Rome Fiat SpA, the Italian carmaker which controls Chrysler Group LLC, is cutting investments in Europe by ₤500 million ($632 million) on expectations that the region’s auto market won’t recover in the second half.
Fiat, which owns 58.5 per cent in Chrysler, has stopped additional investments and postponed the introduction of new models in Europe. Marchionne, who also runs Chrysler, plans to eventually merge Fiat and the American carmaker in a bid to increase sales to more than ₤100 billion by 2014 and reduce the Italian manufacturer’s reliance on Europe.
