Despite a general market slump, Fiat Chairman Luca Cordero di Montezemolo still believes the Italian automaker can meet its targets for 2008.
''I can confirm our targets and numbers for 2008 despite the world (credit) crisis which has severely hurt markets. As for our 2009 goals, our board will have to examine these when it holds an important meeting in Chicago on October 23,'' Montezemolo told the press on Thursday.
At that meeting, the Fiat chief added, ''we'll talk numbers and prospects for the coming year''.
After racking up a record year in 2007, in which it posted a trading profit of 3.2 billion euros, the highest ever, Fiat set as its targets for 2008 a net turnover of over 60 billon euros, a trading profit of between 3.4 to 3.6 billion euros and net profit in the neighborhood of 2.4-2.6 billion euros.
The goals also included leveling the group's indebtedness with a net cash surplus of at least 1.5 billion euros and buying back shares.
Fiat also aimed at expanding its market share in Italy and Europe and to maintain its top position in Brazil.
Turning his attention to Fiat's plans for temporary layoffs, Montezemolo said ''as (Fiat CEO Sergio) Marchionne has observed, we are unfortunately faced with a dramatic drop in demand. In order to adjust production to the drop in demand we have no alternative but to resort to temporary layoffs''.
Speaking at the Paris Automobile show earlier this month, Marchionne was cautiously optimistic that Fiat would hit its 2008 targets but admitted that the credit crunch could force the Italian automaker to lower its expectations for 2009.
For certain, the global credit crisis will probably force Fiat delay plans to buy back its own shares, Marchionne said.
''In a normal financial market Fiat would have bought back its shares at the speed of light, given their current value which is ridiculously low'', he observed.
''However, everything now must be put in the context of a global financial crisis. At times like these the utmost caution is necessary and even with the cash we have on hand, we must focus conserving and protecting,'' Marchionne added.
''I hope we won't have to downsize our goals for 2009. At present I can confirm them, they are not at risk, but we are going to have to wait and see what happens on international markets in the last quarter of 2008. We will need to assess the effect of this financial crisis and what its impact will be on the real economy,'' the Fiat CEO said.
