Fiat SpA Chief Executive Officer Sergio Marchionne, who is trying to turn around Chrysler Group LLC after it came out of bankruptcy, said the restructuring of the U.S. automaker is showing “positive results.”
"In terms of the market share numbers coming out of the U.S., it's a slow, gradual process, a re-making exercise. You need to give it time," Marchionne said, speaking to reporters after an industrialists’ conference today in Parma, Italy. He said he is "more confident" than he was 12 months ago about Chrysler's prospects.
Sales of Chrysler Group vehicles in the U.S. fell 5.3 percent in the first quarter while industry deliveries rose 16 percent as Marchionne has slashed discounts to consumers, according to researcher Autodata Corp.
Marchionne, who is also CEO of the Auburn Hills, Michigan- based automaker, has said he is opposed to incentives to prop up market share at the expense of profits. He pared discounts for Chrysler, Dodge and Jeep brand vehicles by $1,122 in the first quarter, more than quadrupling General Motors Co.’s $230 cut and Ford Motor Co.'s $214 reduction, according to Woodcliff Lake, New Jersey-based Autodata.
Toyota Motor Corp., seeking to boost sales after recalling more than 8 million vehicles worldwide, and rival Honda Motor Co. offered no-interest loans and other discounts that cut transaction prices. The value of Toyota’s incentives rose 22 percent, while Honda’s rose 25 percent in the quarter.
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