COLUMBUS, Ohio -- Sergio Marchionne, who heads Fiat and Chrysler Group, will revise two-year growth plans for both automakers later this month to reflect the slump in European auto sales.
To assume that Fiat's outlook for Europe is going to be confirmed "is nonsense because the market won't be there," Marchionne said. "We will be updating our forecasts for '13 and '14 as a consequence."
Marchionne faces pressure from politicians in Italy, including Prime Minister Mario Monti, after the Turin-based automaker backed off its initiative Fabbrica Italia. Under that plan, Fiat was to spend 20 billion euros ($26 billion) to boost production in Italy in exchange for labor concessions.
European car sales fell 8.5 percent in August for an 11th straight monthly decline and several auto executives said last month that a European rebound was unlikely within two years. That raised questions about Fiat's ability to meet targets laid out in its five-year growth plan that was announced in 2010. Marchionne outlined a separate five-year plan for Chrysler in late 2009.
Marchionne will outline his new 2013-2014 forecast for Fiat-Chrysler on Oct. 30, he told reporters here on Monday. "You will see an update of what we think will happen in 2013 and 2014," he said before delivering a speech on creative advertising at Ohio State University.