Automobile sector will receive a severe blow if Euro falls, says Fiat-Chrysler CEO Sergio Marchionne – Part 1

The Euro debt crisis has affected almost every industry in the region and automobile sector is no exception. Car sales are decreasing by the day, but the central government is living through miseries of its own. Fiat, being biggest company at stake is making all the sounds for help through these tough times.

Fiat and Chrysler CEO Sergio Marchionne has bluntly expressed his feelings on the matter. The infamous automotive industry veteran has been complaining about the fiscal policies, continent-wide, at least for the last six months and no one seems to have paid heed to it.

Machionne, in press conference expressly said that national governments and the central bank has to probe in now to help the auto industry. If a single thing goes wrong and Euro ends up facing the consequences, car sales will plunge and a turn back would be hard find.

The CEO said the expected car sales in Europe for 2012 were calculated to be around 13 million this year. However, if things do not get better, it is expected that the figures will fall to less than 10 million, which is a big dip in the annual sales.

Machionne urged the central government to interfere more openly in the matters of automobile industry and help the companies to lay extra labour off and close unprofitable factories and units.

Although it seems intuitive of a CEO to lay out an audacious plan like this where the lower- and lower-middle class faces repercussions of the misdoings of the corporate world. However, in Marchionne’s case, particularly, it can be safely said that everyone had this coming.

Though Marchionne has been known in the corporate world for his abilities and skills to bring companies back to prosperity, he also has a reputation for making such comments. But his spokesperson Gualberto Rainieri paints it in another way.

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Posted by Usman Khalid on Jun 13 2012. Filed under Automobiles. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.