Fiat CEO Sergio Marchionne discussed forthcoming prospects for the Fiat Group during a ceremony in Geneva held on Monday, when he was conferred with the title of President of SGS (Société Générale de Surveillance) the global certification company that he was CEO of until June 2004. Italian newspaper Il Giornale reported his comments in detail yesterday.

After the bond issue earlier this year was well oversubscribed, Marchionne confirmed that Fiat would be making a second foray into this market area later on this year. "Yes, but I do not know when," he told the reporters present. He also said that Fiat would retain its 'strategic' shareholding in RCS MediaGroup (10.3 pct) and in Mediobanca (1.8 pct). Marchionne confirmed that significant progress in talks to determine the parameters of unemployment compensation packages, mostly focused on the Mirafiori plant, were coming to a satisfactory conclusion. "The agreement with the authorities on unemployment compensation gives us a little breath until to the end of the year. An agreement with Ulivo does not exist. We continue to work in order to find a possible solution."

The first two months of the year had been "encouraging" financially for Fiat Auto, and the first 20 days of March had continued this tend, Marchionne stated in response to questions about Fiat's likely first quarter performance. "The first two months have given encouraging results. We go forward with the objectives we have set for 2006," he said.

While reiterating that a new alliance was in the pipeline, Marchionne hinted that any number of their forthcoming automobile platforms could now be shared. "All our platforms are available for participation with others. We are now concentrating on the C-segment, important for the development of the replacement of the Alfa 147, the new Fiat Stilo and the medium-size future Lancia."
 

Marchionne also dismissed recent media speculation that he would soon be handing over the job of Fiat Auto Division CEO to an Auto Division senior manger. "For the moment not. The division must be still become more stabilized," he said.

In regard to Mediobanca's 11.7 pct stake in the Ferrari division which the Italian bank has made clear it wishes to divest itself of as soon as possible, Marchionne said: "I hope to arrive at a solution well before the end of June. We must find a way to please Mediobanca in part, and to conserve the right and the possibility of Fiat being able to continue to develop Ferrari. Within the group Ferrari is one of the biggest assets. He also added that similar progress was being made in talks to resolve the long-term future of Fiat's profitable finance arm, Fidis, which is presently half-owned by a consortium of banks.

Iveco will also be the focus of Marchionne's attention this month. "With (Paolo) Monferino (Iveco's CEO) I will leave at the weekend for China," he said. "We will form the basis of a 'Iveco 2' in China." This will involve putting into place the framework for new production systems for commercial vehicles and engines in conjunction with Iveco's Chinese industrial partner, SAIC.