Fiat to Hit 2012 Financial Targets Thanks to Chrysler

Fiat SpA is standing by its financial targets for this year because of rising demand for affiliate Chrysler Group's vehicles in the U.S. and Fiat models in Brazil, according to CEO Sergio Marchionne.

The company expects full-year earnings after interest, taxes and one-time items of €3.8 billion-€4.5 billion ($4.9 billion-$5.8 billion), including a €700 million ($909 million) loss in Europe, where Fiat sales are plunging.

The company has scrapped plans to unveil its updated domestic investment program when it reports earnings on Oct. 30, according to news reports that cite unidentified sources.

In a speech in Turin, Marchionne also says he has been unable to find a partner for Fiat's underutilized assembly plants in Italy because "no one wants the burden." He has warned that the company might need to shutter two domestic factories unless their labor costs become competitive.

Marchionne also reiterates that Fiat won't sell its Alfa Romeo brand to Volkswagen AG. He tells Chairman Ferdinand Piech who has often expressed an interest in buying Alfa to "drop it."