Fiat SpA finally posts a profit
Italian auto giants Fiat SpA have announced that for the first time in five years, they have posted a quarterly profit in the last couple of months in 2005. The company seems to have benefited from the efforts taken by Chief Executive Officer Sergio Marchionne who cut surplus jobs and drove the company back to profitability.
Fiat reported earnings of 38 million euros in the last quarter of last year. This is pretty amazing when compared to the losses of 550 million euros they made during the same period a year ago. The company also reported an improvement in sales by around 7.5 percent to touch 13.1 billion euros.
Overall, the company made operating profits of 21 million euros. However, their income was lower than what the market had expected. This led to the shares of the company taking a minor beating in the stock market.
Fiat seems to have gained from the efforts of Marchionne who laid off half of the Italian workforce. This helped the company save close to around 500 million euros. He was also responsible for the faster launch of their new version of the Punto hatchback in September.
The company also recently announced their plans to invest 10 billion euros in its auto unit and build 20 new car models over the next three years. This would further help them improve sales and profits in the coming years.
Fiat recently launched their latest vehicle Grande Punto in the market and has sold close to 100,000 units to date. This model alone accounts for nearly 20% of all automobile sales in the market. Fiat also recently announced a collaboration with Tata Motors of India, which should help them get back on track in the lucrative Indian market. Tata would now be selling Fiat cars from their showrooms and would get technical help in return.