Fiat S.p.A. CEO Sergio Marchionne has confirmed the automaker’s 2011 targets “for now,” seeking to dispel concerns about a weak European market, slowing U.S. economy and a share slump that has nearly halved the company’s market capitalization. Hit the jump to read the rest of the story.
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Marchionne said the stock’s under performance had nothing to do with the costs of refinancing the carmaker’s big debt, which has risen in tandem with growing yields on Italian government bonds, and ruled out a capital increase.

He also said the U.S. market was going well, but painted a bleak picture for European and Italian sales. Marchionne said Fiat’s domestic market is at its lowest since 1996.

“We won’t be reviewing 2011 targets until we close the third quarter. For now, we confirm the targets,” Marchionne told reporters in the Italian city of Rimini on Wednesday. “The stock going down has no link with the financing that we are getting.”

The carmaker, which owns 53.5 percent of Chrysler and has been one of Europe’s top turnaround stories in recent years, has come under market scrutiny for its exposure to the U.S. economy following a sell-off of Italian assets that began last month.

Fiat shares were the worst performer in the blue chip FTSE MIB index this month, before bouncing back this week.
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