Exclusive: Fiat likely to miss Brazil sales targets - sources

Wed Oct 23, 2013 1:16pm EDT
 
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By Jennifer Clark and Alberto Alerigi

MILAN/SAO PAOLO (Reuters) - Italian carmaker Fiat is likely to miss sales targets in Brazil this year and next, according to a person familiar with the matter and a document seen by Reuters, increasing the chance of a 2013 profit warning already predicted by some analysts.

Fiat FIA.MI now expects to sell 950,000 cars in Brazil and Argentina this year, according to the internal document, 5 percent short of its previous 1 million goal.

Brazilian sales are also likely to miss targets next year, according a person familiar with Fiat's projections, as the market grows more slowly than the carmaker had counted on.

"The figures are too optimistic for Brazil," the person said, while adding that Fiat's budgets for 2014 and beyond have not been finalized.

Fiat declined to comment.

Latin American sales have become increasingly important to Fiat as its European deliveries have fallen further than the region's six-year market slump.

It now sells almost as many cars in Brazil and Argentina as it does in its home region, including Russia and Turkey, where it expects to move about 1.1 million cars this year.

Revenue from Brazil, the world's fourth largest car market that Fiat has led for 12 consecutive years, makes up about a quarter of Fiat's trading profit, offsetting European losses.   Continued...

 
A Fiat logo is seen on a car during a press preview at the 2013 New York International Auto Show in New York, March 28, 2013. REUTERS/Mike Segar