Thanks to General Motors’ E1.55 billion compensation payment, Fiat group will show a net profit this year, said CEO Sergio Marchionne.
Last year, Fiat group reduced its net loss to E1.55 billion from E2.04 billion in 2003.
A return to profit this year would be a year ahead of schedule.
Marchionne wants to shrink Fiat Auto’s operating loss from E840 million in 2004 to about E300 million this year.
That ambitious target surprised analysts because this year Fiat will introduce new Fiat Punto and Alfa Romeo 156 models, which will reduce production volumes.
Marchionne repeated his goal of achieving operational breakeven for Fiat Auto in 2006.