Fiat Reports Record Quarterly Profits
By Brendan Moore
Fiat has reported the highest quarterly profit ever in the company’s history at €946 million. That also represents a 44% increase in profit over the same quarter in 2006. More good news for Fiat: Overall revenues are up 12% at €15.2 billion.
In continuing its breathtaking comeback from the brink of death only a few years ago, Fiat can hardly do any wrong anywhere with any model. Fiat sold 578,700 cars on the global stage last quarter, and additionally, now holds 8.2% of the all-important Western Europe market. That percentage for Western Europe is expected to jump considerably as their new Fiat 500 model is shipped to dealers in Europe. Fiat has received over 58,000 orders for the Fiat 500, which was launched a mere three weeks ago. The new 500 is forecast to be a huge seller for Fiat; excellent reviews in the European press, iconic looks, and the steadily rising price of fuel are combining to create a bit of frenzy for the car so far.
But Fiat is hardly a one-trick pony. As stated above, everything they do seems to come up aces lately, with the Bravo, the Grande Punto, and the Panda all posting healthy sales numbers, the commercial vehicles chiming in with good increases in that unit, and Alfa Romeo, Lancia, and Maserati all showing gaudy sale figure increases individually. In fact, Maserati made a profit for the first time in seventeen years (see Black Ink for Maserati After 17 Years – 07.24.07), which is kind of like getting Christmas in July. Lastly, Fiat has expanded geographically in the last few years, with more sales now in South America, Turkey, Russia, China, and India, etc. and that expansion has been quite positive for Fiat so far.
Even with all this good news, Fiat has several more tricks up its corporate sleeve, with several micro-cars planned to launch in the next five years. This can only help Fiat, as small cars are something they do exceptionally well, the price of fuel will probably keep going up everywhere, and regardless of fuel prices, small cars always do well in developing markets.
Now, if we could just have the opportunity to buy a Fiat in the States.
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