne quoted from Autonews (6 / 12).
Marchionne is also pessimistic about the European Union (EU) may increase the exchange rate of euro this week. "There are 50 more chances. Within one to two months ahead, we will see the euro have to struggle to restore its credibility," he continued.
This week is a very important moment for the European economy. France and Germany are trying to change the budget to boost market confidence and avoid a debt crisis became more severe.
Fiat with five plants in Italy assessed continues to lose money. To offset the deteriorating European economy, positive income diverted by relying on Chrysler. Meanwhile, Chrysler also has the burden of debt 7 billion U.S. dollars to repay government bailout funds from the U.S. and Canada due to bankruptcy in 2008.
