Cutting the rating FIAT
March 13th, 2010
Continues even today the title Fiat sales on the day after the downgrade by Moody's has cut its rating from Baa3 to Ba1 long-term licenses. The title at the Milan Stock Exchange, lost 5.6% at its meeting on Monday as he left yesterday on the ground another -3.94% closing at 3.4075 euros. E 'was provided by Moody's that in the first quarter 2009 demand for cars and commercial vehicles, Fiat will decrease by about 20% but this cut is also due to the fact that the cash flow in 2008 was largely negative and this has brought strong financial flexibility of 'Turin-based company. Today, Fiat has also announced layoffs in the programs of Termini Imerese plant in Sicily, where about 1,400 employees are employed
for the production of the Lancia Ypsilon, which provides for the cessation of production from 27 March for three weeks. This shows that the use of scrapping incentives are not enough, it would take more decisive action by the government to sustain the recovery and employment.
CEO Sergio Marchionne has set 2009 as a "difficult year, the most difficult I have ever seen in my entire life ...." And announced the postponement in better times the launch of new models of cars: surely the new Fiat 500 Cabrio will be sold by April 2009, but for other models (eg Alfa Romeo 149), the company is considering to wait for better times
Tags: economy., rating, stock exchange