Marchionne: Eurozone Breakup Could Shatter Auto Sales

A disintegration of the 17-country eurozone could send European car sales tumbling to less than 10 million units this year compared with 13.1 million units in 2011, warns Fiat-Chrysler CEO Sergio Marchionne. The region's sales have been expected to slide to about 13 million vehicles.

Fears that the eurozone might break up have spread as Greece considers dropping the euro as its currency rather than accept the draconian conditions of an EU bailout. European leaders have warned that the consequences of such a move could cripple the region's economy.

Marchionne, who also is president of European automaker group ACEA, tells reporters he isn't predicting a eurozone collapse. But he cautions that "someone had better do something before we get to the point of no return."

Despite those misgivings, Marchionne stands by Fiat's 2012 outlook for net profit of €1.2 billion-€1.5 billion ($1.5 billion-$1.9 billion). He notes that Chrysler's strong U.S. performance is offsetting weakness in Italy and the broader European market. Fiat Group sales across Europe fell 18% to 293,100 units in the January-April period. Marchionne says demand is now rebounding.

Separately, he confirms that Fiat intends to exercise its option to buy an additional 3.3% stake in Chrysler from the union-run retiree trust that owns 41.5% of the U.S. company. The purchase, which can be made after June 31, would bring Fiat's holding to 61.8%.