Fiat to VW: We Won’t Sell You Alfa Romeo

Fiat SpA CEO Sergio Marchionne tells Volkswagen AG Chairman Ferdinand Piech who has frequently expressed an interest in buying Fiat's Alfa Romeo brand to "drop it."

Marchionne reiterates in a speech in Turin that Alfa is not for sale.

VW, which added Porsche as its 12th brand on Aug. 1, has said it doesn't plan to acquire more marques. But CEO Martin Winterkorn revived speculation late last month by saying he still finds Alfa attractive.

Separately, Marchionne 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.

Fiat is standing by its financial targets for 2012. Stronger demand for its namesake brand in Brazil and affiliate Chrysler Group's vehicles in the U.S. is offsetting plunging sales in Europe, according to Marchionne.

The company confirms it expects full-year earnings after interest, taxes and one-time items of €3.8 billion-€4.5 billion, including a €700 million loss in Europe.

Fiat 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.