Fiat Aims to Narrow Losses in Europe

taly's Fiat SpA expects to reduce its losses in Europe this year if the region's auto market revives in the second half and vehicle pricing improves, CEO Sergio Marchionne tells Bloomberg News.

Marchionne estimates the region's mass-market carmakers lost a combined €5 billion last year. He predicts a "day of reckoning" for automakers in Europe, saying, "No industry can continue with losses of that magnitude."

Marchionne also tells reporters at the Detroit auto show that the company's Alfa Romeo brand is not ready for the U.S. The marque has most recently planned to make its often-delayed return to the American market with the 4C two seater in mid-2013.

But Marchionne now says the brand will need a newer model. Alfa can't make its America debut with a "schlub product," he declares.