Fiat confirms 2008 targets

The chairman of Fiat SpA confirmed the Italian auto maker's 2008 targets and said next year's goals would be examined at a board meeting on October 23.

"We will talk about the (2009) numbers at an important board meeting on October 23," Fiat chairman Luca Cordero di Montezemolo said on the sidelines of an event.

"I can reiterate that we confirm the data and numbers for 2008 despite the crisis."

He said workers at Fiat plants were facing temporary halts in production because of lower demand and thus having to turn to government wage aid. Last week, Fiat chief executive officer Sergio Marchionne said he expected the European market to drop two per cent to five per cent next year.Mr Marchionne stuck to his this year's targets, although he preferred to wait until the end of the fourth quarter before commenting on those for next year.

Fiat's 2008 targets include trading profit of €3.4 billion to €3.6 billion, rising to a range of €4.3 billion to €4.5 billion next year.

"We adopt a recession-type scenario regarding European demand implying a 16 per cent decrease in new car sales in two years, 2008 and 2009," the brokerage said in a note.