Fiat CEO says global economy already in recovery

[SVT666]

Fiat CEO says global economy already in recovery


Three months ago Fiat Chief Executive Officer Sergio Marchionne predicted only six global automakers would survive the current economic downturn, but the Italian executive is now touting a much rosier outlook. According to Marchionne, the global economy has already begun its path to recovery.

Speaking with Automotive News, Marchionne revealed he believes the economic recovery has already begun. ?The recovery process has started,? he said. ?The worst of the global financial crisis is over, but the consequences remain.?

Marchionne went on to predict the U.S. economy will see an uptick by the second half of the year, with European markets following towards the end of the year. According to Marchionne, Asian markets should begin to recover during the latter half of the year.

Although we sincerely hope Marchionne is correct, his predictions seem a bit too optimistic. New car sales are still hovering around record lows, with the real possibility of General Motors and Fiat-partner Chrysler facing Chapter 11 bankruptcy. However, Marchionne says he gained his inside knowledge of the situation through high-level meetings in Washington, so maybe he just knows something we don?t.

[dazzleman]

We could be in the early stages of a recovery.  Early recovery is often only recognized in retrospect, because it feels a lot like recession.  There is a time lag at both turns in the economic cycle between the time things turn, and when most people really start to recognize it.

Having said that, I am not that optimistic about a lasting recovery at this point.  There are so many unresolved problems that we haven't worked through yet, and for the typical consumer, debt levels remain very high, and need to be brought down, a situation that doesn't augur well for a large burst of spending that would fuel recovery.  I think the recovery from this recession will be slow and long, and there will be some reverses along the way.

[Byteme]

Fiat CEO says global economy already in recovery

March auto sales faring no better
Car sales are down about 40% so far this month, according to J.D. Power and Associates.
     
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See all CNNMoney.com RSS FEEDS (close) By Peter Valdes-Dapena, CNNMoney.com senior writer
Last Updated: March 26, 2009: 10:14 AM ET




NEW YORK (CNNMoney.com) -- Auto sales in the first two weeks of March were down 40% compared to the same period last year, according to industry analysts at J.D. Power and Associates.

Over the entire month, car dealers are expected to sell 633,000 cars and trucks to retail customers. That's compared to 10.7 million retail sales in March 2008. Including fleet sales, J.D. Power expects a total 798,000 new vehicle sales in March. That would translate to annual sales for the year of about 9.2 million new cars and trucks. In 2008 automakers sold a total of 13.2 million vehicles despite a sharp falloff in sales during in the last few months of the year.


J.D. Power analysts don't expect the market to stay quite this bad, however.

"We're still seeing economic headwinds and reduced consumer demand for new vehicles, making it a tough marketplace,"said Gary Dilts, senior vice president of global automotive operations at J.D. Power and Associates. "However, we anticipate that improvements on Wall Street and a boost in consumer confidence will help to bring the market back.

In February, sales were down 41% compared to the previous year, with the worst declines seen among U.S.-based automakers Ford (F, Fortune 500), General Motors (GM, Fortune 500) and Chrysler.